Hargreaves Services Share Discussion Threads

[smithie6] 25/11/2020 21:06

I understand that town/village has the highest density per m2, & turnover, for fish & chips shops anywhere in the world !!

[netcurtains] 25/11/2020 17:32

thanks!
It seems to be around here somewhere.

[muckshifter] 25/11/2020 17:06

Its close to a place called Tranent just South of Edinburgh, netcurtains. Not sure how much of it has been fully reinstated by now, but you might be able to identify it on google earth. I know I could find a big opencast I did some work on, in the desert, very easily on that, it stood out clearly, so you might be able to find it and follow preparation progress that way.

PS. No surprise there CT!

[castleford tiger] 25/11/2020 16:49

no answers yet Muckshifter

[netcurtains] 25/11/2020 16:20

Thanks muckshifter I'll keep an eye out. If the site on google maps? Do you have a post code area?

[muckshifter] 25/11/2020 16:19

As I see it, the next share price mover here will be Blindwells. Completion of the sale of first two land parcels was held up by Covid delays, but should have been done late August / early September judging from the earlier schedule. The AGM statement a month ago said completion "shortly", so an announcement is probably imminent.

If it isn't announced in the next few days, I'll be disappointed, and it might cause the share to drift down. If only the first, smaller plot attains completion I doubt it will do much, but if both completions are announced I think it will provide a good boost for the shares at the time when a "santa rally" could give it a further push.

Interesting times anyway.

[netcurtains] 24/11/2020 10:49

Its your assets govern'or - they might be worth a few bob....

[sphere25] 24/11/2020 08:31

Followed the director buying in here. HAT went absolutely nuts higher when a director bought alot less, and the way this moves historically, it also is capable of a similar type of move IF it can break through that 230 resistance mark.

[terry236] 24/11/2020 07:32

Yes, agreed

[carcosa] 24/11/2020 07:26

I would also characterise the Non-Exec Director's purchase as a large buy too (£85,000)

[terry236] 24/11/2020 07:05

As if by magic, the bear point Conkers makes ref no director purchases is scrubbed off with a large buy from the chairman

[castleford tiger] 23/11/2020 22:18

No wonder with what I bought again today.
The over hang may of gone

[netcurtains] 23/11/2020 22:12

Thanks Thewheeliedealer! HSP certainly had a nice finish.

[thewheeliedealer] 23/11/2020 21:40

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion includes HSP which Peter C3 thinks is looking pretty undervalued. We also chatted about loads of other Stocks and Ideas for research and did a particular bit about Luck vs Skill. We also discussed the outlook for Markets and as usual a fair bit of educational stuff with regards to Investing.

Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want Podcast TPI 36) and you can find it on Soundcloud at the link below. It is also now on Youtube.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[netcurtains] 19/11/2020 08:04

Astrazenica / Oxford trial good news.
House builders share prices rising strongly so land becomes more valuable again.

[simon gordon] 18/11/2020 15:45

That's good to hear Tiger!

Cheers!

[castleford tiger] 18/11/2020 14:07

Some of the institutional holders are about to shake things also.

Tiger

[robsy2] 18/11/2020 06:04

Mills is our Trump card.

[arthur_lame_stocks] 18/11/2020 02:02

I think Chris Mills with nearly 30% will be looking for them to unlock the value here.

[simon gordon] 17/11/2020 20:37

Net,

As it stands, with a fair wind, this should be back to 300p in 2021.

If they got a Brendan or Jurgeen and spent the money wisely then who knows. One thing is for sure, Mr Banham doesn't deserve to spend millions on a buy and build strategy. He should be kept away from the cheque book and strategic thinking if a lot of value is to be unlocked from this treasure chest.

[netcurtains] 17/11/2020 20:32

Simon: In your different vision for HSP where do you see the share price in 6 months time?

[simon gordon] 17/11/2020 20:28

Doesn't the CEO own 8%? Can't he be kicked out?

[meijiman] 17/11/2020 20:21

It's a family company..normal rules don't apply here.

[simon gordon] 17/11/2020 19:58

Today is the 1st time I've looked in detail at HSP since 2012 when trading them on an oversold bounce.

It's hard to believe that with the total lack of shareholder value creation Mr Banham is still CEO. Mr McDowell has been Chairman since 2018, surely he can see a change is vitally needed.

It's like having Roy Hodgson managing Liverpool. They need a Brendan Rodgers / Jurgeen Klopp. Maybe Harwood Capital will wake Mr McDowell up to the fact that this company needs a new CEO. A brighter, younger, more vibrant CEO who will spend wisely the proceeds from the land windfall. As it stands Mr Banham will probably blow it on duds and deadbeats.

[red ninja] 13/11/2020 12:57

Simon Thomson article published back in August in IC :-

Targeting Value Plays:

Hargreaves Services (HSP:209p), a diversified industrial services group and brownfield land developer is set to reap the major benefits of its strategic transformation over the past four years, culminating in the recent cessation of UK coal mining. Coal inventories will be wound down from £40m to £8m-£10m over the next two years, the bumper cash flow from which will pay down net debt of £28m and be recycled into lucrative land regeneration activities.

For instance, the recently announced disposal of 32 hectares of land at the former Hatfield Colliery site near Doncaster will realise £25m on completion next summer for Hargreaves and its joint venture partner. The purchaser is a national retailer that plans to build an 800,000 square feet (sq ft) distribution and training centre. The 618-acre site has planning consent for the construction of a further 1.2m sq ft of industrial, commercial and logistics space and 3,100 residential plots. It’s not the only valuable land being developed either.

Hargreaves has already sold 14 acres of land to housebuilders Cruden Homes and Bellway at its 390-acre site at Blindwells, East Lothian. The £10m sale proceeds would have been recognised in the financial year if the UK lockdown hadn’t prevented contingent infrastructure work being carried out. That was the only reason why Hargreaves' underlying pre-tax profit dipped from £6.4m to £4.9m in the 12 months to 31 May 2020 as its other operations have traded largely unscathed through the pandemic. The deals will complete this year when house broker N+1 Singer factors in £15m of land sales on a healthy 22 per cent operating margin to support its group pre-tax profit estimate of £7m. On this basis, expect earnings per share (EPS) of around 19p.

Importantly, prospects for Hargreaves' other business units underpin that forecast, too. The logistics operation is trading strongly, not surprisingly given its focus on waste markets including clinical waste. In addition, Hargreaves’ specialist earthworks subsidiary is a strategic partner to the consortium (Kier/Eiffage/BAM/Forrovial) constructing the Chiltern Tunnels to Brackley section of the new HS2 railway. Subject to contract sign-off, Hargreaves will start ground engineering work in the autumn on a 4.5-year contract that should generate annual operating profit of £1.5m from the 2021-22 financial year onwards. The group is well placed to pick up further work on HS2, too. Chief executive Gordon Banham also expects the earthworks business to win contracts on a slice of the £4bn of government-funded infrastructure projects (reservoirs, road projects and nuclear industry) scheduled to be delivered over the next decade.

So, with bank debt set to be paid down quickly – N+1 Singer forecasts free cash flow of £23m this year – and the German metals trading subsidiary (net profit contribution of £2.1m in the 2019/20 financial year) now able to repatriate dividends to its parent following completion of a carbon pulverisation plant – shareholders are in line for some hefty payouts. The board has just declared a maintained final dividend of 4.5p a share (ex-dividend: 17 September), and anticipates declaring a special dividend of 12p along with the final in the 2020/21 financial year. Analysts are pencilling in a total payout of 20p.

Offering a 9.5 per cent prospective dividend yield, on a prospective price/earnings (PE) ratio of 10 and trading on a 48 per cent discount to a conservative net asset value (NAV) of 403p (land is in the books at cost), the shares offer material upside to my 320p target price. Having suggested buying the shares, at 206p (Alpha Report: ‘A high yielder offering significant hidden value’, 19 March 2020), and taking into account how well the company has traded throughout the Covid-19 pandemic, I now rate them a strong buy.