Hargreaves Services Share Discussion Threads

[harrogate] 08/12/2021 08:47

It is more the metal trading element of the German JV that has caused this massive boost to HSP profits in H2 last year and H1 this year and that is now normalising in H2 2022. Brokers expect 40p EPS this year with 20p dividend so looks very good value at this level. Singers have just introduced a 560p price target.

[rimau1] 08/12/2021 08:34

And a pleasant morning to you Carcosa. I actually meant Hargreaves Raw Materials Services GmbH.

[carcosa] 08/12/2021 08:26

I think you mean Hargreaves Raw Materials Services ("HRMS") ...

[rimau1] 08/12/2021 08:07

Morning all, trading update looks fine with a prudent cautionary note on the german coal business (this volatility is why it should be sold IMO). I have taken a maiden long term investment here at £4.03 having had HSP on my watchlist for sometime having held in the past. I was surprised at the big drop first thing but lets see.

[ayl30] 08/12/2021 08:05

So not a good opening reaction to todays release?

[harrogate] 29/11/2021 13:31

Dividend will be 20p at least in 2022 so not far off 5%.

[daisylove] 29/11/2021 13:21

Appreciate your views Tiger.(Dare I say you appear very "Tiggerish".)
The land bank cannot be overlooked I agree.
We seem to have support at this level but for me it comes down to my wariness over stocks that have risen so much in a short time.
I've taken a small position in HILS and will keep an eye on HSP since the management appear competent and I like the business story.
5% dividend? It looks like more like <2%
D

[castleford tiger] 29/11/2021 12:30

Daisy
The current dip offer a very attractive entry point in my opinion.
The share price here lagged behind for too long and then whoosh up it went.
Land values could almost double nav.
If there is any revaluation then it will shoot up again.
Likewise the sale of the German division.
With 5% divi and the land in the bank I think fair value is 600 in what we know.
However DYOR as if it does not feel right leave it alone.
Tiger

[daisylove] 28/11/2021 13:05

Yes I appreciate all that but my sense is that the growth in the share price has been too rapid and if I was to take advantage of the mini-crash now I'd be well underwater in the near term. I've been more inclined to go for PSN recently but just as well I hesitated on that too. PSN of course has a much more attractive dividend and I can't help thinking the recent growth in many stocks can't continue. It looks like HSP compared with PSN in terms of share price ups and downs until about 18 months ago but then HSP outgrew PSN more recently. The latest dip is tempting but whenever I've jumped on something that seems to have this sort of growth momentum it ends abruptly! We'll see won't we.

[harrogate] 27/11/2021 16:28

Don't forget the 20p dividend

[red ninja] 27/11/2021 16:05

Given that the last reported NAV was £4.47, but assuming that does not account for 16.5p dividend, that leaves a NAV per shar £4.305.

Note, that the land holdings are largely valued at aquisition cost and thus the real NAV may be somewhat higher.

Thus, on that basis the shares do not seem at all expensive.

Also the company will this year get £1 million from the tungsten mine which was not in broker projections. The landshifting business will be busy with HS2, the pulverisation plant in Gernmany is expanding and there are expected to be more land sales. Thing generally seem to be going well.

You have not provided any reasion why you think your price target is deserved or is that just what you hope to pay ?

[daisylove] 27/11/2021 15:30

Reviewing a number of stocks - I think to would be daft to buy much above 325p and that's despite the relatively low P/E. That's out of step with recent share price trend but I think the rises in the last year or so are all part of the stock market being overheated.

[the big fella] 16/11/2021 08:15

Indeed, looking very well placed to challenge the summer highs again

[castleford tiger] 15/11/2021 22:22

@Harrogate very true .
I suspect a return of cash for starters but who knows. Massive potential in HSP.
Great week so far

[harrogate] 13/11/2021 08:25

It will be interesting to see what this means when/if it happens as the German JV has a massive impact on the EPS and the dividend currently. We know this is cyclical but still they need to get a large chunk of change for it. Then the question is what do they do with that ? Interesting times

[castleford tiger] 12/11/2021 18:41

I think Germany is as good as sold

tiger

[gargoyle2] 11/11/2021 21:06

Good job there, Tiger. I'm holding from around 220p, but havent added since despite your persuasive pitch on Mello.

[castleford tiger] 11/11/2021 19:47

Maybe someone followed my suggestion on Mello

[davidosh] 08/11/2021 17:18

The Company is being analysed in the live private investor event held by Mello on Monday 8 November 2021 starting at 6pm via Zoom.
If you would like to attend the Monday Webinar as a shareholder, you can register here using code SHVIP for 75% off tickets.


Programme for the evening
6:00 pm Mello Welcome and News
6.05 pm Company presentation by Sosandar
6.45 pm Book reviews with Paul Smiddy and Roger Lawson
6.55 pm Company presentation by Sulnox
7.25 pm David Stredder interviews Chris Boxall from Investors Champion and Fundamental Asset Management
7.55 pm Company presentation by The Property Franchise Group
8.25 pm David interviews best selling author Hilary Robinson (esteemed wife to Castleford Tiger)
8.40 pm Mello BASH with Chris Boxall, Kevin Taylor and Andrew Robinson

[red ninja] 01/11/2021 09:45

Downing Strategic Micro Cap half year report comment :-

"Hargreaves Services Plc provided an unrealised gain of £2.3m during the period, resulting in a substantial holding (11.7% of NAV at the half-year date). There were no additions or disposals in the period. We remain confident in this position and are supportive of management in their strategic direction of the company, understanding that, due to commodity prices, 2021 may have provided some windfall profits."

Further down in report :-

"Hargreaves Services PLC (Hargreaves) (11.70% of net assets)
Cost: £3.65m. Value as at 31 August 2021, £5.64m
Background
Hargreaves is a diversified group delivering key projects and services to the industrial and property sectors. The Distribution and Services division aims to generate sustainable profitability through operations across the energy and infrastructure sectors in the UK, Europe and Asia. The Property and Land division aims to generate value through the development and/or disposal of the companies’ significant land bank, which includes planning for residential, logistics and industrial space.

Update to the investment case
Profit before tax improved materially, including from JVs
Benefitted from strong commodity prices
Sales of first plots at Blindwells delivered
Bank debt eliminated and group refinanced, with a strong net cash position
Progress against investment case
Hargreaves has recently enjoyed a highly profitable period of trading, with its German JV, Hargreaves Raw Materials Services GmBH (HRMS), driving significant EPS upgrades throughout the year to date. Profitability has been driven by very strong commodity prices, which has resulted in higher trading volumes and better margins, contributing to the current strength in this business.

Hargreaves’ shareholders currently realise value in HRMS through distributions from this JV, which are then passed on by the group as dividends, most recently totalling £3.9 million for the 31 May 2021 year end. This is in addition to the group’s more regular dividends, arising from cash generation.

Adding in the Services and Land value, we still believe that the intrinsic value sits comfortably above the current share price and there is considerable scope to generate shareholder value, through numerous catalysts."

[harrogate] 28/10/2021 09:12

Yes given what's going on and the recent Tungsten West news I think we should be a little higher. A land sale would help

[castleford tiger] 27/10/2021 17:47

looking over sold again

[harrogate] 27/10/2021 07:26

.... With its trading activities given it was said that they have a 6 month forward look. Maybe that will come at the December update. I assume trading will be good given commodity prices but that whole area confuses me so there may be other things to think about

[harrogate] 27/10/2021 07:24

Hard to complain about that update. I suppose I was hoping to hear how the German JV was doing

[capitalist] 27/10/2021 07:07

Trading statement out this morning: " Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the industrial and property sectors, will hold its Annual General Meeting ("AGM") later this morning. Ahead of the meeting, the Group's Chairman, Roger McDowell, has issued the following statement:

"I am pleased to announce that all three sectors of the Group, Services, Hargreaves Land and our German Joint Venture, Hargreaves Raw Material Services GmbH, are trading in line with the Board's expectations. The streamlined strategy outlined at the year-end, is progressing well.

The recent admission of Tungsten West plc to AIM provides an exciting opportunity for growth for the Services business unit.

The Board remains confident of delivering results for the full year in line with market expectations."

The Board expects to provide a trading update in early December 2021 prior to the announcement of the Group's interim results for the six months ending 30 November 2021 on Wednesday 26 January 2022. "