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HSP Hargreaves Services Plc

680.00
-6.00 (-0.87%)
19 Feb 2025 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Hargreaves Services Plc LSE:HSP London Ordinary Share GB00B0MTC970 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  -6.00 -0.87% 680.00 69,825 16:35:15
Bid Price Offer Price High Price Low Price Open Price
680.00 694.00 710.00 682.00 688.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Sanitary Services, Nec 211.15M 12.28M 0.3740 18.45 225.23M
Last Trade Time Trade Type Trade Size Trade Price Currency
16:35:15 UT 4,405 680.00 GBX

Hargreaves Services (HSP) Latest News

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Hargreaves Services Forums and Chat

Date Time Title Posts
19/2/202516:11Hargreaves Services plc3,452

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Hargreaves Services (HSP) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
16:35:15680.004,40529,954.00UT
16:28:42682.0036245.52AT
16:19:02695.001491,035.55O
16:15:37685.47140959.65O
15:40:12685.4772493.54O

Hargreaves Services (HSP) Top Chat Posts

Top Posts
Posted at 19/2/2025 08:20 by Hargreaves Services Daily Update
Hargreaves Services Plc is listed in the Sanitary Services, Nec sector of the London Stock Exchange with ticker HSP. The last closing price for Hargreaves Services was 686p.
Hargreaves Services currently has 32,832,064 shares in issue. The market capitalisation of Hargreaves Services is £226,541,242.
Hargreaves Services has a price to earnings ratio (PE ratio) of 18.45.
This morning HSP shares opened at 688p
Posted at 19/2/2025 10:09 by red ninja
One positive thing about HSP, with inflation looking like it will rise in the next few months with employers NI and minimum wage rises yet to come in April, is that a large proportion of the service contracts can pass on inflationary rises and other cost rises..
Posted at 13/2/2025 13:18 by red ninja
Shares Magazine 13/02/2025 :-

Great Ideas: Investments to make today

Hargreaves Services is hard to ignore despite its strong performance

Patient shareholders could almost double their money on some forecasts

Hargreaves Services (HSP:AIM) 620p
Market cap: £200 million

It’s always a test of our conviction if we can recommend a stock just as the shares are touching a 12-month high, but in the case of environmental services, property and materials group Hargreaves Services (HSP:AIM), its shares are trading at a 10-year high. In our defence, we did flag the company a year ago at 475p in our ‘Five small-cap stars to buy today’ feature, so we haven’t just stumbled on the idea recently, and although the shares have racked up a decent gain since we believe there is much more to come.

AN ASSET-BACKED STORY Hargreaves is made up of three fairly unglamorous but profitable businesses – Services, which includes earthmoving, transportation, recycling and wasteto-energy; Land, which mainly entails preparing
and selling plots to housebuilders for development; and HRMS, a German materials recycling business.

As we said a year ago, this isn’t a go-go growth story, it’s an asset-backed income play, by which we mean there is a steady revenue stream from the services business, periodic revenue from the sale of sites from development and now a steady stream of dividends from the German subsidiary. All three operations are ticking over nicely, but the kicker is the land and the German business are in the books at extremely low valuations and in time, as the assets are realised, there will be a substantial return of cash to shareholders. In a time when markets are at the whim of politicians, there’s a lot to be said for owning a smaller, under-the-radar company which minds its own business, pays a dividend of around 6% per year (which was 7.5% a year ago, for the record) and offers the potential for substantial capital returns.

SO FAR, SO GOOD Looking at the group from an operational point of view, the results for the first half to the end of November last year show significant progress financially and strategically. Services revenue and EBITDA (earnings before
interest, tax, depreciation and amortisation) grew by double digits to £125 million and £15 million respectively, the Land business began marketing seven sites for renewable assets on top of its housing plots, and HMRS returned to profitability.

The Services business enjoyed strong growth thanks to additional earthmoving activity, which is to be sustained throughout the year with 65 term and framework contracts in place and 90% of revenue already secured.
The HS2 contract, the group’s largest, has been operational for three years and there are at least two more earthmoving ‘seasons’; to come, while work at Sizewell B saw ‘a substantial uptick’ in the first half.
Looking ahead, there could be two major projects in the pipeline – the Lower Thames Crossing looks like it is going ahead, and the Labour government has re-floated the idea of a third terminal at Heathrow, where Hargreaves was involved in consultations some years ago when it was first mooted.
The Land division has sold six plots at Blindwells in East Lothian, just 12 miles from Edinburgh city centre, with another 80 acres remaining in phase one, and 90 acres awaiting planning permission in phase two.
Meanwhile, seven renewable energy land assets are being marketed with a total value of up to £13.5 million, and the firm has further land worth the same amount again, with permission to build a 500 megawatt battery energy storage scheme.
HMRS posted a first-half profit of £0.1 million against a year-earlier loss of £1.9 million due to cost reductions while pig iron prices have ticked up due to EU sanctions on Russian imports and gate prices for incoming recycling materials have been raised.

THE BEST IS YET TO COME At an operational level, the strong first-half results have spurred a round of upgrades to 2025 and 2026 revenue and earnings forecasts, mainly at the Services business, adding to the mediumterm valuation upside. The company is moving to a capital-light model, which means no acquisitions and no equity raises, and as it already has a net cash position it will start returning surplus capital to shareholders. Analyst Greg Poulton at Singer Capital Markets estimates the firm could return up to £150 million of capital – consisting of £80 million from Land and £70 million from HMRS – which is equivalent to three quarters of its current market cap, while the Services business continues to throw off cash. Meanwhile, Shares has seen various sum- of-the-parts valuations suggesting the shares could be worth between 900p and 1,200p in the medium term.
With the stock paying an annual dividend of 36p, or roughly a 6% yield at the current price, income seekers can afford to sit and wait for the cash to roll in. [IC]
Posted at 07/2/2025 18:15 by xtrmntr
First-half revenue up 14 per cent to 3125mnPre-tax profit has doubled to £5.3mnNet cash (excluding leasing debt) of £15.7mn18 per cent EPS upgrade to 2025-26 forecastsInterim results from Hargreaves Services (HSP:600p), an industrial group and land developer, highlight the benefits of having a diversified revenue stream.The group's services division, which provides critical support to many core industries (mainly energy, environmental and UK infrastructure) through the provision of mechanical and electrical contracting services, logistics and major earthworks, was the standout performer. Buoyed by additional contract opportunities on earthmoving projects, notably HS2 and Sizewell C, divisional pre-tax profit increased 13 per cent to £8.8mn on 10 per cent higher revenue of £121mn to account for all group profit. Moreover, with 90 per cent of full-year revenue already secured and growth in the order book underpinned by a raft of contract wins, joint house broker Singer Markets upgraded its full-year contribution from this business by £2mn to £14.5mn.Read more from Investors' ChronicleThe European drinks brands benefiting from a market shiftWhy shipbrokers Braemar and Clarkson are defying pay normsThe black sheep of the FTSE 250 deserve a second lookAnother key focus is to realise the value of land assets, in particular at the Blindwells flagship site east of Edinburgh. In the first half, the land division completed the sale of seven acres to Places for People for £3.1mn and subsequently sold 11 acres to Avant Homes for £9.3mn. A third parcel had been expected to complete before the year-end and reap a £2mn profit, but has been pushed back to the new financial year due to transport planning delays.So, although analysts are maintaining their flat full-year group pre-tax profit estimate of £16.6mn, they upgraded 2025-26 forecasts by 18 per cent to £20.5mn to reflect a trebling of the land division's profit to £6mn and a £1mn higher profit contribution of £14mn from the services unit. The outcome could be higher still as Hargreaves is marketing for sale seven renewable energy assets which are held in the accounts at less than £4mn and could realise £13mn, highlighting the hidden balance sheet value. A further £15mn of renewable assets are earmarked for disposal, too.Hargreaves' shares have delivered a 235 per cent total return (TR) since I initiated coverage (Alpha Research: 'A high yielder offering significant hidden value', 19 March 2020), but still trade on a deep discount to sum-of-the-parts valuations of 850p (Cavendish) and 813p (Singer Capital Markets). Rated on undemanding forward price/earnings (PE) ratios of 14.1 (2025) and 11.6 (2026), and underpinned by a 6.2 per cent dividend yield, they rate a buy.
Posted at 29/1/2025 20:41 by red ninja
They also think the Heathrow 3rd runway could be good for HSP if and when it gets built given HSP was involved in design.

Note, some years off before HSP gets a spade in the ground assuming the project gets the go ahead which is no means certain,
Posted at 20/1/2025 11:19 by carcosa
From the Q&A section of the Investormeet webcast ( ) I produced the following:


Currently, we're in the asset realization phase, which means our focus is on unlocking value from the business. We first invested in 2016 when this was primarily a coal trading business. Today, the company operates three divisions:

Land Portfolio: This includes a large amount of land, particularly in Scotland, which onshore wind farm providers are interested in purchasing. The portfolio is on the books at approximately £8 million but was independently valued at a base case of £40 million. The estimated value per share for this division is £2.63.

Services Division: This division covers activities like earthworks, waste management, aggregates, and similar operations.

German Joint Venture: We hold an 86% economic stake in this joint venture. It includes several operations, such as processing steel dust through a blast furnace to produce pig iron and zinc, a trading business, and a coal-polarization business.

For the land portfolio, our strategy is to sell assets to realize their value. The company’s shares currently trade at approximately £5.65. Based on the value we aim to unlock, excluding any growth across the businesses, we estimate the shares should be valued at around £8 per share, potentially growing to £9 per share over time.

Over the next three years, we plan to progressively sell assets. The timing will be uneven, but the first renewable energy asset is already up for sale, estimated to be worth £10–10.5 million. For context, the entire renewable energy portfolio was valued at £8 million, meaning this first sale provides an immediate uplift in value.

The company recently declared a dividend of 36p per share, which generated significant interest from institutional investors. This dividend is part of the cash returned from Germany following a refinancing effort. In addition to regular dividends, the company plans to issue special dividends whenever assets are sold, returning that capital to shareholders. Importantly, none of the proceeds from asset sales are being reinvested in growth, as this is solely an asset realization project.

On the financial side, the company has resolved one of its major historical risks—its pension deficit. This has now been eliminated, removing a significant liability. The company currently has about £23 million in cash, excluding lease obligations, which are tied to the Earthworks business.

The Earthworks division has been performing well, focusing on large-scale projects with margins between 12–15%. For comparison, smaller Earthworks contracts typically have margins of around 3%, which is why the company only takes on major projects.

In Germany, the business was extremely profitable during the early stages of the Russia-Ukraine war when the price of pig iron soared from €150 per ton to €900 per ton. During that period, the division produced around 250,000 tons per year, generating £60 million in PBT (profit before tax), compared to £8–9 million in a typical year. This has created a significant cash reserve in Germany, which is now being returned to shareholders.

Although pig iron and zinc prices have since come down, they are expected to recover due to new regulations, including the Carbon Border Adjustment Mechanism (CBAM). This policy, expected to take effect next year, will impose carbon credit costs on imported carbon-intensive materials like steel and fertilizer. The current price of carbon credits is around €65 per ton, meaning imports will face an additional €130 per ton in costs.

Our business, which operates domestically within Europe, is well-positioned to pass through these costs to customers. However, industries in Germany and China will face significant challenges due to these taxes, which may lead to political intervention. If CBAM is implemented as planned, it will provide a substantial uplift to our German operations. For instance, even a modest benefit of half a credit per ton across our 250,000 tons annually could generate significant additional profit.

In summary, we remain focused on unlocking the value of our assets, returning capital to shareholders, and leveraging favorable market and regulatory conditions to maximize returns.
Posted at 16/1/2025 13:12 by red ninja
VOX Markets : The Exchange with Christopher Mills of Harwood Capital

61:40 Hargreaves Services

New news for me was :-

Christopher Mills reckons that HSP have won a large contract at Sellafields (BNFL presumably)

HSP earthmoving business has a good chance of winning parts of two new major reservoir contracts.
Note, not many companies have a large capable earthmoving business like HSP.
Posted at 10/12/2024 15:43 by red ninja
HSP in Questor column in Daily Telegraph :-



This overlooked gem offers a fat yield while waiting for long-term growth
Questor believes this infrastructure company could reward patient support

Russ Mould
10 December 2024 5:00am GMT

A second, consecutive trading update from Hargreaves Services that provides little incremental good news might not sound like much but there is no bad news, either. And this column is more than happy to take that, given its recent travails with Zytronic, Resolute Mining, S&U and others.

Moreover, this column adheres to its view that financial markets are get-rich-slow mechanisms, when they work at their best. And Durham-headquartered Hargreaves Services still looks more than capable of helping here, given the long-term contract revenues, asset backing and dividend yield it provides.

Hargreaves Services derives the majority of its revenues from its infrastructure arm, where it provides mechanical and electrical services to major water and electricity utilities, as well as earthmoving and raw materials handling, in the UK, South East Asia and South Africa.

The company also has a 9,000-acre bank of brownfield land, which it regenerates and sells to developers for a range of uses, including warehouses, renewable energy projects and residential development. Finally, it owns 49.9pc of the equity in HRMS, a German raw materials and recycling operation where Hargreaves has the right to the vast majority of the profits.

Around 65 framework contracts, including those on the Lower Thames Crossing projects and Suffolk’s Sizewell C nuclear power plant, provide good visibility of earnings, even if the timing of land sales can be unpredictable and revenues lumpy, while a steady improvement in the housing market could boost the land business, too.

Hargreaves Services key facts
Market Value: £191m
Turnover (May 2025 est): £223m
Pre-tax profit (May 2025 est): £16.5m
Yield (May 2025 est): 6.2pc
Most recent year’s dividend (May 2024): 36.0p
Net debt (May 2024): £13m
Return on capital employed (May 2024): 8.3pc
Cash conversion ratio (May 2024): 171pc
P/e ratio (May 2025 est): 13.6x

The latest update suggests that Hargreaves Services will show an improved performance in the year to May 2025, as will HRMS, while Hargreaves Land will show a decrease relative to the record profit recorded in fiscal 2024. All of these trends support analysts’ forecasts of a modest increase in revenues and faster advances in both underlying pre-tax income and underlying earnings per share.

Those in turn, along with a balance sheet that carries very little by way of net debt, underpin analysts’ expectations of an unchanged dividend of 36p for the full year, enough for a dividend yield of 6.2pc. The 18p final distribution for fiscal 2024 has already been banked, to take our total return from the stock so far into the mid-teens in percentage terms.

That tidy yield means investors are being paid while they wait for Hargreaves Services to deliver on its long-term framework deal and its land portfolio. They should also get some downside protection from the lowly valuation afforded the stock. The fat yield is one facet of that, while another is the multiple of net asset, or book value, per share at which the shares trade, which is just one time.

The full-year accounts to May 2024 showed £192m of net assets on the balance sheet, of which £186m were tangible and that latter figure compares to a stock market valuation of £191m at the time of writing.

Questor says: hold
Ticker: HSP
Share price: 580p
Posted at 02/3/2024 22:25 by red ninja
Harrogate,

The 5th of Feb announcement states 3.89% of HSP is held by DSM + Downing managed clients funds.

However, that is two entities which is confusing.

Dsm states in 1st March NAV|portfolio statement that it has 1.04% of 30.44 million fund in HSP (see link in earlier post) that gets you to £316K and with a share price of £5.14 that gets you to 61K shares approx.

The Downing managed client funds must have the majority of the 5th Feb 3.89% of HSP. I don’t think the Downing managed client funds will be in a rush to sell HSP given that Downing thought HSP was a good investment apart from rebalancing sales if the HSP share price rises and means it becomes too high a proportion of a client fund.
Posted at 25/10/2022 15:05 by smithie6
HSP share price moves around a lot, every day

why is that ?
Is it traded on SETS & there no MM to give a bit of damping/stability ?
Posted at 13/10/2022 11:14 by smithie6
You have completely missed/omitted the main points of my recent posts, which are 100% correct.

you are completely deluding yourself if you think that the HSP share price has fallen because of general -ve mkt sentiment.

The share price is down because the mkt has seen that the mkt price for pig iron has halved (a big part of the HSP profit) & that land prices have dropped & might not now be sellable at all for X years.
If true then what is value of something that you cannot sell ?!!

(see my post about builders' production rate & stopping buying of more plots if they already have X years of plots in their land bank) (if a builders' production rate halves then his land bank will last for double the time, so he has no need buy more plots)
Hargreaves Services share price data is direct from the London Stock Exchange

Hargreaves Services Frequently Asked Questions (FAQ)

What is the current Hargreaves Services share price?
The current share price of Hargreaves Services is 680.00p
How many Hargreaves Services shares are in issue?
Hargreaves Services has 32,832,064 shares in issue
What is the market cap of Hargreaves Services?
The market capitalisation of Hargreaves Services is GBP 225.23M
What is the 1 year trading range for Hargreaves Services share price?
Hargreaves Services has traded in the range of 470.00p to 710.00p during the past year
What is the PE ratio of Hargreaves Services?
The price to earnings ratio of Hargreaves Services is 18.45
What is the cash to sales ratio of Hargreaves Services?
The cash to sales ratio of Hargreaves Services is 1.07
What is the reporting currency for Hargreaves Services?
Hargreaves Services reports financial results in GBP
What is the latest annual turnover for Hargreaves Services?
The latest annual turnover of Hargreaves Services is GBP 211.15M
What is the latest annual profit for Hargreaves Services?
The latest annual profit of Hargreaves Services is GBP 12.28M
What is the registered address of Hargreaves Services?
The registered address for Hargreaves Services is WEST TERRACE, ESH WINNING, DURHAM, DH7 9PT
What is the Hargreaves Services website address?
The website address for Hargreaves Services is www.hsgplc.co.uk
Which industry sector does Hargreaves Services operate in?
Hargreaves Services operates in the SANITARY SERVICES, NEC sector

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