Hargreaves Services trading in line as it wins new business

The AIM-traded firm, which was holding its annual general meeting, said the Covid-19 pandemic had a “limited direct effect” on its business activities, with the main impact being the previously-reported delay in completion of infrastructure works at the Blindwells site near Edinburgh, due to the three month suspension of site-based activities in Scotland.

Chairman Roger McDowell said the company expected to be able to announce the completion of the sale of the first parcel of land there in the near future.

“I am pleased to announce that our industrial services business in Hong Kong has been appointed by CLP Power to two key contracts at Castle Peak and Black Point power stations,” McDowell said.

“The work encompasses the maintenance, repair and refurbishment of boilers, condensers and other critical components.

“The contracts are for three years with options for extension for up to two more years.”

Those contracts, together with the five-year NEC contract announced last year, provided the company’s Asian business with “strong” revenue visibility and a platform for growth, Hargreaves said.

“Additionally, our industrial services business in the UK has been appointed by Severn Trent Water to a three year mechanical services framework contract for the provision of maintenance, repair, removal and installation of both clean and wastewater assets,” McDowell said.

The framework had extension options for up to five additional years.

“This award indicates the growth and strength of this business in mechanical and electrical engineering services alongside its traditional materials handling capabilities.”

At 1058 GMT, shares in Hargreaves Services were up 1.47% at 207p.