Hargreaves Services PLC Update on Redcar and Trading Update ahead of AGM (4524L)
03 October 2016 - 5:00PM
UK Regulatory
TIDMHSP
RNS Number : 4524L
Hargreaves Services PLC
03 October 2016
Hargreaves Services plc
("Hargreaves", "the Group" or "the Company")
Update on Redcar Steelworks Closure and Trading Update ahead of
AGM
Hargreaves Services plc (AIM: HSP), a group delivering key
projects and services in the infrastructure, energy and property
sectors, today provides an update, ahead of its AGM on 5 October
2016, on the Redcar steelworks closure activity and on current
trading.
Update on Redcar Steelworks Closure
The Group notes the recent press coverage concerning the
Tribunal claim by staff who were formerly employed by Hargreaves at
the Redcar steel plant. Management is disappointed by the findings
of the Tribunal's oral judgment delivered on 30 September 2016,
which could give rise to an additional potential liability of
GBP0.6m relating to the closure in October 2015 of the Redcar
operation. We await the Tribunal's fully reasoned written judgment.
The circumstances surrounding the demise of SSI, the owner and
operator of Redcar steelworks, gave rise to a highly complex and
fluid situation. It was against this challenging background that
Hargreaves sought to do its very best by its employees, acting in
accordance with legal and professional advice. We expect any cost
arising from the Tribunal's decision to be treated as an
exceptional item in line with all other historic costs associated
with the closure of the Redcar operation.
AGM Trading Update
At the AGM, to be held on Wednesday 5 October 2016, Hargreaves
Chairman David Morgan will make the following statement: "We are
pleased that the increasing interest from coal power stations noted
in the Preliminary Results Statement has now been translated into
contracts for the sale of the Group's surplus coal stocks.
Shipments of these coal stocks, totalling approximately GBP11m,
have already commenced and will continue through the winter in line
with expectations and without any impairment to book value.
"Trading across the rest of the Group for the year to date has
been in line with expectations. Although there are still risks
associated with the achievement of new business targets in the
Industrial Services division, encouraging progress in our Property
and Energy portfolio allow management to remain confident at this
time in achieving its overall performance target for the year
which, together with the realisation of legacy coal stocks referred
to above, provides a favourable background against which to
finalise our deliberations on returning surplus capital to
shareholders."
For further details:
Hargreaves Services
Gordon Banham, Chief Executive
Officer
Iain Cockburn, Finance
Director 0191 373 4485
Buchanan
Mark Court / Anna Michniewicz
/ Sophie Cowles 020 7466 5000
N+1 Singer (Nomad and
Joint Corporate Broker)
Sandy Fraser / Nick Owen 020 7496 3000
Investec (Joint Corporate
Broker)
Sara Hale / Rob Baker 020 7597 4000
This information is provided by RNS
The company news service from the London Stock Exchange
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