Hargreaves Services Share Discussion Threads

[totally banjo] 02/1/2015 11:06

Good news story:

Firm's gift of life-giving water
First published Thursday 1 January 2015 in Durham City News
by Mark Tallentire

A MINING firm has dug deep to help needy children in rural Africa.

Hargreaves Services has made a significant donation to the Dorothy’s Well project, which sinks wells and builds toilets for villages in Tanzania; giving enough to provide a 20-litre water container for every child at two schools.

Jim O’Connor founded Dorothy’s Well after the death of his wife Dorothy from breast cancer in 2006, aged 56.

Since then, more than £300,000 has been raised for the cause. Clean water has been provided for 5,000 children and 26,000 people have benefitted.

Mr O’Connor, from Esh, near Durham, is soon to visit Tanzania again to sink his ninth and tenth wells, both solar-powered.

Mike O’Sullivan, from Hargreaves, which is based in nearby Esh Winning, said: “We receive many requests for support but we have never before been so moved and inspired.

“The work of Jim and the Dorothy’s Well Project Tanzania charity provides sustainable life-giving clean water to thousands of children and their families, making water-borne disease a thing of the past.

“Children can attend school and reach their full potential; families can grow food and enjoy a healthier diet; and enterprises can develop and create wealth for their future prosperity.

. .

“We are proud to support this wonderful work and it is especially appropriate as it is in memory of a very caring, local lady who was born and raised right here in Esh Winning.”

Mr O’Connor said his wife spent her early childhood living where Hargreaves’ car park now stands.

“How wonderful that a local company is helping save the lives of children through a charity established in memory of a local woman who dedicated her life to helping others,” he added.

[bamboo2] 29/12/2014 16:55

The buyback seems to be having a very good effect here.
Much better than I would have expected tbh. My only other experience of bb's is with bp. and vod, both a number of years ago, and they made little discernable difference to the share price Not holding hsp at present.

[totally banjo] 23/12/2014 10:54

The linked document is dated 17th December 2014:

Hargreaves Mining India

Hargreaves Mining India Pvt Ltd is a new venture created to support the growth of coal mining in India and contribute to its further success in underground and surface operations.



This new business is underpinned by a merger of resources between Hargreaves Technical Resources (HTR) and Rufford Coal Mining Services Pvt Ltd, an Indian-registered company; it will successfully combine the best of British mining expertise with the experience of a team of Indian mining specialists.

From the outset, our objective is to provide project management, consultancy services and mining contracting to public and private sector organisations in the coal mining industry, based on proven Hargreaves capabilities:
Quality – of people and resources
World-class health and safety management
Global partnerships and supply chains
Successful development and operation of UK mining assets
Extensive experience in mass production technologies
Expertise in mining, product processing and product marketing


More about Hargreaves Mining India:

[beeks of arabia] 23/12/2014 07:50

Of course, if the institutions and directors use the buyback as a way of offloading shares, HSP will be range bound for the duration.

[totally banjo] 19/12/2014 08:32

19 December 2014

Hargreaves Services Plc

Transaction in Own Shares

Hargreaves Services Plc announces that on 18 December 2014, in accordance with prior approvals from shareholders, it purchased through N+1 Singer Capital Markets Limited 30,000 ordinary shares at an average price of 587 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, Hargreaves Services Plc holds 605,572 ordinary shares in treasury, and has 32,533,184 ordinary shares in issue (excluding treasury shares).

Therefore the figure of 32,533,184 may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure and Transparency Rules.

[totally banjo] 18/12/2014 08:01

18 December 2014

Hargreaves Services Plc

Transaction in Own Shares

Hargreaves Services Plc announces that on 17 December 2014, in accordance with prior approvals from shareholders, it purchased through N+1 Singer Capital Markets Limited 50,000 ordinary shares at an average price of 580 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, Hargreaves Services Plc holds 575,572 ordinary shares in treasury, and has 32,563,184 ordinary shares in issue (excluding treasury shares).

Therefore the figure of 32,563,184 may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure and Transparency Rules.

[elrico] 17/12/2014 13:42

The conclusion from the RNS suggests the buy back is likely cause the shares to rise on its own due to liquidity issues. That was enough to prompt me to dip in, that and the sharp fall last week.

[meijiman] 17/12/2014 09:45

Think this is now an ex growth yield play. Should be supported by the buy back programme. Not sure how much certainty there is on forecasts here.

[bamboo2] 16/12/2014 09:14

gustavfenk 1312.

Some very valid points about managements forecast of clean up costs. Those projected figures don't look anywhere near enough.

A small plot of land, a former gasworks, I am familiar with, is currently being cleaned up and made ready for housing. The tar by-product has seeped down into the subsoil, resulting in a 3-4 metre deep excavation. Each 8-wheeler load [approx 12m3] is £1200 in disposal costs.

===============================================

Re, the buyback, the share price is going to to be falling for some time, so why not delay it?

[totally banjo] 16/12/2014 08:09

16 December 2014

Hargreaves Services Plc

Share Buyback Programme

Hargreaves Services plc ("Hargreaves" or the "Company") has appointed N+1 Singer Capital Markets Ltd to manage an irrevocable buyback programme during its close period within certain pre-set parameters. The close period will commence tomorrow and will run until the announcement of the interim results on 17 February 2015. The maximum price to be paid is limited to no more than 105 per cent. of the average middle market closing price of the Company's shares for the 5 dealing days preceding the date purchase. Any shares purchased will count towards the Company's general buyback authority of 10 per cent. of the issued share capital, as approved at the AGM on 5 November 2014. Any shares purchased will be held in treasury.

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

Hargreaves confirms that it currently has no unpublished price sensitive information.

[totally banjo] 16/12/2014 08:08

16 December 2014

Hargreaves Services Plc

Transactions in Own Shares

Hargreaves Services Plc announces that on 15 December 2014, in accordance with prior approvals from shareholders, it purchased through N+1 Singer Capital Markets Limited 295,572 ordinary shares at an average price of 576.6 pence per share. The purchased shares will be held as treasury shares. Following the above purchase, Hargreaves Services Plc holds 525,572 ordinary shares in treasury, and has 32,613,184 ordinary shares in issue (excluding treasury shares).

Therefore the figure of 32,613,184 may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure and Transparency Rules.

[bench2] 14/12/2014 18:36

Bamboo , many thanks , I will watch and wait .

[beeks of arabia] 13/12/2014 22:15

The HSP Xmas doo is in full swing and very enjoyable!

[bamboo2] 13/12/2014 14:38

bench2. Bearish engulfing candle on the weekly chart. This is bad in the short term.

Buybacks and debt reduction should help support the share price
Govt intervention in Monkton might be a possible?

The co does seem to have debt reduction in mind which is a positive.

[bench2] 12/12/2014 23:14

Very sad , please can you update your candlestick chart Bamboo 2

[castleford tiger] 12/12/2014 18:28

So as I thought its Bad news all round.

Going forward we may NOT dig any coal next year. We will be selling off the coke stocks for cash that will almost all go in write downs.
World coal prices are very low and oil is at a 4 year low.

Cannot see HSP making much next year if at all.

Sub 400p at the very least.

Just don't fancy it until its turned a corner.

Tiger

[tanelorn] 12/12/2014 12:39

Bamboo>

Glad you escaped! One makes their own luck. This has farther to fall, will be watching.

[totally banjo] 12/12/2014 10:07

Hargreaves confirms Barnsley site closure
12th December 2014
By Ellie Newton-Syms - Assistant Editor

HARGREAVES Services has confirmed this morning that it is to close its 130 year-old Monckton site near Barnsley.

The board of the North East-headquartered mining group said that whilst discussions with key export customers have continued throughout the 45-day consultation period, there has been no significant improvement in market conditions or customer demand.

Production at the site, which Hargreaves bought in 2005 and employs 120 people, will cease this month.

Hargreaves said: “The decision to close Monckton, whilst regrettable for the staff and stakeholders, will reduce the level of risk and volatility currently created by the challenge of fluctuating demand and low commodity prices. We are pleased to note that the group faces these challenges with a very strong balance sheet and profitable and cash generative trading, services and transport operations.”

Hargreaves confirmed its intention to review the future of Monckton earlier this year due to a period of "unprecedented turmoil in European coke markets". For more stories on Hargreaves and its Monckton site, click here. Monckton produces some 200,000 tonnes of coke per year, destined for use in glass, detergents and steel manufacturing as well as for home heating.

The group said it remains committed to exploring alternative employment opportunities for staff, both within the wider Hargreaves Group and externally.

The Monckton site is expected to achieve break-even in this financial year, having previously forecast an operating profit of £2m. Closing the site is estimated to cost £3m, plus £1.8m in remediation costs. A further £13.6m of non-cash book impairments, including £5.7m relating to goodwill, are expected with the total charge to the income statement estimated to be £16.6m.

As previously reported, the board expects the closure of Monckton to be cash positive, with the resultant unwinding of approximately £22m of working capital, comprised mainly of coke stocks, across the two years ending May 31 2016. The approximate cash impact of closure in the current financial year is expected to be an inflow of £8m.

Hargreaves said today's decision represents a major element of the group's simplification plan.

The £16.6m charge relating to Monckton will be aggregated with other amounts relating to the simplification programme, including the gain made on the disposal of Imperial Tankers. The resulting net cost of the simplification programme is estimated to be a net charge of £7m in the year ending May 31 2015. This charge includes a provision of £1.5m for the early termination of long-term interest rate swaps that will no longer be required following the decision to simplify and pay down debt levels. These simplification costs do not form part of the group's ongoing activities and will be excluded from the group's underlying result.

Hargreaves also announced a trading update this morning and said the group's trading during the first six months of the current financial year has been in line with management's expectations.

[totally banjo] 12/12/2014 10:03

12 December 2014

HARGREAVES SERVICES PLC

(the "Group" or "Hargreaves")

Update on the Group Simplification Plan and Pre Close Period Trading Update for the six months ended 30 November 2014

Hargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuels and bulk material logistics, today issues the following update on the Group Simplification Plan together with a trading update prior to the Group entering its close period. The Group expects to announce its interim results on 17 February 2015.

Update on the Group Simplification Plan

On 27 October 2014, following a period of unprecedented turmoil in European coke markets, the Board announced the commencement of a 45 day consultation process at Monckton Coke and Chemical Company Limited ("Monckton").

The Board can confirm today that whilst discussions with key export customers have continued throughout the consultation period, there has been no significant improvement in market conditions or customer demand. It is therefore with regret the Group confirms today that, following the completion of the consultation process, the closure of Monckton will proceed and production will cease during December 2014.

The Group remains committed to exploring alternative employment opportunities for staff, both within the wider Hargreaves Group and externally.

For the year to 31 May 2015 Monckton is expected to be managed to a break even position at the operating level against an original budgeted operating profit of GBP2.0m. The cash closure costs are estimated to be approximately GBP3m together with GBP1.8m of remediation costs, which have been provided for. A further GBP13.6m of non-cash book impairments, including GBP5.7m relating to goodwill, are expected. The total charge to the income statement, before taxation relief, in respect of the closure of Monckton is estimated to be GBP16.6m.

As previously reported, the Board expects the closure of Monckton to be cash positive, with the resultant unwinding of approximately GBP22m of working capital, comprised mainly of coke stocks, across the two years ending 31 May 2016. The approximate cash impact of closure in the current financial year is expected to be an inflow of GBP8m.

The decision on Monckton represents a major element of the Group's simplification plan, which continues to progress well and the Board remains confident that its implementation will deliver strong cash generation and a more simplified and streamlined Group.

The GBP16.6m charge relating to Monckton will be aggregated with other amounts relating to the simplification programme, including the gain made on the disposal of Imperial Tankers. The resulting net cost of the simplification programme is estimated to be a net charge of GBP7m in the year ending 31 May 2015. This charge includes a provision of GBP1.5m for the early termination of long term interest rate swaps that will no longer be required following the decision to simplify and pay down debt levels. These simplification costs do not form part of the Group's ongoing activities and will be excluded from the Group's underlying result.

As expected, the simplification programme has achieved strong cash generation to date, and the Board expects further significant capital to be released over the next 18 months. The Board is pleased with the strengthening of the balance sheet and can report that, notwithstanding the normal first half inventory build in Energy and Commodities ('E&C'), net debt at 30 November 2014 had reduced to approximately GBP40m.

Current Year Trading Update

The Board is pleased to confirm that trading during the first six months of the current financial year has been in line with management's expectations.

Our surface mining operations are performing well, with strong production rates being achieved across its portfolio of operating sites.

In our E&C division, as previously outlined, ongoing uncertainty around Government policy on energy, coal generation and carbon taxes, continues to reduce medium term visibility for the division. Sales of thermal coal have been slow in the first six months of the year, reflecting the impact of low gas prices on coal burn. Volumes are expected to recover to normal levels through the winter. In respect of the current year, whilst contract visibility provides the Group with confidence of meeting full year expectations, the Board notes the ongoing production and financial problems at Hatfield which could impact on coal off-take and services in the second half.

Outlook for Financial Year ending 31 May 2016

The current financial year benefits from historic coal contracts and hedges which were put in place to protect committed production projects in Scotland from volatility in commodity prices. These projects and contracts expire toward the end of this financial year. On 9 September 2014, we noted that the benefit of these contracts and hedges in this financial year was between GBP8 - 9m, compared to the prevailing market prices, and that the Board was considering various mining plan scenarios in an effort to mitigate the impact as far as possible.

Since then, the position has significantly worsened with 2016 forward coal prices falling by a further GBP4 per tonne from the level on 9 September 2014. At these exceptionally low price levels the Group has elected to depart from its long standing strategy and has not hedged or contracted to supply significant fixed tonnages for the next financial year. Consequently, the Group's target will be to maintain the overall Scottish mining operation at a break even level in the year to 31 May 2016.

The Group will monitor coal price and selectively target production, particularly focusing on those reserves that have a low cost of production and yield higher quantities of speciality coals. Furthermore, before committing to operate specific sites, the Group will secure contract or hedge cover for each specific project. This will maximise the opportunity for the Group to benefit from any increases in coal prices, whilst managing further profit exposure.

In addition to our Scottish activities, at current coal price levels, the lower coal prices are expected to reduce the Group's share of profit from the Tower joint venture by around GBP2.0m in the financial year to 31 May 2016.

The Group remains confident that the mining assets in Scotland and Wales are important and potentially very valuable long term assets. The team continue to work hard and, given the ongoing challenges around coal price, has intensified its efforts to drive value and cash from the renewable projects and property assets that were acquired with the ATH and Scottish Coal acquisitions.

Share Buyback Programme

As announced on 27 October 2014, the strong cash generation being achieved by the Group provided the Board with the confidence to announce an intention to increase the dividend payout ratio and implement a rolling share buyback programme. The Board commenced the buyback programme and as at the date of this announcement had bought back 230,000 shares.

Summary

In summary, the Group is satisfied with the progress and trading in this financial year.

The decision to close Monckton, whilst regrettable for the staff and stakeholders, will reduce the level of risk and volatility currently created by the challenge of fluctuating demand and low commodity prices. We are pleased to note that the Group faces these challenges with a very strong balance sheet and profitable and cash generative trading, services and transport operations.

The Board remains committed to developing the Group's surface mining operations and regards these assets as a source of significant long term value. The actions taken to maintain the maximum amount of operational flexibility around the mining business will ensure that the Group is well placed to ride out the current challenges presented by low international coal prices and quickly benefit from any improvement.

[bamboo2] 12/12/2014 08:20

Thank you CCI. That was very close.

[bamboo2] 12/12/2014 07:47

Closing Monkton
Hedging benefits to end at end of financial year.

Tanelorn, you might see 640!