Hargreaves Services (AIM:HSP) Zoo Digital (AIM:ZOO) - AIM’s old and new economy strugglers
There were results today from a couple of AIM’s strugglers in Hargreaves Services (AIM:HSP) and Zoo Digital Group (AIM:ZOO), businesses from the old and new economies respectively, although ZOO’s problems seems to suggest that it’s new economy status didn’t last very long or, put differently, hasn’t really ever got going! We continue to believe there might be an interesting recovery story in Hargreaves, although aren’t too sure about ZOO. Hargreaves has also introduced a new term into the lexicon of finance.This Blog covers Hargreaves and we will cover Zoo in another article.
Hargreaves Services plc (AIM: HSP) is one of the UK’s leading suppliers of solid fuel and bulk material logistics, operating now through 3 divisions: Coal Production and Distribution, Industrial Services and Transport. Preliminary results for the year ending 31st May 2015 showed continuing revenue down 23.8% to £662.2m, continuing profit before tax down 52.2% to £24.9m and continuing diluted earnings per share down 47.5% to 62.2p. The numbers featured a large number of restructuring costs which the Group refers to as “simplification costs”, which actually seems to capture the essence of things nicely, perhaps this new term might catch on!…