Hargreaves Services' German Affiliate Buys DK Recycling und Roheisen

(Alliance News) - Material handling and logistics services provider Hargreaves Services PLC said ...

Alliance News 10 December, 2019 | 12:55PM
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(Alliance News) - Material handling and logistics services provider Hargreaves Services PLC said on Tuesday its German associate company has acquired 94.9% of DK Recycling und Roheisen GmbH from DK Holdings GmbH for a nominal EUR1.

DK Recycling und Roheisen's recycling process produces pig iron and other products from residual waste materials produced by the steel industry's manufacturing process. The pig iron is mainly reused by the foundry industry in an environmentally sustainable production cycle.

In 2018, DK Recycling recorded a loss before tax of EUR2.2 million on revenue of EUR135 million, Hargreaves Services said.

It had net assets of EUR15.8 million. However, "after fair value adjustments to comply with IFRS [accounting rules], the net assets of DK are approximately EUR1", Hargreaves Services explained.

Local arm Hargreaves Raw Material Services GmbH will focus on improving DK Recycling's sales and procurement processes as well as making operational changes and cutting costs to improve DK's financial performance.

Hargreaves Services expects DK Recycling to break even in 2019.

Shares in Hargreaves Services - which is headquartered in Durham - were untraded on Tuesday, last quoted at 290.00 pence in London.

By Ife Taiwo; ifetaiwo@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Hargreaves Services PLC 224.00 GBX 0.45 -

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