Hargreaves Services profits lift as it weathers revenue dip after ditching coal
Hargreaves Services has weathered a revenue dip after ditching its coal trading activities last year – which has been slightly offset by its profit before tax growth.
The firm, which works across industrial and property sectors, said the jump in profit before tax has been secured by each of its three business divisions.
The board has also forecast strong interim results, with all segments of the business trade in line with its expectations, Hargreaves said in its latest trading update today.
Despite the slip in revenue, the disposal of its coal trading has helped the firm whittle away its net debt over the past year.
The firm has shrunk its net debt from more than £20m by the end of November last year, to just £3m by November 2021.
Though Hargreaves’ cash balances have decreased since May earlier this year, due to a short term loan of £15m, which the division loaned to the group’s German joint venture Hargreaves Raw Materials Services (HRMS).
HRMS had asked for the loan in a bid to take advantage of current market conditions, which has seen the prices for raw materials surge globally amid the pandemic.