Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Hargreaves Services warned profits could come under pressure if British Steel ceased trading.
Hargreaves supplies - supplier of materials handling and other services to British Steel's operations - said until the future of British Steel was clarified, the potential impact on the company cannot be fully determined.
But it estimated that the group had a current net exposure of approximately £4.5m to British Steel, some or all of which may prove to be irrecoverable were British Steel to be unable to continue trading.
Redundancy and other associated employment costs may result in a further non-recurring charge of up to £3.0m against group profits, the company said.Potential asset write downs and leasing obligations amount to an additional £1.5m, resulting in a possible total exceptional charge of £9.0m.
'Additionally, if British Steel ceases to trade, this could reduce the Group's revenue in the next financial year by approximately £11m and its profit before tax by about £1.3m,' the company said.
At 10:02am: (LON:HSP) Hargreaves Services PLC share price was -31p at 263p