LONDON (dpa-AFX) - Hargreaves Services plc announced the sale of its entire inventory of speciality coal to its German Joint Venture, HRMS. Hargreaves has sold all of the speciality coal held at its two UK stockholding sites to HRMS for a cash consideration of approximately 24 million pounds. The Group expects to have no material coal inventory by 31 May 2021, the end of the current financial year.
Hargreaves noted that the transaction results in a 3 million pounds impairment to goodwill relating to the Group's coal trading business. The cessation of coal trading will reduce the Group's projected revenue by 25 million pounds and 30 million pounds in the years ending 31 May 2021 and 2022 respectively and by 20 million pounds for subsequent years. The Group anticipates the impact on underlying PBT is expected to be neutral.
Following the receipt of the proceeds of the transaction, Hargreaves expects net debt at 31 May 2021 to be 15 million pounds lower than its previous expectations.
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