Well placed: Hargreaves posted a 20.9% rise in pre-tax profits from continuing operations, and said it is better positioned than other operators to work through market volatility.
Shares in Hargreaves Services plunged yesterday despite the mining group posting a significant increase in pre-tax profits.
The firm, which employs around 500 staff in Scotland at sites including St Ninian’s and Muir Dean in Fife, announced a major review of its operations earlier this month.
There was little new detail about the streamlining plans yesterday as the firm released its preliminary results for the year to May 31.
These showed a 3.1% increase in revenues to £869.2 million and a 20.9% rise in pre-tax profits from continuing operations to £52.1m.
However, chairman Tim Ross conceded it had been a “challenging year” for the group, with more road bumps ahead.
He said: “Whilst there remain challenges ahead, particularly due to the uncertain economic climate and its knock-on effects on the major coal users in the power generation and steel sectors, we believe that the group’s resilience leaves it better positioned than any other coal operator to work through the current market volatility and support the sector in the long term.”
Shares in the firm closed the day down 7.9% or 55p at 645p.
