Hargreaves Services Plc Recommends Final Dividend for the Year Ended May 31, 2018, Payable on November 2, 2018; Announces Board Changes; Announces Preliminary Consolidated Earnings Results for the Year Ended May 31, 2018; Provides Earnings Guidance for the Fiscal Year 2019
Additionally, Peter Jones has informed the Board of his intention not to seek re-election at the Annual General Meeting to be held on 30 October 2018. The Board will commence a process to appoint a further non-executive Director shortly. As previously announced, David Morgan will be resigning from the Board immediately following these results and will be succeeded by Roger McDowell, who joined the Board on 11 May 2018. Roger McDowell becomes Chairman, effective 1 August 2018.
The company announced preliminary consolidated earnings results for the year ended 31 May 2018. For the full year, the company reported revenue was £297,119,000 against £342,706,000 a year ago. Operating loss was £1,376,000 against operating profit of £1,351,000 a year ago. Profit before tax was £488,000 against £4,746,000 a year ago. Profit for the year from continuing operations was £1,181,000 against £5,315,000 a year ago. Profit for the year was £181,000 against £4,782,000 a year ago. Profit attributable to equity holders of the company was £229,000 against £5,138,000 a year ago. Diluted earnings per share were 0.71 pence against 15.93 pence a year ago. Diluted underlying earnings per from share continuing operations of 14.79 pence against 19.53 pence a year ago. Net cash inflow from operating activities was £16,835,000 against £33,484,000 a year ago. Acquisition of property, plant and equipment was £20,758,000 against £15,782,000 a year ago. Net debt £30.8 million as on May 31, 2018 against £15.7 million a year ago. Net assets per share was 424 pence against 432 pence a year ago. Underlying operating profit from continuing operations for the year was lower than the comparative period at £9.4 million against £11.0 million in 2017. The reduction is attributable to Distribution & Services which recorded underlying operating profit of £12.9 million against £13.7 million on 2017.
The group enters the 2019 financial year in a healthy financial position with further surplus asset realisation plans well advanced. The group has impetus and ambition to grow its businesses in those sectors where it has a strong market position. The Board looks forward to an improving financial performance from the Group both in terms of cash generation and underlying operating profits and margins.