Industrial services group Hargreaves Services says it has seen a strong start to the year.
In a short update to investors ahead of its annual general meeting, the £177m turnover company said that all of its three business divisions were trading in line with expectations. And its services business - which includes bulk logistics and environmental land remediation - was singled out as having performed particularly well.
It said controls and favourable contracts had helped it navigate rising energy costs, as well as inflation more broadly. And its success in securing framework and term contracts with blue chip clients provided certainty in the face of current economic turmoil.
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In July, Hargreaves reported full year 2022 results in which it revealed pre-tax profits of £32.7m - the highest in seven years. At the time, CEO Gordon Banham said the plc had money in the bank and the means to "weather any storms that are potentially coming".
In this update, Hargreaves' chairman Roger McDowell said: "Hargreaves Land has completed another transaction at Blindwells. The sale of 4.5 acres to Ogilvie Homes generated revenue of £3.4m and continues to demonstrate the recurrent nature of regular transactions at this site. A further 20 acre plot is expected to exchange later this financial year and initial marketing of a new 7.9 acre plot is generating strong housebuilder interest.
"The first four months of the financial year has seen a strong trading performance within our German Joint Venture, HRMS. Uncertainty within German industrial markets and short visibility on trading means that it remains unclear how long current conditions will persist.
"The balance sheet remains strong, free from bank debt and third-party security. At September 30, 2022, cash balances stood at approximately £19m and leasing debt at £27m. The Board remains confident in delivering full year results in line with market expectations."
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