Business
Notes the Sale of Hatfield Colliery
Notes the Sale of Hatfield Colliery.
About this update from Hargreaves Services Plc
[{"type":"text","content":"\n \nRNS Number : 1047V Hargreaves Services PLC 10 December 2013 \n \n\n\n\n\n\nFor immediate release\n\n\n10 December 2013\n\n\n\n\n \n \nHARGREAVES SERVICES PLC\n(\"Hargreaves\" or the \"Group\")\n \nNotes the Sale of Hatfield Colliery \n \nHargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuels and bulk material logistics, notes the sale of the business and assets of Hatfield Colliery Limited to Hatfield Colliery Partnership Limited (\"HCPL\"), a company ultimately owned and controlled by an Employee Benefit Trust. This transaction sees the ultimate equity ownership of the mine transfer from ING Bank to a Trust run for the benefit of the employees. \n \nHargreaves has assisted in the restructure by, among other things, entering into a new contract with HCPL on substantially the same terms as the existing off-take contract, which had approximately one year left to run. Hargreaves has also entered into a further off-take contract that extends into the second half of 2015.\n \nAlthough Hargreaves will continue to provide whatever support and assistance it can to HCPL, the mine management contract has been terminated by Hargreaves and no such contract will be put in place with HCPL. Any future services, equipment or consumables provided by Hargreaves will be carried out on an arm's length commercial basis. Hargreaves has already taken steps to reduce its cost base or re-deploy resources accordingly. The impact of terminating the management contract on the current and future financial years is not likely to be material.\n \nHargreaves has also granted a short term option to HCPL to acquire an extra set of face equipment from Maltby Colliery Limited (\"MCL\"). All remaining assets and trading balances are carried at book values that do not exceed their net realisable value and therefore Hargreaves does not expect to write off any balances following the restructure. \n \nGordon Banham, CEO of Hargreaves, commented: \"It has been a very challenging period for Hatfield with the combination of the landslip and recent geological problems. Hatfield remains a major employer in the Doncaster area with over 400 direct employees. Significant efforts and progress have been made by all the stakeholders and employees at Hatfield to improve the efficiency of the operation. ...