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Hargreaves Services

January 2015

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:
  • 636p
In our October update when reviewing Hargreaves’ full year results we indicated the likelihood that its Monckton coke works (which had made a marginal looking £2.9m last year) could be closed in due course as part of a capital reallocation exercise. Therefore when Hargreaves announced the closure this month it was no particular surprise.Monckton, which operates coking ovens, is a hugely capital intensive business and one where you cannot just turn the ovens off during periods of low demand, as is the case presently. The business is expected to breakeven in the current year against originally budgeted profits of £2m. The cost to close the site is £4.8m whilst there will also be asset impairment charges of &po ...

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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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