Hargreaves Services PLC Update on Redcar and Trading Update ahead of AGM (4524L)

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

END

MSCUGGPWUUPQPGP

(END) Dow Jones Newswires

October 03, 2016 02:00 ET (06:00 GMT)