Hargreaves Services (AIM:HSP) another disappointing update but is all the bad news now in the price
The AIM quoted supplier of solid fuel and bulk material logistics has had a torrid time over the past few years and the latest period end trading update for the financial year ended 31 May 2015 is accompanied by the Chief Executive calling market conditions in the coal sector as “the most challenging that I have ever seen”. However, are we now nearing the point of greatest despair with this business?
Positively, the Group’s previously announced simplification programme is now substantially complete and the debt reduction initiative has progressed very well with cash generation in the second half slightly ahead of management expectations. After the £6.3m of share buyback spend, net debt at the year end was £1.0m, benefitting by approximately £8m from the timing of year end payments and collections. Although the Group made a long announcement in respect of the proposed share buy-back programme…
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