Hargreaves Services profits fall

Hargreaves Services posts a continuing operating profit of £0.1m for the six months to the end of November - down from £4.9m last time.

Continuing revenues for the group fell by 2.2% to £170.9m.

Underlying operating profit fell by 48.8% to £2.1m and underlying pre-tax profits were 71.9% down at £0.9m.

The interim dividend of 2.7p per share is up from 1.7p a year ago.

Hargreaves Services - a diversified group delivering key projects and services to the infrastructure, energy and property sectors - said overall performance in the first half was in line with management expectations and there were strong prospects in Germany which were expected to drive outperformance in the second half as announced in December.

Chairman David Morgan said: "It is pleasing to see how much progress we have made towards the three strategic goals we set ourselves a year ago.

"First, earnings from the continuing Distribution & Services operations are well set to deliver operating profit within the target range that we set.

"Second, good progress is being made in creating and then delivering the targeted £35m-£50m uplift in value from our Property & Energy portfolio.

"Lastly, it is very gratifying to see the progress that has been made in the realisation of cash from the legacy assets and the increasing confidence that this realisation will be achieved without the need for any net impairment of the book value."