Improved trading from German JV
Further upgrades to expected profits from HRMS
Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the industrial and property sectors, announces further improvements to its expected trading results due to the continuing strong performance of its German Joint Venture, Hargreaves Raw Materials Services GmbH ("HRMS").
As noted in the statement released on 15 March 2022, commodity prices, specifically pig iron and zinc, are continuing to have a positive benefit on the results of HRMS and its subsidiary, DK Recycling und Roheisen GmbH ("DK"). The HRMS management team has indicated that they are confident that HRMS has sufficient visibility for the remainder of the current financial year to expect its contribution to Hargreaves' results to increase by approximately £5m after tax from prior consensus estimates. Additionally, the Board expects some benefit to fall into the first quarter of the year ending 31 May 2023 resulting in an increase of approximately £1.5m after tax against consensus estimates.
It remains difficult to predict how long these favourable market conditions will prevail and both the German management team and the Board remain cautious about the medium term sustainability of these conditions.
The remainder of the Group's businesses continue to trade in line with market expectations.
Commenting on HRMS' improved trading performance, Roger McDowell, the Chairman of Hargreaves, said: "Clearly current market conditions are extremely favourable and the Board is impressed with the way in which the HRMS team is successfully navigating the opportunities that the market is presenting."
For further details:
Hargreaves Services
Gordon Banham, Chief Executive Officer
John Samuel, Group Finance Director
www.hsgplc.co.uk
Tel: 0191 373 4485
Walbrook PR (Financial PR & IR)
Paul McManus / Lianne Applegarth / Louis Ashe-Jepson
Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com
Mob: 07980 541 893 / 07584 391 303 / 07747 515 393
Singer Capital Markets (Nomad and Joint Corporate Broker)
Sandy Fraser/ Justin McKeegan / Rachel Hayes
Tel: 020 7496 3000
Investec (Joint Corporate Broker)
Sara Hale / David Anderson / Shalin Bhamra
Tel: 020 7597 5970
About Hargreaves Services plc (www.hsgplc.co.uk)
Hargreaves Services plc is a diversified group delivering services to the industrial and property sectors, supporting key industries within the UK and South East Asia. The Company's three business segments are Services, Hargreaves Land and an investment in a German joint venture, Hargreaves Raw Materials Services GmbH ("HRMS"). Services provides critical support to many core industries including Energy, Environmental, UK Infrastructure and certain manufacturing industries through the provision of materials handling, mechanical and electrical contracting services, logistics and major earthworks. Hargreaves Land is focused on the sustainable development of brownfield sites for both residential and commercial purposes. HRMS trades in specialist commodity markets and owns DK Recycling, a specialist recycler of steel waste material. Hargreaves is headquartered in County Durham and has operational centres across the UK, as well as in Hong Kong and a joint venture in Duisburg, Germany.