14 February 2012 – interim results

Interim results from the logistics group and fuel supplier Hargreaves Services have seen a useful increase in revenues although underlying pre-tax profits have fallen.  In the six month period to 30 November, revenues rose by 27% to £322.8m (2010: £253.9m) although underlying pre-tax profit fell by 12.2% to £15.7m (2010: £17.9m).  Diluted earnings per share on the same basis were 11.3% lower at 38.9p (2010: 43.8p) but the interim dividend was increased to 6.0p (2010: 5.1p).  Although first half profits are down, some of this is due to timing issues and the first three months of the second hald are seeing strong trading and so the group is confident of achieving its full year profit targets.  The group’s investment in developing its business will see significant benefits in the next financial year and there is scope to expand in the Far East as shown by the fact that the company has been approached by China Light & Power in Hong Kong to provide consultancy services.  The shares stand on a relatively low p/e ratio of 10x and although they only sport a modest yield they are a BUY FOR CAPITAL GROWTH.