ONE of the region’s last surviving coal miners has refused to rule out expansion despite a slump in financial results.

Hargreaves Services says it is primed to reverse a dip in revenue and profits as transport, land and civil engineering divisions complement lingering coal operations.

The business, based in Esh Winning, County Durham, was previously hit by the closure of Redcar’s SSI UK steelworks, where it supplied the fuel to fire the Thai operator’s coke ovens, and felt the effects of coal-fired power station closures, such as Ferrybridge.

According to its latest results for the six months to November 30, released yesterday, such issues helped push revenue lower against a year ago to £170.9m, with continuing operating profit 98 per cent worse off at £100,000.

The business’ coal distribution division saw revenues fall from £105.6m to £68.5m, with SSI’s liquidation a major factor in the hit.

However, Gordon Banham, chief executive, said the business’ sister operations, such as its transport division, which once traditionally moved coal and now shifts increasing amounts of fuels for waste-to-energy plants, would provide a platform for growth.

He also denied its coal heritage was dead, revealing a move into speciality markets, such as steam railways, will keep it ticking over.

He told The Northern Echo: “We are where we expected to be; we knew there would be a drop in profits because customers have disappeared.

“But as far as the group is concerned, we have a very strong balance sheet and at the end of the year we will be virtually debt free.

“Hargreaves is a very solid business and we are in a really good place.

“We are a North-East plc and are very proud of that.

“We will continue to develop and add people to the business that are going to help the North-East economy thrive.”

Mr Banham also pointed to Hargreaves’ land division, which has submitted plans for up to 1,600 homes in Blindwells, Scotland, and its previous decision to buy Essex’s CA Blackwell Group to extend into civil engineering.

He added: “We think Blackwell is very good and have moved its offices from Essex to Durham.

“We used to move soil to get to coal.

“Blackwell moves soil to create a platform to put roads and railways in; there are real possibilities to grow.”