Revenues within Hargreaves Services’ distribution and services business have fallen by more than a quarter due to delays in the HS2 project.

In its annual report for the year ending 31 May 2020, the group said Covid-19 had not caused any material impact to the company, other than some transaction delays within its land business.

However, it said that a 26.5% decrease in revenue to £216m in the part of the group that contains transport and logistics elements was expected as its specialist earthworks business unit completed most of its contracts in the previous trading period and was now awaiting “HS2 contract mobilisation”.

The group made a decision in May to cease all its coal mining activities and said this had left the business “in a more flexible position to adapt to changing customer demands as an increasing focus is on the environmental impact of energy sources”.

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Hargreaves Services operates a fleet of over 100 HGVs and now focuses its haulage services in the waste, recycling and construction markets.

Its report added: “The medium term focus of the transport business is to consolidate its position within the waste and fertiliser markets which are anticipated to remain stable over the next 5-10 years.

“These sectors have been largely unaffected by Covid-19 as they are key industries within the UK.”

Overall revenues in the group were down £80.4m to £222.2m, with pre-tax profits of £2.2m (2019: loss of £9.9m).