Hargreaves Services (HSP)

Sector:

Manufacturing

Index:

FTSE AIM All-Share

560.00p
   
  • Change Today:
      5.00p
  • 52 Week High: 580.00
  • 52 Week Low: 394.50
  • Currency: UK Pounds
  • Shares Issued: 32.72m
  • Volume: 11,164
  • Market Cap: £183.23m
  • RiskGrade: 224

Hargreaves Services hikes divi by 70% but warns on profits

By Benjamin Chiou

Date: Thursday 21 Dec 2023

LONDON (ShareCast) - (Sharecast News) - Hargreaves Services said it is hiking its dividend payout by 70% despite delivering a profit warning to the market on Thursday.
The AIM-listed company, which delivers services to the environmental, industrial and property sectors, said trading conditions in its Germany joint venture, Hargreaves Raw Material Services (HRMS), were worse than expected due to reduced commodity prices and an economic slowdown. It now expects to record a net loss for the division in the first half and for full-year pre-tax profit from HRMC to be just one quarter of that originally expected.

Shares were down 4% at 417.63p in early deals on Thursday.

However, because of the cash generation associated with the slowdown in activity, HRMS has been able to return £8m of surplus cash to the group, which was received in November. It will also received an annual distribution of £7m from HRMS which will become a regular cash receipt "for the foreseeable future".

Meanwhile, Hargreaves Services is in discussions with insurers to take o the liability for the buy-out of its defined benefit pension schemes, and the cost of closing out its obligations will be no higher than £9m, lower than the original estimate of £15m. A transaction is expected to close early next year, thereby eliminating annual deficit reduction payments of £1.8m

As a result of the positive cashflow impact from these two issues, the company has decided to increase its annual dividend to 36p, compared with 21p previously. 50% will be paid out at the interim stage and 50% as a final dividend.

"The slowdown in activity at HRMS has been more pronounced than we had previously anticipated, but has facilitated an increase in cash returned to the group," said chair Roger McDowell.

"With further opportunities to return cash to our shareholders on the horizon from the realisation of our renewables portfolio, and additional growth opportunities, the group is well-positioned to deliver long term sustainable returns."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

HSP Market Data

Currency UK Pounds
Share Price 560.00p
Change Today 5.00p
% Change 0.90 %
52 Week High 580.00
52 Week Low 394.50
Volume 11,164
Shares Issued 32.72m
Market Cap £183.23m
RiskGrade 224

HSP Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
86.19% above the market average86.19% above the market average86.19% above the market average86.19% above the market average86.19% above the market average
83.33% above the sector average83.33% above the sector average83.33% above the sector average83.33% above the sector average83.33% above the sector average
Price Trend
78.52% above the market average78.52% above the market average78.52% above the market average78.52% above the market average78.52% above the market average
53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average
Income
63.75% above the market average63.75% above the market average63.75% above the market average63.75% above the market average63.75% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
13.92% above the market average13.92% above the market average13.92% above the market average13.92% above the market average13.92% above the market average
7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average

What The Brokers Say

Strong Buy 0
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 1
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

HSP Dividends

  Latest Previous
  Interim Final
Ex-Div 21-Mar-24 21-Sep-23
Paid 11-Apr-24 30-Oct-23
Amount 18.00p 6.00p

Trades for 18-Jul-2024

Time Volume / Share Price
16:35 621 @ 560.00p
16:35 15 @ 560.00p
16:35 23 @ 560.00p
16:35 26 @ 560.00p
16:35 41 @ 560.00p

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