A FAST growing North-East energy firm is hoping to sign a deal to run services for a Chinese power plant by the end of the financial year.

County Durham based energy and mineral experts Hargreaves Services said it saw India and Asia as a key long term market, as it revealed another impressive year of trading yesterday, which will also see it create up to 300 new jobs.

The Esh Winning firm, which supplies coal to UK power stations, runs a haulage operation and has a growing renewable energy division, reported that its profit before tax had leapt more than 20 per cent to £36.9m in the 12 months to May, up from £30.7m last year.

It included an increase of more than 100 per cent in operating profit from its European operations to £9.9m, which included the opening of a new terminal for coal and coke on the Black Sea in Poland.

While Europe is seen as the strongest area for growth in the short term, long term Asia and India, with the region presently building a large number of power plants, is seen as a core area for Hargreaves.

Chief executive Gordon Banham said he hoped that the firm would be signing a contract in the next six months to manage services for a power station in the region.

He said: "If you look at the future of the group for the next three to four years it will be Europe, after that we think Asia will be the next growth area.

"We have had a team out in China for a year on a consultancy basis and we hope that, before the end of May, we will sign our first long term contract in Asia.

"We see good growth in taking the knowledge and expertise we have built up over 30 years and helping them run these power stations.

"The board is investing £1m a year over the next two years to put a team out there."

Mr Banham was pleased with how the European operation had grown, saying: "The growth in Europe has been 100 per cent, which no-one can be disappointed with.

"Initially we had aimed to make it the same size as the UK business over five years, but we are now thinking it will only take four years."

Although the firm has put a "conservative" estimate on European growth next year of 30 per cent, some analysts were yesterday predicting the business in that region will grow by a further 50 per cent by next May.

Mr Banham added: "We know the economic outlook for Europe looks challenging, but we have always delivered what we have promised.

"We have an unbroken track record since flotation six years ago of hitting our targets and that is because we have a great set of people, who are the lifeblood of the business.

"We have some fantastic people in the North-East with a very strong work ethic."

The firm which employs around 900 of its 3,500 staff in the region, has taken on around 500 extra workers in the past year and is looking to increase that by a further 300 before May, with some of those positions in the North-East.