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Hargreaves Services - Forecast eps of 131p for the year

April 2013

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • HSP
  • Price:
  • 838p
The shares have shot ahead sharply since our Nap tip in January as the market breathed a sigh of relief that interims contained no nasties. It looks like Hargreaves has taken a massive asprin over both issues that dogged it. A loss has been recorded at Maltby (£9.8m) but the colliery will be mothballed by March, giving rise to a £45m non cash write down at the full year. The fraud in Belgium, which came about due to an overstatement of stock and debtors, gives rise to an £18.8m exceptional although Hargreaves will now file claims against the perpetrators.Adjusting for Maltby and Belgium, underlying operating profit was up 6% to £24.6m on sales up £68.1m to £372.6m. Divisionally, the coal ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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