Coal supplier Hargreaves Services (HSP) has something of a chequered past. Serious geological and safety problems led to the closure of its Maltby mine, while its Belgium operations were hit by fraud. That explains the cheap rating on the shares; trading on less than seven times earnings the rating stick out like a sore thumb in their support services universe where the average multiple is around 14 times earnings. Strip out the disasters and there are nuggets of gold, though - the company's energy and commodities division posted a 12 per cent jump in profit last year and material handling profits rose 39 per cent.
However, the market has yet to fully forgive the mistakes of the past - the shares are up 21 per cent in the past year, but at 871p are more than 25 per cent well below their early 2012 highs of over 1,200p. So the recent share sale by chief executive Gordon Banham, who led a management buyout in 2004, cannot really be described as cashing in. Indeed, the company said it was due to tax planning. Mr Banham sold 710,000 shares at 890p and a further 170,000 shares at 900p, taking his stake down to 6.8 per cent from 9.5 per cent. With value apparent but mindful of the company's recent habit of suffering unexpected pitfalls, we stick with our hold rating.
Shares in aviation services and news distribution company John Menzies (MNZS) hit a 52-week high of 841.5p on 16 October. Some, at least, thought that marked a good point to sell. Disclosures last week relating to trusts over which the spouse of non-executive director Dermot Jenkinson has both beneficial and non-beneficial interests reveal that a total of 391,250 shares were sold with the share sales starting on 16 October. The shares were sold at prices between 812p and 825.2p, and the trusts are left with a beneficial holding of 3.15 per cent and a non-beneficial holding of 4.14 per cent.
The business itself is a tale of two halves. Aviation services such as ground handling and cargo are going from strength to strength as Menzies racks up new contracts and makes bolt-on acquisitions. But newspaper and magazine distribution is being hit by poor magazine sales and title closures and so the focus here is on cost-cutting and trying to find new sources of revenue. The overall mix means Menzies is a company with modest growth prospects. So, priced on a fair looking forward price-earnings ratio of 11, and supported by a 3 per cent dividend yield, we maintain our hold rating on the shares at 790p.
BUYS:
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| Aberforth Geared Inc † | GR Menzies | 21 Oct 13 | 29,000 | 158.125 | 45,856 | 94,000 | 0.09 |
| African Consolidated Resources | Neville Nicolau | 18 Oct 13 | 400,000 | 2.5 | 10,000 | 400,000 | 0.05 |
| Arbuthnot Banking | Henry Angest (ch & ce) | 18 Oct 13 | 1,000 | 1,000 | 10,000 | 8,187,901 | 54.99 |
| Atlantic Coal | Steve Best (md) | 22 Oct 13 | 7,300,000 | 0.27 | 19,710 | 300,851,865 | 7.78 |
| Bluecrest Bluetrend | Huw Salter | 23 Oct 13 | 20,000 | 87.25 | 17,450 | 20,000 | 0.02 |
| Cello | Mark Bentley (fd & cs) | 17 Oct 13 | 17,724 | 62 | 10,989 | 230,000 | 0.28 |
| Centaur Media | JPE Taylor (ch) | 23 Oct 13 | 50,000 | 51 | 25,500 | 800,000 | 0.56 |
| Eco Animal Health | Peter Lawrence (ch) | 23 Oct 13 | 105,263 | 190 | 200,000 | 11,373,439 | 20.55 |
| Elektron Technology | Tony Harris | 23 Oct 13 | 10,000 | 10 | 1,000 | 10,000 | 0.01 |
| Falkland Oil & Gas | Timothy Jones (fd) | 23 Oct 13 | 50,000 | 28.25 | 14,125 | 255,185 | 0.08 |
| Falkland Oil & Gas | Richard Liddell (ch) | 23 Oct 13 | 75,000 | 28.25 | 21,188 | 200,000 | 0.06 |
| Falkland Oil & Gas | Tim Bushell (ce) | 23 Oct 13 | 90,000 | 28 | 25,200 | 250,000 | 0.08 |
| Forte Energy * | Mark Reilly (md) | 22 Oct 13 | 12,500,000 | 0.4 | 50,000 | 29,916,333 | 2.82 |
| GeoPark Ltd | Peter Ryalls | 23 Oct 13 | 1,000 | 508.6 | 5,086 | 42,890 | 0.10 |
| Henderson Smaller Co's | Mary Sieghart | 21 Oct 13 | 236 | 530 | 1,251 | 2,782 | 0.00 |
| IMI | Carl-Peter Forster | 21 Oct 13 | 3,000 | 1,567 | 47,010 | 3,000 | 0.00 |
| IXICO | Dr Andy Richards (ch) | 21 Oct 13 | 16,500 | 59 | 9,735 | 16,500 | 0.11 |
| JPMorgan European | Andrew Adcock | 21 Oct 13 | 25,000 | 217.5 | 54,375 | 25,000 | 0.03 |
| Jupiter Primadona Growth | Tom Bartlam | 17 Oct 13 | 7,500 | 1,346.50 | 100,988 | 7,500 | 0.19 |
| Jupiter Primadona Growth | Graham Fuller | 17 Oct 13 | 3,500 | 1,346 | 47,110 | 3,500 | 0.09 |
| Magnolia Petroleum | Gavin Burnell | 22 Oct 13 | 450,000 | 2.7 | 12,150 | 15,285,797 | 1.68 |
| Magnolia Petroleum | Ronald Harwood | 22 Oct 13 | 500,000 | 2.7 | 13,500 | 31,612,426 | 3.47 |
| Magnolia Petroleum | Gavin Burnell | 22 Oct 13 | 350,000 | 2.68 | 9,380 | 15,635,797 | 1.72 |
| Man Group | Andrew Horton | 18 Oct 13 | 50,000 | 86.95 | 43,475 | 50,000 | 0.00 |
| Melrose Industries | Liz Hewitt | 18 Oct 13 | 6,550 | 304.95 | 19,974 | 6,550 | 0.00 |
| Modern Water | Robert Clarke | 17 Oct 13 | 200,000 | 31.25 | 62,500 | 700,000 | 0.88 |
| Norcon † | Jørn Longem | 18 Oct 13 | 1,641,600 | 16.25 | 266,760 | 24,742,732 | 60.17 |
| Nova Resources | Christopher Morgan | 17 Oct 13 | 3,000,000 | 1 | 30,000 | 3,000,000 | 2.32 |
| Plus500 | Charles Fairbairn | 18 Oct 13 | 50,000 | 169.47 | 84,735 | 165,217 | 0.14 |
| Plus500 | Charles Fairbairn | 17 Oct 13 | 50,000 | 148 | 74,000 | 115,217 | 0.10 |
| REXAM | Ros Rivaz | 21 Oct 13 | 4,000 | 496.288 | 19,852 | 4,000 | 0.00 |
| San Leon Energy * | OB Fanning (ch) | 21 Oct 13 | 21,052,631 | 4.7 | 989,474 | 81,892,631 | 3.23 |
| SDL | David Clayton (ch) | 22 Oct 13 | 40,000 | 264.3 | 105,720 | 40,000 | 0.05 |
| SThree | Gary Elden (ce) | 23 Oct 13 | 15,149 | 345 | 52,264 | 3,655,978 | 3.01 |
| stv | Baroness Ford (ch) | 22 Oct 13 | 7,470 | 316.9 | 23,672 | 23,258 | 0.06 |
| stv | Genevieve Shore | 18 Oct 13 | 5,564 | 264.75 | 14,731 | 16,063 | 0.04 |
| Tasty * | Adam Kaye | 17 Oct 13 | 150,000 | 100 | 150,000 | 7,940,238 | 15.00 |
| Tasty * | Samuel Kaye (jce) | 17 Oct 13 | 150,000 | 100 | 150,000 | 9,522,470 | 17.99 |
| Top Level Domain Hold's | Caspar Veltheim | 17 Oct 13 | 42,000 | 5.8 | 2,436 | 504,613 | 0.08 |
| Top Level Domain Hold's | Guy Elliott | 18 Oct 13 | 639,918 | 5.68 | 36,347 | 35,186,350 | 5.41 |
| Tungsten Corporation | Michael Spencer | 22 Oct 13 | 200,000 | 231 | 462,000 | 980,485 | 0.98 |
SELLS:
| Company | Director | Date | No of shares | Price (p) | Value (£) | Holding (shares) | Holding (%) |
|---|---|---|---|---|---|---|---|
| Central Asia Metals | Howard Nicholson | 22 Oct 13 | 41,827 | 157.013 | 65,674 | 604,888 | 0.70 |
| Dillistone | Giles Fearnley | 22 Oct 13 | 150,000 | 100.1 | 150,150 | 593,435 | 3.26 |
| Dillistone | Giles Fearnley | 17 Oct 13 | 230,000 | 100 | 230,000 | 743,435 | 4.08 |
| dotDigital | Simon Bird | 17 Oct 13 | 5,000,000 | 19.96 | 998,000 | 36,876,667 | 13.29 |
| dotDigital | Ian Taylor | 17 Oct 13 | 5,000,000 | 19.96 | 998,000 | 44,876,667 | 16.17 |
| dotDigital | Frank Beechinor-Collins (ch) | 18 Oct 13 | 250,000 | 21.46 | 53,650 | 299,194 | 0.11 |
| dotDigital | Frank Beechinor-Collins (ch) | 17 Oct 13 | 125,000 | 20.25 | 25,313 | 549,194 | 0.20 |
| dotDigital | Peter Simmonds (ce & fd) | 17 Oct 13 | 2,000,000 | 19.96 | 399,200 | 14,073,841 | 5.07 |
| Dunedin Enterprise Inv * | Liz Airey | 22 Oct 13 | 2,500 | 475 | 11,875 | 47,500 | 0.18 |
| Dunedin Enterprise Inv * | B Finlayson | 22 Oct 13 | 6,517 | 475 | 30,956 | 74,132 | 0.29 |
| Globo * | Gerasimos Bonanos | 22 Oct 13 | 250,000 | 71 | 177,500 | 248,685 | 0.07 |
| Globo * | Dimitrios Gryparis (cfo) | 22 Oct 13 | 245,000 | 71 | 173,950 | 253,685 | 0.07 |
| Globo * | Gavin Burnell | 22 Oct 13 | 505,000 | 71 | 358,550 | 270,000 | 0.07 |
| Hargreaves Services | Gordon Banham (ce) | 22 Oct 13 | 710,000 | 890 | 6,319,000 | 2,429,011 | 7.31 |
| Hargreaves Services | Gordon Banham (ce) | 24 Oct 13 | 170,000 | 900 | 1,530,000 | 2,259,011 | 6.80 |
| Menzies (John) † | Dermot Jenkinson | 18 Oct 13 | 153,750 | 812 | 1,248,450 | 1,913,047 | 3.15 |
| Michelmersh Brick Holdings | Alan Hardy | 21 Oct 13 | 362,917 | 52 | 188,717 | 5,296,474 | 9.09 |
| Mobile Streams | Simon Buckingham (ce) | 17 Oct 13 | 6,000,000 | 55 | 3,300,000 | 10,382,500 | 28.34 |
| Next | Francis Salway | 18 Oct 13 | 1,468 | 5,155 | 75,675 | 7,790 | 0.00 |
| Pennant International | John Waller (fd & cs) | 18 Oct 13 | 91,875 | 75 | 68,906 | 1,475,000 | 5.58 |
| Prezzo | Kuldip Sehmi | 21 Oct 13 | 200,000 | 117 | 234,000 | 682,244 | 0.29 |
| Randall & Quilter Inv. Hold's | Paul McNamara | 23 Oct 13 | 49,106 | 168 | 82,498 | 60,000 | 0.08 |
| Stadium | Antony Inskip | 18 Oct 13 | 42,820 | 50 | 21,410 | 0 | 0.00 |
| Travis Perkins † | Geoff Cooper (ce) | 17 Oct 13 | 10,000 | 1,746.34 | 174,634 | 121,206 | 0.05 |
| Travis Perkins † | Geoff Cooper (ce) | 17 Oct 13 | 20,000 | 1,743.06 | 348,612 | 101,206 | 0.04 |
| Travis Perkins † | Geoff Cooper (ce) | 17 Oct 13 | 20,000 | 1,718.62 | 343,724 | 81,206 | 0.03 |
*Placing/Tender Offer †Spouse/Connected Party
Key to abbreviations: ch = chairman; ce = chief executive; cfo = chief financial officer; fd = finance director; coo = chief operating officer; cs =company secretary; md = managing director
