16 December 2013 – trading update
A positive trading statement from Hargreaves covering the six months to 30 November has confirmed that trading is in line with expectations and the group is well-placed for a good second half. The surface mining operations continue to perform well although the Monckton colliery continues to be exposed to the current volatility in the steel sector. The closure of Maltby is also on track as planned. The UK bulk coal operations are performing ahead of expectations, whilst the European operations have been successfully reorganised. The transport division has had a strong first half, trading ahead of expectations. Net debt of £95.6m at the end of November was in line with management expectations and with a solid second half in prospect we maintain our recommendation of BUY.