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Durham miner reports record profits
HARGREAVES Services, the County Durham-based mining services business has reported record profits despite problems at its Maltby pit and falling coal prices.
In the year to May 31, the Esh Winning business increased revenues by 24.6 per cent to 688m, while pre-tax profit rose by 16.8 per cent to 43.1m. Underlying profit before tax for the year increased 17.3 per cent to 47.5m.
Hargreaves said its financial performance was not materially impacted by the events that took place at Maltby in May as the main impact will be felt in this financial year.
The company has budgeted for an 8m loss from Maltby in 2013. The business also raised the possibility of mothballing or even closing the mine if geological problems introduced dangers to workers.
"The group has had another successful year, with a strong performance resulting in record profits," said chairman Tim Ross.
"The developments at Maltby were unexpected and we are closely assessing the implications of those developments. However the overall progress we have made across all our divisions is encouraging and gives us confidence in further growth in the business going forward.
"I can report that the group is trading strongly. Based on early trading, setting Maltby aside, and despite a slow start to production at Tower, we are cautiously optimistic that we will meet or even exceed our overall budget for this financial year."