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Hargreaves Services - Gain to date: 99%

October 2007

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:
  • 617p
The FY07 results from Hargreaves showed the benefit of recentacquisitions and further strong organic growth. Turnover was up 71% to£265m, helped by contributions from Norec (9 months) and MaltbyColliery (3 months) as well as further strong growth from the coalimporting activity which supplies coal to the generators. Pretax profitwas up 56% to £8.6m and adjusted earnings were 22.7p.Hargreaves is clearly a different business than when it floated twoyears ago: as a result of acquisitions, headcount has grown from 500 toover 2,000 and the business now reports along five business lines. Thatsaid, given the strong interdependence between various parts of thegroup, an analysis of the performance of individual divisions is notparticular ...

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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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