THE reputation of an energy and minerals firm for being recession-proof was underlined after it announced record annual results.

Amid what it labelled turbulent market conditions, Hargreaves Services believed its strong performance represented reassuring news for the 1,200 workers at its Esh Winning, County Durham, headquarters.

While many firms are calling for Government intervention to support UK businesses, Hargreaves admitted it was in the enviable position of delivering impressive performance without having to rely on the state.

The company’s continued ability to weather the global economic downturn is due largely to operating a business model that protects it from wild fluctuations in commodity prices.

Despite seeing an 8.6 per cent fall in turnover to £459.8m, the group’s profits climbed by 20 per cent to £34.3m in the year to the end of May.

Hargreaves operates two collieries in Yorkshire and retains a long-term commitment to coal production supplying UK power stations, but it is also determined to extend expertise in the green energy sector.

Its Rocpower business has plans to construct six renewable power stations, and the company will also attempt to secure business by supplying waste disposal services for other energy producers.

The group has refused to rule out further acquisitions, but chief executive Gordon Banham expects future growth to be organic.

He said: “We have a skilled, well-established workforce and they have helped underpin our ongoing success. We don’t envisage there will be any major changes to our headcount in the UK, but we will continue to identify opportunities in Europe and the renewables sector.

“The group performed solidly through a period of unprecedented turbulence in the market, both within our particular sector and the wider economy.

“It is not a case of us asking for state help, commercially we have delivered these results off our own back. Renewables is the only area where we would actively petition that Government offer support and subsidy to enable business to deliver their targets to reduce carbon emissions.”

Chairman Tim Ross said: “The group has completed another successful year and delivered a further set of record results. We are well placed to drive further profit growth and cash generation, and the board continues to view the long-term future with confidence.”