Hargreaves Services Share Discussion Threads

[gargoyle2] 28/10/2014 19:54

Haha, unfortunately not, tanelorn. I also hold a fair chunk of WHI.

[tanelorn] 28/10/2014 19:33

For a minute i thought gargoyle had found a buy recommendation for WH Ireland, ( which i also own ), alas not.!!!!! ( 95 to 775 would have been good!)

[bench2] 28/10/2014 18:52

Nat Grid confirms that it's spare capacity will be at a 7 year low this winter , circa 4% . A good report plus charts on the BBC website . Coal and solid fuel is not dead yet !! But HSP is clearly ex growth, but management is now prepared to be more shareholder friendly via the new divi payout and the share buyback program . One for the ISA

[gargoyle2] 28/10/2014 17:34

WH Ireland 775p price target.

[bamboo2] 28/10/2014 15:04

Taken a small amount

[essential] 28/10/2014 11:47

Watching these for a break of 630p then I'll be back in. Chart looking very strong

[totally banjo] 28/10/2014 10:10

Hargreaves raises dividend payout as it weighs coke plant closure
Tanya Powley
October 27, 2014 7:23 pm

Hargreaves Services on Monday announced plans to increase its dividend payout as the company moved a step nearer to closing Britain’s last independent coke works.

Aim-listed Hargreaves, which is reshaping its mining, power supply and services businesses, said it was starting a consultation process about potential redundancies with the 120 employees at its Monckton coke manufacturing plant near Barnsley.

However, shares in Hargreaves rose almost 5 per cent to 631p on Monday after the Durham-based company said it would raise its dividend payout to 40 per cent of underlying profit after tax, and launch a share buyback programme.

The company warned last month that it was reviewing the future of Monckton after the plant’s operating profit fell from £6.6m in 2012-13 to £2.9m in 2013-14. It blamed its poor performance on falling UK demand and cheap Chinese competition.

At the time Hargreaves said it would confirm in January whether it had secured enough contracts at a price high enough to justify keeping the 130-year-old plant open.

But chief executive officer Gordon Banham said on Monday trading conditions in the coke markets had becoming “increasingly challenging” for the business.

“Although discussions continue with key export customers, a significant change in both market conditions and customer demand would be required to secure the plant’s future,” the company added.

Hargreaves, which produces coal from nine surface mines, said it would consider special dividends and increased buybacks once it had made a decision on whether to close Monckton.

If a closure was to go ahead, it would unwind more than £22m of working capital in 2015 and 2016, but this could be offset by £4.8m in costs including shut down expenses.

Analysts at N+1 Singer, one of Hargreaves’ house brokers, said the company’s update suggested returns to shareholders would be at the forefront of the company’s strategy.

“We expect these announcements to reduce uncertainty and have a positive impact on the share price with our FY16 dividend forecast now implying a yield of 7.3 per cent with more to come depending on buybacks and Monckton,” it said.

Hargreaves is in the middle of a simplification plan as it looks to offload non-core assets.

For example, in September the company sold its Imperial Tankers business, which transports chemicals, for £26.9m. It is also in talks to sell the only asset of Rocpower, which produces standby power from biofuel when the National Grid is under strain.

[bamboo2] 27/10/2014 22:17

Could be an inverse head and shoulders.



Edit, waiting for a pull-back closer to the neckline at 600

[tanelorn] 27/10/2014 19:43

Charting irrelevant when news is the driving factor.

[beeks of arabia] 27/10/2014 12:17

Smashed resistance, so expect £7 in the not too distant future.

[totally banjo] 27/10/2014 12:05

free stock charts from uk.advfn.com




free stock charts from uk.advfn.com

[meijiman] 27/10/2014 11:56

See these two releases as highly positive for the share price. Clearly there are plenty of issues here and pricing is a major problem throughout the coal chain. Nontheless the low rating and yield makes quite a compelling investment case.

[tanelorn] 27/10/2014 11:52

"committed to generating attractive returns for shareholders"

For once, a company that actual does what it says it's intent is!!

[totally banjo] 27/10/2014 11:09

27 October 2014

HARGREAVES SERVICES PLC

("Hargreaves" or "the Group")

CONSULTATION PROCESS AT MONCKTON

Hargreaves Services plc (AIM:HSP), the UK's leading supplier of solid fuels and bulk material logistics, announces that it will today begin a consultation process in which the employees at Monckton Coke and Chemical Company Limited will be issued with notification of potential redundancies. This consultation process will last for a minimum of 45 days.

In the Group's preliminary results statement, issued on 9 September 2014, the Board confirmed its intention to review the future of Monckton, which continues to suffer from a period of unprecedented turmoil in European coke markets. Although discussions continue with key export customers, a significant change in both market conditions and customer demand would be required to secure the plant's future.

Although Monckton continues to benefit in this financial year from a number of higher priced legacy contracts and was budgeted to make a profit of GBP2.0m, the outlook beyond this year is very poor given current market prices. If the decision is taken to proceed with closure, whilst the current year profit would be reduced to nil reflecting the cancellation and rescheduling of a number of customer contracts, the closure would result in the unwinding of significant working capital tied up in the business. The combined impact on FY15 and FY16 of this working capital unwind would be in excess of GBP22m. The cash flows over this period would be partly offset by cash closure costs of approximately GBP3m and remediation costs of GBP1.8m.

Commenting on the announcement, Gordon Banham, CEO of Hargreaves, said: "Hargreaves acquired Monckton in 2005. Whilst great progress has been made by the team in improving efficiency and environmental performance over the past ten years, the coke markets have become increasingly challenging for the business. I have worked closely with the management team and it is with great personal sadness that we find ourselves having to start this consultation process."

[totally banjo] 27/10/2014 11:08

27 October 2014

("Hargreaves" or "the Group")

UPDATE ON REVIEW OF STRATEGY

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuel and bulk material logistics, is pleased to provide the following update on the Board's review of strategy initially announced on 9 September 2014.

As a result of the review, the Board has agreed a simplification plan, which is expected to release further capital. With no near term requirement for major capital investment, the Board has also decided to increase the dividend payout and implement a programme to return excess capital to shareholders through a share buy-back scheme.

The Board's intention is to accelerate the previously stated rate of increase in dividends by raising the dividend payout level to 40% of underlying profit after tax, such that the Group will be targeting dividend cover of 2.5 times in the financial year ending 31 May 2016.

Even taking account of the potential short-term impact of volatile market conditions and after allowing for this accelerated dividend distribution, the Board remains confident that, as it implements its simplification plan, it will release further funds in excess of its near term capital requirements. Therefore the Board is announcing its intention to implement a rolling share buy-back programme with any shares purchased being held as treasury shares. The programme will be undertaken under the Group's general authority to make market purchases of up to 10% of its issued share capital, subject to the renewal of this authority, which is being sought at the Group's Annual General Meeting on 5 November 2014. The buy-back programme ("the programme") is expected to commence shortly after the renewal of this authority with the objective of reducing the issued capital of the Group. The programme is expected to remain open until such time as the capital reduction objective is met. The maximum price payable for any Ordinary Share under the programme will be an amount equal to 105% of the average market value of the Company's Ordinary Shares as derived from the London Stock Exchange Daily Official List for the five business days immediately preceding the day on which such share is contracted to be purchased.

Due to liquidity constraints, in order to ensure that the reduction in capital is efficiently implemented over an appropriate timescale, the purchase of Ordinary Shares under the programme on any trading day is likely to represent a significant proportion of the daily trading volume in the Ordinary Shares on the Exchange. This may materially exceed the 25% and 50% limits of the average daily trading volume as referred to in the safe harbour provisions.

In conjunction with the ongoing simplification of the Group, and reflecting the need to optimise the Group's risk profile, a number of investment opportunities have been evaluated that would broaden the base of the business in the energy sector and provide greater control over the sourcing of coal for major power stations. Over the past six months, the Group has comprehensively reviewed a number of investment opportunities. No initiatives are currently being pursued although the Group remains open to considering further projects in the energy sector on a collaborative or joint venture basis providing any investment does not compromise the new dividend policy or the share buy-back programme outlined above.

The Board remains confident of continuing cash generation from its core trading and is pleased to report that underlying performance and cash generation for the financial year continue to be in line with management expectations. The Group continues to allocate modest capital amounts to support growth opportunities in its Industrial Services business and will also continue to seek to acquire modest and appropriately priced surface mining assets.

The Board remains committed to generating attractive returns for shareholders by maintaining strong capital discipline and will continue with the announced simplification programme. In this connection the Group has today announced the commencement of a consultation process in relation to the potential closure of Monckton and will continue to provide further announcements on the detail of the programme as appropriate. Once the outcome of the process at Monckton that was announced today is known, consideration will be given to increasing the share buy-back authority level or considering special dividends.

[tanelorn] 23/10/2014 15:27

Thanks, all's well. Wonder how many sold early yesterday!!

Apart from HSP, i've got a few in Safestyle sfe: Lucara tsx:luc: HSBC hsba;( thats gone xdivi ) WH Ireland WHI (possible takeover target ); and quindell qpp (bit of fun); Amlin aml ( similar to catlin ) and a have gone into cash on five other shares during the last few days.

Expecting major movement on luc, and am only down on qpp, ( at the moment !! ) Realistic target 15% return this year, lost a bundle on AMI, so need a good rally towards xmas.

Agree good strength on share price for hsp.

[bench2] 23/10/2014 09:35

Early days , but it would seem that HSP has gone ex fairly well . How are you getting on with - tanelorn ?

[bench2] 22/10/2014 10:59

I think the company goes xd tomorrow 16.7p . I believe the new XD dates are now on Thursday ......... but I will check

[tanelorn] 22/10/2014 10:31

Gargoyle > Nice article find,

I had expected a significant drop this morning, now that we are ex-divi, however there have been several good media comments on mid-term future prospects for HSP and i'm happy to hold for a couple of years.

[bench2] 21/10/2014 15:38

Didcot is good news . The Nat Grid confirms that it may need extra generating capacity if we get a high pressure cold snap with no wind .

[tanelorn] 21/10/2014 08:43

Continuing Revenue £869.2m +3.1%
Continuing Operating Profit £50.9m +15.7%
Continuing Underlying Operating Profit(1) £59.5m +6.8%
Continuing Profit Before Tax £52.1m +20.9%
Continuing Underlying Profit Before Tax(2) £55.1m +5.6%

Net Debt(3) £68.8m (11.7%) - (less)

[totally banjo] 21/10/2014 08:03

21 October 2014


For immediate release 21 October 2014

HARGREAVES SERVICES PLC

("Hargreaves" or the "Company")

Posting of Annual Report and Notice of AGM

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuel and bulk materials logistics, announces that its Annual Report and Accounts for the year ended 31 May 2014 has been posted to shareholders and is available at the Company's website: www.hsgplc.co.uk.

The Company's Annual General Meeting will be held on 5 November 2014 at 11.00am at Prior's Hall, Durham Cathedral, The College, Durham DH1 3EH.

[tanelorn] 20/10/2014 17:56

Ex divi on 22nd October, some jumping aboard?.

I like this share, reckon the divi's just a bonus, underwrites the risk a little, but nonetheless expect 10% growth plus divi. imo dyor etc.