H A R G R E A V E S S E R V I C E S
D I R E C T O R S ’ R E P O R T A N D 
F I N A N C I A L S T A T E M E N T S
3 1 S T M A Y 2 0 0 7
H A R G R E A V E S S E R V I C E S P L C
R e g i s t e r e d n u m b e r 4 9 5 2 8 6 5 H A R G R E A V E S S E R V I C E S
SPECIALISTS 
IN THE 
PROVISION AND
MANAGEMENT OF MINERALS,
SUPPORT SERVICES 
FOR THE ENERGY 
AND WASTE SECTORS 
AND BULK HAULAGE 
OF SOLID AND LIQUID 
MATERIALS
THROUGHOUT 
THE UK Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Contents
Highlights of the year 2
Chairman's statement 5
Group Chief Executive’s statement 6
Financial review 9
Statement on risks relating to the Group’s business 13
Group board 15
Advisers 16
Directors’ report 17
Corporate governance and remuneration report 20
Statement of directors’ responsibilities in respect of the Directors’ Report and the financial statements 24
Independent auditors’ report to the members of Hargreaves Services plc 25
Consolidated profit and loss account 26
Consolidated balance sheet 27
Balance sheet 28
Consolidated cash flow statement 29
Consolidated statement of total recognised gains and losses 30
Reconciliations of movements in shareholders’ funds 30
Notes 31
Notice of Annual General Meeting 67
HARGREA VES SERVICES
1 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Highlights of the year
2
 September 2006
N Norec acquired and integrated into Hargreaves
Industrial Services
Hargreaves Raw Materials Services GmbH formed in
Germany to meet growing European market
 February 2007
Maltby Colliery acquired together with 
substantial, long term contracts
Remaining 50% share of 
Hargreaves Bulk Liquid Transport acquired
and Gilbraith Tankers integrated into the Group
 April 2007
Simon Bulk Warehousing and Distribution acquired
together with substantial contract with ConocoPhillips
A C Q U I S I T I O N S A N D G R O W T H HARGREA VES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Highlights of the year
3
2 2007 2006 I Increase
£m £m % %
 Turnover 265.3 155.0 7 71.2%
 Operating profit 10.4 7.2 4 44.4%
 Post tax profit 5.7 3.6 5 58.3%
 Earnings per share 23.1p *n/a
* Due to flotation in November 2005.
F I N A N C I A L H I G H L I G H T S Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
4
Moving mountains ... every day
Hargreaves Services plc Chairman’s statement
I am delighted to report an excellent
result for the year ended 31 May 2007,
driven by strong organic growth and
successful acquisitions.
Group turnover (including share of joint
ventures) of £265.3m (2006: £155.0m)
and operating profit of £10.4m (2006:
£7.2m) illustrate the considerable
progress that has been achieved.
Highlights of the year were the acquisition
of Norec Limited, in September 2006,
for a gross purchase consideration
(including expenses) of £7.4m and the
acquisition of the Maltby Colliery, in
February 2007, for a consideration
(including pension deficit and expenses)
of £31.0m. Finally, the acquisition of the
business and assets of Simon Bulk
Warehousing and Distribution was
made in April 2007 at a cost of £4.2m
(including expenses).
As the result of these and other smaller
acquisitions we welcomed more than
1,000 new employees to the Group.
All these acquisitions have been duly
integrated and have performed in
accordance with expectations. We
look forward to a full year’s contribution
from each in 2007/2008.
During the year we established a
new presence in Dusseldorf and
commenced trading operations in
coal, coke and other minerals, to
customers in Germany and other
European markets.
The newly-acquired Maltby Colliery is
the leading UK supplier of low-sulphur
coal, with Monckton Coke Works, the
only independent UK coke producer,
one of its principal outlets. Each
operates as a Division in its own right
and, combined with the various
operations in our established Minerals,
Transport and Industrial Services
Divisions, together make up an
unrivalled supply chain in the provision
of carbon-based and related minerals.  
The Group remains strongly focused
on services to the energy sector and
now comprises the largest independent
supplier of solid fuels to the generators,
whilst additionally enjoying very
strong market positions in supplies to
the foundry, cement and chemical
industries.  The Group’s excellent port
facilities at Immingham and Newport
enable extremely efficient distribution of
imported products by road, rail and
water as well as the export of specialist
products, notably to Scandanavia.
I continue to be greatly impressed by
the work ethic, motivation and loyalty of
our employees at all levels.  I would like
to thank each and every one of them,
whose skills and efforts are at the heart
of the Group’s success.
In the light of the Group’s continuing
success, the Board has recommended
a final dividend of 6p per share payable
immediately after the Annual General
Meeting on 3 October 2007, in addition
to the interim dividend of 3p per share
paid earlier in the year
We continue to enjoy good visibility of
earnings, with order books at record
levels and with additional long term
contracts already secured with major
blue chip companies. We remain firmly
committed to expansion and anticipate
further significant progress, both by
organic growth and selective acquisition,
in the year ahead.
Tim Ross
Chairman
3 September 2007
HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
5 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Group Chief Executive’s statement
It gives me pleasure to announce that
the Group turnover (including share of
joint ventures) for the year ended 31
May 2007 was a record at £265.3m
(2006: £155.0m), an increase of 71.2%. 
Total operating profit was £10.4m
(2006:  £7.2m) an increase of 44.4%
which met Directors’ expectations.
The Board have recommended the
payment of a final dividend of 6p per
share in addition to the interim dividend
already paid of 3p per share.
HARGREA V ES SERVICES
6
Review of operations
During the year the Group grew
significantly both organically and by
acquisition.
In September 2006, Norec Limited, a
successful industrial services provider
employing in excess of 500 people,
was purchased. In February 2007 the
Group acquired the assets of Maltby
Colliery from UK Coal. In April 2007 the
Group acquired the business and
assets of Simon Bulk Warehousing and
Distribution. This company has a long
term contract with ConocoPhillips for
the transport and storage of petroleum
coke. This activity is being integrated
into the Industrial Division.
The Group now operates in five reporting
divisions thus giving a clear focussed
management structure with defined
lines of reporting.  The Group has suc-
cessfully integrated the new acquisi-
tions which are contributing to profits.
The Group also achieved expansion in
the year within its pre-existing Divisions,
making excellent progress in market
share and profitability.
Minerals Division
The Minerals Division is principally
concerned with the import and
subsequent sale of carbon based
materials to end users. The main areas
of site operations are the ports of
Immingham and Newport. The majority
of imported material is for the power
generation industry.
In September 2006 the Group
commenced trading from a new
office in Dusseldorf, Germany,
through a new company, Hargreaves
Raw Material Services GmbH. I am
pleased to report that this operation
has been successful and substantial
quantities of material have been imported,
principally from China, through
European ports for distribution throughout
Continental Europe. In addition,
quantities of blast furnace coke have
been imported from Poland to satisfy
market demand. The results of this
venture have exceeded expectations
and contributed to profits earlier than
expected.
Coal remains a competitive fuel for
power generation and despite the mild
winter, supply volumes have been
maintained. The strategic locations at
Immingham and Newport, helped by the
recent new terminal facility opened by
Associated British Ports at Immingham,
have allowed the Group to import and
contract for sale additional tonnage.
This Division has substantially increased
its volumes during the year and
contained its overheads. This has
produced an excellent result with
operating profits considerably increased.
The Division is headed by Steve Anson
and is now believed to be the largest
importer of coal into the UK (excluding
direct imports by generators and steel
producers). It adds value to products
by processing prior to despatch by
road, rail or water.
Increasing variety and volume of
materials comprising coal, anthracite,
coke, petcoke, pumice, shale, ash
and aggregates all contribute to the
growth achieved.
Industrial Division
The Industrial Division, headed by Greg
Kelley, Managing Director of Norec
Limited, is principally concerned with
providing labour and expertise in the
power generation, chemical and port
industries around the UK. The acquisition
of Norec Limited allowed the existing
Industrial Division to be integrated to
provide a larger and more efficient
operation with sizeable activities
throughout the UK.
During the year Norec Limited was
successfully integrated leading to
sales increases, margin improvement
and reduced overheads. The result
was very satisfactory progress. Group Chief Executive’s statement (continued)
Transport Division
This Division is principally concerned
with bulk haulage and is the largest
bulk haulier in the UK. The Division is
headed by Paul Young. The customer
base is largely major blue chip
companies for whom dedicated
haulage often on long-term index-linked
contracts provides a substantial base
load of work.
The year produced a good result
despite cost pressures particularly
diesel fuel and tyres. The market was
reasonably buoyant but remained
competitive.
In February 2007 the Group acquired
the remaining 50% of the share capital
of Hargreaves (Bulk Liquid Transport)
Limited and integrated it into main fleet
operations. The tanker operation has
successfully integrated the business of
Gilbraith Tankers Limited, acquired in
May 2006.
The Division has considerably benefited
from haulage of materials for the other
part of the Group. The ability to react
swiftly to market opportunities plus
investment in modern vehicles and
leading technology to control vehicle
movements together with increased
volumes from the tanker business all
contribute increased efficiency and
economies of scale.
The Monckton Coke & Chemical
Company Limited (‘Monckton’)
The Company, headed by Mick Gore, is
the last independent coke producer in
the UK and has long term contracts for
the supply of its specialist product to a
major UK customer and substantial
exports to Scandinavian customers.
The combined heat and power plant
produces electricity for sale to the
National Grid from excess gas
generated by the coking process.
The Company has operated successfully
during the year and produced a
satisfactory profit.
The Monckton Rubber Technologies
tyre crumbing plant which was purchased
for £1.0m has been commissioned in
the latter part of the financial year and
is processing waste tyres which are
now restricted from input into landfill.
Revenue is generated by charging
for tyre disposal and by sale of
processed rubber crumb produced.
The operation is about to complete
commissioning trials and is expected
to make a full contribution for the
financial year 2007/2008.
Maltby Colliery Limited
In February 2007 the Group acquired
the business and assets of Maltby
Colliery from UK Coal plc. Maltby Colliery
is a deep mine producing specialist
coal, mining approximately 1,250,000
tonnes per annum. The Group negotiated
a three-year contract, at close to
international prices, with Drax Power
Station for approximately 60% of
production. A further 25% of production
is used by Monckton Coke and
Chemical Company Limited, due to the
specialist coking properties of the coal.
The Group has recruited Alan Houghton
OBE, to act as adviser and director at
Maltby.  It is expected that the mine will
achieve production targets for 2007/2008
and is already making a worthwhile
contribution to operating profits.
Joint Ventures
Hargreaves Coal Combustion Products
Limited, which assists coal fired
generating stations by the sale of ash
as a bi-product, has continued to grow
and is now recognised as the UK leader
in this field. During the year a further
development was the obtaining of the
UK licence for Lytag from Cemex. Lytag
is a lightweight aggregate used in the
construction industry.
Coal4Energy Limited, our joint venture
with UK Coal plc, commenced trading
in April 2006. The Company is selling to
the light industrial and domestic markets,
previously supplied independently by
each partner. The synergy, by way of
more efficient distribution, reduced
overhead and common marketing,
has allowed the Company to prosper.
It is the largest UK supplier to these
markets and has produced satisfactory
results.
ThyssenKrupp Metallurgical Services
Limited had a satisfactory year of
operations however with the advent of
Hargreaves Raw Material Services
GmbH the Group is now able to directly
source the relevant raw materials from
its own German operations, accordingly
this joint venture was dissolved with
effect from 31 May 2007.
HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
7 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Group Chief Executive’s statement (continued)
Employees
Numbers employed have increased
from 585 in 2006 to 1,900 in 2007.
The principal reasons for this very large
increase have been the acquisition of
Norec Limited, Maltby Colliery and
Simon Distribution together with organic
growth. I would like to take the opportunity
to welcome all new employees and I am
pleased to report that the integration into
the Group has been successful.
Our work is often hard and dirty and
only by the efforts of our people at all
levels are our customer expectations
fully met. The Group Board joins me in
thanking both our new and existing
employees for the major part they have
played in the continuing growth and
success of the Group.
By the nature of what we do, we operate
to tight deadlines over wide geographical
areas and the growth and future
prosperity of the Group relies on the
skills, dedication and motivation of all
our employees.
Group Board
The Group Board has remained
unchanged during the year, however
we expect our Financial Director, Peter
Dillon, to retire at 31 December 2007
and active steps have been put in place
to recruit his replacement.
Current trading and outlook
The markets in which the Group trades
and has core competencies are subject
to fluctuations but remain strong. 
Further consistent and profitable
growth of the Group is anticipated.  
The Group Board remains committed to
a policy of substantial and continued
growth within the areas of its expertise.  
I am confident of being able to report
continued growth across all companies
and divisions in the future.
Gordon Banham
Group Chief Executive
3 September 2007
HARGREA V ES SERVICES
8 Financial review
The trading results for the year ended
31 May 2007 are a record for the
Group.  Group turnover was £265.3m
(2006:  £155.0m) and total operating
profit was £10.4m (2006: £7.2m),
increases of 71.2% and 44.4% respectively.
As well as organic expansion, the Group
made major acquisitions during the
year.  These are as fully explained in the
Chairman’s and Chief Executive’s
reports. 
Part of the funding for the Maltby
acquisition was raised by a share
placing which realised £10.0m after
expenses. 
The joint venture, Coal4Energy
Limited, which commenced in April
2006 in partnership with UK Coal plc,
became firmly established and
achieved expectations. Finally the
establishment of Hargreaves Raw
Material Services GmbH in Dusseldorf,
Germany, in September 2006 has been
successful and has contributed to
Group profits within the current financial
year.
HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
9
The Group operates as five trading
divisions, three of which are within
Hargreaves (UK) Services Limited.
Additionally there are currently three
joint venture companies.
The Minerals Division which imports,
processes, handles and delivers
carbon based minerals has achieved
a very significant growth in volume,
aided by improvements to our facilities
at Immingham and Newport.
The Industrial Division now incorporates
Norec which has been successfully
integrated. It provides equipment and
labour on site for major industrial
customers, particularly power generators
and ports. The Division has shown
good growth and reinforces the view
that blue chip clients continue to wish
to outsource material handling and
maintenance.
The Transport Division, which includes
waste haulage and tanker operations, is
the largest bulk haulier in the UK.  It has
a number of depots and operational
centres which allows the fleet to be
cost effectively deployed over a wide
geographic area. The Division increased
its turnover, client base and operating
profits.
Monckton, which was acquired in June
2005, is the sole independent coke
works in the UK. The long-term
index-linked contract with a major
UK customer has been successfully
supplied. In addition, exports to
Scandinavian clients are made directly
and have increased in volume.
Operating profits of £2.8m reflect the
actions taken.
The tyre crumbing plant, purchased for
£1.0m in August 2006, has been
refurbished and is currently starting to
produce significant quantities of material.
Changes in legislation mean that used
tyres can no longer be put into landfill.  
Substantial revenues are generated
from both receipts for used tyre disposal
and from sales of the subsequently
crumbed product. The plant will be fully
operational in the 2007/08 financial
year.
Hargreaves Coal Combustion Products
Limited, a joint venture company
specialising in the disposal of ash for
generators, further extended its
activity by obtaining the UK licence
for Lytag to distribute lightweight
aggregates exclusively in the UK.
Trading volumes increased and the
Company made a very worthwhile
contribution to the Group profits.
The joint venture company,
Coal4Energy Limited, in partnership
with UK Coal plc traded well. The
amalgamation of light industrial and
domestic coal sales of both companies
has made it the largest UK supplier to
these markets.  The combined volume,
more efficient distribution and reduced
overhead have all played a part in the
successful trading of this Company.
Hargreaves (Bulk Liquid Transport)
Limited which operates a fleet of road
tankers and acquired, in May 2006, the
fleet and assets of Gilbraith Tankers
Limited has, in February 2007, become
a wholly-owned subsidiary of the Group,
and is now managed as part of the
Transport Division.  This has resulted in
an ability to give wider geographic
coverage and reduced overhead cost,
the major benefits of which will be felt
in 2007/08.
The joint venture, ThyssenKrupp
Metallurgical Services Limited, has
traded successfully during the year.
However, it was dissolved by mutual
consent at 31 May 2007. The products
previously supplied by ThyssenKrupp
will in future be supplied by Hargreaves
Raw Material Services GmbH, the
Group’s Germany subsidiary. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Financial review (continued)
Divisional performance
The Divisions enjoy a considerable amount of inter-divisional trade as part of the integrated solutions provided to clients.
This level of inter-divisional activities, cross-utilisation of the overhead base and other facilities limit the usefulness of
analysis beyond direct costs. Below are the stated divisional results.
2007 2007 2007 2007 2007 2007
Minerals Industrial Transport Monckton Maltby Total
£000 £000 £000 £000 £000 £000
Group turnover 1 134,321 25,039 44,105 27,411 9,229 240,105
Segment operating profit 3 3,018 1,080 2,425 2,785 1,159 10,467
Segment profit before tax 3 3,036 944 2,327 2,437 1,086 9.830
Common costs (1,203)
Group profit before taxation 8,627
2006 2006 2006 2006 2006 2006
Minerals Industrial Transport Monckton Maltby Total
£000 £000 £000 £000 £000 £000
Group turnover 75,040 8,292 41,564 22,088 - 146,984
Segment operating profit 2,130 539 2,394 2,143 - 7,206
Segment profit before tax 2,063 420 2,277 2,033 - 6,793
Common costs (1,320)
Group profit before taxation 5,473
Profitability during the year was increased due to volume increases against a largely fixed overhead base, together with
acquisitions.
HARGREA V ES SERVICES
10 Financial review (continued)
Key financial performance indicators
The group monitors a range of key performance indicators. Group wide examples are:
2007 2006
• Turnover (including group share of joint ventures) £ £265.3m £155.0m
• Gross margin 1 11.2% 11.6%
• Interest cover 5 5.0 3.9
• Profit before tax/turnover 3 3.6% 3.7%
• Effective tax rate 3 33.8% 33.3%
• Cash generated from/(absorbed by) operations £ £8.4m (£0.2m)
Further comment on a number of the above key performance indicators can be found in this Financial Review.
In addition there are a significant number of further key performance indicators which are used to measure the business
on a more detailed basis, and these are listed here for information.
• Tonnage handled per week/month • Revenue and contribution per vehicle
• Tonnage sold • Road traffic accident analysis
• Purchase price per tonne • Non-road traffic accident analysis
• Sales value per tonne • Staff turnover levels
• Quality of coal • Injury claims
• Waste handled by type and average weight • Daily and weekly coke production
• Number of loads per month • Daily and weekly crumb production
• Aged debtor analysis • Daily and weekly coal production
• Debtor day reports
Gross profit
Overall gross profit percentage of 11.2% (2006: 11.6%) represents a small reduction from the previous period. This is
entirely due to the continuing change in mix of sales, particularly the high volume, low margin, quantity of mineral sales. In
absolute terms gross profit of £26.9m (2006: £17.0m) sees an increase of 58.2%.
Total operating profit
Total operating profit of £10.4m (2006: £7.2m) represents an increase of 44.4% due to increased volumes, contained
overheads and the acquisition of Norec, Maltby Colliery and Simon Distributiion.
HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
11 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Interest and profit before taxation
Net interest charges of £1.7m (2006:
£1.8m) reflect the cost of acquisitions
less cash generated by operations.
Interest is covered 5.0 times by total
operating profits and 7.7 times EBITDA
(Earnings Before Interest, Tax,
Depreciation and Amortisation).
The record Group profits of £9.2m (2006:
£5.8m), before goodwill and taxation,
exceeded Directors’ expectations.
Included were contributions from Norec
Limited, Maltby Colliery and Simon
Distribution for part of the financial year.
Cash flow
EBITDA of £16.0m (2006: £10.1m) was
generated from operational activities.
During the year £10.0m was raised (net
of expenses) from a share placing and
was used to meet part of the pur-
chase consideration of Maltby Colliery.
Net worth
The capital and resources of the Group
have increased to £41.8m (2006:
£26.3m) due to both retained earnings
and the proceeds from a share placing.
Dividend
The Group’s stated policy is to pay an
interim and final dividend split one-
third/two-thirds each year. Accordingly
the Board authorised the payment of
an interim dividend of 3p per share
paid in February 2007 and propose a
final dividend for the year of 6p (2006:
5p per share), an increase of 20%.
Peter Dillon
Group Financial Director
3 September 2007
HARGREA V ES SERVICES
12
Financial review (continued) Statement on risks relating to the Group’s business
This statement is an integral part of the business review.
The Group may face increased 
competition
The Group may face significant competition,
both actual and potential, including
from organisations with greater capital
resources than those of the Group.   
The Group may need access to capital
in the future
The Group’s capital requirements
depend on numerous factors. If its
capital requirements vary materially
from its current plans, the Group may
require further financing.
The Group’s future turnover and 
operating results may fluctuate 
substantially from period to period
The financial results of the Group can
be materially affected in any particular
financial period by the timing of large
contracts. The timing of winning and
commencing such contracts is
inherently unpredictable, potentially
causing substantial fluctuations in actual
results compared with expectations or
plans. 
The Group’s results may be affected by
movements in commodity markets
A large part of the Group’s business is
associated with the supply of coal to
the electricity supply industry (ESI) and
the conversion of coal into coke. In
the ESI, coal competes with other
commodity fuels, principally gas in
volume terms. In the current markets,
gas prices and electricity prices are
such that coal remains an economically
competitive fuel. This pricing differential
may change and the ESI may reduce its
demand for coal in favour of alternative
fuels.
Reliance on key customers
The Group’s ten largest customers in the
year ended 31 May 2007, accounted
for approximately 50 per cent of
turnover with largest individual customer
representing approximately 15 per
cent. The profitability of these cus-
tomers is substantially less than
50%.
Mining activities
The Group’s future mining of coal,
following the acquisition of Maltby
Colliery, may be subject to significant
fluctuations.
The financial results of the Group can
be materially affected in any financial
period due to underground geological
conditions inherent in deep mining. This
can affect the short-term extraction
of coal and is not predictable.
HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
13 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Statement on risks relating to the Group’s business (continued)
Reliance on key suppliers
Hargreaves Mineral Services (‘HMS’)
and Monckton purchase substantial
tonnages of coal each year: HMS
imports coal principally from mines in
Russia and Columbia at prices fixed to
international indices, and Monckton
obtains nearly all of its coal from Maltby
Colliery. HMS and Monckton require
specific types of coal in order to meet
their respective supply and production
needs. If either division was unable to
source coal from the existing sources,
it may be unable to obtain coal of the
correct specification or in the time
required or at an acceptable price.
Dependence on key personnel
The Group’s success depends to a
significant extent upon a limited number
of key employees. 
Management of growth
The Group’s plans to continue its
growth will place additional demands
on its management, customer
support, marketing, administrative and
technological resources. If the Group is
unable to manage its growth effectively,
its business, operations or financial
condition may deteriorate.
Currency risk
The Group buys and sells from and to
suppliers and customers based outside
the United Kingdom and consequently
dealings with these customers and
suppliers may be in foreign currencies
which will be subject to exchange rate
fluctuations. Where considered prudent,
the Group hedges its foreign currency
exposure actively, principally US dollars.
Environmental regulation
The Group’s activities and markets in
which it operates are, and will continue
to be, subject to environmental
regulation (including environmental
impact assessments and permitting), in
particular where it processes coal for
the production of coke and supplies
coal fired stations. Such regulations
typically cover a wide variety of matters
including, without limitation, prevention
of waste, pollution and protection of the
environment.  
Health and safety
Following the implementation of the
Working Time Directive the Group has
delivered training modules to its drivers
and has reviewed the hours of work
stipulated in their contracts of employment. 
Peter M Dillon
Group Financial Director
3 September 2007
HARGREA V ES SERVICES
14 Group board
The Board of Hargreaves Services plc at the end of the financial year comprises the following directors.
Timothy Ross (aged 58)*
Non-Executive Chairman 
Tim read law at Oxford University and
qualified as a solicitor, working in the
City of London and as a company
legal adviser, before attending
London Business School and moving
into general management. He has
considerable experience of the
construction, aggregates, waste
disposal and opencast coal industries.
He was a main board director of
George Wimpey PLC from 1991 to
1996. He is currently non-executive
chairman of May Gurney Integrated
Services plc and Superglass Holdings
plc. He is also deputy chairman of
Connaught plc. and a non-executive
director of Ennstone plc and Lavendon
Group plc. Tim is the Senior
Independent Non-Executive Director.  
Gordon Banham (aged 43)
Group Chief Executive  
Gordon was Managing Director of his
family firm, F Banham Limited, until 1994
when he negotiated its sale to
Charrington Fuels, Gordon being
appointed as General Manager of the
combined businesses. On the acquisition
of Charringtons by the CPL Group in
1995, Gordon was made Distribution
Director responsible for the enlarged
group’s coal distribution activities.
Gordon joined Hargreaves in 2001,
subsequently being appointed as
Group Chief Executive.
Peter Dillon FCA FCT (aged 63)
Group Financial Director. 
Peter is a Chartered Accountant and
Foundation Fellow of the Institute of
Corporate Treasurers. In 1984, he
became personal assistant to the
Group Chairman of British Benzol plc,
and in 1990 joined Young Group plc in
a similar capacity.  He became a major
shareholder in Silver Knight Exhibitions
Limited in 1985 which he helped float
as MICE Group plc in 1994  which he
left to join Hargreaves as Group
Financial Director.
Kevin Dougan MIQ (aged 52)
Group Contracts Director
Kevin spent the early part of his career
with British Coal, specialising in open-
cast coal mining eventually becoming
Assistant Regional Engineer. In 1986,
Kevin joined Andrew Golightly Limited
as Contracts Director, subsequently joining
the Group in 1995 as a divisional director,
and was appointed to the Group Board
in April 2004.
Nigel Barraclough FCA (aged 42)*
Non-Executive Director
Nigel is a Chartered Accountant and
joined the Board at the time of the
management buyout in April 2004. Nigel
is an investment manager with YFM
Group Limited, a venture capital fund
management group, responsible for
venture capital investments and for
portfolio companies. He has extensive
experience of mergers and acquisitions
and also as a non-executive director.
* Current member of Audit and Remuneration Committees.
(From left) Peter Dillon; Nigel Barraclough; Gordon Banham; Tim Ross; Kevin Dougan
HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
N i g e l B a r r a c l o u g h ; G o r d o n B a n h a m ; T i m a a o d o o a a B B g g e B B g g ; ; G a a o d o u o c a a e m m i T m h n B n r h l r r B l i N ; ; i i
15 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Advisers
Independent Auditors
KPMG Audit Plc
Quayside House
110 Quayside
Newcastle upon Tyne
NE1 3DX
Bankers
Royal Bank of Scotland 
2nd Floor
Keel Row House
1 Sandgate
Newcastle upon Tyne
NE1 2NG
Legal Advisers
Walker Morris
Kings Court 
12 King Street
Leeds
LS1 2HL
Nominated Adviser and Stock Broker
Brewin Dolphin Securities
34 Lisbon Street
Leeds
LS1 4LX
Registered Office
West Terrace
Esh Winning 
Durham
DH7 9PT
HARGREA V ES SERVICES
16 Directors’ report
The directors present their report and the audited 
financial statements for the year ended 31 May 2007.  
Principal activities
The principal activities of the Group are
the provision of haulage services,
waste transportation, mineral import,
mining and processing, together with
coke manufacture and related activities.
Business review
The results for the year are set out on
page 26.
Information that fulfils the requirements
of the business review can be found in
the accompanying information. In
particular:
•  A balanced and comprehensive
analysis of the development and
performance of the Group’s business
during the financial year and of its
position at the end of the year, is
included in the Group Chief Executive’s
statement and the Financial Review.
Key performance indicators have been
included in the Financial Review where
appropriate; and
•  The principal risks and uncertainties
facing the business have been included
in a separate statement ‘Statement on
risks relating to the Group’s business’
on page 13. This includes information
on environmental matters and employee
issues.
Dividends
The directors recommend a final divi-
dend of 6p per share to be paid to
shareholders on the register on 14
September 2007. The shares will be
ex-dividend on 12 September 2007.
This dividend has not been recognised
within creditors as it was not declared
and approved before the year end.
Policy and practice on payment of 
creditors
The Group does not operate a defined
code of practice regarding payment
to suppliers. The Group determines
conditions of payment for its own 
supply of goods and services. It is the
Group’s policy that transactions are
then settled in compliance with these
legal or other contractual obligations
having regard to good commercial
practice.  Average creditor days at 31
May 2007 for the group were 38
(2006: 34). It is not meaningful to dis-
close a similar statistic for the company
since it does not trade in its own right.
Directors and directors’ interests
The directors who held office during the
year were as follows:
TS Ross
GFC Banham
N Barraclough
PM Dillon
KJ Dougan
HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
17 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
13 13 3 13 13 3 13 18
D Directors’ report (continued)
Directors and directors’ interests (continued)
The directors who held office at the end of the financial year had the following disclosable interests in the shares of the
company according to the register of directors’ interests:
Class of share Interest at end Interest at 
of year beginning of year  
GFC Banham Ordinary 4,000,000 4.000,000
PM Dillon Ordinary 1,400,000 2,000,000
KJ Dougan Ordinary 700,000 875,000
TS Ross Ordinary 3,086 3,086
N Barraclough Ordinary - -
The interests of PM Dillon are held by a trust of which he is a potential beneficiary. The interests of TS Ross are held through
a pension trust of which he is a potential beneficiary.
Details of directors’ emoluments are set out in the Corporate Governance and Remuneration Report.
All the directors benefited from qualifying third party indemnity provisions in place during the year and at the date of this
report.
According to the register of directors’ interests, no rights to subscribe for shares in group companies were granted to any of
the directors or their immediate families, or exercised by them, during the financial year and up to the date of this report
except as indicated below:
Shareholder Exercise price Period during which Number of
per share option is exercisable options granted
GFC Banham 218p 1 March 2009 to 1 September 2009 4,288
PM Dillon 218p 1 March 2009 to 1 September 2009 4,288
KJ Dougan 218p 1 March 2009 to 1 September 2009 4,288
These options were granted under the Savings Related Share Option Scheme on 22 December 2005 and are outstanding
at the end of the year. None of the share options have been exercised.
Shareholder Exercise price Period during which Number of
per share option is exercisable options granted
GFC Banham - 1 June 2009 to 30 November 2009 25,543
KJ Dougan - 1 June 2009 to 30 November 2009 15,964
These options were granted under the Long Term Incentive Plan on 8 November 2006 and are outstanding at the end of
the year.  None of the share options have been exercised.
Significant shareholdings
At 10 August 2007 the Company had been notified or was aware of the following shareholders with 3% or more of the issued
share capital of the Company:
Shareholder Number of ordinary shares % of issued
in which interested share capital
The Bank of New York (Nominees) Limited 1,000,000 3.8%
HSBC Global Custody Nominee (UK) Limited 981673 Acct 1,160,102 4.4%
HSBC Global Custody Nominee (UK) Limited 981685 Acct 1,013,032 3.9%
Giltspur Nominees Limited BUNs Acct 1,156,212 4.4%
GFC Banham 4,000,000 15.2%
PM Dillon 1,400,000 5.3%
Political and charitable contributions
The Group made no political contributions during the year. Donations to UK charities amounted to £58,635. D Directors’ report (continued)
Disclosure of information to auditors
The directors who held office at the
date of approval of this directors’
report confirm that, so far as they are
each aware, there is no relevant audit
information of which the Company’s
auditors are unaware; and each director
has taken all the steps that he ought
to have taken as a director to make
himself aware of any relevant audit
information and to establish that the
company’s auditors are aware of that
information. 
Research and development
The Group does not undertake signifi-
cant levels of research and develop-
ment expenditure.
Financial instruments
Financial risk management objectives
and policies and an indication of exposure
to financial risk are set out in note 23.
Accounting policies on financial
instruments are included in note 1.
In ternational f inancial rep orting
standards (IFRS)
For reporting periods beginning on or
after 1 January 2007 the consolidated 
accounts of the Group must comply
with IFRS.  The first accounts to which
these new standards will apply will be
the interim accounts for the six months
to 30 November 2007.
The impact on the accounts of the
adoption of IFRS will depend on which
of the new standards are applicable
to the Group and the particular
circumstances prevailing at the date of
adoption.  The Group has not yet
completed the process of identifying all
disclosure, presentation or classification
differences that would affect the manner
in which transactions or events are
presented, nor has it completed its
quantification of any differences which
may arise.  However, the Group has
established a programme which aims to
ensure the timely identification and
implementation of any changes required
to Group financial accounting and
reporting arrangements.
Employees
Applications for employment by disabled
persons are always fully considered.
Employment policies are designed to provide
opportunities irrespective of colour, ethnic or
national origin, nationality, sex or marital
status.  In the event of employees becoming
disabled every effort is made, including
appropriate training, to ensure that their
employment with the Company continues.
The directors recognise the importance of
good communications and good relations
with employees.  A quarterly house magazine
is sent to all employees.
Annual general meeting
The business of the AGM is set out in
the notice on page 67. The AGM is to
be held on 3 October 2007.
Independent auditors
In accordance with s384 of the
Companies Act 1985, a resolution for
the re-appointment of KPMG Audit Plc
as auditors of the Company and to
authorise the directors to agree their
remuneration is to be proposed at the
forthcoming Annual General Meeting. 
By order of the Board 
S MacQuarrie
Company Secretary
3 September 2007
HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
19 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
20
Corporate governance and remuneration report
T The Group Board
The Group is headed by an effective Board,
which both controls and leads the Group.
A biography of each director and details of
the membership of the Committees of the
Group Board is provided on page 15.
The Group Board currently comprises
three executive directors, and two non-
executive directors.  The Group Board
meets at least six times per year,
receiving appropriate information from
management on a timely basis, and
making further detailed enquiries where
necessary which enables the Board to
discharge its duties.
The Group Board has a schedule of
matters which are specifically referred
to it for decision. All directors have
access to the advice and services of
the company secretary, who is respon-
sible to the Group Board for ensuring
that Group Board procedures are
followed and for compliance with
applicable rules and regulations.
Health and safety
The Group Board ensures that Health
and Safety issues for employees, cus-
tomers and the public, are of foremost
concern in all Group activities. The
Group Chief Executive, supported by
external advice, is charged with overall
responsibility. The Group encourages
both internal and external training
through a formal network of full time offi-
cers and Health and Safety nominated
"champions" at all levels. Statistical
analysis is used to highlight any areas
where additional training or improved
working practices would be benefi-
cial, and positive action is promptly
implemented.
Remuneration Committee
The Remuneration Committee consists
of the two non-executive directors, Tim
Ross and Nigel Barraclough.  Other
directors attend as requested, but do
not vote on their own remuneration.
The Remuneration Committee has
access to independent advice where
considered necessary.
The policy of the Committee is to review
the remuneration of the executive direc-
tors, and is structured to attract, retain
and motivate executive directors.  The
total remuneration package is designed
to align the interests of the executive
directors with those of the shareholders.
The remuneration strategy, policy and
approach for all staff is also reviewed
annually by the Committee.
Components of remuneration
Basic salary
This is a fixed cash sum, payable
monthly. Salaries are reviewed annually
by the Remuneration Committee in
the light of individual performance,
experience in the role and market
comparisons.
Bonus
Executive directors participate in an
annual incentive bonus scheme linked
to the actual achievement of operating
profit targets set by the Remuneration
Committee.  Such bonus is capped at
50% of salary.   No bonus counts in
the calculation of pension entitlement.
The Group has increased in size
significantly in recent years and in
recognition of this has both considerably
strengthened the Board of Directors,
and also introduced a level of corporate
governance. 
Being listed on AIM, the Group is not
required to report on corporate governance
matters, but this statement is intended to
provide information on how the Group
has applied the principles and spirit of
corporate governance. HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
21
Corporate governance and remuneration report (continued)
B Benefits in kind and pensions
In addition to basic salary, Gordon Banham, Peter Dillon and Kevin Dougan are entitled to the following benefits: paid
holiday, company car, contributions to a personal pension plan and life assurance.  
Directors’ remuneration
Remuneration was as follows:
2007 2007 2007 2007 2006 2 2007 2006
Salary Bonus Benefits Total Total P Pension Pension
£000 £000 £000 £000 £000 £ £000 £000
Gordon Banham 2 249 100 22 371 289 3 35 21
Peter Dillon 1 198 79 29 306 240 2 20 10
Kevin Dougan 1 144 58 1 203 170 - -
Tim Ross 5 50 - - 50 29 - - -
Nigel Barraclough 3 31 - - 31 20 - - -
Robert Young - - - - - 83 - -
672 237 52 961 831 5 55 31
Directors’ service contracts
The directors have entered into letters of appointment with the Company and the principal terms are as follows:
Date Name Position Commencement Remuneration Termination
of period of office £
24 November 2005 Tim Ross Non-executive Chairman 30 November 2005 50,000 12 months’ notice
24 November 2005 Nigel Barraclough Non-executive Director 30 April 2004 31,000 12 months’ notice
24 November 2005 Gordon Banham Group Chief Executive 1 October 2001 249,000 12 months’ notice
24 November 2005 Peter Dillon Group Finance Director 1 April 2003 198,000 12 months’ notice
24 November 2005 Kevin Dougan Group Contracts Director 23 June 1997 144,000 12 months’ notice
The services of Tim Ross are provided by Crosswater Resources Limited, a company in which Mr Ross has a significant
interest.
The remuneration for Nigel Barraclough is paid to his employers, YFM Private Equity Limited.
Directors’ share options
Details of the Directors’ share options, held under the Savings Related Share Option Scheme and Long Term Incentive
Plan, are noted in the Directors’ Report on page 18.
Going concern
After making appropriate enquiries, the directors can confirm that, in their opinion, the Group and the Company have
adequate resources for the foreseeable future.  For this reason, they continue to adopt a going concern basis in preparing
the financial statements. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
Corporate governance and remuneration report (continued)
Internal control
Management has considerable autonomy
to run and develop the business of the
Group.  A well designed system of
internal reporting and control is neces-
sary.  The Group Board has overall
responsibility for the system of internal
control within the Group.  The Audit
Committee, on behalf of the Group
Board, has undertaken a review of its
effectiveness.  The system is designed
to provide reasonable, but not
absolute, assurance that the assets of
the Group are safeguarded, that proper
accounting records are maintained,
and that reliable financial information is
produced.
All subsidiary undertakings are required
to adhere to specified internal control
procedures.
The Group Board receives regular
reports on internal control matters and
does not believe that there is currently a
need for an internal audit function.
However, this matter is subject to peri-
odic review.
Further control is exercised by monthly
monitoring of performance by comparison
to budgets, forecasts and cash targets,
both by subsidiary management and by
the Group Board. Regular visits by
divisional and main board directors to
the Group’s subsidiaries are an inte-
gral part of the control system.
During these visits, business issues,
risks, internal controls, financial results,
and future prospects are discussed
with operational management.
Monitoring of compliance with the
Group’s system of internal control is
undertaken by all levels of management
and reinforced by the role fulfilled by the
Audit Committee.
Audit Committee
The Group Board has established an
Audit Committee comprising the two
non-executive directors, Tim Ross and
Nigel Barraclough, who meet at least
three times a year, with the external
auditors attending by invitation at least
twice a year.  The Committee provides
a forum by which the external auditors
report to the Group Board.  
The Audit Committee is responsible for
reviewing the scope and results of the
audit together with its cost effective-
ness.  The objectivity of the auditors is
enhanced by ensuring that they have
direct access to the Group Board.
Non-audit work undertaken by the
auditors is limited to work that requires
detailed knowledge derived from the
statutory audit or work where the fees
involved are not considered to be
material.
Savings Related Share Option Scheme
The Sharesave Scheme is a savings-
related share option scheme and was
implemented in December 2005.
All employees (including full time direc-
tors) of the Company or any participat-
ing member of the Group whose earn-
ings are subject to income tax and who
have the requisite minimum period of
continuous employment are eligible to
participate.
The exercise price of an option shall be
fixed by the Company but shall not be
normally less than the market value of a
share on the date invitations are issued
to eligible employees  In a case of an
option to subscribe for shares the exer-
cise price may not be less than the
nominal value of a share.
Participants may, at the absolute dis-
cretion of the Committee be invited to
apply for three, five or seven year
options.  All options must be linked to a
contractual savings scheme entered
into by each participant with the savings
institution nominated by the company
and approved by the HMRC.
Participants may save between £5 and
£250 per month (or weekly equivalent),
such sums to be deducted from the rel-
evant participant’s pay.
22 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Corporate governance and remuneration report (continued)
Savings related Share Option Scheme
(continued)
At the end of the chosen savings period,
a bonus is payable.
No option shall be granted under the
Sharesave Scheme on any date if, as a
result, the total number of shares
issued or issuable pursuant to options
and other rights granted under the
Sharesave Scheme and any other
employees share scheme established
by the company on or after Admission,
would exceed 10 per cent of the issued
ordinary share capital of the company
on that date of grant.
Ordinary shares issued pursuant to the
Sharesave Scheme shall rank pari
passu in all respects with the ordinary
shares already in issue.
In normal circumstances, options may
be exercised during the period of six
months commencing on the maturity
(that is the relevant bonus date) of the
savings contract. Options will become
exercisable immediately on the death
of a participant for a period of 12
months after the date of death or the
bonus date, whichever is earlier.  If a
participant ceases to be an employee
on reaching the age of 65 or at such
other age at which that employee is
bound to retire in accordance with the
terms of his contract of employment
or ceases to be in employment due to
injury, disability, redundancy, or as a
result of the sale of the business or
subsidiary by which the participant
is employed, options will become
exercisable for a period of six months.
If a participant has held an option for
at least three years, it will become
exercisable for a  period of six months.
Options will also become exercisable
on an employee’s attaining the age of
60 if he should continue in employment
and on a change in control, reconstruction,
amalgamation or voluntary winding-up
of the company.
An option will lapse six months following
the bonus date, except if the participant
dies, in which case an option will lapse
12 months following death, if later.
Executive Long Term Incentive Plan (‘LTIP’)
The LTIP scheme was implemented in
November 2006.
The scheme was designed to allow
awards to be made to eligible employees
selected by the Remuneration Committee.
The vesting of an award granted to an
executive director of the Company shall,
or in the case of an award granted
to any other Group employee may.
be subject to the satisfaction of one
or more Performance Conditions. The
Remuneration Committee may
determine or recommend to the
Trustee that the vesting of an award
will be subject to any other objective
condition in addition to the Performance
Conditions.
No option shall be granted under the
LTIP scheme on any date if, as a result,
the total number of shares issued or
issuable pursuant to options and other
rights granted under the LTIP scheme
and any other employee share scheme
established by the Company on or after
admission, would exceed 10% (5%
excluding other share schemes) of the
issued ordinary share capital of the
Company on date of grant. 
Ordinary shares issued pursuant to the
LTIP scheme shall rank pari passu in all
respects with the ordinary shares
already in issue.
An option will lapse six months following
the vesting date, except if the
participant dies, in which case the
option will lapse 12 months following
death, if later.
23 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
Statement of directors’ responsibilities in respect of the Directors’
Report and the financial statements   
The directors are responsible for
preparing the Directors’ Report and the
financial statements in accordance with
applicable law and regulations.
Company law requires the directors to
prepare financial statements for each
financial year. Under that law the direc-
tors have elected to prepare the group
and the parent company financial state-
ments in accordance with UK
Accounting Standards and applicable
law (UK Generally Accepted Accounting
Practise).  
The group and parent company finan-
cial statements are required by law to
give a true and fair view of the state of
affairs of the group and the parent com-
pany and of the profit or loss for that
period.
In preparing these financial statements,
the directors are required to:
• select suitable accounting policies 
and then apply them consistently;
• make judgments and estimates that 
are reasonable and prudent;
• state whether applicable accounting 
standards have been followed, 
subject to any material departures 
disclosed and explained in the 
financial statements;
• prepare the financial statements on 
a going concern basis unless it is 
inappropriate to presume that the 
group and the parent company will 
continue in business.  
The directors are responsible for keeping
proper accounting records that
disclose with reasonable accuracy at
any time the financial position of the
parent company and enable them to
ensure that its financial statements
comply with the Companies Act 1985.
They have a general responsibility for
taking such steps as are reasonably
open to them to safeguard the assets
of the group and to prevent and detect
fraud and other irregularities.
The directors’ are responsible for the
maintenance and integrity of the corporate
and financial information included on
the company’s website. Legislation in
the UK governing the preparation and
dissemination of financial statements
may differ from legislation in other
jurisdictions.
24 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
25
KPMG Audit Plc
Quayside House
110 Quayside
Newcastle upon Tyne
NE1 3DX
United Kingdom
IIndependent auditors’ report to the members
of Hargreaves Services plc
We have audited the group and parent
company financial statements (the ‘financial
statements’) of Hargreaves Services plc for
the year ended 31 May 2007 which comprise
the Consolidated Profit and Loss Account,
the Consolidated and Company Balance
Sheets, the Consolidated Cash Flow
Statement, the Consolidated Statement of
Total Recognised Gains and Losses,
the Reconciliations of Movements in
Shareholders’ Funds and the related notes.
These financial statements have been
prepared under the accounting policies set
out therein.  
This report is made solely to the company’s
members, as a body, in accordance with
section 235 of the Companies Act 1985.
Our audit work has been undertaken so that
we might state to the company’s members
those matters we are required to state to
them in an auditor’s report and for no other
purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility
to anyone other than the company and the
company’s members as a body, for our audit
work, for this report, or for the opinions we
have formed.  
Respective responsibilities of directors and
auditors  
The directors’ responsibilities for preparing the
Directors’ Report and the financial statements
in accordance with applicable law and UK
Accounting Standards (UK Generally
Accepted Accounting Practice) are set out in
the Statement of Directors’ Responsibilities on
page 24.  
Our responsibility is to audit the financial
statements in accordance with relevant legal
and regulatory requirements and International
Standards on Auditing (UK and Ireland).
We report to you our opinion as to
whether the financial statements give a
true and fair view and are properly prepared
in accordance with the Companies Act
1985. We also report to you whether in our
opinion the information given in the
Directors’ Report is consistent with the
financial statements.  
The information given in the Directors’ Report
includes that specific information presented in
the Group Chief Executive’s statement, the
Statement on risks relating to the Group’s
business and the Financial Review that is
cross referenced from the Business Review
section of the Directors’ Report. We also
report to you if, in our opinion, the company
has not kept proper accounting records, if
we have not received all the information and
explanations we require for our audit, or if infor-
mation specified by law regarding directors’
remuneration and other transactions is not
disclosed. 
We read the other information contained in
the Annual Report and consider whether it is
consistent with the audited financial
statements. We consider the implications
for our report if we become aware of any
apparent misstatements or material
inconsistencies with the financial statements.
Our responsibilities do not extend to any
other information.
Basis of audit opinion 
We conducted our audit in accordance with
International Standards on Auditing (UK and
Ireland) issued by the Auditing Practices
Board.  An audit includes examination, on a
test basis, of evidence relevant to the
amounts and disclosures in the financial
statements.  It also includes an assessment
of the significant estimates and judgments
made by the directors in the preparation of
the financial statements, and of whether the
accounting policies are appropriate to the
Group’s and Company’s circumstances,
consistently applied and adequately
disclosed.  
We planned and performed our audit so as to
obtain all the information and explanations
which we considered necessary in order to
provide us with sufficient evidence to give
reasonable assurance that the financial
statements are free from material
misstatement, whether caused by fraud
or other irregularity or error.  In forming
our opinion we also evaluated the overall
adequacy of the presentation of information
in the financial statements.    
Opinion  
In our opinion:  
• the financial statements give a true
and fair view, in accordance with UK
Generally Accepted Accounting
Practice, of the state of the group’s 
and the parent company’s affairs as at 31
May 2007 and of the group’s profit for the
year then ended; 
• the financial statements have been
properly prepared in accordance with the
Companies Act 1985; and
• the information given in the Directors’ 
Report is consistent with the financial 
statements.  
KPMG Audit Plc
3 September 2007
Chartered Accountants 
Registered Auditor Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
26
Consolidated profit and loss account for the year ended 31 May 2007
Note 2 2007 2006
£000 £000 £000 £000
Turnover: group and share of joint ventures 22 265,274 155,001
Less: share of turnover of joint ventures
continuing operations ( (25,169) (8,017)
Group turnover 240,105 146,984
Group turnover 2
Continuing operations 1 173,881 146,984
Acquisitions 6 66,224 -
240,105 146,984
Cost of sales ( (213,164) (129,955)
Gross profit 26,941 17,029
Administrative expenses ( (17,049) (10,177)
Group operating profit 2
Continuing operations 7 7,265 6,852
Acquisitions 2 2,627 -
9,892 6,852
Share of operating profit in joint ventures 4 413 380 
- and in associates 7 76 -
Total operating profit 10,381 7,232
Profit on sale of fixed assets - continuing operations 
Group 25 60
Joint ventures 3 30 -
Interest receivable 6 3 358 74
Other finance costs – group 7 ( (97) (20)
Interest payable and similar charges - group 8
Finance costs on shares classified as liabilities 
(pre-flotation finance costs) - - (455)
Other ( (1,971) (1,382)
(1,971) (1,837)
Interest payable and similar charges – joint ventures ( (99) (36)
Profit on ordinary activities before taxation 2-5 8 8,627 5,473
Tax on profit on ordinary activities 9 ( (2,918) (1,823)
Profit on ordinary activities after taxation 5,709 3,650
Minority interests 29 ( (73) -
Profit for the financial year 5,636 3,650
Earnings per share 11
Ordinary shares 2 23.12p 20.32p
A ordinary shares - - 29.71p
Diluted earnings per share 11
Ordinary shares 2 22.73p 20.21p
A ordinary shares - - 29.71p
The group had no discontinued operations.  Earnings per share relate entirely to continuing operations. HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
27
Consolidated balance sheet at 31 May 2007
Note 2 2007 2006
£000 £000 £000 £000
Fixed assets
Intangible assets - goodwill 12 1 13,052 5,745
- negative goodwill 12 ( (73) -
Tangible assets 13 6 63,178 21,146
Investments 14
Investments in joint ventures
Share of gross assets 5 5,000 7,328
Share of gross liabilities ( (4,119) (6,431)
881 897
Investments in associates 5 58 -
Other investments 2 20 83
959 980
77,116 27,871
Current assets
Stocks 15 3 35,027 15,055
Debtors 16 3 38,406 21,167
Cash at bank and in hand 1 11,779 15,022
85,212 51,244
Creditors: amounts falling due within one year 17 ( (63,096) (26,904)
Net current assets 22,116 24,340
Total assets less current liabilities 99,232 52,211
Creditors: amounts falling due after more than
one year 18 ( (38,477) (21,521)
Provisions for liabilities and charges 19 ( (12,339) (4,064)
Net assets excluding pension liabilities 48,416 26,626
Net pension liability 24 ( (6,588) (328)
Net assets including pension liabilities 41,828 26,298
Capital and reserves
Called up share capital 20 2 2,627 2,368
Share premium account 21 2 29,177 19,082
Other reserves 21 2 29 29
Merger reserve 21 1 1,022 -
Capital redemption reserve 21 1 1,530 1,530
Profit and loss account 21 7 7,293 3,289
Shareholders’ funds 41,678 26,298
Minority interest 29 150 -
41,828 26,298
These financial statements were approved by the board of directors on 3 September 2007 and were signed on its behalf by:
GFC Banham                                         PM Dillon
Director                                                 Director Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
28
Balance sheet at 31 May 2007
Note            2 2007 2006
£000 £000 £000 £000
Fixed assets
Investments 14 1 13,790 4,582
Current assets
Debtors 16 6 60,713 22,769
Cash at bank and in hand - - 15,000
60,713 37,769
Creditors: amounts falling due within one year 17 ( (18,734) (18,130)
Net current assets 41,979 19,639
Total assets less current liabilities 55,769 24,221
Creditors: amounts falling due after more than
one year 18 ( (13,927) -
Net assets 41,842 24,221
Capital and reserves
Called up share capital 20 2 2,627 2,368
Share premium account 21 2 29,177 19,082
Capital redemption reserve 21 1 1,530 1,530
Merger reserve 21 1 1,022 -
Profit and loss account 21 7 7,486 1,241
Shareholders’ funds 41,842 24,221
These financial statements were approved by the board of directors on 3 September 2007 and were signed on its behalf by:
GFC Banham PM Dillon
Director Director HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
29
Consolidated cash flow statement for the year ended 31 May 2007
Note 2 2007 2006
£000 £000
Cash flow statement
Cash flow from operating activities 25 8 8,405 (215)
Returns on investments and servicing of finance 26 ( (1,647) (2,508)
Taxation (2,245) (895)
Capital expenditure 26 ( (7,869) (2,067)
Acquisitions 26 ( (33,616) (3,376)
Dividends paid on shares classified in shareholders’ funds (1,972) -
Cash outflow before financing ( (38,944) (9,061)
Financing 26 2 25,877 21,450
(Decrease)/increase in cash in the year (13,067) 12,389
Reconciliation of net cash flow to
movement in net debt 27
(Decrease)/increase in cash in the year (13,067) 12,389
Net cash inflow from financing ( (15.205) (2,985)
Change in net debt resulting from cash flows ( (28.272) 9,404
Release of premium on redemption of loan stock - - 135
Release of loan arrangement fees 46 -
New finance leases (1,931) (3,880)
Loans and finance leases acquired with subsidiary ( (1,867) -
Movement in net debt in the year (32,024) 5,659
Net debt at the start of the year (6,414) (12,073)
Net debt at the end of the year (38,438) (6,414) Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
30
Consolidated statement of total recognised gains and losses for the
year ended 31 May 2007
2 2007 2006
£000 £000
Profit for the financial year
Group 5,308 3,377
Share of joint ventures 272 273
Share of associates 56 -
5,636 3,650
Effect of adoption of FRS 25 on 1 June 2005 - - (166)
Exchange differences on consolidation ( (4) -
5,632 3,484
Actuarial gain/(loss) arising on retirement benefit schemes 1 108 (50)
Deferred tax arising on gains/(losses) in retirement benefit schemes ( (32) 15
Total recognised gains/(losses) relating to the financial year 5,708 3,449
Reconciliations of movements in shareholders’ funds for the year
ended 31 May 2007
Group Company
2007 2006 2 2007 2006
£000 £000 £ £000 £000
Profit for the financial year 5,636 3,650 8 8,217 2,707
Dividends on shares classified in shareholders’ funds ( (1,972) -( (1,972) -
Retained profit 3 3,664 3,650 6 6,245 2,707
Effect of adoption of FRS 25 on 1 June 2005 - - (2,087) - - (2,087)
Other recognised gains/(losses) 7 76 (35) - - -
Conversion of debt to equity - - 391 - - 391
New share capital subscribed (net of issue costs) 1 11,376 19,979 1 11,376 19,979
Credit in relation to share based payment 2 268 -- - -
Exchange differences on consolidation ( (4) - - -
Net addition to shareholders’ funds 15,380 21,898 1 17,621 20,990
Opening shareholders’ funds 2 26,298 4,400 2 24,221 3,231
Closing shareholders’ funds 41,678 26,298 4 41.842 24,221 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
31
Notes (forming part of the financial statements)
1 1        Accounting policies
The following accounting policies have been applied consistently, in dealing with items which are considered material in relation to the group’s
financial statements, except as noted below.
In these financial statements the following new standard has been adopted for the first time: 
• FRS 20 ‘Share based payments’; 
The accounting policies under this new standard are set out below.  FRS 20 has had no material effect on the comparative figures therefore no
prior year adjustment has been made.
1.1 Basis of preparation
The financial statements have been prepared in accordance with applicable accounting standards, and under the historical cost accounting rules.
1.2 Basis of consolidation
The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31 May.  The
acquisition method of accounting has been adopted.  Under this method, the results of subsidiary undertakings acquired or disposed of in the
year are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal.  
An associate is an undertaking in which the Group has a long term interest, usually from 20% to 50% of the equity voting rights, and over which
it exercises significant influence.  A joint venture is an undertaking in which the group has a long-term interest and over which it exercises joint
control.  The group’s share of the profits less losses of associates and of joint ventures is included in the consolidated profit and loss account
and its interest in their net assets is included in investments in the consolidated balance sheet.
Under section 230(4) of the Companies Act 1985 the company is exempt from the requirement to present its own profit and loss account.
The company’s result for the year is disclosed in note 21.
1.3 Goodwill
Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired)
arising on consolidation is capitalised.  Positive goodwill is amortised to nil by equal annual instalments over its estimated useful life.
Negative goodwill arising on consolidation is included within fixed assets and released to the profit and loss account in the periods in which the
fair values of the non-monetary assets purchased on the same acquisition are recovered, whether through depreciation or sale.
In the company’s financial statements, investments in subsidiary undertakings, associates and joint ventures are stated at cost.
1.4 Foreign currencies
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction or, if hedged forward, at the rate
of exchange under the related forward currency contract.  Monetary assets and liabilities denominated in foreign currencies are translated using
the contracted rate or the rate of exchange ruling at the balance sheet date and the gains and losses on translation are included in the profit
and loss account.
The assets and liabilities and profit and loss accounts of overseas subsidiary undertakings and associated undertakings are translated at the
closing exchange rates.  Profit and loss accounts of such undertakings are consolidated at the average rates of exchange during the year. Gains
and losses arising on these translations are taken to reserves, net of exchange differences arising on related foreign currency borrowings.   Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
32
Notes (continued)
1 1        Accounting policies (continued)
1.5 Tangible fixed assets and depreciation
Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated
useful economic lives as follows:
Mineral reserves - 12.5% per annum
Freehold land and buildings - 2%- 4% per annum
Leasehold improvements - 15% per annum
Motor vehicles and plant - 10%-20% per annum
Furniture and equipment - 25% per annum
Fixtures and fittings - 15% per annum
1.6 Leases
Assets acquired under finance leases are capitalised and the outstanding future lease obligations are shown in creditors.  Operating lease rentals
are charged to the profit and loss account on a straight line basis over the period of the lease.
1.7 Post retirement benefits
The group operates a group personal pension scheme.  The assets of the scheme are held separately from those of the group in an
independently administered fund.  The amount charged against profits represents the contributions payable to the scheme in respect of
the financial period.
Following the acquisition of The Monckton Coke & Chemical Co Ltd on 17 June 2005 and Maltby Colliery on 26 February 2007, the
Group operates two concessionary fuel retirement benefit schemes.
The retirement benefit scheme liabilities are measured using the projected unit method. The concessionary fuel retirement benefit
schemes are unfunded retirement benefits and as such there are no assets in the schemes. The retirement benefit deficits are
recognised in full, the movement in the scheme deficits is split between operating charges, finance items and in the statement of
total recognised gains and losses, actuarial gains and losses.
In addition following the acquisition of Maltby Colliery, the Group is a member of two pension schemes providing benefits based on final
pensionable pay.  The assets of the scheme are held separately from those of the Group.
Pension scheme assets are measured using market values.  Pension scheme liabilities are measured using a projected unit method and
discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability.  The pension
scheme surplus (to the extent that it is recoverable) or deficit is recognised in full.  The movement in the scheme surplus/deficit is split
between operating charges, finance items and in the statement of total recognised gains and losses, actuarial gains and losses.
1.8 Stocks
Stocks are stated at the lower of cost and net realisable value.  In determining the cost of raw materials, consumables and goods purchased
for resale, the weighted average purchase price is used.
1.9 Taxation
The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing differences between the
treatment of certain items for taxation and accounting purposes.  Deferred tax is recognised without discounting, in respect of all timing differ-
ences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet
date, except as otherwise required by FRS 19.   HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
33
Notes (continued)
1 1        Accounting policies (continued)
1.10 Classification of financial instruments issued by the Group
Following the adoption of FRS 25, financial instruments issued by the Group are treated as equity (i.e. forming part of shareholders’ funds) only
to the extent that they meet the following two conditions: 
a) they include no contractual obligations upon the Company (or Group as the case may be) to deliver cash or other financial assets or to
exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the Company (or Group); and 
b) where the instrument will or may be settled in the Company’s own equity instruments, it is either a non-derivative that includes no
obligation to deliver a variable number of the Company’s own equity instruments or is a derivative that will be settled by the Company’s
exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes
the legal form of the Company’s own shares, the amounts presented in these financial statements for called up share capital and share
premium account exclude amounts in relation to those shares.  
Where a financial instrument that contains both equity and financial liability components exists these components are separated and accounted
for individually under the above policy.  The finance cost on the financial liability component is correspondingly higher over the life of the instrument.
Finance payments associated with financial liabilities are dealt with as part of interest payable and similar charges. Finance payments associated
with financial instruments that are classified as part of shareholders’ funds (see dividends policy), are dealt with as appropriations in the
reconciliation of movements in shareholders’ funds.  
1.11 Financial instruments
The group uses financial instruments to manage its exposures to fluctuations in foreign currency exchange rates and interest rates.  Derivative
instruments utilised by the group include forward rate agreements and forward currency contracts.  Exchange differences are dealt with in the
profit and loss account.  Where the company enters into financial guarantee contracts to guarantee the indebtedness of other companies within
its group, the company considers these to be insurance arrangements and accounts for them as such. In this respect the company treats the
guarantee contract as a contingent liability until such time as it becomes probable that the company will be required to make a payment under
the guarantee.
1.12 Turnover
Turnover represents the amounts (excluding value added tax) derived from the provision of goods and services to third party customers.
Turnover is recognised on delivery of goods and services.
1.13 Share based payments 
The share option programme allows employees to acquire shares of the Company. The fair value of options granted is recognised as an
employee expense with a corresponding increase inequity. The fair value is measured at grant date and spread over the period during which
the employees become unconditionally entitled to the options. The fair value of the options granted is measured using an option pricing model,
taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect
the actual number of share options that vest except where variations are due only to share prices not achieving the threshold for vesting.
1.14 Dividends on shares presented within shareholders’ funds
Dividends unpaid at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately authorised and
are no longer at the discretion of the Company.  Unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements.
1.15 Cash
Cash, for the purpose of the cash flow statement, comprises cash in hand and deposits repayable on demand, less overdrafts payable on
demand. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
34
Notes (continued)
2 2        Segmental information and acquired operations
The table below sets out information for each of the Group’s industry segments.  The origination and destination of principally all operations is in
the United Kingdom.  
Minerals Industrial Transport Monckton Maltby Total
2007 2007 2007 2007 2007 2007
£000 £000 £000 £000 £000 £000
Turnover
Total sales 1 140,454 26,807 56,388 27,415 12,148 263,212 
Inter-segment sales ( (6,133) (1,768) (12,283) (4) (2,919) (23,107)
Sales to third parties 134,321 25,039 44,105 27,411 9,229 240,105
Group operating profit 3,018 1,080 2,425 2,785 1,159 10,467
Share of operating profit in joint ventures 3 302 - 111 - - 413
- and in associates 7 76 - - - - 76
Profit on sale of fixed assets - - - 55 - - 55
Share of non-operating items of joint ventures
and associates ( (22) - (43) - - (65)
Net interest ( (338) (136) (221) (348) (73) (1,116)
Segment profit before taxation 3,036 944 2,327 2,437 1,086 9,830
Common costs (1,203)
Group profit before taxation 8,627
Net assets
Segment net assets 3 3,550 5,020 11,457 9,967 17,106 47,100
Unallocated net assets (6,211)
40,889
Joint ventures 881
Assocates 58 
Total net assets 41,828
Unallocated net assets include goodwill, bank loans and deferred consideration.
The 2007 results include the following relating to the acquisition of Maltby Colliery which took place in February 2007:
2007
£000
Turnover 9,229
Cost of sales (6,273)
Gross profit 2,956
Administrative expenses (1,797)
Operating profit 1,159 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
35
Notes (continued)
2 2 Segmental information and acquired operations (continued)
Minerals Industrial Transport Monckton Maltby Total
2006 2006 2006 2006 2006 2006
£000 £000 £000 £000 £000 £000
Turnover
Total sales 75,040 8,407 51,167 22,651 - 157,265
Inter-segment sales - (115) (9,603) (563) - (10,281)
Sales to third parties 75,040 8,292 41,564 22,088 - 146,984
Group operating profit 2,130 539 2,394 2,143 - 7,206
Share of operating profit in joint ventures 197 - 183 - - 380
Profit on sale of fixed assets - - 60 - - 60
Share of non-operating items of joint ventures 4 - (36) - - (32)
Net interest (268) (119) (324) (110) - (821)
Segment profit before taxation 2,063 420 2,277 2,033 - 6,793
Common costs (1,320)
Group profit before taxation 5,473
Net assets
Segment net assets 3,750 421 4,232 4,523 - 12,926
Unallocated net assets 12,475
25,401
Joint ventures 897
Total net assets 26,298
Unallocated net assets include goodwill, cash and deferred consideration.
The 2006 results include the following relating to the acquisition of Monckton Coke & Chemical Company Limited which
took place in June 2005. 
2006
£000
Turnover 22,088
Cost of sales (18,473)
Gross profit 3,615
Administrative expenses (1,472)
Operating profit 2,143
. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
36
Notes (continued)
3 3        Notes to the profit and loss account
2007 2006
£000 £000
Profit on ordinary activities before taxation is stated after charging:
Depreciation and other amounts written off fixed assets:
Owned 3 3,592 2,083
Leased 1 1,438 842
Amortisation of goodwill 5 575 314
Hire of plant and machinery - rentals payable under operating leases 4 4,706 3,792
Hire of other assets - operating leases 2 223 277
Auditors’ remuneration
2007 2006
£000 £000
Group
Audit of these financial statements 3 31 25
Audit of financial statements of subsidiaries pursuant to legislation 1 110 70
Other services pursuant to such legislation 4 407 253
Services relating to recruitment and remuneration 3 36 -
Other services relating to taxation 4 40 -
624 348
The above auditors’ remuneration disclosures are based on amounts receivable in respect of services to the company and its subsidiary
undertakings.  Of the above amount £nil  (2006: £211,000) was charged directly to share premium account as issue costs arising on the
issue of shares and £325.000 was charged to goodwill as part of acquisition costs (2006: £18,000).
4        Remuneration of directors
2007 2006
£000 £000
Directors’ emoluments 8 880 644
Company contributions to money purchase pension schemes 5 55 31
Amounts paid to third parties in respect of directors’ services 8 81 187
1,016 862 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
37
Notes (continued)
4 4        Remuneration of directors (continued)
2007 2006
£000 £000
Retirement benefits are accruing to the following number of directors
under:
Money purchase schemes 2 2 2
The aggregate emoluments of the highest paid director were £371,000 (2006: £289,000) excluding company pension contributions of
£35,000 (2006: £21,000).
All of the directors benefited from third party indemnity provisions.
Further information on directors’ emoluments can be found in the Corporate Governance and Remuneration Report.
5        Staff numbers and costs
The average number of persons employed by the group and company (including directors) during the year, analysed by category,
was as follows:
Group Company
Number of employees Number of employees
2007 2006 2 2007 2006
Directors 1 17 12 5 5 5
Maintenance and washery 1 137 15 - - -
Traffic and administration 5 504 124 - - -
Drivers 2 273 296 - - -
Production 8 897 156 - - -
1,828 603 5 5 5
The aggregate payroll costs of these persons were as follows:
Group Company
2007 2006 2 2007 2006
£000 £000 £ £000 £000
Wages and salaries 3 38,714 14,428 - - -
Social security costs 4 4,013 1,463 - - -
Other pension costs (note 24) 4 470 209 - - -
43,197 16,100 - - - Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
38
Notes (continued)
6 6        Interest receivable
2007 2006
£000 £000
Bank interest 358 69
Other - 5
358 74
7        Other finance costs
2007 2006
£000 £000
Expected return on pension scheme assets ( (168) -
Interest on pension scheme liability 2 265 20
97 20
8         Interest payable and similar charges 
2007 2006
£000 £000
On bank loans and invoice discounting advances 1 1,532 877
Finance charges payable in respect of finance leases and hire purchase contracts 4 439 329
Interest payable and other finance charges on loan notes - - 176
1,971 1,382
Finance costs on shares classified as liabilities (note 10) - - 455
1,971 1,837 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
39
Notes (continued)
9 9        Taxation
Analysis of charge in period
2007 2006
£000 £000 £000 £000
UK corporation tax 
Current tax on income for the period 2 2,443 1,580
Share of joint ventures’ current tax 7 71 49
Share of associates’ current tax 2 20 -
Adjustment in respect of prior years ( (294) (145)
Foreign tax 2,240 1,484
Current tax on income for the period 2 243 -
Total current tax 2,483 1,484
Deferred tax (see note 19)
Origination of timing differences 2 209 317
Share of joint ventures’ deferred tax 3 37 22
Share of associates’ deferred tax - - -
Adjustment in respect of previous years 1 189 -
Total deferred tax 435 339
Tax on profit on ordinary activities 2 2,918 1,823
Factors affecting the tax charge for the current period
The current tax charge for the period is lower (2006: lower) than the standard rate of corporation tax in the UK of 30% (2006: 30%).  The
differences are explained below.
2007 2006
£000 £000
Current tax reconciliation
Profit on ordinary activities before tax 8,627 5,473
Current tax at 30% (2006: 30%) 2.588 1,642
Effects of:
Finance charges on shares classified as liabilities - - 115
Expenses not deductible for tax purposes 424 243
Capital allowances for period in excess of depreciation - group ( (387) (315)
- share of joint ventures ( (1) (52)
Small companies tax rates (32) (49)
Higher tax rates on overseas earnings 73 -
Tax losses utilised (41) -
Tax losses carried forward in joint venture - 31
Chargeable gain - 14
Other timing differences 153 -
Adjustment in respect of prior years (294) (145)
Total current tax charge (see above) 2,483 1,484
Factors affecting the tax charge for future periods
The group has unrelieved UK corporation tax losses of approximately £nil (2006: £nil) available to carry forward against profits from the same
trade. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
40
Notes (continued)
1 10        Dividends and finance costs
The aggregate amount of dividends comprises:
2007 2006
£000 £000
Dividends on ordinary shares 
Final dividends paid in respect of prior year but not recognised as liabilities in that year 1 1,184 -
Interim dividends paid in respect of the current year 7 788 -
Aggregate amount of dividends paid in the financial year 1 1,972 -
Proposed dividend of 6p per share (2006: 5p per share) 1,576 1,184
The above amount has not been included within creditors as it was not approved before the year end.
2007 2006
£000 £000
Dividends and finance charges on other classes of shares
Premium payable on redemption of A preference shares - - 76
Dividends on A preference shares - - 76
Dividends on B preference shares - - 12
Dividends on A convertible preferred ordinary shares - - 291
- 455
Charged to interest payable and similar charges - - 455
Charged to shareholders’ funds - - -
- 455
11        Earnings per share
All earnings per share disclosures relate to continuing operations as the group had no discontinued operations in either 2006 or 2007.
Up until 30 November 2005 two classes of ordinary share were in existence, £1 ordinary shares and £1 A ordinary shares.  With effect from
30 November 2005 the A ordinary shares converted into ordinary shares.  Also on this date the ordinary shares (including those arising on the
conversion of the A ordinary shares) were each subdivided into 10 ordinary shares of 10p each.
Earnings per share for each class of ordinary share are as follows:
2007 2006
Ordinary shares
Basic earnings per share 2 23.12p 20.32p
Diluted earnings per share 2 22.73p 20.21p
A ordinary shares
Basic earnings per share - - 29.71p
Diluted earnings per share - - 29.71p HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
41
Notes (continued)
1 11        Earnings per share (continued)
The calculation of earnings per share is based on the profit for the year and on the weighted average number of shares in issue and ranking
for dividend in the year.
Ordinary shares
2007 2006
£000 £000
Profit for the year 5 5,636 3,650
Weighted average number of shares 2 24,372,457 17,962,000
Earnings per ordinary share (pence) 2 23.12p 20.32p
On 30 November 2005 the company’s ordinary shares of £1 each were subdivided into ten ordinary shares of 10p each. The weighted
average number of shares in 2006 has been adjusted as if the subdivision had occurred at the beginning of the earliest period presented.
The calculation of diluted earnings per share is based on the profit for the year and on the weighted average number of ordinary shares in issue
in the year adjusted for the dilutive effect of the share options outstanding.
2007 2006
£000 £000
Profit for the year 5 5,636 3,650
Weighted average number of shares 2 24,798,490 18,058,000
Diluted earnings per ordinary share (pence) 2 22.73p 20.21p
A ordinary shares
Immediately prior to flotation on 30 November 2005 an exit dividend of £291,000 was payable on this class of share in accordance with the
Articles of Association.  The dividend rights of the Ordinary and A ordinary shares were identical in all other respects. The calculation of the
additional earnings per A ordinary share arising on this dividend is as follows:
2006
Exit dividend £291,000
Weighted average number of A ordinary shares in issue 2,191,000
Additional earnings per A ordinary share 13.28p
The earnings per A ordinary shares for the 2006 year comprises the earnings per share to 30 November 2005 (the date
on which they were converted) of 16.43p (based on a half year profit of £2,018,000 and a weighted number of shares of
12,280,000), plus the additional earnings per A ordinary share of 13.28p above. There was no dilutive effect on the A
ordinary shares.
All of the A ordinary shares were converted to ordinary shares with effect from 30 November 2005. The company has only
one class of ordinary share from this date. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
42
Notes (continued)
1 12        Intangible fixed assets
Negative
Goodwill goodwill Total
Group £000 £000 £000
Cost
At beginning of year 6,099 - 6,099
Additions (note 28) 7,893 (84) 7,809
At end of year 13,992 (84) 13,908
Amortisation
At beginning of year 354 - 354
Charge for the year 586 (11) 575
At end of year 940 (11) 929
Net book value
At 31 May 2007 13.052 (73) 12,979
At 31 May 2006 5,745 - 5,745
Goodwill of £6,336,000 arising on the acquisition of Norec Limited is being amortised over 20 years. The business is long
standing and well established and the directors believe that the Group will continue to derive financial benefit over this period.
Goodwill of £1,529,000 arising on the acquisition of the remaining 50% of Hargreaves (Bulk Liquid Transport) Limited is being
amortised over 20 years.  The business is long standing and well established and the directors believe that the Group will
continue to derive financial benefit over this period.  As part of this acquisition the Group have acquired goodwill of £28,000.
Negative goodwill of £84,000 has arisen on the acquisition of Mineral Resources Europe GmbH.  This is being written off
over 5 years in line with the estimated life of the attributable assets
Goodwill of £5,695,000 arising on the acquisition of The Monckton Coke & Chemical Company Limited is being amortised
over 20 years.  The business is long standing and well established and the directors believe that the group will continue to
derive financial benefit over this period.
Goodwill of £61,000 arising on the acquisition of R Hanson & Son Limited in June 2004 is being amortised over 10 years
which in the opinion of the directors, represents its useful economic life.
Goodwill of £343,000 arising on the acquisition of Hargreaves (UK) Limited in 2004 is being amortised over 10 years which,
in the opinion of the directors, represents its useful economic life. 
The company had no goodwill. HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
43
Notes (continued)
1 13        Tangible fixed assets
Freehold land Motor
and buildings Furniture vehicles Fixtures
and leasehold and and and
improvements equipment plant fittings Minerals Total
£000 £000 £000 £000 £000 £000
Group
Cost
At beginning of year 2,640 5,740 24,430 133 - 32,943
Additions 853 1,890 7,835 14 - 10,592
On acquisition (note 28) 15,021 29 15,520 31 6,638 37,239
Disposals - (339) (1,473) - - (1,812)
At end of year 18,514 7,320 46,312 178 6,638 78,962
Depreciation
At beginning  of year 564 2,574 8,553 106 - 11,797
Charge for year 315 801 3,779 14 121 5,030
On disposals - (167) (876) - - (1,043)
At end of year 879 3,208 11,456 120 121 15,784
Net book value
At 31 May 2007 17,635 4,112 34,856 58 6,517 63,178
At 31 May 2006 2,076 3,166 15,877 27 - 21,146
Depreciation in 2006 191 556 2,164 14 - 2,925
Included in the net book values of motor vehicles and furniture and equipment is £8,732,424 (2006: £7,623,000) in respect of assets held
under finance lease and similar hire purchase contracts.  Depreciation for the year on these assets was £1,438,435 (2006: £842,000).
Included in the net book value of freehold land and buildings and leasehold improvements is £16,709,872  (2006: £1,485,000) in respect
of freehold land and buildings.
The company has no tangible fixed assets. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
44
Notes (continued)
1 14        Fixed asset investment
Other
Interests in Interests in Loans to joint investments
associates joint ventures ventures (listed) Total
£000 £000 £000 £000 £000
Group
Cost
At beginning of year - 67 63 20 150
Additions 2 - - - 2
Repayments - - (63) - (63)
Disposal - (66) - - (66)
21 - 20 23
Share of post acquisition reserves
At beginning of year - 830 - - 830
Retained profits for the financial year 56 272 - - 328
Disposals - (222) - - (222)
At end of year 56 880 - - 936
Net book value
At 31 May 2007 58 881 - 20 959
At 31 May 2006 - 897 63 20 980
The group’s other investments are listed and have a market value at the end of the year of £33,000 (2006: £15,000).
Company Group Joint
undertakings ventures Associates Total
£000 £000 £000 £000
Shares at cost
Cost and net book value
At beginning of year 4,581 1 - 4,582
Additions 9,206 - 2 9,208
At end of year 1 13,787 1 2 13,790 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
45
Notes (continued)
1 14        Fixed asset investments (continued)
The principal undertakings, all of which are incorporated in the United Kingdom unless otherwise stated, in which the
company’s interest at the year end is more than 20% are as follows:
Principal activity
Group Company
Subsidiary undertakings
Hargreaves (UK) Limited Holding company Ordinary 100% 100%
Hargreaves Transport Limited Asset management Ordinary 100% -
Hargreaves (UK) Services Limited Haulage, mineral import and
processing Ordinary 100% -
The Monckton Coke & Chemical Company Manufacture of coke Ordinary 100% -
Limited
Norec Limited Contract management services Ordinary 100% 100%
Hargreaves (Bulk Liquid Transport) Limited Haulage Ordinary 100% 50%
Preference 100% 50%
Maltby Colliery Limited Coal mining Ordinary 100% -
Hargreaves Raw Material Services GmbH* Import and sale of carbon based 
materials Ordinary 77.5% -
Mineral Resources Europe GmbH* Import and sale of carbon based 
materials Ordinary 77.5% -
* Incorporated in Germany
In addition to the above the group has approximately 10 dormant subsidiary undertakings.
Joint ventures
ThyssenKrupp Metallurgical Supplies Limited Mineral distribution Ordinary 50% -
Hargreaves Coal Combustion Products Limited Management and sale of ash products Ordinary 48% -
Preference 50% -
Coal 4 Energy Limited Light industrial and domestic coal 
sales Ordinary 50% 50%
Associates
Hargreaves Building Products Limited Ash management Ordinary 25% 25%
Lytag Limited Sales of aggregate product Ordinary 25% -
Associates and joint ventures
The total of the group’s profit before taxation from interests in associates and joint ventures was £455,000 (2006:
£344,000).
Class and percentage of shares held Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
46
Notes (continued)
1 14       Fixed asset investments (continued)
The amounts included in respect of joint ventures comprise the following:
£000 £000 £ £000 £000
Share of turnover 5 571 -2 25,169 8,017
Share of assets
Share of fixed assets 6 62 -1 17 830
Share of current assets 4 457 -4 4,983 6,498
519 -5 5,000 7,328
Share of liabilities
Due within one year ( (461) -(4 4,119) (4,805)
Due after one year - - -- - (1,626)
(461) -( (4,119) (6,431)
Share of net assets 5 58 - 881 897
15        Stocks
2007 2006
£000 £000
Raw materials and consumables 35,027 15,055
The company has no stocks.
16        Debtors
Group Company Group Company
2007 2007 2006 2006
£00O £000 £000 £000
Trade debtors 3 31,143 - 16,468 -
Amounts due from group undertakings - - 60,611 - 22,670
Amounts owed by joint venture and associate undertakings 2 2,820 99 2,057 99
Other debtors 1 1,826 3 545 -
Prepayments and accrued income 2 2,617 - 2,097 -
38,406 60,713 21,167 22,769
Associates
total
2007
Associates
total
2006
Joint 
ventures
total
2007
Joint 
ventures
total
2006
Group HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
47
Notes (continued)
1 17        Creditors: amounts falling due within one year
Group Company Group Company
2007 2007 2006 2006
£000 £000 £000 £000
Bank loans and overdrafts (note 18) 9,839 - 14 -
Obligations under finance leases and hire purchase contracts (note 18) 1 1,901 - 1,901 -
Amounts owed to group undertakings - - 18,553 - 18,130
Trade creditors 2 22,492 - 13,028 -
Corporation tax 1 1,851 - 1,550 -
Other taxes and social security 3 3,855 - 985 -
Other creditors 1 1,926 - 375 -
Accruals and deferred income 1 19,232 181 6,437 -
Deferred consideration 2 2,000 - 2,614 -
63,096 18,734 26,904 18,130
18        Creditors: amounts falling due after more than one year
Group Company Group Company
2007 2007 2006 2006
£000 £000 £000 £000
Invoice discounting advances 1 15,238 - 10,834 -
Bank loans 1 18.455 13,927 5,006 -
Obligations under finance leases and hire
purchase contracts 4 4,784 - 3,681 -
Deferred consideration - - - 2,000 -
38,477 13,927 21,521 -
The invoice discounting facilities are committed 36 month facilities from June 2005 which permit the refinancing of the current debt.  In
accordance with the presentation requirements of FRS 25 ‘Financial instruments: presentation and disclosure’ these liabilities have been
classified according to the maturity date of the longest permitted refinancing.  Without these committed facilities these amounts would have
been classified as falling due within one year.  The invoice discounting advances are secured by fixed and floating charges over the group’s
assets. The gross amount of debts which were subject to invoice discounting advances at 31 May 2007 were £16,040,000 (2006:
£11,404,000).
The bank loan of £407,000 is secured against certain of the group’s properties, bears interest at 1.5% above base rate and is repayable over
20 years.
The term loan of £4,136,000 is secured on certain of the Group’s properties and assets, it matures on 10 June 2010 and bears interest at
2.5% above base rate.
A second term loan of £13,927,000 is also secured on certain of the Group’s properties and assets. It matures on 26 February 2012 and
bears interest at 2.0% above base rate. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
48
Notes (continued)
1 18        Creditors: amounts falling due after more than one year (continued)
The maturity of obligations under finance leases and hire purchase contracts is as follows:
Group Group
2007 2006
£000 £000
Within one year 1,901 1,901
In the second to fifth years 4,784 3,681
6,685 5,582
The above are secured on the specific assets to which they relate.
Analysis of debt (comprising loans, invoice discounting advances and finance leases)
Group Company Group Company
2007 2007 2006 2006
£000 £000 £000 £000
Debt can be analysed as falling due:
In one year, or less, or on demand 1 11,740 - 1,915 -
Between 1 and 2 years 1 17,154 - 12,749 -
Between 2 and 5 years 2 20,991 13,927 6,428 -
In more than 5 years 3 332 - 344 -
50,217 13,927 21,436 -
19          Provisions for liabilities and charges
Group
Deferred Other
taxation provisions Total
£000 £000 £000
At beginning of year 1,893 2,171 4,064
Arising on acquisition 221 7,656 7,877
Charge to profit and loss account (note 9) 398 - 398
At end of year 2,512 9,827 12,339 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
49
Notes (continued)
1 19        Provisions for liabilities and charges (continued)
The elements of deferred taxation are as follows:
At Amount
beginning On included Profit and loss At end
of year acquisition in STRGL charge for year of year
£000 £000 £000 £000 £000
Difference between accumulated depreciation
and capital allowances 2,102 201 - 388 2,691
Short term timing differences (209) (81) - 111 (179)
Provision for liabilities 1,893 120 - 499 2,512
Pension (note 24) (141) (2.651) 32 (64) (2,824)
1,752 (2,531) 32 435 (312)
Other provisions at the end of the year comprise:
1 A net £589,000 relating to assessments by HM Revenue and Customs which the group continues to resist. The assessments are
connected with the purchase by group companies of alleged unlawful fuel from third party suppliers. The group, having taken legal
advice, continues to appeal the assessments and has argued that it is the victim of a fraud by third party suppliers. The gross 
liability arising on this issue is £1,122,000.  Certain Directors have indemnified the Group to a maximum of £500,000 in respect
of this issue leaving the net figure as the best estimate of the likely cash outflow.
2 A £1,582,000 ground/groundwater contamination provision which relates to Monckton’s obligation to address ground and ground
water contamination at its sites. The provision is based on estimates of volumes of contaminated soil and historical contract costs 
of ground contamination treatment.  The costs will usually be payable on the decommissioning of the site.
3 A £7,656,000 restoration provision which relates to Maltby’s obligation to restore the site after coal mining. The costs will usually
be payable on the decommissioning of the site.
The company has no provisions for liabilities and charges. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
50
Notes (continued)
2 20        Called up share capital
2007 2006
£000 £000
Authorised
47,500,000 Ordinary shares of 10p each 4 4,750 4,750
Allotted, called up and fully paid
26,270,532 (2006: 23,675,437) Ordinary shares of 10p each 2 2,627 2,368
During the year the following changes to the group’s and company’s share capital took place.  
On 22 January 2007, the Company issued 225,095 ordinary 10p shares in partial payment for the acquisition of 50% of the ordinary share
capital of Hargreaves (Bulk Liquid Transport) Limited.
On 26 February 2007, the Company issued 2,370,000 ordinary 10p shares in a rights issue.
21       Share premium and reserves
Group Share Capital Profit
premium redemption Other Merger and loss
account reserve reserves reserve account
£000 £000 £000 £000 £000
At beginning of year 19,082 1,530 29 - 3,289
Profit for the year ---- 5,636
Dividends on shares classified in shareholders’ funds---- (1,972)
Premium on share issues, less expenses 10,095 ----
Actuarial gain recognised in the pension scheme ---- 108
Deferred tax arising on gain in the pension scheme ---- (32)
Credit in relation to share based payments ---- 268
Exchange differences on consolidation ---- (4)
Merger reserve arising on acquisition - - - 1,022 -
At end of year 29,177 1,530 29 1,022 7,293
Company Share Capital Profit
premium redemption Merger and loss
account reserve reserve account
£000 £000 £000 £000
At beginning of year 19,082 1,530 - 1,241
Profit for the year - - - 8,217
Dividends on shares classified in shareholders’ funds - - - (1,972)
Premium on share issues, less expenses 10,095 - - -
Merger reserve arising on acquisition - - 1,022 -
At end of year 29,177 1,530 1,022 7,486
The company’s profit for the financial year was £8,217,000 (2006: £2,707,000). HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
51
Notes (continued)
2 22        Commitments
a) The Group has capital commitments totalling £1,661,000 (2006: £400,000) at the end of the financial year. 
b)         Annual commitments under non-cancellable operating leases are as follows:
Land and Other Land and Other
buildings buildings
Group £000 £000 £000 £000
Operating leases which expire:
Within one year 7 7 1,170 - 71
In the second to fifth years inclusive 1 189 4,225 168 790
Over five years 5 55 1,791 55 -
251 7,186 223 861
The company has no operating lease commitments.
c) The Group has in place a portfolio of purchase commitments with both UK and overseas coal and mineral suppliers. The aggregate    
future purchase commitments total £91m over periods ranging up to 2015.  The Group has sales contracts in existence to utilise 
these purchase commitments.
23        Financial instruments
The group’s financial instruments comprise borrowings (principally invoice discounting advances, bank loans and obligations under finance
leases), cash and various items, such as trade debtors, trade creditors etc, that arise directly from its operations, together with certain
derivatives, such as forward rate agreements and forward exchange contracts.  The main purpose of these financial instruments is to raise
finance for the group’s operations and to manage interest rate and currency risks arising from operations. 
Forward currency contracts are entered into to manage the currency risks arising from group purchases of minerals. It is, and has been throughout
the period under review, the group’s policy that no trading in financial instruments shall be undertaken.
The group has taken advantage of the exemptions available under FRS 13 not to provide numerical disclosures in relation to short term debtors
and creditors.
The main risks arising from the group’s financial instruments are: interest rate risk, liquidity risk, and foreign currency risk.  The Board reviews and
agrees policies for managing each of these risks and they are summarised below.  These policies have remained unchanged throughout the
year.
Interest rate risk
The group finances its operations through a mixture of retained profits, share capital, bank borrowings and finance leases. The group’s
principal borrowings are invoice discounting and bank loans at floating interest rates and finance leases at fixed interest rates.   
Liquidity risk
As regards liquidity, throughout the year the group’s policy has been to maintain a mix of short, medium and long term facilities.  Flexibility is
achieved by the use of a group invoice discounting arrangement.  It is the group’s policy to maintain undrawn agreed borrowing facilities in order
to provide flexibility in the management of the group’s liquidity.  
2007                                         2006 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
52
Notes (continued)
2 23        Financial instruments (continued)
Foreign currency risk
A significant proportion of the group’s purchases are from overseas.  These purchases are mainly priced in US dollars and euros.  The group’s
policy is to eliminate currency exposure purchases at the time of purchase, through forward foreign currency contracts.  All sales of the UK
businesses are denominated in sterling.
Interest rate risk profile of financial assets
Floating
rate assets
2007
£000
Currency
Sterling 10,664
US dollar 610
Euro 505
11,779
Floating
rate assets
2006
£000
Currency
Sterling 14,772
US dollar 85
Euro 165
15,022
The above assets comprise cash held in bank accounts.  There were no fixed rate financial assets.  The above accrue interest at rates set
by the UK, European and US Central Banks. HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
53
Notes (continued)
2 23        Financial instruments (continued)
Interest rate risk profile of financial liabilities
Floating rate Fixed rate Total
liabilities liabilities liabilities
2007 2007 2007
£000 £000 £000
Liabilities - Sterling 3 34,438 6,685 41.123
- Euro 9,094 - 9,094
43,532 6,685 50,217
Floating rate Fixed rate Total
liabilities liabilities liabilities
2006 2006 2006
£000 £000 £000
Liabilities - Sterling 15,854 5,582 21,436
The above liabilities comprise bank loans, invoice discounting advances and finance leases.  The maturity of these is as detailed in notes
18 and 19.  
Fixed rate liabilities
Weighted Weighted Weighted Weighted
average average fixed average average fixed
interest rate rate period interest rate rate period
% Years % Years
Liabilities other than shares 6 6.76 4 7.13 4
The floating rate financial liabilities comprise mainly bank loans and invoice discounting advances that bear interest at rates based on the rates
set by the UK and European Central Banks.  Fixed rate liabilities include the majority of the group’s obligations under finance leases and hire
purchase contracts.
2007                                         2006 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
Notes (continued)
2 23        Financial instruments (continued)
Maturity of financial liabilities and undrawn borrowing facilities
The maturity of the group’s financial liabilities at 31 May 2007 and 2006 is disclosed in note 18.
The group has various undrawn committed borrowing facilities.  The undrawn facilities available at 31 May in respect of which all conditions
precedent had been met were as follows:
2007 2006
£000 £000
Expiring between 1 and 2 years 8 8,300 9,500
These undrawn facilities comprise a £8,300,000 (2006: £9,000,000) promissory note discounting agreement and a £nil  (2006: £500,000)
asset finance revolving credit facility.
Forward transactions
At the end of the year the group had in total, outstanding forward contract transactions as follows:
2007 2007
$000 £000
In currency Sterling equivalent
US dollars 2 25,721 12,997
2006 2006
$000 £000
In currency Sterling equivalent
US dollars 30,132 16,999
Fair values of financial assets and liabilities
Other than forward exchange contracts as at 31 May 2007 the difference between fair values and book values of financial assets and liabilities
are not considered to be materially different from the book values. The difference between fair value and book value of the forward exchange
contracts is estimated to be £294,000 (2006: £875,000) as at 31 May 2007.  
24        Pension schemes and other retirement benefits
The group operates a group personal pension scheme.  The pension cost charge for the year represents contributions payable by the group
to the employees’ funds and amounted to £158,000 (2006: £207,000).  There were no outstanding or prepaid contributions, at either the
beginning or end of the financial year.
54 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
55
Notes (continued)
2 24        Pension schemes and other retirement benefits (continued)
The Group acquired a concessionary fuel retirement benefit scheme on the acquisition of The Monckton Coke & Chemical Company Limited
on 17 June 2005.
The Group provides for concessionary fuel retirement benefits, for the current members of the scheme, payable at retirement on attaining the
age of 60.  The amounts payable are determined in the employee terms and conditions and are subject to a qualifying period of service.
The costs of the concessionary fuel benefits are determined by  a qualified actuary on the basis of triennial valuations.
The latest full actuarial valuation was carried out on 31 December 2004 and updated for FRS 17 purposes to 31 May 2007.
The major assumptions used in these valuations were:
2007 2006
Average retirement age 6 60 years 60 years
Rate of leaving services 2 2.5% 2.5%
Coal price inflation 2 2.1% 2.0%
Discount rate applied to scheme liabilities 5 5.4% 5.1%
Inflation assumption 3 3.1% 3.0%
The assumptions used by the actuary are chosen from a range of possible actuarial assumptions which, due to the timescale covered, may
not necessarily be borne out in practice.
Concessionary fuel is an unfunded retirement benefit and as such there are no assets in the scheme.
Summary of scheme liabilities
2007 2006
Present value of scheme liabilities ( (469) (469)
Deferred tax asset 1 141 141
Net scheme liabilities ( (328) (328)
Movement in deficit during the year
2007 2006
£000 £000
Deficit in scheme at beginning of year ( (469) (421)
Current service cost ( (7) (2)
Contributions paid 18 24
Other finance cost (24) (20)
Actuarial loss 13 (50)
Deficit in the scheme at the end of the year ( (469) (469)
Analysis of other pension costs charged in arriving at operating profit
2007 2006
£000 £000
Current service cost ( (7) (2) Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
56
Notes (continued)
2 24        Pension schemes and other retirement benefits (continued)
Analysis of amounts included in other finance costs
2007 2006
£000 £000
Interest on pension scheme liabilities ( (24) (20)
Analysis of amount recognised in statement of total recognised gains and losses
2007 2006
£000 £000
Experience gains and losses arising on scheme liabilities - - (18)
Changes in assumptions underlying the present value of scheme liabilities 1 13 (32)
Actuarial gain/(loss) recognised in statement of total recognised gains and losses 1 13 (50)
History of experience gains and losses
2007 2006
Experience gains and losses on scheme liabilities:
Amount (£000) - (18)
Percentage of year end present value of scheme liabilities - - 4%
Total amount recognised in statement of total recognised gains and losses:
Amount (£000) 13 (50)
Percentage of year end present value of scheme liabilities 3 3% 11%
The Group acquired another concessionary fuel retirement benefit scheme and two defined benefit schemes on the acquisition of Maltby Colliery
on 26 February 2007.
The Group operates a pension scheme providing benefits based on final pensionable pay.  The latest full actuarial valuation was carried out at
31 December 2003 and was updated for FRS 17 purposes to 31 May 2007 by a qualified independent actuary. 
The major assumptions used in these valuations were:
2007 
Rate of increase in salaries 3.20%
Rate of increase in pensions in payment and deferred pensions 3 3.20%
Discount rate applied to scheme liabilities 4 4.90%
Inflation assumption 3.20%
The assumptions used by the actuary are chosen from a range of possible actuarial assumptions which, due to the timescale covered, may
not necessarily be borne out in practice. HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
57
Notes (continued)
2 24        Pension schemes and other retirement benefits (continued)
Scheme assets
The fair value of the scheme’s assets, which are not intended to be realised in the short term and may be subject to significant change
before they are realised, and the present value of the scheme’s liabilities, which are derived from cash flow projections over long periods and
thus inherently uncertain, were:
Value at 
2007   
£000
Equities 8,787
Bonds 2,929
Other – Cash -
Total market value of assets 11,716
Present value of scheme liabilities (20,658)
Deficit in the scheme – pension liability ( (8,942)
Related deferred tax asset 2,682
Net pension liability (6,260)
The expected rates of return on the assets in the scheme were:
Long term rate
of return
2007   
Equities 7.4%
Bonds 5.0%
Other – Cash 5.5% Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
58
Notes (continued)
2 24        Pension schemes and other retirement benefits (continued)
Movement in deficit during the year
2007
£000
Deficit in scheme on acquisition (8,837)
Current service cost (305)
Contributions paid 178
Other finance cost (73)
Actuarial gain 95
Deficit in the scheme at the end of the year ( (8,942)
Analysis of other pension costs charged in arriving at operating profit
2007   
£000
Current service cost (305)
Analysis of amounts included in other finance income/costs
2007
£000
Expected return on pension scheme assets 1 168
Interest on pension scheme liabilities (241)
(73)
Analysis of amount recognised in statement of total recognised gains and losses
2007
£000
Actual return less expected return on scheme assets 9 95
History of experience gains and losses 2007
Difference between the expected and actual return on scheme assets:
Amount (£000) 95
Percentage of year end scheme assets 0 0.8%
Experience gains and losses on scheme liabilities:
Amount (£000) -
Percentage of year end present value of scheme liabilities - -
Total amount recognised in statement of total recognised gains and losses;
Amount (£000) 95
Percentage of year end present value of scheme liabilities 0 0.5%
25        Reconciliation of operating profit to operating cash flows
2007 2006
£000 £000
Group operating profit 9 9,892 6,852
Depreciation and amortisation 5 5,605 3,239
Increase in stocks ( (13,254) (7,916)
Increase in debtors ( (4,914) (1,364)
Increase/(decrease) in creditors 1 10,808 (1,026)
Credit in relation to share based payments 2 268 -
Net cash inflow/(outflow) from operating activities 8,405 (215) HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
59
Notes (continued)
2 26       Analysis of cash flows
2007 2007 2006 2006
£000 £000 £000 £000
Returns on investment and servicing of finance
Interest received 3 324 70
Interest paid ( (1,532) (1,145)
Interest element of finance lease rental payments ( (439) (329)
Loan stock redemption premium - - (287)
Dividend and redemption premium paid on shares
classified as liabilities - - (817)
(1,647) (2,508)
Capital expenditure and financial investment
Purchase of tangible fixed assets ( (8,661) (2,540)
Sale of tangible fixed assets 7 794 473
Purchase of investment in associate ( (2) -
(7,869) (2,067)
Acquisitions (note 28)
Purchase of subsidiary undertakings ( (36.157) (2,532)
Overdraft acquired with subsidiary - - (844)
Cash acquired with subsidiary undertakings 2 2.464 -
Receipt in respect of minority interest 7 77 -
(33,616) (3,376)
Financing
Issue of equity shares 1 11,115 21,550
Share issue costs ( (783) (1,570)
Redemption of preference shares - - (1,530)
Capital element of finance lease rental payments ( (1,947) (2,381)
Net invoice discounting advances 3 3,656 2,544
New loans 1 15,000 4,600
Repayment of secured loans ( (1,164) (13)
Repayment of secured loan stock - - (1,750)
25,877 21,450 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
60
Notes (continued)
2 27       Analysis of net debt Acquisition
At beginning (excluding cash Non-cash At end of
of  year Cash flow and overdrafts) changes year
£000 £000 £000 £000 £000
Cash in hand, at bank 15,022 (3,243) - - 11,779
Overdrafts - (9,824) - - (9,824)
Finance leases (5,582) 1,947 (1,119) (1,931) (6,685)
Invoice discounting advances (10,834) (3,656) (748) - (15,238)
Bank and other loans due within one year (14) 14 - (15) (15)
Bank and other loans due after more than one year (5,006) (13,510) - 61 (18,455)
Total (6,414) (28,272) (1,867) (1,885) (38,438)
Non-cash changes arise from the inception of finance leases and the release of loan arrangement fees.
28       Acquisitions
The Group acquired the entire issued share capital of Norec Limited on 1 September 2006. The resulting goodwill of £6,336,000 was
capitalised and will be amortised over 20 years, the period over which the directors anticipate the group to derive continuing economic benefit.
Book and
fair value
£000
Fixed assets
Tangible 764
Current assets
Debtors 4,271
Cash 1,371
Total assets 6,406
Liabilities
External creditors (2,172)
Provisions (3,173)
Total liabilities (5,345)
Net assets 1,061
Goodwill 6,336
Net purchase consideration and costs of acquisition 7,397
Analysed as:
Gross consideration 7,397
Satisfied by:
Cash 5,897
Deferred consideration paid by 31 May 2007 1,500
7,397 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
61
Notes (continued)
2 28        Acquisitions (continued)
The group also acquired the trade and assets of Maltby Colliery on 26 February 2007 resulting in goodwill of £nil.
Book value Revaluations Fair value
£000 £000 £000
Fixed assets
Tangible 12,694 17,839 30,533
Current assets
Debtors 5,171 (1,358) 3,813
Cash
Total assets 17,865 16,481 34,346           
Liabilities
Provisions (6,186) (7,656) (13,842)
Total liabilities (6,186) (7,656) (13,842)
Net assets 20,504
Goodwill -
Net purchase consideration and costs of acquisition 20,504
Satisfied by cash 20,504
This subsidiary undertaking acquired during the year contributed £4,112,000 to the group’s net operating cashflows, paid £nil in respect of
net returns on investments and servicing of finance and utilised £4,150,000 for capital expenditure.
Prior to the acquisition, Maltby Colliery was part of a division of UK Coal plc. Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
62
Notes (continued)
2 28        Acquisitions (continued)
The Group also acquired an additional 50% of the issued share capital of Hargreaves (Bulk Liquid Transport) Limited taking its shareholding to
100%. The resulting goodwill of £1,529,000 was capitalised and will be amortised over 20 years, the period over which the directors anticipate
the group to derive continuing economic benefit.
Book and
fair value
£000
Fixed assets
Intangible 14
Tangible 856
Current assets
Stock 17
Debtors 855
Cash 5
Total assets 1,747
Liabilities
External creditors (1,389)
Provisions (78)
Total liabilities (1,467)
Net assets 280
Goodwill 1,529
Net purchase consideration and costs of acquisition 1,809
Satisfied by:
Cash 764
Shares 1,045
1,809 HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
63
Notes (continued)
2 28        Acquisitions (continued)
The Group also acquired the entire share capital of Mineral Resources Europe GmbH through its 77.5% owned subsidiary,
Hargreaves Raw Material Services GmbH. The resulting negative goodwill of £84,000 is being written off over 5 years in line
with the estimated life of the attributable assets
Book and
fair value
£000
Fixed assets
Tangible 15
Current assets
Stock 2,870
Debtors 6,345
Cash 1,083
Total assets 10,313
Liabilities
External creditors (9,566)
Total liabilities (9,566)
Net assets 747
Goodwill (84)
Net purchase consideration and costs of acquisition 663
Satisfied by:
Cash 663 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
64
Group
Notes (continued)
28        Acquisitions (continued)
The Group also acquired the trade and certain assets of the Simon Bulk Warehousing and Distribution divison from Humber Sea Terminal
Limited on 30 March 2007 resulting in goodwill of £nil.
Book value Revaluations Fair value
£000 £000 £000
Fixed assets
Tangible 3,000 1,215 4,215
Net assets 4,215
Goodwill -
Net purchase consideration and cost of acquisition 4,215
Satisfied by:
Cash 4,215
29         Minority interests
2007 2006
£000 £000
At beginning of year - -
Acquisitions of subsidiary undertakings 7 77 -
Retained profit for year 7 73 -
At end of year 1 150 -
30         Contingent liabilities
The company and certain of its subsidiary undertakings have debenture and composite arrangements in connection with banking facilities. The
company acts as a guarantor, or surety, for various subsidiary undertakings in leasing, banking and other agreements entered into by them in
the normal course of business. The company’s maximum unprovided liability in respect of these is £21,443,000 (2006: £19,436,000).
31       Employee share scheme
The group has issued options under the Savings Related Share Option Scheme during the year.  Details are as follows:
Number of
options
At beginning of year 164,044
Granted during year 295,499
Lapsed during year (20,664)
Exercised during year -
At end of year 438,879
The exercise period for 143,380 of the options is from 1 March 2009 to 1 September 2009 and the weighted average exercise price of these
is 218p.  The exercise period for the remaining 295,499 options is from 1 July 2010 to 1 January 2011 and the weighted average exercise
price is 524p.  Further details of the Savings Related Share Option Scheme are included in the Corporate Governance and Remuneration report.  HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Notes (continued)
3 31       Employee share schemes (continued)
Long Term Incentive Plan (‘LTIP’)
At 31 May 2007 the group had an LTIP scheme, that granted options on 8 November 2006.  Further details of the LTIP scheme are includ-
ed in the Corporate Governance and Remuneration Report.
The details of the grant is as follows, whereby all options are settled by physical delivery of shares:
Date of grant entitled Number of shares granted Exercise period
November 2006 Senior employees 92,593 June 2009 - November 2009
No options were exercised during the period.
Details of options granted in the period
The fair value of the options granted during the year have been measured using the Black Scholes valuation model, the exercise prices
above and the weighted average inputs shown below:
2007
Share price at date of grant (pence) 391.5
Expected option life (years) 3
Volatility 40%
Risk free interest rate 5.35%
Volatility was calculated with reference to the group’s daily share price volatility.  The average share price in the year was 452 pence.
The group recognised a total expense of £82,000 in respect of the equity-settled LTIP share scheme.
Equity settled share option schemes - Norec
At 31 May 2007 the group had a share option scheme, that granted options in September 2006, to the senior management team of the
Norec business.
The terms and conditions of the grants are as follows, whereby all options are settled by physical delivery of shares:
Date of grant Employees entitled Exercise price Number of shares granted Exercise period
Sep 2006 Senior employees 393.5p 96,572 Sep 2007 – Sep 2017
No options were exercised during the period.
Details of options granted in the period
The fair value of the options granted during the year have been measured using the Black Scholes valuation model, the exercise prices
above and the weighted average inputs shown below:
2007
Share price at date of grant (pence) 3.91
Expected option life (years) 5.5
Volatility 40%
Risk free interest rate 5.35%
The group recognised a total expense of £101,000 in respect of these equity-settled share options
65 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
66
Notes (continued)
3 32       Related party disclosures
As disclosed in note 14 the Group had four joint venture undertakings, ThyssenKrupp Metallurgical Supplies Limited, Hargreaves (Bulk Liquid
Transport) Limited, Hargreaves Coal Combustion Products Limited and Coal4Energy Limited in the year ended 31 May 2006.  During the cur-
rent year the Group has acquired an additional 50% of Hargreaves (Bulk Liquid Transport) Limited and hence it ceased to be a joint venture
undertaking.  Transactions with these undertakings during the year and balances outstanding at the end of the year were as follows:
2007
Purchases from Sales to Balance outstanding
debtor/(creditor)
£000 £000 £000
ThyssenKrupp Metallurgical Supplies Limited 1 15 1,133 374
Hargreaves (Bulk Liquid Transport) Limited - - 1,615 -
Hargreaves Coal Combustion Products Limited 4 4 945 268
Coal4Energy Limited 3 37 16,726 2,174
2006
Purchases from Sales to Balance outstanding
debtor/(creditor)
£000 £000 £000
ThyssenKrupp Metallurgical Supplies Limited 2,116 263 33
Hargreaves (Bulk Liquid Transport) Limited 239 1,847 222
Hargreaves Coal Combustion Products Limited 14 1,651 523
Coal4Energy Limited 2      1,881 1,279        
During the year the Group had two associates, Hargreaves Building Products Limited and Lytag Limited.  Transactions with these undertakings
during the year and balances outstanding at the end of the year were as follows:
2007
Purchases from Sales to Balance outstanding
debtor/(creditor)
£000 £000 £000
Hargreaves Building Products Limited - - 1 1
Lytag Limited - - 4 3
33        Post balance sheet events
Change to corporation tax rates
On 21 March 2007 the Chancellor announced that the standard rate of corporation tax in the UK would be reduced from 30% to 28% with
effect from 1 April 2008.  As the change in tax rates had not been substantively enacted at the balance sheet date they have not been used
in the calculation of the deferred tax liability.  The impact of this change, when enacted, is expected to be immaterial. HARGREA V ES SERVICES
Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
Notice is hereby given that the Annual General Meeting of Hargreaves Services plc (the
"Company") will be held at the Trevor Bennett Suite, Level 3, Milburn Stand, Newcastle
United Football Club, St James’ Park, Newcastle upon Tyne, NE1 4ST on Wednesday  3
October 2007 at 12 noon for the following purposes:
Ordinary Business
1 To consider and adopt the accounts for the year ended 31 May 2007 and
the directors' and auditors' reports thereon.
2 To declare a final dividend of 6 pence per ordinary share of 10 pence each
for the year ended 31 May 2007, payable on 11 October 2007 to those shareholders on
the register of members at the close of business on 14 September 2007.
3 To re-elect Kevin Dougan as a director of the Company in accordance with
article 34 of the Company's articles of association, who offers himself for re-election.
4 To re-elect Nigel Barraclough as a director of the Company in accordance
with article 34 of the Company's articles of association, who offers himself for re-election.
5 To re-appoint KPMG Audit Plc as auditors of the Company to hold office until
the conclusion of the next general meeting at which accounts are laid before the Company.
6 To authorise the directors of the Company to fix, or to determine the method
for fixing, the remuneration of the auditors.
Special Business
To consider and, if thought fit, pass the following resolutions, of which resolution 7 will
be proposed as an ordinary resolution and resolutions 8, 9 and 10 will be proposed as
special resolutions. 
Ordinary Resolution
7 That the directors be and are generally and unconditionally authorised for the
purposes of section 80 of the Companies Act 1985 (“the Act”) to exercise all powers of
the Company to allot relevant securities (within the meaning of section 80(2) of the Act) up
to an aggregate nominal amount of £875,000 (being approximately one third of the issued
share capital of the Company as at the date of this notice) provided that this authority shall
expire on the earlier of the date falling fifteen months from the passing of this resolution and
the date of the next annual general meeting of the Company save that the Company may
before such expiry make any offer or agreement which would or might require relevant
securities to be allotted after such expiry and the directors may allot relevant securities in
pursuance of such an offer or agreement as if the authority conferred hereby had not
expired.  
Special Resolutions
8 That, subject to the passing of resolution 7 above, the directors be
and are hereby empowered pursuant to section 95 of the Act to allot equity
securities (within the meaning of section 94 of the Act) for cash pursuant to the
authority conferred by resolution 7 above, as if sub section (1) of section 89 of
the Act did not apply to any such allotment provided that this power shall be
limited to:
(a) the allotment of equity securities in connection with a rights
issue, open offer or other pre-emptive offer in favour of ordinary shareholders where the
equity securities respectively attributable to the interests of all ordinary shareholders are
proportionate (as nearly as may be) to the respective numbers of ordinary shares held by
them but subject to such exclusions or other arrangements as the directors may deem
necessary or expedient in relation to fractional entitlements or legal or practical problems
under the law of, or the requirements of, any recognised regulatory body or any stock
exchange in any territory; and
(b) the allotment (otherwise than pursuant to sub-paragraph (a)
above) of equity securities up to an aggregate nominal amount of £262,700 (being
approximately 10 per cent. of the issued share capital of the Company as at the date of
this notice);
and shall expire on the earlier of the date falling fifteen months from the
passing of this resolution and the date of the next annual general meeting of the
Company save that the Company may, before the expiry of any power contained in this
resolution 8, make any offer or agreement which would or might require equity securities
to be allotted after such expiry and the directors may allot equity securities in pursuance
of any such offer or agreement as if the power conferred by this resolution had not
expired. 
9 That the Company is hereby generally and unconditionally authorised for
the purpose of section 166 of the Act to make one or more market purchases (within
the meaning of section 163 (3) of the Act) of ordinary shares of 10 pence each in the
capital of the Company (‘Ordinary Shares’) on such terms and in such manner as the
directors may from time to time determine provided that:
a) the maximum aggregate number of Ordinary Shares authorised
by this resolution to be purchased is 2,627,000 (representing approximately 10 per cent
of the Company’s issued share capital as at the date of this notice);
b) the minimum price which may be paid for such Ordinary Shares
is 10 pence per share (exclusive of expenses) 
c) the maximum price (exclusive of expenses) which may be paid
for an Ordinary  Share is not more than five per cent above the average of the middle
market quotations for an ordinary share as derived from the London Stock Exchange Daily
Official List for the five business days immediately preceding the day on which the ordinary
share is contracted to be purchased; and
d) unless previously revoked or varied, the authority conferred by
this resolution shall expire on the earlier of the date falling fifteen months from the passing
of this resolution and the date of the next annual general meeting of the Company save
that the Company may, before such expiry, make a contract or contracts to purchase
Ordinary Shares wholly or partly after such expiry as if the power conferred by this resolution
had not expired.
10 That the Company may send or supply any document or information which
requires or is authorised to be sent or supplied to a shareholder or any other person by
the Company under a provision of the Companies Acts (as defined in section 2 of the
Companies Act 2006) or pursuant to the Articles of Association of the Company or to
any other rules or regulations to which the Company may be subject by electronic means
(as defined in section 1168 of the Companies Acts) including by making it available on a
website and the provisions of schedule 5 to the Companies Act 2006 shall apply,
whether or not any document or information is required or authorised to be sent by the
Companies Act 2006 and this resolution shall supersede any provision in the Company’s
Articles of Association to the extent that it is inconsistent with this resolution.
Registered office: 
West Terrace
Esh Winning
Durham
DH7 9PT
By order of the Board
Stephen  MacQuarrie
Company Secretary
3 September 2007
Notes:
1 Any member entitled to attend and vote at the above meeting is entitled to appoint one or
more proxies to attend and vote on a poll instead of the member. A proxy need not be a member of the
Company. 
2 An instrument of proxy is enclosed.  To be valid, an instrument of proxy must be
completed, signed and deposited at or sent to (by hand or by post) Capita Registrars, Proxy
Department, PO Box 25, Beckenham, Kent BR3 4TU not less than 48 hours before the time fixed
for the meeting (together where relevant with a notarially certified copy of any power of attorney or
other authority under which it is signed). Completion of an instrument of proxy does not preclude
a member from attending the meeting and voting thereat.
3 Pursuant to regulation 41 of the Uncertificated Securities Regulations 2001, the Company
specifies that only those persons entered on the register of members at 6.00pm on 1 October 2007
(being not more than 48 hours before the time fixed for the meeting) will be entitled to attend and vote at
the meeting in respect of the numbers of shares registered in their names at that time.  Changes after
that time and date shall be disregarded in determining the rights of any person to attend and vote.
4 Copies of contracts of service of the directors with the Company and the
register of directors' interests will be available for inspection at the place of the
meeting for at least 15 minutes prior to and during the meeting.
Hargreaves Services plc
(incorporated under the Companies Act 1985 with registered number 4952865)
Notice of Annual General Meeting
e
4
regist
meet e e
4
g e s i r t t i
e e t t m
67 Hargreaves Services plc. Directors’ report and financial statements 31 May 2007 
Registered number 4952865
HARGREA V ES SERVICES
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68 H A R G R E A V E S S E R V I C E S
SPECIALISTS 
IN THE 
PROVISION AND
MANAGEMENT OF MINERALS,
SUPPORT SERVICES 
FOR THE ENERGY 
AND WASTE SECTORS 
AND BULK HAULAGE 
OF SOLID AND LIQUID 
MATERIALS
THROUGHOUT 
THE UK D I R E C T O R S ’ R E P O R T A N D F I N A N C I A L S T A T E M E N T S
3 1 S T M A Y 2 0 0 7
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H A R G R E A V E S S E R V I C E S