(MENAFN- ProactiveInvestors)Coal supplier Hargreaves Services (LON:HSP) unveiled a raft of falls in key numbers but cheered investors by hiking its dividend. It also signalled a move to use its property assets and equipment to move into the renewable energy biomass and material handling sectors. Hargreaves blamed extremely tough coal markets for falls of up to 52% in a range of profit measures in the year to the end of May against a year ago. Continuing pretax profit dropped to £24.9mln from £52.1mln on a 24% fall in revenue to £662.2mln. The group cited a "perfect storm" of low coal prices and a collapse in UK coal import volumes which hit the whole sector. It said coal price trends together with the level of UK thermal coal demand would determine its prospects and strategy over the coming months. Chairman Tim Ross said: "The events and developments over the past few months demonstrate that the political will to accelerate the removal of coal from the UK energy mix through energy policy and taxation is even stronger now than it was twelve months ago." Hargreaves said it still believed UK coal markets offered opportunities in the years ahead particularly if prices improve. "We cannot control these factors but we have worked hard to ensure we have a solid platform and are well placed to respond" Ross said. The group has restructured and said it was still reviewing strategic options. Ross said: "We will be looking in particular to extend our activities in the renewable energy biomass and material handling sectors. The risks and returns available from deploying capital for any investment will be carefully appraised alongside the need for free cash flow to support dividends or further share buy-backs." Shares in the open-cast producer leapt 29p or 9% to 349.5p as it increased its final dividend by 17.6% to 30p.
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