Hargreaves' simplification enables sales and profits growth
Fuel supply and logistics firm Hargreaves Services said first-half trading had been "satisfactory" as it reported interim results in line with its expectations on Wednesday.
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AIM-listed Hargreaves revealed both revenue and underlying operating profits were expected to show year-on-year growth as a result of improved trading within its UK operations.
The distribution and industrial services outfit, which was emerging from a process of simplifying its business portfolio amid a drying-up of its traditional revenue sources, also confirmed that full-year results would likely be in line with expectations.
Hargreaves said it would record an exceptional chart of around £8m relating to the insolvency of Wolf Minerals and also noted that the sale of Brockwell Energy, which gave rise to a gain on disposal of approximately £4m, would be accounted for as the "disposal of a discontinued operation".
Net debt at the halfway point of the year was £28.6m, versus £30.8m at 31 May 2018.
"As expected, the group has experienced an increase in working capital in the first half of the year. Further sales of Legacy assets are expected to occur in the second half of the financial year," said Hargreaves.
As of 0940 GMT, Hargreaves shares were flat on 329p.