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

The original link posted this morning regarding the presentation on their website didn't work, sorted now and will amend the earlier post:

http://www.hsgplc.co.uk/media/68267/Strategic-Repositioning-Update-27-April-2016.pdf

28 April 2016
HARGREAVES SERVICES PLC
("Hargreaves" or the "Company")

Director/PDMR Shareholdings

Hargreaves Services plc ("Hargreaves" or the "Company") has today received notification that Gordon Banham (CEO), David Morgan (Chairman), Peter Jones (Non-Executive Director), and Nigel Halkes (Non-Executive Director) have earlier today purchased in aggregate 250,000 ordinary shares of 10 pence each in the Company at a price of 170p per share.

The respective individual purchases and resultant beneficial holdings of Gordon Banham, David Morgan, Peter Jones and Nigel Halkes are set out below:

***See Link Below***

http://www.moneyam.com/action/news/showArticle?id=5331073

Directors buys always a good sign.

CC, Not always but along with the 'Strategic Repositioning and Trading Update' released yesterday then yes, leading to a possible good recovery stock?

Gordon Banham, Group Chief Executive commented, "This announcement marks an important turning point for the Group.

After eighteen months of market turmoil, we are finally completing a challenging phase of restructuring to move away from our traditional areas of focus and reposition the Group. The bulk of that restructuring work is complete and we can now look forward and actively pursue the value creation opportunities ahead of us.

We have protected our strong balance sheet position throughout this difficult time. Today we find ourselves with a balance sheet with net assets of around £140m and we have set ourselves the objective of turning £66m of legacy assets on that balance sheet into free cash as quickly as possible in an orderly fashion.

We are also setting ourselves the aspirational goal of developing and realising £50m of incremental value from our extensive property and energy project portfolio over the next five years to further grow our net asset base.

Finally, we have identified a core of business operations that offer a long term value creation opportunity and we are focused on growing operating profits and delivering strong contributions from each of these areas.

Whilst risks remain in achieving our targets, the Board is confident that the Group is well placed and well equipped to deal with these challenges."

http://ir1.euroinvestor.com/asp/ir/Hargreaves/NewsRead.aspx?storyid=13357385&ishtml=1

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

Artemis Investment Management LLP on behalf of discretionary funds under management:

Increased from 3,446,397 to 3,576,397 (11.21% indirect) on 16 June 2016

http://www.moneyam.com/action/news/showArticle?id=5362545

4 July 2016
Hargreaves Services plc
("Hargreaves", "the Group" or "the Company")

Post-Close Trading Update and Notification of Preliminary Results

Hargreaves Services plc (AIM: HSP), a leading supplier of solid fuels, bulk material logistics and specialist earthworks services, provides the following update on trading ahead of its preliminary results for the year ended 31 May 2016.

Core Operations

The Group is pleased to report that trading in the run up to the year end was in line with management expectations and consequently the Group expects underlying profitability for the year ended 31 May 2016 to be in line with current market expectations.

The restructuring and repositioning of the Group's core operations continues to progress and the resulting restructuring and exceptional costs are expected to be broadly in line with previous market guidance.

Tower Joint Venture

The Group notes that since reporting its interim results on 16 February 2016, RWE has confirmed its intention to cease buying Welsh coal for its Aberthaw power station by 31 March 2016. This decision firmed up our previously announced intention to consider a shortened mining programme at our Tower joint venture. Within our interim results we stated that a shortened mining plan could result in a modest impairment of our outstanding loans to the joint venture vehicle. It is our current view that, although the equity investment values and goodwill require to be impaired as no future dividends are likely to arise, a full recovery of the loans remains achievable. The Group will continue to work with its joint venture partners to seek an optimal outcome. The impairment charge in respect of our equity investment and goodwill will be approximately £4.9m.

Brexit

The Group continues to appraise the potential impacts of Brexit. The Group is a net beneficiary of Sterling weakness due to its current stocks of largely dollar-denominated coal and coke. No revaluation gains have been booked to date, but if the current exchange rate trends continue the Group should benefit as and when these stocks are realised.

On a negative note the Group has been informed that a £7m earthworks project at a major UK port has been postponed owing to Brexit-related concerns. The current uncertainty associated with Brexit presents potential risks for our Earthworks and Logistics businesses which have a significant exposure to construction activity and capital investment projects. However, it is difficult at this stage to form a clear picture of the medium term impacts and we currently consider the risk of a downturn in private sector activity as against the potential upside from Government-sponsored public sector works to reflate the economy to be relatively finely balanced.

Notification of Preliminary Results

The Group expects to report its preliminary results for the year ended 31 May 2016 on 9 August 2016. A briefing for analysts will be held at 10.00am on the morning of the results announcement 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=5372455

Articles related to yesterday's trading update:

Owner of Scottish coal mines notes pros and cons of Brexit vote



HARGREAVES Services, which owns what is left of Scotland’s coal mining industry, has highlighted the benefit of the fall in the pound following the Brexit vote although this seems unlikely to stop the firm winding down most of its operations in the country.

The company has also noted the risks posed by the Brexit vote for its logistics operation, concluding that it will be some time before the overall effect on the economy of the UK voting to leave the European Union becomes clear.

In an update on recent trading, Durham-based Hargreaves said it would gain from the ten per cent plus fall in the value of the pound since the shock outcome of last week’s Brexit referendum because the coal and coke it supplies are traded in dollars.

This will mean the sterling value of sales has increased even if the price per unit sold has remained constant.

Other firms selling goods in dollars will benefit.

“The Group is a net beneficiary of Sterling weakness due to its current stocks of largely dollar-denominated coal and coke” said Hargreaves Services.

“If the current exchange rate trends continue the Group should benefit as and when these stocks are realised.”

The fall in the pound will provide some relief for Hargeaves following a period in which the price of coal has tumbled. The closure of power stations such as Longannet in Fife has weighed on demand.

In April the company said it expected to be producing coal from just one site in Scotland by the end of the summer. Six others are being wound down.

Finance director Iain Cockburn said it was not possible to produce power station coal at a profit and there was no market for it.

Yesterday the company said it expects to complete restructuring operations in line with that guidance.

It expects to recognise an impairment charge of £4.9 million in respect of the Tower joint venture in Wales after RWE confirmed it would stop buying Welsh coal for its Aberthaw plant.

Regarding the Brexit vote, the company added: “On a negative note the Group has been informed that a £7m earthworks project at a major UK port has been postponed owing to Brexit-related concerns,” without providing details.

Hargreaves said the uncertainty associated with Brexit presents potential risks for its Earthworks and Logistics businesses which have a significant exposure to construction activity and capital investment projects.

The group concluded: “It is difficult at this stage to form a clear picture of the medium term impacts and we currently consider the risk of a downturn in private sector activity as against the potential upside from Government-sponsored public sector works to reflate the economy to be relatively finely balanced.”

Hargreaves bought seven sites in Scotland from administrators of ATH and Scottish Coal in 2013.

Thermal coal prices have from around $180 a tonne in 2008 to about $50.

The House of Water site in Ayrshire will switch to producing specialist coal for the industrial and domestic market.

The other six sites range from Glenmuckloch in Dumfries and Galloway, where the firm is working on a restoration scheme with Buccleuch Estates, to Crossgates in Fife.



Also:

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: