Rail and energy work lifts Hargreaves Services

A County Durham industrials firm says it is primed to deliver a “strong set of results” thanks to key transport and energy projects.

Hargreaves Services has hailed the impact of flagship rail and nuclear contracts.

The Esh Winning-headquartered operator is supporting the HS2 rail link and the Sizewell C Nuclear Power Station, in Suffolk, through its Blackwell earthmoving division.

And bosses say the firm’s land division is also set to “realise value” from its “first tranche of renewable energy land assets”.

Gordon Banham, chief executive, said: “The board expects to report a strong set of results for the period with growth, in both revenue and profit before tax.

“(Our services division) continues to see steady growth in revenue, as the business focuses on growing its underlying contract base.

“Work continued on HS2 throughout the first six months, and the expectation is the project will continue for at least a further two years.

“The group has also expanded preparatory earthworks activities at Sizewell C Nuclear Power Station.

“The services business remains resilient, with good visibility supported by a solid portfolio of term and framework contracts with blue-chip customers within the UK infrastructure and energy sectors."

And Gordon – speaking in a pre-trading update ahead of results for the six months to November 30 – said the firm is well placed to surmount the Government’s national insurance hike.

He added: “The increase in employers' national insurance contributions is not expected to have any significant impact on the business due to the nature of many of the service contracts, which often include escalation factors or ‘cost-plus’ arrangements.”

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