Hargreaves Services Share Discussion Threads

[smithie6] 06/12/2022 12:27

excessive spread at this moment imo

4-5% !!
crazy

[smithie6] 06/12/2022 11:49

tiger
can you explain that a bit more ??

[castleford tiger] 06/12/2022 11:44

First half was only 1/3 of the years total so it was a fair bet this year will be the other way round?
tiger

[clocktower] 06/12/2022 11:13

Irresistible at 3.53.

[clocktower] 06/12/2022 10:56

By February 2023, I expect these to be trading at £5+ so a very nice hold into the New Year, and I am sure any investment now will be able to pay for many bottles of Fizz even before the New Year and the results.

[smithie6] 06/12/2022 10:46

clocktower
"HS2 turnover will be up due to the jump in equipment leasing cost"

good point.
I hadn't thought of that.
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btw
the biggest high speed train investment made by the UK.....was in Spain ! je je

(2nd highest number of high speed train km in the world !, after China, & I understand >=50% funded by the EU, with the UK as one of its biggest past nett contributors to the EU)

[smithie6] 06/12/2022 10:23

So, PBT in H1 is up on the previous year, nice. :-)

"The Board anticipates reporting a strong set of results for the period, with both revenue and profit before tax expected to be higher than in the comparative period. Improvement has occurred in each of the three business segments, Services, Hargreaves Land and HRMS (German Joint Venture)."

[clocktower] 06/12/2022 10:22

LOL - S

I assume you you had a late night last night or your suffering from heat exhaustion.

Going back to HSP - I like the fact that the HS2 contract must be delivering ever increasing amounts of cash, as they have had to lease a considerable amount of extra plant, and the debt has risen on account of this. As these contracts are on a cost plus basis and inflation only adds to the value, the prospects are exciting.

All this extra equipment means extra revenue.

Hence I have been buying today, as it is so undervalued, as you guys keep pointing out.

"The Group also had leasing debt totaling GBP30.6m (GBP18.4m on 31 May 2022) reflecting the additional plant acquired in the period to service the HS2 contract."

[clocktower] 06/12/2022 10:22

double post error.

[smithie6] 06/12/2022 10:18

I was 100% correct then.

("almost correct".
perhaps you were holding my post upside down. ;-) )

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(btw HSP owns 86% of the assets, 86% of everything, it just doesn't have voting control )

[gargoyle2] 06/12/2022 10:17

Almost correct, smithie. HSP owns 49.9% of the voting shares, plus a number of shares which carry an economic benefit but no voting rights. It is these non-voting shares which mean that Hargreaves is entitled to 86% of the profits of the JV.

[smithie6] 06/12/2022 09:50

Had a look at the statement
looks good.
I liked this bit (recording that the biggest profit making part is the JV in Germany).

"the joint venture is expected to deliver results ahead of those reported in the comparative period. "

(the profit for all of last year for the JV, knocked the ball right out of the park !)

----

I note that the report of cash held does not include the cash held in the JV imo since its results are not consolidated since HSP doesn't have voting control of it, despite owning 86% (if my memory is correct).

[smithie6] 06/12/2022 09:37

clocktower
"folks must have trouble getting out of bed today."

so right !
& not had a cuppa yet !

[clocktower] 06/12/2022 09:13

Here we go on the upward swing - bargain time awareness as the market rises from its slumber.

C Tiger It would be good to also hear from smithie6 as you have both provided good info over a long period.

[castleford tiger] 06/12/2022 08:57

first half last time was
pbt 10.4 full year 32.7 so a 2/3 rd split second half.
EPS was 31p and full year 113.8p

I think the 70p could well be broken for the full year but they are holding that in reserve to see how second half shapes up.

So what can we expect in the first half?

I will go for 50p eps and £17m PBT leaving very little to do to achieve broker forecasts.

I have said it all along we will beat the 70p given a fair wind.

The shares are priced far too cheap in my opinion
tiger

[clocktower] 06/12/2022 08:57

Well I just took another 1000 while the market sleeps.

[clocktower] 06/12/2022 08:55

The market is crazy, it prices duff stock in companies hat make huge losses at top dollar and good businesses like this go nowhere on great news.

[harrogate] 06/12/2022 08:47

Given we have only one broker covering now which is Singers I am taking there 71.7 EPS as market expectations for FY23. Slightly disappointed with share price reaction given confidence of full year result achievement. The interesting thing here is that both PE of 5 and yield of 6% can't be right. If we don't get an increased dividend it will be because HRMS still trading very well which will mean we beat on earnings

[gargoyle2] 06/12/2022 08:38

No new CEO here, must be a mispost.

[cerrito] 06/12/2022 08:25

Interesting to see how many shares our new CEO buys

[clocktower] 06/12/2022 08:18

So few trades after such positive news - folks must have trouble getting out of bed today.

[gargoyle2] 06/12/2022 07:17

Current year PE of just over 5, assuming 68p EPS (Sharepad forecast).

[rimau1] 06/12/2022 07:05

Excellent update, can’t ask for more than that with all 3 business segments performing in line with expectations. HS2 ramping up has de-risked Services, land disposals continue to plan and the German business will “perform”; albeit with limited visibility. Hugely undervalued IMO.

[smithie6] 05/12/2022 18:30

A buy of 20k shares at 355p has gone thru at ~16:20.

that cost a fair chunk of change !