Undiscovered Gems in the UK to Watch February 2025

Operations: Hargreaves Services generates revenue primarily from its services segment, amounting to £219.11 million, with additional contributions from Hargreaves Land at £10.54 million.

Hargreaves Services, a relatively small player in the UK market, shows promise with its recent financial performance. The company reported half-year sales of £125.34 million, up from £110.17 million the previous year, and net income increased to £3.99 million from £1.71 million. Basic earnings per share rose to 12 pence from 5 pence a year ago, indicating strong profitability improvements despite a one-off gain of £6.2M affecting results until November 2024. With no debt on its books and trading at 45% below estimated fair value, Hargreaves appears well-positioned for future growth in the infrastructure sector under new COO Simon Hicks’s leadership starting June 2025.

AIM:HSP Debt to Equity as at Feb 2025

Simply Wall St Value Rating: ★★★★★☆

Overview: Yü Group PLC, with a market cap of £271.91 million, supplies energy and utility solutions primarily in the United Kingdom through its subsidiaries.

Operations: Yü Group generates revenue primarily from supplying energy and utility solutions in the UK. Its financial performance includes a market capitalization of £271.91 million.

Yü Group, a dynamic player in the UK market, has seen its earnings soar by 400% over the past year, outpacing the Renewable Energy sector’s -5%. The company is trading at nearly 30% below its estimated fair value, suggesting potential for upside. Despite an increase in its debt-to-equity ratio from 0% to 5% over five years, Yü maintains more cash than total debt and comfortably covers interest payments with profits. With revenue expected to grow by about 16% annually and high-quality earnings reported, Yü appears well-positioned despite forecasted declines in earnings.

AIM:YU. Debt to Equity as at Feb 2025

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AIM:GFM AIM:HSP and AIM:YU..

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