Industrial and property sector company Hargreaves Services plans to stop coal mining by July in accordance with its long-term strategic plan.
The Durham-based company will incur an exceptional cost of £3.7million in the year ended 31 May 2020, including employment related liabilities of £1m and accelerated restoration accrual, plant and mining asset depreciation of £2.7m.
Net debt at 31 May 2020 was £27.3m, including £13.7m of leasing debt, compared with £40.3m at 30 November 2019 and £23.1m as at 31 May 2019. The figures include the impact of IFRS 16.
The group is discussing the renewal of its £50m borrowing facility which is due to expire on 31 August 2020 but the company’s board was “confident that appropriate facilities will be secured.”
Hargreaves dates back 150 years and is one of the largest remaining coal operators in the UK focusing mainly on Scotland.
It owns and operates British surface mines, providing a range of solid fuels and raw materials, and it exports deep mining expertise and consultancy.
The company also imports a range of solid fuels for customers in the UK and Europe.