Major contract with UK Deposit Return Scheme
Hargreaves Services plc
(“Hargreaves” the “Company” or the “Group”)
Award of major 15-year contract with Re.Group for UK Deposit Return Scheme
Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the environmental, infrastructure and property sectors announces the successful award of a 15-year contract providing logistics services into the recently announced UK Deposit Return Scheme (“DRS”).
Following the previous announcement on 30 September 2026 of preferred bidder status with Re.Group, Hargreaves has now entered into a 15-year logistics contract with Re.Group, the Australian recycling and resource recovery company, to provide collection, transport and transfer station services for the DRS in Scotland. Under the contract, Hargreaves will be responsible for the collection and movement of returned drinks containers from retail return points across Scotland to designated processing facilities. The contract includes annual CPI-linked indexation and fuel cost adjustment mechanisms providing long-term earnings visibility and margin protection.
The DRS is due to be introduced across England, Scotland and Northern Ireland by 1 October 2027. The scheme aims to reduce litter, increase recycling rates and support a circular economy by incentivising the return of single-use drinks containers.
The contract with Re.Group will commence October 2027 and is expected to have a positive impact on FY28 performance, before its full impact in FY29. For FY29, the Board would expect to report revenue and profit before tax moderately ahead of existing market expectations*.
Commenting on the contract, Simon Hicks, Chief Executive of Hargreaves Services plc, said: “This is an important contract for Hargreaves and represents a significant step forward in the development of our Environmental Services capabilities. The award provides long-term, inflation-linked revenue, attractive earnings visibility and establishes the Group at the heart of one of the UK's most important recycling initiatives.
"We are delighted to be partnering with Re.Group and look forward to delivering a high-quality logistics solution that supports the successful implementation of the Deposit Return Scheme in Scotland, creating a strong platform for future growth in recycling, resource recovery and wider environmental services.”
* The Company considers consensus market expectations prior to the release of this announcement for the year ending 31 May 2028 to be revenue of £309.2 million, underlying PBT of £18.8 million. For the year ending 31 May 2029 to be revenue of £323.2m and underlying PBT of £20.4m.
For further details:
Hargreaves Services
Simon Hicks, Chief Executive
Stephen Craigen, Chief Financial Officer
Tel: 0191 373 4485
Walbrook PR (Financial PR & IR)
Paul McManus, Anna Dunphy, Nick Rome
Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com
Mob: 07980 541 893 / 07584 391 303
07876 741 001
Singer Capital Markets (Nomad and Corporate Broker)
Shaun Dobson, Russell Cook, Dan Ingram
Tel: 020 7496 3000
Cavendish Capital Markets Ltd (Joint Corporate Broker)
Adrian Hadden, Jasper Berry, Sunila de Silva
Tel: 020 7220 0500
About Hargreaves Services plc (www.hsgplc.co.uk)
Hargreaves Services plc is a diversified group delivering services to the core markets of Environmental services, Clean Energy, and Connectivity, supporting key industries within the UK and internationally. The Company operates through three divisions as follows: Services, Land, and a German joint venture.
Services is the core of the Group, providing specialist contracted services to critical projects in the Connectivity, Clean Energy and Environmental markets. Its services include but not are not limited to earthmoving, waste management, materials handling, industrial services, mechanical and electrical contracting, and logistics. With a strong base of long-term customer relationships, and expertise in critical sectors, Services is well positioned to benefit from the substantial opportunities in the UK’s significant infrastructure market.
Land is focused on unlocking value from the Group’s land portfolio through residential and commercial development, as well as strategic disposal opportunities. The proven strategy is increasingly built around realising value from legacy assets in order to return value to shareholders.
Germany operates in specialist industrial raw materials trading and recycling markets. This includes DK Recycling, a specialist recycler of steel waste.
Services is increasingly becoming the central driving force behind Hargreaves’ growth, and Land is being progressively monetised to realise value from its assets, while Germany is being optimised to increase its contribution to the Group’s dividend.
Hargreaves is headquartered in Newcastle-upon-Tyne and has operational centres across the UK and internationally.
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