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Hargreaves Services - Upgrades as German associate profit contribution rises five-fold to £10m

July 2021

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:
  • 426p
Hargreaves is best known for coal mining, but when I wrote on the shares last month, I pointed out that the company ceased all its UK coal mining and trading in December 2020. As there has been so much going on, I couldn’t really do it justice in a short article and I promised a fuller write up this time.  As I describe below, the business is now dominated by a German minerals trading associate, which is the swing factor to profits. This dwarfs the UK side, where disposals and closures have left bulk haulage, earth moving and an industrial services business. But there are two jokers in the pack that add speculative upside - sites of former open cast mines where housing and wind farms are being built and also a tungsten mine.C ...

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