A green light for the HS2 rail project would create and safeguard hundreds of jobs at major North East employer Hargreaves Services.
The former coal company, which is headquartered at Esh Winning in Durham, employs more than 2,000 people across its distribution services, industrial, property and specialist earthworks divisions.
It is hoping to create a raft of roles after being being selected as a preferred supplier by one of the major consortia for work on the construction of the HS2 high speed rail infrastructure.
The work would provide a lift for the company鈥檚 specialist earthworks division which, following the conclusion of site works on its major civils contracts and following the liquidation of its Wolf Minerals firm, has seen revenues drop from 拢49.9m to 拢17.9m in interim results for the six months ended November 30 2019.
The firm said that future major earthworks business opportunities are being pursued, including participation in the HS2 project, but added: 鈥淭he timing of many of the projects is uncertain and are often subject to political decisions, however the business is well placed to provide what is a specialist capability in a market with a small number of potential suppliers.
鈥淐osts have been managed down to a minimum level whilst preserving the capability necessary to address HS2 and other opportunities as they arise.鈥
Hargreaves chief executive Gordon Banham said the firm is positioned to pick up a big chunk of work on the HS2 and that it expects to hear an update from the Government in the next month.
He said: 鈥淭hat will be a big kick-up for us and for a lot of people who used to work in coal mining who can use their skills on the new project.
鈥淲e鈥檒l need 450 people for that so there will be a big recruitment exercise. They will be based at Esh Winning and we鈥檒l actually look at moving some of the mining teams.
鈥淲e are a North East PLC and the HQ will always stay in the North East as long as I鈥檓 CEO. When coal was in its eminence we were a main party and we are now a development and services business.
鈥淚nvestment in the North East is an important theme for us and we鈥檝e got to bring in good quality jobs, not low earning jobs, and that鈥檚 what we hope to do.
鈥淚t鈥檚 difficult to say how many new jobs will be created but it will need more than 400 people, a lot of whom will be based at the site. That doesn鈥檛 mean we won鈥檛 have people based in Durham 鈥 we are looking at accommodation. We will look after our own people first.鈥
His comments came as the firm provided a positive set of half-year results to shareholders in which underlying operating profit increased by 19% to 拢2.5m and its margin improved to 2% from 1.3%.
The pre-tax loss of 拢6m from November 2018 was also converted to profit of 拢5.2m.
Revenues fell from 拢167.9m to 拢124.7m, primarily from the completion of contracts in the specialist earthworks business. The comparative period also included over 拢8m of revenue from Wolf Minerals Limited, which was liquidated in October 2018.
The results also detailed how the group has continued to deliver services to British Steel, resulting in a 拢400,000 release from the exceptional provision made in the prior year.
Since the announcement last May that British Steel had gone into liquidation, putting it in the hands of the Official Receiver, Hargreaves Services鈥 海角视频 Industrial Services activity has contributed 拢7m of revenue and 拢600,000 of operating profit during the period.
The results also reveal how the firm鈥檚 German associate business HRMS snapped up 94.9% of DK Recycling und Roheisen GmbH from DK Holdings GmbH for just 鈧1, or 85p.
The board decided to maintain the interim dividend at 2.7p, which will be paid to shareholders on April 6.
Mr Banham also said the firm鈥檚 growing property and regeneration division Hargreaves Land 鈥 which has grown its senior team from 10 to 20 people 鈥 is exploring a number of development opportunities.
Three regional offices are being created, in Scotland, Yorkshire and the North East, covering the areas where it has particular focus.
The firm has also entered into a joint venture on a mixed use scheme in Gateshead and progress is being made in Hatfield and Blindwells, East Lothian, amongst others.
Mr Banham added that further projects in the region are expected to be announced.
鈥淭here are a number of parties we are in discussions with in terms of land development but they are in the early stages, but by July we expect to see more visibility.鈥
