Hargreaves sees profits boost

Coal miner Hargreaves Services posted an 18 per cent rise in pre-tax profit, bolstered by robust coke and coal sales in Europe and said it expects strong demand for high-grade coal from steel producers.

The firm, which owns Maltby Colliery in Rotherham, said it would pay a final dividend of 10.4 pence per share, bringing the full-year dividend to 15.5 pence a share, up about 15 per cent from last year.

The company, which was established in 1994 as a specialist bulk haulier, said it expected its Tower Colliery project in South Wales to contribute significant profits, after the planning permission for the project was finalised.

Hargreaves Services, which operates through four divisions - production, energy and commodities, transport, and industrial services - plans to focus mainly on Europe, Asia and the steel sector this year.

June-May underlying pretax profit rose to £40.5m from £34.3m last year. Revenue climbed 20 per cent to £552.3m.

The company’s shares, which have risen by more than 40 per cent over the past year, closed at 900 pence last night on the London Stock Exchange, valuing the business at £238.6m.