Hargreaves Services PLC on Wednesday touted a ‘strong’ outlook as it reported an annual fall in profit amid a loss on defined benefit pension schemes.

The Durham, England-based provider of specialist raw materials, land investments and environmental and industrial services said pretax profit in the financial year that ended on May 31 fell 16% to £27.2 million from £32.2 million a year before.

Revenue grew 19% to £211.5 million from £177.9 million.

Cost of sales increased 16% to £172.4 million from £148.5 million. Further, the company reported a loss in defined benefit pension schemes of £4.6 million, compared to a gain of £6.0 million a year before.

The company declared a final dividend of 6.0 pence per share, up 7.1% from 5.6p a year prior. This brings the total dividend for the financial year to 21.0p pence per share, up 2.9% from 20.4p.

Looking ahead, Acting Chair Nigel Halkes said that the outlook for the company’s operations for the coming year and beyond ‘is strong with over 60 term and framework contracts and 70% of revenue for the year already secured’.

He continued: ‘The group remains focused on its strategy to create, deliver and realise value for shareholders, and I look forward to executing on our value realisation plans in our renewable energy land asset portfolio in the medium term.’

Hargreaves Services shares were marginally up at 460.12 pence each in London on Wednesday afternoon.

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