Hargreaves at a glance

Hargreaves Services plc delivers key projects and services in the infrastructure, energy and property sectors.


Listed on AIM (LON:HSP) and headquartered in Durham, our 2,000+ employees are spread around the world delivering a vast array of projects and services.

Our history is steeped in coal through mining, sourcing, processing and blending, moving and handling. We still have a number of operations and services in the Mining & Minerals sector and now possess one of the largest mobile plant fleets in Europe, but today Hargreaves delivers much more.

After a series of strategic acquisitions, our land portfolio across the UK has increased to in excess of 18,000 acres. Our focus now is on adding value to this land through development with residential housing and renewable energy schemes.

Whilst we still carry out our traditional activities such as industrial services and logistics, these have now broadened to incorporate renewable energy, civil engineering and land restoration and remediation.

Take a look at the various sectors we work in to find out more.

NEWS

08th Jun 2018 Pre-Close Trading Update and Notification of Interim Results
08th Sep 2017 Posting of Annual Report and Notice of AGM
15th Feb 2017 Interim Results for the six months ended 30 November 2016
22nd Dec 2016 Post-Close Trading Update and Notification of Interim Results


PRESENTATIONS/RESULTS

Feb 2018 Interim Results for the six months ended 30 November 2017
Sep 2017 Annual Report
Aug 2016 Preliminary Results for Year Ending 31 May 2016
Apr 2016 Strategic Repositioning Update - 27 April 2016
Feb 2016 Interim Results 6 months ended 30 Nov 2015
Aug 2015 Preliminary Results for Year Ending 31 May 2015
Feb 2015 Interim Results for the six months ended 30 November 2014



EVENTS
22 January 2019 General Meeting
30 January 2019 Announce Interim Results

5 August 2016
Hargreaves Services plc
("Hargreaves", "the Group" or "the Company")

Appointment of Joint Corporate Broker

Hargreaves Services plc (AIM: HSP), a leading supplier of solid fuels, bulk material logistics and specialist earthworks services, is pleased to announce the appointment of Investec Bank plc as joint corporate broker to assist in the completion of the Company's repositioning following its successful restructuring programme.

http://www.moneyam.com/action/news/showArticle?id=5392967

9 August 2016
HARGREAVES SERVICES PLC
(the "Company" or the "Group" or "Hargreaves")

Preliminary results for the year ended 31 May 2016


Highlights



· The Group has delivered Continuing Underlying Operating Profit of £4.6m

· Trading since Interim results in line with management's expectations

· Coal production and trading successfully reduced and now focussing on speciality markets

· Decision taken to shorten mine life at the Tower project with mining due to finish March 2017; the Group expects full repayment of loans after write off of equity investment and other balances of £4.7m

· Charge of £12.4m for exceptional costs arising from re-structuring activities

· Successful acquisition of CA Blackwell in January 2016 broadens Group's Services operations and delivers significant heavy plant synergies

· Establishment of Property & Energy Division to drive £35-50m of value creation in next five to seven years

· Aggressive targets set for new business for Industrial Services operations in face of accelerated UK coal fired station closures

· Coal stocks built to £26.0m in face of negligible demand from UK coal stations, confident of sale of surplus stocks this financial year

· Balance sheet remains strong and well financed to allow orderly run-out of £60m of coal stocks and other legacy assets which include land, property, equipment, stocks and loans, into cash

· Final dividend of 2.3 pence in line with Group's 40% pay-out ratio target



Commenting on the results, Chairman David Morgan said:

"After two challenging years, we have a clear opportunity in front of us to develop and deliver significant shareholder value. The Group's core business operations have been enhanced following the acquisition of CA Blackwell. Our portfolio of property and energy projects offer an exciting platform for significant value creation that is incremental to that created from our Distribution & Services operations. We have targeted £35-50m of incremental value creation from development and energy projects related to these property assets. The £60m of legacy assets that we aim to convert to cash will strengthen a balance sheet that is already strong and allow consideration of a wide range of options to return value or capital to shareholders."

***See Link Below For Full Details***

http://www.moneyam.com/action/news/showArticle?id=5394612

Hargreaves Services has 'clear strategy' after tough year saw profit plummet 86%
15:30, 9 Aug 2016
By Robert Gibson

Solid fuel and bulk material logistics firm is diversifying, restructuring and reducing coal production to ensure long-term value for shareholders



Hargreaves Services PLC says it remains upbeat about its future, despite taking a major financial hit from a second year of “tumultuous” market conditions.

In the 12 months ended May 31, 2016 the County Durham-headquartered company, which is the UK’s leading supplier of solid fuel and bulk material logistics, saw continuing revenue drop to £340.7m, compared to £662.2m the previous year.

Continuing operating profit likewise plummeted by over 86% to £5.2m.

Central to the company’s woes has been a significant drop in the coal and coke trade, with production slipping from more than 7m tonnes to less than 2m within a matter of two years.

As a result, Hargreaves has been through a radical restructuring and repositioning programme that has included a “significant” number of redundancies.

With this now “fundamentally complete”, however, it says it is well placed to generate shareholder value through the development of profitable services leveraging its core skills.

A report accompanying the latest results said: “The management team have been proactive and have responded well to these challenges.

“Excellent progress has been made and a clear strategy has been set out to develop long-term value through a portfolio of complementary services business and through the development of value in a property and energy project portfolio that is rich with opportunity.

“Over the last two years, we have established a strong team with a focus on developing and delivering value from that portfolio.

“Looking forward, we will start to see that investment generating and demonstrating value.

“The acquisition of CA Blackwell Group Limited in January, 2016, was an exciting and positive step to building our long-term Services offering.”

During the year, restructuring activities, the accelerated closure of a number of significant customer sites and the decision to impair an equity investment in the Tower project incurred an exceptional cost of £12.4m.

Over the next five to seven years, however, the company is hopeful of generating between £35m and £50m of incremental value from its property and energy project portfolio, as it continues to reduce its focus on thermal coal.

The firm’s balance sheet likewise remains strong and well-financed, allowing the orderly run-out of £60m of coal stocks and other legacy assets including land, property, equipment, stocks and loans into cash.

In the face of accelerated UK coal fired station closures, meanwhile, Hargreaves has set “aggressive” new business targets for its Industrial Services operations.

Chairman David Morgan said: “After two challenging years, we have a clear opportunity in front of us to develop and deliver significant shareholder value.

“The group’s core business operations have been enhanced following the acquisition of CA Blackwell.

“Our portfolio of property and energy projects offer an exciting platform for significant value creation that is incremental to that created from our Distribution & Services operations.

“We have targeted £35-50m of incremental value creation from development and energy projects related to these property assets.

“The £60m of legacy assets that we aim to convert to cash will strengthen a balance sheet that is already strong and allow consideration of a wide range of options to return value or capital to shareholders.”

The board is proposing a final dividend of 0.6p.

If approved at the company’s AGM, this will result in a dividend for the full year of 2.3p, compared with 30p the previous year.

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

Artemis Investment Management LLP on behalf of discretionary funds under management

3,678,397 to 4,250,397 13.32%

http://www.moneyam.com/action/news/showArticle?id=5397265

Upcoming Events

13 September 2016 Annual Report Posting Date
22 September 2016 Ex-Dividend Date
23 September 2016 Record Date
05 October 2016 AGM
21 October 2016 Payment Date

Coal surge to stoke Hargreaves
09 September 2016, 16:19

Surging coal prices could help speed up coal trader and miner Hargreaves Services' (HSP:AIM) plans to unlock 300p a share in business value.

Struggling Hargreaves has been a casualty of falling energy prices over the last three years, as well as recent mild winters and coal power station closures as the UK’s energy policy attempts to shift away from fossil fuels.

European coking coal prices bottomed in February and have gained more than 50% since, with thermal coal price gains, used to fuel power stations, not far behind. Coal is being imported from China into Europe to try and stem the price gains, according to a Bloomberg report.

Hargreaves, which is winding down its coal trading, still boasts coke and coal inventories of around £20 million, versus a market capitalisation of £61 million. Firmer demand and prices may help the business unwind stock more quickly at better prices, according to a person with knowledge of the business.

However, the benefit is expected to be one-off because Hargreaves’ remaining mining assets will produce coal for specialist markets including domestic, industrial and steam trains, where prices are less sensitive to global pricing.

Most of its plan to deliver 300p a share in shareholder value involves reducing exposure to energy markets by developing transport, logistics and construction businesses alongside a scaled down coal distribution unit.

Shares in Hargreaves trade at 190p a share, a discount to tangible book value of 401p a share reported through 31 May 2016.

Book value may not be a reliable gauge of value at mining companies, however, as shareholders in UK Coal found out when it was wound up in 2013. Most assets were sold or transferred to the company’s pension scheme, though shareholders retained some of their investment via a shareholding in property vehicle Harworth (HWG).

Land previously used for coal mining, of which Hargreaves boasts around 18,500 acres and plans to develop, may also incur unexpected costs for environmental remedial work, further reducing value.

Chief executive Banham bought £348,000 shares in April at 170p a share, according to Shares' online Director Dealing tool.

Shares in Hargreaves Services are down 26% year-to-date at 190p.

The large seller who's being selling at 189-190 for the last 6 weeks or so may or may not have finished but at worst they are letting orders on the bid at 190 stay there for hours at a time rather than ripping them off in microseconds.

I will be interested to see if in due course the coal price has picked up enough to encourage HSP to consider mining some of the coal which it has viewed until now as economically nonviable.

In any event it will help the price mix as you can't just mine specialty grade coal without producing some lower grade stuff no matter which equipment or tech you use.

Annual Report 2016

For the year ending 31 May 2016

http://www.hsgplc.co.uk/media/69726/Hargreaves-Services-plc-Annual-Report-2016.pdf

23 September 2016 
Hargreaves Services plc
("the Company")
 
Posting of Annual Report and Notice of AGM
 
Hargreaves Services plc (AIM: HSP) announces that its Annual Report and Accounts for the year ended 31 May 2016 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 October 2016 at 11.00am at The Solarium, Durham Cathedral, The College, Durham DH1 3EH.

http://www.moneyam.com/action/news/showArticle?id=5419988


Annual Report and Accounts 2016

03 October 2016 
Hargreaves Services plc

Update on Redcar Steelworks Closure and Trading Update ahead of AGM
 
Hargreaves Services plc (AIM: HSP), a group delivering key projects and services in the infrastructure, energy and property sectors, today provides an update, ahead of its AGM on 5 October 2016, on the Redcar steelworks closure activity and on current trading.

Update on Redcar Steelworks Closure

The Group notes the recent press coverage concerning the Tribunal claim by staff who were formerly employed by Hargreaves at the Redcar steel plant. Management is disappointed by the findings of the Tribunal's oral judgment delivered on 30 September 2016, which could give rise to an additional potential liability of £0.6m relating to the closure in October 2015 of the Redcar operation.  We await the Tribunal's fully reasoned written judgment. The circumstances surrounding the demise of SSI, the owner and operator of Redcar steelworks, gave rise to a highly complex and fluid situation.  It was against this challenging background that Hargreaves sought to do its very best by its employees, acting in accordance with legal and professional advice. We expect any cost arising from the Tribunal's decision to be treated as an exceptional item in line with all other historic costs associated with the closure of the Redcar operation.

AGM Trading Update

At the AGM, to be held on Wednesday 5 October 2016, Hargreaves Chairman David Morgan will make the following statement: "We are pleased that the increasing interest from coal power stations noted in the Preliminary Results Statement has now been translated into contracts for the sale of the Group's surplus coal stocks. Shipments of these coal stocks, totalling approximately £11m, have already commenced and will continue through the winter in line with expectations and without any impairment to book value.

"Trading across the rest of the Group for the year to date has been in line with expectations. Although there are still risks associated with the achievement of new business targets in the Industrial Services division, encouraging progress in our Property and Energy portfolio allow management to remain confident at this time in achieving its overall performance target for the year which, together with the realisation of legacy coal stocks referred to above, provides a favourable background against which to finalise our deliberations on returning surplus capital to shareholders."

http://www.moneyam.com/action/news/showArticle?id=5425400

05 October 2016 
 
Hargreaves Services plc
 
Result of AGM  
 
Hargreaves Services plc (AIM: HSP), a group delivering key projects and services in the infrastructure, energy and property sectors, announces that, at its AGM held earlier today, all resolutions were duly passed.

http://www.moneyam.com/action/news/showArticle?id=5427756

Price and volume action has been quite interesting on this stock for the last month or so.

The volume has died down to a very small level with the large seller at 190 now finished. Buyers keep going a little bit every day and are becoming more aggressive at nibbling at the offer.

I am hoping they will start attacking 200 tomorrow which was the intraday high from a couple of months ago.

Hard to work out how much of the £66m legacy assets are being turned into cash so I expect that's holding the shareprice back until they crystallise

Possible jobs boost for Glenrothes as plans revealed for brownfield site
25th November 2016

More than 2,500 jobs could be coming to Fife if plans to transform one of Europe’s biggest brownfield sites is given the go-ahead.

The former Westfield open cast coal mine could become an industrial and energy-producing powerhouse for the region under plans submitted by site owners Hargreaves Services.

Development of the vast site, situated between Kinglassie and Cardenden, could also result in the reopening of an old railway line following the findings of a feasibility study commissioned as part of the proposals.

A vast solar farm is also planned, with panels placed on land and floating on the water-filled former quarry.

Food production and the recycling industries are two areas being targeted, with the planning application having followed a public consultation by Hargreaves, which purchased the site in 2012.

Hargreaves estimates around 1,075 construction jobs would be created over a ten-year-period, with the completed development capable of supporting an estimated 1,500 full-time equivalent jobs.

The plans have been welcomed by the neighbouring Cardenden Community Council who have been supportive of the proposals to regenerate the site for a number of years.

“We are fully supportive of the application as long as we get the environmental safeguards in place,” said David Taylor, Cardenden Community Council chairman.



EDIT- Also reported earlier this week:

22 December 2016 
Hargreaves Services plc

Post-Close Trading Update and Notification of Interim Results

Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, today provides the following update on trading ahead of its interim results for the six months ended 30 November 2016.

The Group has experienced more stable trading conditions during the period with underlying Group profits for the six months expected to be in line with management expectations. Hargreaves anticipates a strong second half with expected outperformance in Coal Distribution and Property & Energy that will more than offset the impact of the expected contract delays in Industrial Services.

Results for the Coal Distribution Division include the Group's share of profit from our associate operation in Germany which is trading very strongly as its markets recover. The recent increase in coal price during the first half, together with more robust coal demand, is expected to also result in the UK operation exceeding forecasts. Profits for the Division are currently expected to exceed management expectations by £3m for the full year.

The Industrial Services Division set aggressive targets for new business gains over the year as a whole. Whilst good progress continues to be made, it now seems unlikely that these will be fully achieved due to a delay in the commencement of a major project in Hong Kong. The Division's UK business has traded strongly and is expected to continue to do so through the second half.

Good progress continues to be made in the evaluation and development of the Group's Property and Energy project portfolio. Profits realised from the Property Division are expected to slightly exceed management targets over the year as a whole, although the timing of property sales remains difficult to predict.

The integration of the Blackwell acquisition is progressing well and underlying trading performance has been strong and in line with expectations. The Group has re-appraised the costs to complete and remediate two legacy contracts that were identified at the time of acquisition and as a consequence goodwill will be increased by £2.6m to £3.4m to reflect these additional costs, a level that management consider sustainable given the underlying profitability and cash generation of the operation.  The escrow account established at the time of acquisition continues to provide protection in relation to legacy contracts and no further provisions or adjustments in respect of pre-acquisition contracts are expected. Good progress continues to be made in the realisation of cash from sales of former Blackwell properties.

Management remain pleased with the rate of conversion of legacy assets into cash. As reported in October the Group's existing coal stocks have been sold and we continue to expect the full recovery of loans to the Tower joint venture. Working capital performance across the Group also remains in line with expectations. The Group is currently targeting to close the financial year with less than £5m of net debt.

The Group expects to report its interim results for the six months ended 30 November on 15 February 2017. A briefing for analysts will be held at 10.00am on the morning of the results at the offices of Buchanan, 107 Cheapside, London EC2V 6DN. For more information on the briefing, please contact Buchanan on 020 7466 5000.

http://www.moneyam.com/action/news/showArticle?id=5470192

Boost from the Black Stuff: Hargreaves Services delivers positive trading update
08:55 22 Dec 2016

The AIM-listed group said its Coal Distribution arm has been boosted by good results from its associate operation in Germany, which has been trading “very strongly."



The black stuff gave a boost to shares in Hargreaves Services PLC (LON:HSP) today after the coal and solid fuels group said trading has stabilised in the first-half and met its expectations.

Notably, the AIM-listed group said, its Coal Distribution arm has been boosted by good results from its associate operation in Germany, which has been trading “very strongly as its markets recover.“

In a pre-close season trading statement, Hargreaves Services said: “ The recent increase in coal price during the first half, together with more robust coal demand, is expected to also result in the UK operation exceeding forecasts."

It added: “Profits for the Division are currently expected to exceed management expectations by £3mln for the full year.”

The company also said it has seen strong trading in its Property & Energy project portfolio, with profits from this arm to outpace management expectations.

But it added that its Industrial Services is unlikely to meet the targets set due to a delay to a major project in Hong Kong.

However, Hargreaves Services said it still expects a strong second half of the year as the outperformance of its Coal Distribution and Property & Energy units offset the softer trading in Industrial Services.

Jon Hopkins

Hargreaves Services prioritises safety with new Mercedes-Benz Arocs units
10 January 2017
Emma Shone



Hargreaves Services has put safety first with its recent order of 21 new Mercedes-Benz Arocs tractor units with StreamSpace cabs.

Replacing 21 older Scania vehicles, the new trucks are all fitted with an optional safety pack, including Active Break Assist and Proximity Control Assist systems, as well as a series of cameras and sensors for detecting vulnerable road users.

Paul Boulds, Hargreaves’ workshops and fleet manager, said: “We are always conscious of our duty of care.

“While you cannot put a price on safety, the additional cost of these features was not prohibitive. Hopefully we won’t need them, but it’s nice to know they’re there just in case.”

15 February 2017 
HARGREAVES SERVICES PLC

Interim Results for the six months ended 30 November 2016
 
Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, today announces its interim results for the six months ended 30 November 2016.

HIGHLIGHTS
 
·      Overall performance in the first half was in line with management expectations;

·      Strong prospects in Germany expected to drive outperformance in second half as announced in December;

·      Property & Energy portfolio development progressing well with planning permission granted for an energy-from-waste plant near Grangemouth and the planning decision on our Blindwells development expected in March;

·      Good progress being made with the integration of CA Blackwell to establish our new Specialist Earthworks division;

·      Wind down of coal mining activities and the commencement of the site restoration programme at Tower underpins the expectation of full repayment of Joint Venture loans;
·      Legacy asset realisation programme progressing well, with all surplus coal and coke stocks contracted;

·      Net debt expected to fall materially during the second half, with the final outcome dependent on the timing of material property disposals;
 
Commenting on the interim results, Chairman David Morgan said: "It is pleasing to see how much progress we have made towards the three strategic goals we set ourselves a year ago. First, earnings from the continuing Distribution & Services operations are well set to deliver operating profit within the target range that we set. Second, good progress is being made in creating and then delivering the targeted £35m-£50m uplift in value from our Property & Energy portfolio. Lastly, it is very gratifying to see the progress that has been made in the realisation of cash from the legacy assets and the increasing confidence that this realisation will be achieved without the need for any net impairment of the book value."

***More From Link Below***

http://www.moneyam.com/action/news/showArticle?id=5496578

Hargreaves Services sees profits drop, but hikes dividend and stays upbeat on second half
07:53 15 Feb 2017

The AIM-listed firm said its underlying pre-tax profits dropped by 71.9% to £0.9mln for the six months to the end of November, as continuing revenues fell by 2.2%.



Coal distributor Hargreaves Services PLC (LON:HSP) reported a drop in first-half profits, but the group still hiked its interim dividend and repeated its expectations that strong prospects in Germany will “drive outperformance in the second half.”

The AIM-listed firm said its underlying pre-tax profits dropped by 71.9% to £0.9mln for the six months to the end of November, as continuing revenues fell by 2.2% to £170.9mln.

But the group – focused on projects, services, and logistics to the infrastructure, energy and property sectors - said “overall performance in the first half was in line with management expectations.”

The Durham-based firm also raised its interim dividend to 2.7p per share, up from 1.7p a year ago.

Hargreaves’ chairman David Morgan said: "It is pleasing to see how much progress we have made towards the three strategic goals we set ourselves a year ago.

"First, earnings from the continuing Distribution & Services operations are well set to deliver operating profit within the target range that we set.

"Second, good progress is being made in creating and then delivering the targeted £35m-£50m uplift in value from our Property & Energy portfolio.

"Lastly, it is very gratifying to see the progress that has been made in the realisation of cash from the legacy assets and the increasing confidence that this realisation will be achieved without the need for any net impairment of the book value."

Jon Hopkins

29 March 2017 
Hargreaves Services plc
("Hargreaves" or "the Group")

Planning Permission Granted for Blindwells Site

Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the infrastructure, energy and property sectors, is pleased to announce that it has today received planning approval in principle for 1,600 new homes at Blindwells, on part of a 392 acre site near Tranent in East Lothian, which is situated less than 15 miles from Edinburgh city centre. The approval, which includes affordable housing and mixed use development, represents the first phase of a wider master plan for more than 3,200 homes to be developed over the next 12-15 years.

The Blindwells site, which was formerly an open cast coal mine until its closure in 2000, will require some initial consolidation work and the development of infrastructure such as roads and connections to utility networks. This work is expected to commence shortly and will require upfront capital investment by Hargreaves in groundworks and enabling infrastructure at a cost of approximately £5.0m, which is expected to be funded from the Group's existing resources. Subsequently, it is expected that Hargreaves will undertake the phased sale of residential development plots to national and local house builders over a number of years.


The grant of planning is expected to generate a meaningful uplift to the market value of the Blindwells site relative to the book value included in the Group's Net Assets which totalled £129.2m at the 30 November 2016. As previously announced, the Group has commissioned a formal independent valuation of our property portfolio for publication in our Preliminary Results in August 2017, by which time we expect our assessment of the development options for the site will be more complete.

The valuation report will include an assessment of the value of the Blindwells site reflecting today's grant of planning permission. Going forward this valuation will be revised and reported on annually to enable shareholders to track progress.

Commenting on the planning approval, Iain Slater, Development and Estates Director for Hargreaves, said: 'We have worked in partnership with East Lothian Council to deliver its original vision for a new community and we are confident that Blindwells will provide a high quality lifestyle set around some of Scotland's finest countryside. We're delighted that the first phase has been granted planning approval in principle and we look forward to working with the Council to ensure delivery of the targeted development investment and associated benefits for East Lothian."

Gordon Banham, Chief Executive Officer of Hargreaves, said: "We are delighted to have secured this planning permission. It marks another important milestone in achieving the target we set ourselves to deliver £35-50m of new value from our overall property portfolio over the next five years. Blindwells is an important part of that portfolio and is an excellent and exciting site. The grant of planning permission now allows us to develop and commercialise the site and we look forward to providing further updates and information as our plans progress."

http://www.moneyam.com/action/news/showArticle?id=5521926

My average on this would appear to be 3.06 which is frankly a miracle as I managed to add very near the bottom when the price got stupidly low and avoid adding anything on the trip down from my first entry at 4.20.

Over the weekend I shall look up the NAV. My memory suggests that even at 300 the share price still looks crazy low.