THE operator of most of East Ayrshire’s open cast coal mines, as well as Glenmuckloch in Kirkconnel, has suffered a dramatic dip in its share price.

Hargreaves Services shares are now sitting at their lowest in four years.

The Durham-based firm’s price is now £562, dropping from £904 one year ago.

The company puts the dip down to the low coal prices internationally.

Despite the news, the firm is adamant that it has never been in better financial shape.

A spokesperson said: “Whilst the Group cannot comment on why the share price has reduced, the market have reduced their forward profit forecasts of Hargreaves to take account of the continuing low international coal price. This inevitably will be one of the factors putting pressure on the share price.

“Despite the fall in international coal prices, management is confident that the breadth and strength of the Group ensures that it will continue to be profitable. Despite the low coal prices, the Group has reiterated its support for continuing to develop its Scottish mining activities as it waits for coal prices to improve. Hargreaves continues to develop its mining activities in a controlled and financially responsible manner.

“The Group has also stated that it is looking to streamline its activities around coal and coke trading. Although this is also expected to reduce future profit levels it will also reduce much of the risk and volatility it faces and will allow the Group to free up more cash and capital.

“As a result, the market is expecting the Group to be debt free by the end of its financial year in May next year, a significant reduction from the £106 million of debt reported in November 2012.

“Despite investing £38 million in setting up its Scottish operations last year, the Group was still able to reduce its bank debt by £9 million over the last financial year to May 31.

“Although the share price has fallen, the strong balance sheet position of the Group and the broad activity base ensure that the Group has never been more financially robust.”