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Hargreaves Services - Acquisition and eps upgrade

August 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:
  • 805p
Following on from the £42m fundraising and last month's news it was in exclusive talks with the liquidators of Scottish Coal, Hargreaves has acquired certain land and surface coal mines for  £8.4m. The assets comprise land, certain plant and equipment and five surface mines where mining will re-commence shortly. Hargreaves says the sites have around 3m tonnes of coal with a further 12m tonnes at pipeline sites. The annual target production is 1m tonnes supported by £12-£15m investment, making for a total capital investment of c.£23m. Adding to this the two operating assets bought from ATH's liquidators, Hargreaves now has 2m of annualised production and as we said in May, given Hargreaves is targ ...

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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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