Hargreaves Services Share Discussion Threads

[harrogate] 31/1/2024 21:27

Well have to be sold by some one to be able to buy as always

[mexico man] 31/1/2024 21:00

2.84m buys

[harrogate] 31/1/2024 18:59

And sold then

[mexico man] 31/1/2024 18:58

Plenty of shares purchased today

[sspurt] 31/1/2024 15:41

V happy with HSP. As people have said this has got a neon flashing for sale sign over the front door and the CEO is kind enuf to give us the calcs of a breakup value of £8+. As we wait we get a div yield of 7.5%. Should turn out to be a classic Harwood investment.

[harrogate] 31/1/2024 13:05

That's a chunk gone through at 480p.

[gargoyle2] 28/1/2024 12:55

Agree with that change of emphasis, Harrogate. Gordon even talked about the Services division being much more saleable once the pension buy-out has happened, 'if anyone wants to buy it.'

[mexico man] 27/1/2024 20:40

Very well presented apart from sound

[gargoyle2] 27/1/2024 14:33

.. meanwhile sit back and enjoy the 7.65% yield

[red ninja] 27/1/2024 14:24

Well the singer target price is £7.70 and the company in the investor meets company presentation is saying the company is worth £8

With company parts Services at £3, Land at £3 and HMRS at £2.

If the company's plans go ahead as planned and paying a sustainable 36p a year dividend (covered by profits) then I think they will get to £6 and eventually £8.

However, the market will probably want to see evidence that thing are going to plan in the next few results before the company sees that sort of move in it's share price.

[daisylove] 24/1/2024 16:05

I've hoped for £6 for some time albeit based on a kind of finger in the air.
Can't say I really understand all the moving parts.
Even if we don't get there the div is worth having.

[davebowler] 24/1/2024 11:12

Singer -
Strong H2 outlook, with six-fold dividend increase Interim results are as expected, reflecting a strong performance in Services, fewer completions in Land and a slowdown within HRMS. As previously flagged, the reduction in activity at HRMS has reduced working capital consumption, resulting in a significant cash release to Hargreaves, with £8m received during H1 and further cash repatriations of no less than £7m p.a. expected. Combined with strong progress on the imminent pension buy out, this has facilitated a material, six-fold increase in the interim dividend to 18p (H1’23: 3p). The outlook for H2’24 and beyond is strong, with 90% of our FY24 revenue forecast for Services now secured, Land poised to deliver its best ever full year result, with several post-period end completions secured, and confidence in a return to profit at HRMS. We remain at Buy, reiterating our 770p TP and note the attraction of the 9% dividend yield as management executes its value realisation strategy. H1 outturn as expected Hargreaves’ interim results highlight that Group revenue decreased by 5.4% to £110.2m (H1’23: £116.5m) due to several sales within Hargreaves Land completing post period end., whilst Services performed strongly, with revenue increasing by 1.6%. As anticipated, HRMS recorded a post-tax loss of £1.9m (H1’23: profit of £10.8m) during H1’24. Group PBT therefore decreased from £18.7m to £2.7m. The prior year period also benefitted from a non-recurring gain of £2m. Six-fold increase in the dividend with balance sheet remaining strong As anticipated, reduced activity at HRMS has reduced working capital consumption, resulting in a significant cash release to Hargreaves, with £8m received during H1 and further cash repatriations of no less than £7m p.a. expected. Combined with strong progress on the pension buy out, this has facilitated a material, six-fold increase in the interim dividend to 18p (H1’23: 3p). The Group held cash of £18.7m at Nov. ’23, with no debt. Cash is expected to remain strong across the forecast period. Strong outlook, with significant profit recovery expected in H2’24 The outlook for H2’24 and beyond is strong, with 90% of our FY24 revenue forecast for Services now secured, Land poised to deliver its best ever full year result, with several post-period end completions secured, and confidence in a return to profitability at HRMS. We therefore anticipate a significant profit recovery in H2’24, forecasting PBT of £13.4m after the £2.7m H1 outturn (FY24E: £16.1m). Share remain attractively valued with substantial dividend yield The valuation remains attractive, with the shares trading on a May ’24 P/E rating of only 10.1x. Our SOTP valuation underpins a 770p TP. Management is executing a strategy to realise this value, with plans to dispose of the renewables portfolio in the first instance (on track). Investors are paid whilst they wait for this, with a very attractive 9% dividend yield. This makes HSP a high conviction Buy idea.

[smithie6] 24/1/2024 10:52

Can anyone explain the massive difference between EBITDA & profit ??

"The Group's PBT also decreased from GBP18.7m to GBP2.7m. ....
...EBITDA was GBP12.3m (Nov 2022: GBP12.9m"

----

Update
..I guess it is probably due to D & A at the German entity.

[smithie6] 24/1/2024 10:45

..& a hard share to price/value !

[harrogate] 24/1/2024 08:06

That's as good as I think we could have expected. It is a hard share price to read and with Downing likely to be reducing further with their issues it might be bumpy. But surely as interest rates come down we should be closer to 6-7 percent yield.

[rimau1] 24/1/2024 07:28

Encouraging outlook statement, especially for HRMS:Stronger outlook for HRMS with changes to gate fees and the impact of EU sanctions on pig iron expected to give a significant improvement to profitability in the second half and FY25

[sspurt] 23/1/2024 14:22

Figs tomorrow. Hope we get news of a conclusion to the pension fund buyout plus more colour on progress with the renewable energy land assets.
Fingers crossed.

[red ninja] 14/1/2024 14:38

Downing Strategic Micro Cap I.T December Factsheet comment :-

Hargreaves Services (-9%) announced that the wholly-owned Services and Land businesses
were trading well. The German JV will contribute significantly less profit, but as expected, will generate more distributable cash which will be returned to Hargreaves shareholders.
As a result, the business has increased the ordinary dividend to 36p per share equating to over a 10% yield on our cost. We think that there remains further scope for additional special distributions.

[mexico man] 22/12/2023 18:03

They have that much work over here They want people to work over Christmas

[smithie6] 21/12/2023 18:03

Dear Rimau.
Grow up.

:-)

This is a message board for discussing a share.
If you don't like my posts ADVFN have given you a filter button, so you can block out all my posts. Just use the filter button.

(Let's be truthful, you just don't like what I wrote. Boohoo. ;-). )

[smithie6] 21/12/2023 15:41

The new divi yield is high at ~8%
But is it well covered by real income ?

It needs £16m pbt to give £12m of cash to pay it if paid from profits. And today's RNS infers that HSP won't make £16m pbt.
No prediction is given, even though the co. has stated what the profit forecast was before today ! (That forecast was blown out the water today).

Each to their own opinion but for me the quality of the information revealed in today's RNS scores 1/10 for me. Too many unknowns imo. But perhaps the bod will have meetings with analysts/brokers (ST ?) in coming days & us PIs might see good write ups which makes things a bit clearer.

Some people might want to invest to get the divi which is high but I don't invest for divis.

Be interesting to see what different analysts think after today's news.

[smithie6] 21/12/2023 15:27

Profit

=====
2021
HMRS profit £18m
Group. £14m
Group excl. HMRS. £4m. LOSS !!


2022
HMRS profit £28m
Group. £34m
Group excl. HMRS. +£6m

======

These real numbers indicate that in the past that the rest of HSP, apart from HMRS, was a waste of time !

Adding 2021 & 2022 together the profit of HSP outside of HMRS was
-£4m +£6m
= + £2m.

That is just £1m/year !

Not exciting at all imo. But each to their own opinion.

Ok, historic numbers, might be better in the future. But land values are down imo. And that was the other profit contributor of HSP, used to be.