REG - Hargreaves Servs PLC - Interim results
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RNS Number : 6271Q Hargreaves Services PLC 28 January 2026
HARGREAVES SERVICES PLC
(the "Group", the "Company" or "Hargreaves")
Interim Results for the six months ended 30 November 2025
Shareholder returns of up to £15.0m and CEO succession planning
Hargreaves Services plc (AIM: HSP), a diversified group delivering services to
the environmental, infrastructure and property sectors, reports its interim
results for the six months ended 30 November 2025, and announces plans to
return up to £15.0m to shareholders amid substantial revenue and profit
growth, a 5.4% increase to the interim dividend to 19.5p and details of a
planned CEO succession.
KEY FINANCIAL RESULTS Unaudited Unaudited
Six Months ended Six Months ended
30 Nov 2025 30 Nov 2024
Revenue £183.1m £125.3m +46.1%
EBITDA* £18.3m £14.9m +22.8%
Profit before tax ("PBT") £14.3m £5.3m +169.8%
EPS 33.4p 12.2p +173.8%
Interim Dividend 19.5p 18.5p +5.4%
Cash and cash equivalents £37.3m £15.7m +137.6%
Leasing debt £43.2m £34.2m +26.3%
Net Asset Value £201.4m £188.9m +6.6%
Net Assets per Share 608p 580p +4.8%
* EBITDA is calculated as Operating Profit after adding back depreciation and
amortisation, and excludes gains or losses on the sale of fixed assets and
investment property.
HIGHLIGHTS
• Group revenue has increased by over 46% driven by growth within Services on
major infrastructure projects.
• Group EBITDA increased by 23% to £18.3m, due to the strong performance within
Services
• Strong net margin maintained at 7% in Services
• Sale of the first tranche of the renewable energy land assets completed in the
period for initial cash of £8.8m
• Interim dividend increased by 5.4% to 19.5p reflecting the growth in profit
and clear forward visibility
• Strong cash position of £37.3m (Nov 24: £15.7m) aided by the sale of the
first tranche of the renewable energy land assets
CASH RETURN
• Strong cash position, aided by the sale of the first tranche of the renewable
energy land assets underpins the Board's decision to return capital of up to
£15.0m to shareholders before the end of the financial year by means of a
tender offer. The Board will price the tender offer at an anticipated premium
of between 12% and 15%, which, based on the current share price of £6.60,
would equate to a tender price of approximately £7.50 per share, with further
details to be announced in due course.
CEO SUCCESSION
• After 20 years as CEO, Gordon Banham has stated his intention to step down as
CEO from 31 July 2026. He will be replaced by the current COO, Simon Hicks,
who has worked closely with Gordon since joining the business in 2025.
However, Gordon will retain executive responsibility for HRMS for the
foreseeable future.
OUTLOOK
• Services revenue is now 90% secured under contract for the year ending 31 May
2026, combined with the strong first half performance on infrastructure
contracts underpins the Board's expectation for Services outperforming market
expectations* for revenue by approximately 6%, leading to a 4% improvement in
both PBT and EBITDA.
• Continued improvement in HRMS and good visibility on Land gives confidence for
the second half of the year and the Board remains confident of delivering in
line with expectations for these two business units.
Commenting on the interim results, Group Chair, Roger McDowell said: "I'm
delighted to once again report a strong set of results for the Group. This has
been another period of substantial growth within our Services business,
demonstrating the value that we can bring to our clients and sustainable
infrastructure more generally. We have seen the completion of material sales
within Hargreaves Land and a return to meaningful profits from our joint
venture, HRMS. All of which bodes well for the second half and underpins the
Board's confidence in delivering a full year result ahead of current market
expectations.
"Furthermore, the completion of the first tranche of the renewable energy land
assets is a critical milestone in the realisation strategy of that element of
the Group and has resulted in our decision to return up to £15.0m of cash
back to shareholders this financial year."
COO video
Please find a link to a video overview relating to the Company's interim
results from the Group's Chief Operating Officer, Simon Hicks here
(https://www.brrmedia.co.uk/broadcasts-embed/6978cdc582f7350013bae7ad/hargreaves-services-interim-results-25/?-popup=true)
.
Investor presentation
Gordon Banham, Group Chief Executive, Stephen Craigen, Chief Financial Officer
and Simon Hicks, Chief Operating Officer, will provide a live presentation on
the Company's interim results via the Investor Meet Company platform today at
4:30pm GMT.
Investors can sign up to Investor Meet Company for free and add to meet
Hargreaves here
(https://www.investormeetcompany.com/hargreaves-services-plc/register-investor)
.
*The Company considers that market expectations prior to the release of this
announcement for the year ended 31 May 2026 to be revenue of £270.9m, PBT of
£24.2m and earnings per share of 53.3p.
For further details:
Hargreaves Services www.hsgplc.co.uk (http://www.hsgplc.co.uk/)
Gordon Banham, Chief Executive Officer Tel: 0191 373 4485
Stephen Craigen, Chief Financial Officer
Simon Hicks, Chief Operating Officer
Walbrook PR (Financial PR & IR) Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com
(mailto:hargreavesservices@walbrookpr.com)
Paul McManus, Lianne Applegarth,
Mob: 07980 541 893 / 07584 391 303
Anna Dunphy
07876 741 001
Singer Capital Markets (Nomad and Joint Corporate Broker)
Phil Davies, Sara Hale, Andrew Johnson Tel: 020 7496 3000
Cavendish Capital Markets Ltd (Joint Corporate Broker) Tel: 020 7220 0500
Adrian Hadden, Jasper Berry, Tim Redfern
About Hargreaves Services plc (www.hsgplc.co.uk (http://www.hsgplc.co.uk/) )
Hargreaves Services plc is a diversified group delivering services to the
environmental, infrastructure and property sectors, supporting key industries
within the UK and South East Asia. The Company's three business segments are
Services, Hargreaves Land and an investment in a German joint venture,
Hargreaves Raw Materials Services GmbH ("HRMS"). Services provides critical
support to many core industries including Connectivity, Clean Energy and
Environmental infrastructure through the provision of materials handling,
mechanical and electrical contracting services, logistics and major
earthworks. Hargreaves Land is focused on the sustainable development of
brownfield sites for both residential and commercial purposes. HRMS trades in
specialist commodity markets and owns DK Recycling und Roheisen GmbH ("DK"), a
specialist recycler of steel waste material. Hargreaves is headquartered in
County Durham and has operational centres across the UK, as well as in Hong
Kong, South Africa and a joint venture in Duisburg, Germany.
CHAIR'S STATEMENT
Introduction
I am delighted to present the interim results for the period, which has been
one of significant activity within the Group. Whether that is the growth in
profits experienced across each of our three Divisions, the first realisation
from the Group's renewable energy land assets or the news of an investment in
a promising zinc recycling opportunity, it has certainly been an exciting time
and one of significant strategic progress. This success has led to the Group
announcing today that it intends to return £15.0m of cash to shareholders by
means of a tender offer before the end of the current financial year.
Strategic Overview
The focus of the Group is unchanged regarding the realisation and delivery of
value to our shareholders. Each section of the business continues to play a
key role in this strategy as follows:
• Services - Focused on delivering value through sustainable growth in
high-quality, robust contracts in areas of core competence within the
environmental, industrial and infrastructure market.
• Hargreaves Land - Medium-term plan to deliver value through the realisation of
capital employed within the Blindwells development, alongside the sale of the
renewable energy asset portfolio as the business transitions to a low capital
model.
• HRMS - Focus on cash realisation through an annual return of cash to the
Group, the commencement of the Zinc project, whilst the Company considers the
longer-term realisation potential.
Strategic Delivery
I am delighted to report significant progress against our strategic targets
and news of a first planned return of realised funds to our investors.
Services
The first half of the financial year has seen continued growth within our
Services business, capitalising on the momentum built over the last four to
five years. The market opportunities within our key target areas of
Connectivity, Clean Energy and Environmental services are significant, and we
remain well placed to win more work in these areas. We maintain a broad
customer base, with high quality counterparts much of whom are under long term
agreements, helping to maintain an excellent level of revenue and margin
visibility.
During the first six months of the year, we have seen further contract wins as
well as significant growth in existing major infrastructure projects through
the offering of complementary services. Consequently, we now anticipate the
Group's full year PBT to be approximately 4% better than current market
expectations and 3% better in the financial year ending 31 May 2027.
Land realisations
The completion of the first tranche of renewable energy land assets for
initial proceeds of £8.8m represents a watershed moment in the Group's
strategy to realise value from these assets. It has demonstrated the ability
of the team to bring forward and realise value out of this land portfolio and
we anticipate this will be the first of several such disposals in the coming
years.
Further to this, Hargreaves Land has also completed the sale of a 16-acre site
at Blindwells to Bellway plc for total consideration of £11.5m. At the same
time the Board has taken the strategic decision to delay a potential sale,
which was expected sometime in 2028, at one of our locations in Scotland as it
has the potential for more interesting opportunities in the area of
Connectivity which, if successful, would deliver greater value.
HRMS / Zinc Recycling
Whilst trading has been satisfactory in the first half of the year, the period
has seen the exciting news of the proposed investment into an innovative zinc
recycling facility to be based at our site in Duisburg, Germany. This
represents an opportunity for the Group to deliver a truly groundbreaking
project that has the potential to disrupt the existing market for steel waste
dusts and Zinc Oxide production across Europe.
I am pleased to confirm that HRMS has made a payment of £4.0m to the Group
reflecting a partial receipt of the dividend payment for the current year,
albeit this was after the 30 November 2025, it represents continued cash value
from the investment.
Capital returns
The Board has previously announced its intention, once assets have been
realised, to return capital to shareholders. The sale of the first tranche of
the renewable energy land assets in October 2025 represents the first such
realisation made by the Group. As a result of this, I am pleased to confirm
the intention of the Board to return proceeds of up to £15.0m to
shareholders, by means of a tender offer in April 2026. The Board intends to
undertake this tender offer at a premium of between 12% and 15% to the
prevailing mid-market share price at the time of launch. Based in the current
share price of £6.60, this would indicate a tender price of approximately
£7.50 per share. Based on a maximum return of £15m, the tender offer would
equate to a buy-back of approximately 6% of the issued share capital, assuming
the tender offer is taken up in full. The Board is looking forward to updating
shareholders in due course.
Results overview
Revenue for the Group increased by 46.1% to £183.1m (2024: £125.3m) as
result of our increased Service activity across a number of infrastructure
projects. Consequently, the Group's PBT also increased from £5.3m to £14.3m,
aided by the sale of the first tranche of the renewable energy land assets.
Cash and debt
As at 30 November 2025 the Group held cash of £37.3m compared with £23.3m on
31 May 2025 (Nov 2024: £15.7m). The increase in cash compared to the year end
is reflective of the sale of the first tranche of the renewable energy land
assets and the completion of a material sale within the Blindwells
development.
The only debt held by the Group is leasing debt for specific plant items which
was £43.2m at 30 November 2025 (Nov 2024: £34.2m). The increase reflects
investment in plant and equipment to support the growth in activities which
has in turn driven the revenue and profit improvements within Services.
Board Changes
After more than 20 years as Chief Executive of the Group, Gordon Banham, has
informed the Board that he intends to stand down from the PLC Board on 31 July
this year. Having stepped down as CEO, Gordon will continue to hold executive
responsibility for our HRMS joint venture and will continue to lead on the
zinc recycling plant investment.
Gordon has been integral to the journey of the Group, and I am delighted that
he will continue to play a pivotal role in the development of the zinc
recycling project.
It is hard to overstate Gordon's contribution to the success of Hargreaves,
and whilst his entrepreneurial flair, vision, commitment and leadership at the
Board level will be sorely missed, we are delighted to retain his involvement
in HRMS for the foreseeable future.
Gordon will be succeeded as Chief Executive on 1 August 2026 by Simon Hicks,
the current Chief Operating Officer. Simon joined the Group in May 2025 and
has had an excellent impact since his appointment. Simon and Gordon have
worked closely together, and will continue to do so, to ensure a smooth
transition. The Board has full confidence in Simon's ability to deliver on our
strategic goals to continue delivering shareholder value.
Dividend
Further to the impending tender offer highlighted above, the Board remain
committed to delivering a progressive dividend policy. The Board is
sufficiently confident in the outlook for the business to increase the interim
dividend to 19.5p per share (Nov 24: 18.5p) representing a 5.4% increase. The
interim dividend represents 50% of the Board's expected increased full year
dividend of 39.0p (May 25: 37.0p).
The interim dividend will be paid on 7 April 2026 to shareholders on the
register on 20 March 2026.
Outlook
In many respects it has been an important period for Hargreaves, with news of
Gordon's planned transition, the sale of the first tranche of the renewable
energy land assets, the announcement of the tender offer and the initiation of
the Zinc project, giving us good reason to believe that we have excellent
further potential.
The Services business is focused on a growing market of infrastructure, which
is going to receive significant investment and requires services that fall
squarely within our core competencies. We have built up a great team,
delivering excellent service to our clients and I believe we have the
potential to be successful in our aims. This is further evidenced by the news
that we anticipate outperforming market expectations this year and next.
Hargreaves Land has made good progress in asset realisations in the period as
we start to see the cash invested in that area of the business come down in
the second half. Finally, the proposed investment in the zinc recycling plant
has the potential to be transformative in the industry it will serve.
The Group remains in a strong position, with substantial cash and excellent
visibility, which is testament to the hard work and dedication of my
colleagues. I would like to extend my thanks to all those at Hargreaves as we
look forward with renewed excitement of what we can achieve together.
Roger McDowell
Chair
28 January 2026
CHIEF EXECUTIVE'S REVIEW
£'m Services Land HRMS Central Costs Total
Revenue (Nov 2025) 171.4 11.7 - - 183.1
Revenue (Nov 2024) 121.2 4.1 - - 125.3
Profit/(loss) before tax (Nov 2025) 11.7 4.0 1.0 (2.4) 14.3
Profit/(loss) before tax (Nov 2024) 8.8 (1.4) 0.1 (2.2) 5.3
Services
Services delivered first half revenues of £171.4m (2024: £121.2m) and a PBT
of £11.7m (2024: £8.8m), representing growth of 41.4% on revenue and 33.0%
on PBT. Whilst we have seen good growth across our portfolio, most of the
improvement is attributable to major infrastructure projects as we continue to
see momentum in the Clean Energy space gather pace.
The net margin within Services of 6.8% (2024: 7.3%) represents upper quartile
returns for the sectors we operate in. The variation from the comparative
period is due to a change in the mix of services provided, with some of the
growth in revenue driven by aggregate services. These margins reflect the high
quality of work undertaken and robust contract positions held by the Group.
The full year result is likely to be weighted towards the first half of the
financial year due to the earthmoving season being predominantly during the
first six months.
Capturing opportunities
The Services business has seen success in the period in its core target
markets of Connectivity, Clean Energy and Environmental Services. Focus
remains on growing the order book with high quality, robust contracts.
The UK's 10-year infrastructure plan highlights major upcoming projects, many
already involving Hargreaves. This increases the Group's confidence in project
delivery. With £725bn forecasted investment over a decade, the market is
expanding and Hargreaves is well positioned for growth.
During the year, the Group has added several new positions to the portfolio,
including:
· Expanded position with Enfinium providing handling services into
waste-to-energy plants
· New three-year contract providing waste management solutions to
Beauparc.
Perhaps most notably, the Group is in the final stages of agreeing its first
appointment for construction works, following its appointment for advisory
services in 2024, on Lower Thames Crossing ("LTC"), to provide £10m of
enabling works. Whilst this is not the appointment for the main earthmoving
activities, it does demonstrate the closeness with which we are working with
LTC and keeps the business in a good position to pick up the main earthworks
on this critical UK Connectivity project which could be worth in the region of
£100m to the Group.
Work has continued at Sizewell C with activity undertaken on the main access
road and temporary construction area along with a number of ancillary services
as the Group continues to support this critical infrastructure asset. The
Group remains well placed to continue to support the development in a variety
of ways. Additionally, the Group has noted recent announcements made by
Tungsten West plc regarding the progress in fund raising for the tungsten mine
in Devon and await the outcome.
Visibility
The Group has a strong book of contracts and excellent long-term relationships
with our clients. This gives the business great visibility and predictability
around revenue and profit margins. The average contract duration is 3.9 years
and revenue for next financial year is already 55% secured.
Furthermore, whilst the Group is focused on the opportunities to grow the
pipeline, it is equally important to ensure we continue to deliver excellence
to our existing clients. Relationships with our current client base are very
strong, with 66% of Services revenue coming from clients for whom we have
worked for three years or more.
The Services business continues to deliver high-quality, growing and resilient
profits within our areas of core competence.
Hargreaves Land
Hargreaves Land recorded revenue of £11.7m (2024: £4.1m) and a profit before
tax of £4.0m (2024: loss before tax £1.4m). The revenue improvement is
caused by the timing of sales within the Group's flagship development at
Blindwells. The profitability is also improved by the completion of the first
tranche of the renewable energy land assets.
The business completed the sale of a 16-acre residential plot at Blindwells to
Bellway PLC for total consideration of £11.5m in the first half of the year.
The Blindwells development continues to be a highly sought after location,
with over 450 families now resident on site. The sale also demonstrates the
commitment from the Board to continue to realise value out of the site as we
start to see the capital employed in this asset unwind. There remains
approximately 70 acres left to sell out on Phase 1. Following the completion
of Phase 1, there will remain a further 135 acres of developable land for
which a planning application for approximately 1,500 homes is currently being
progressed.
Pipeline
The pipeline of schemes within Hargreaves Land represents a key indicator of
value for the Group to deliver long-term, reliable returns. The first half of
the year has seen further progress in this regard with the pipeline growing to
31 schemes (Nov 24: 23 schemes) delivering a total of 12,119 housing plots
(Nov 24: 8,635 plots).
As the market for land and the potential uses for the land continues to
evolve, so too does the approach of the business. The Board has taken a
strategic decision to delay a land sale in Scotland which would have completed
in FY28 for consideration of approximately £3.0m. This decision has been
taken due to the increasing demand for land to support connectivity,
particularly in the digital space, and the potential this has to deliver a
significantly higher value for our shareholders.
Renewables
During the period, Hargreaves Land completed the sale of the first tranche of
the renewable energy land assets, representing the first such sale of this
portfolio and demonstrating the first step in realising these assets for
shareholders. The first tranche consisted of five assets, including two wind
farms and three access agreements with a book value of £4.0m supporting 346
MW of clean energy. Upon completion the Group received £8.8m in initial cash
consideration, with a further variable payment due by the end of September
2029. This top up payment is dependent upon future wind yields and may be up
to £5.0m if yields are strong.
The remaining renewable energy asset portfolio represents six near term assets
supporting 800 MW of clean energy generation. The book value for these assets
is £3.4m and the associated independent valuation attached to these assets in
July 2025 was £15.3m. It is the Board's intention, as demonstrated by tranche
1, to realise the remaining assets in an optimal fashion.
In addition to the near-term schemes, the pipeline for renewable energy land
assets includes a further seven schemes supporting 876 MW of clean energy.
These opportunities are either in the pre-planning phase or not yet under
contract and accordingly have not been ascribed an independent valuation but
nevertheless could result in meaningful value once as they mature.
HRMS
HRMS recorded a post-tax profit of £1.0m (2024: £0.1m) for the six months
ended 30 November 2025 representing a continued improvement in the joint
venture.
The trading side of HRMS has performed resolutely against the German economic
recession and maintained good margin despite a reduction in revenue. Whilst
overall tonnage has decreased year on year the price per tonne has increased
leading to improved margins overall.
The main improvement in the contribution from the joint venture is the
performance of DK, which has seen an increase in sales volumes for both pig
iron and zinc, despite continued pricing pressure on pig iron which is
partially impacted by tariff changes enacted by the USA. Input costs per tonne
have reduced in line with the pressure observed on pig iron pricing as we
normally see. Main input costs have been secured for the remainder of the
financial year, giving confidence that the joint venture will deliver in line
with expectations.
The Group received a further cash return of £4.0m from HRMS in January 2026,
reflecting the latest annual instalment from the joint venture, which helps to
support the Group's dividend.
The Group's overall exposure to the HRMS joint venture stood at £71.8m at 30
November 2025 (31 May 25 £68.3m, 30 Nov 24: £62.7m), whilst this is an
increase it is reflective of the timing of the dividend which was received in
January 2026. This further reduces the exposure.
Zinc Recycling
This planned investment into a new technology to extract zinc oxide from steel
waste dusts which could not otherwise be used in the existing DK recycling
facility has been developed in house. Construction will commence this year,
with the plant expected to be operational during the financial year ending 31
May 2028. The total investment in the project will be in the region of
€18.0mm, before any state support we are able to raise. I am particularly
excited by this project, which has the potential to be disruptive in the
market and once operational should deliver significant shareholder value.
The Group has been successful in securing a German Government Grant of €2m
to aid in funding the project and is continuing working towards obtaining a
State Guaranteed loan for at least €4m to support the innovative zinc
recycling project.
Summary and outlook
The Services business continues to grow sustainably into our target markets of
Connectivity, Clean Energy and Environmental Services. The market opportunity
is significant and our model of delivering excellent service from our highly
experienced and skilled workforce to high-quality clients through risk managed
contracts gives the Board confidence in the future direction of the business
without bringing undue risk into the operation.
With the completion of the first tranche of the renewable energy land assets
and the return of capital that will occur before the end of the financial year
we are delivering on our commitments to shareholders. Whilst this is the first
such sale, there is a substantial pipeline of renewable projects which have
the ability to deliver further value to shareholders.
HRMS has traded profitably against a difficult economic backdrop and has
continued to return cash to the Group supporting the dividend. The recent news
regarding the investment into a zinc recycling facility represents an exciting
opportunity for value creation using our expertise and I look forward to
providing updates as the project progresses.
After more than 20 years as Chief Executive of the Group, I will be retiring
from the Board on 31 July. I will retain executive responsibility for the
exciting zinc recycling project and remain a significant shareholder. I am
incredibly proud of the transition the Company has made during my tenure, and
I have every confidence in the success of the Group under Simon's leadership.
I would personally like to thank all of the Group's employees, both past and
present, as well as the Board for their partnership and support over the
years.
I continue to be confident and optimistic about the value creation potential
within the Group and I firmly believe there are substantial opportunities to
optimise and realise further value for shareholders in the coming years.
Gordon Banham
Group Chief Executive
28 January 2026
Condensed Consolidated Statement of Profit and Loss and Other Comprehensive
Income
for the six months ended 30 November 2025
Unaudited Unaudited Audited
six months six months year
ended ended ended
30 November 30 November 31 May
2025 2024 2025
Note £000 £000 £000
Revenue 183,061 125,343 264,436
Cost of sales (153,037) (100,868) (209,582)
Gross profit 30,024 24,475 54,854
Other operating income 5,604 311 829
Administrative expenses (22,303) (18,714) (40,297)
Operating profit 13,325 6,072 15,386
Finance income 1,356 775 2,013
Finance expense (1,449) (1,519) (3,956)
Share of profit/(loss) in joint ventures (net of tax) 1,037 (31) 4,013
Profit before tax 14,269 5,297 17,456
Taxation 5 (3,242) (1,316) (2,716)
Profit for the period 11,027 3,981 14,740
Other comprehensive income/(expense)
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension plans - - (45)
Tax recognised on items that will not be reclassified to profit or loss - - 11
Items that are or may be reclassified subsequently to profit or loss
Foreign exchange translation differences 2,212 (1,285) (1,733)
Share of other comprehensive income of joint ventures (net of tax) - - 840
Other comprehensive income/(expense) for the period, net of tax 2,212 (1,285) (927)
Total comprehensive income for the period 13,239 2,696 13,813
Profit/(loss) attributable to:
Equity holders of the company 11,031 3,985 14,754
Non-controlling interest (4) (4) (14)
Profit for the period 11,027 3,981 14,740
Total comprehensive income/(expense) for the period attributable to:
Equity holders of the company 13,243 2,700 13,827
Non-controlling interest (4) (4) (14)
Total comprehensive income for the period 13,239 2,696 13,813
GAAP measures
Basic earnings per share (pence) 7 33.38 12.23 44.81
Diluted earnings per share (pence) 7 32.98 12.04 44.07
Condensed Consolidated Balance Sheet
as at 30 November 2025
Unaudited Unaudited Audited
30 November 30 November 31 May
2025 2024 2025
Note £000 £000 £000
Non-current assets
Property, plant and equipment 9,526 9,566 10,209
Investment property 11,238 15,145 15,218
Right of use assets 55,230 42,392 43,971
Intangible assets including goodwill 5,761 5,952 5,857
Investments in joint ventures 9 62,947 54,283 59,848
Deferred tax assets 11,680 9,806 12,124
Retirement benefit surplus 641 1,259 641
157,023 138,403 147,868
Current assets
Inventories 50,975 54,051 47,519
Trade and other receivables 84,049 91,882 84,870
Contract assets 9,273 8,603 10,041
Income Tax Asset - - 2,499
Cash and cash equivalents 37,278 15,744 23,304
181,575 170,280 168,233
Total assets 338,598 308,683 316,101
Non-current liabilities
Other Interest-bearing loans and borrowings (25,324) (11,585) (17,579)
Retirement benefit obligations (2,818) (2,921) (2,889)
Provisions (23,446) (16,796) (22,026)
Deferred tax liabilities (4,690) - (4,353)
(56,278) (31,302) (46,847)
Current liabilities
Other Interest-bearing loans and borrowings (17,878) (22,624) (15,204)
Trade and other payables (58,496) (60,860) (45,811)
Provisions (3,839) (4,788) (14,040)
Income tax liability (708) (170) -
(80,921) (88,442) (75,055)
Total liabilities (137,199) (119,744) (121,902)
Net assets 201,399 188,939 194,199
Unaudited Unaudited Audited
30 November 30 November 31 May
2025 2024 2025
£000 £000 £000
Equity attributable to equity holders of the parent
Share capital 3,314 3,314 3,314
Share premium 74,011 74,004 74,005
Other reserves 211 211 211
Translation reserve (779) (2,543) (2,991)
Merger reserve 1,022 1,022 1,022
Hedging reserve 318 318 318
Capital redemption reserve 1,530 1,530 1,530
Share-based payment reserve 3,200 2,789 3,029
Retained earnings 118,961 108,569 114,046
201,788 189,214 194,484
Non-controlling interest (389) (275) (285)
Total equity 201,399 188,939 194,199
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 November 2024
Share capital Share premium Translation reserve Hedging reserve Other reserves Capital redemption reserve Merger reserve Share-based payment reserve Retained earnings Total parent equity Non-controlling interest Total Equity
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Balance at 1 June 2024 3,314 73,990 (1,258) 318 211 1,530 1,022 2,730 110,510 192,367 (271) 192,096
Total comprehensive income for the period
Profit for the period - - - - - - - - 3,985 3,985 (4) 3,981
Other comprehensive expense
Foreign exchange translation differences - - (1,285) - - - - - - (1,285) - (1,285)
Total other comprehensive expense - - (1,285) - - - - - - (1,285) - (1,285)
Total comprehensive (expense)/income for the period - - (1,285) - - - - - 3,985 2,700 (4) 2,696
Transactions with owners recorded directly in equity
Issue of shares - 14 14 - 14
Equity settled share-based payment transactions - - - - - - - 59 - 59 - 59
Dividends paid - - - - - - - - (5,926) (5,926) - (5,926)
Total contributions by and distributions to owners - 14 - - - - - 59 (5,926) (5,853) - (5,853)
Balance at 30 November 2024 3,314 74,004 (2,543) 318 211 1,530 1,022 2,789 108,569 189,214 (275) 188,939
Condensed Consolidated Statement of Changes in Equity
for the six months ended 30 November 2025
Share capital Share premium Translation reserve Hedging reserve Other reserves Capital redemption reserve Merger reserve Share-based payment reserve Retained earnings Total parent equity Non-controlling interest Total Equity
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Balance at 1 June 2025 3,314 74,005 (2,991) 318 211 1,530 1,022 3,029 114,046 194,484 (285) 194,199
Total comprehensive income for the period
Profit for the period - - - - - - - - 11,031 11,031 (4) 11,027
Other comprehensive income
Foreign exchange translation differences - - 2,212 - - - - - - 2,212 - 2,212
Total other comprehensive income - - 2,212 - - - - - - 2,212 - 2,212
Total comprehensive income for the period - - 2,212 - - - - - 11,031 13,243 (4) 13,239
Transactions with owners recorded directly in equity
Issue of shares - 6 6 - 6
Equity settled share-based payment transactions - - - - - - - 171 - 171 - 171
Dividends paid - - - - - - - - (6,116) (6,116) (100) (6,216)
Total contributions by and distributions to owners - 6 - - - - - 171 (6,116) (5,939) (100) (6,039)
Balance at 30 November 2025 3,314 74,011 (779) 318 211 1,530 1,022 3,200 118,961 201,788 (389) 201,399
Condensed Consolidated Cash Flow Statement
for the six months ended 30 November 2025
Unaudited Unaudited
six months six months Audited
ended ended year ended
30 November 30 November 31 May
2025 2024 2025
£000 £000 £000
Cash flows from operating activities
Profit for the period 11,027 3,981 14,740
Adjustments for:
Depreciation and impairment of property, plant and equipment and right-of-use 10,494 9,051 18,775
assets
Net finance expense 93 744 1,943
Amortisation of goodwill 96 96 191
Share of (profit)/loss in joint ventures (net of tax) (1,037) 31 (4,013)
Profit on sale of property, plant and equipment, investment property and (161) (311) (629)
right-of-use assets
Profit on sale of investment property (5,343) - -
Equity settled share-based payment expense 171 59 299
Income tax expense 3,242 1,316 2,716
Contributions to defined benefit pension schemes (71) (31) (276)
Retranslation of foreign denominated assets and liabilities (244) (89) (361)
18,267 14,847 33,385
Change in inventories (3,456) (4,726) 2,467
Change in trade and other receivables 1,965 (19,001) (16,975)
Change in trade and other payables 12,465 13,157 (1,683)
Change in provisions and employee benefits (8,782) 1,770 16,253
20,459 6,047 33,447
Interest received 1,356 775 1,891
Interest paid (1,449) (1,546) (3,075)
Income tax received/(paid) 772 (1,876) (2,960)
Net cash inflow from operating activities 21,138 3,400 29,303
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 443 451 775
Proceeds from sale of investment property 9,325 - -
Proceeds from sale of ROU assets 53 17 257
Acquisition of property, plant and equipment (533) (1,087) (3,406)
Acquisition of investment property - (317) (389)
Acquisition of right of use assets - (17) (83)
Acquisition of subsidiaries - - (661)
Dividends received from joint ventures - 6,267 6,267
Drawdown of loans due from joint ventures - - (1,573)
Loan to pension scheme in relation to buy in - - 4,000
Net cash inflow from investing activities 9,288 5,314 5,187
Cash flows from financing activities
Principal elements of lease payments (10,412) (9,841) (21,648)
Dividends paid (6,216) (5,926) (12,024)
Net cash outflow from financing activities (16,628) (15,767) (33,672)
Net increase/(decrease) in cash and cash equivalents 13,798 (7,053) 818
Cash and cash equivalents at the start of the period 23,304 22,700 22,700
Effect of exchange rate fluctuations on cash held 176 97 (214)
Cash and cash equivalents at the end of the period 37,278 15,744 23,304
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION
1. Basis of preparation
The condensed consolidated interim financial information set out in this
statement for the six months ended 30 November 2025 and the comparative
figures for the six months ended 30 November 2024 is unaudited. This financial
information does not constitute statutory accounts as defined in Section 435
of the Companies Act 2006. It does not comply with IAS 34 'Interim Financial
Reporting', as is permissible under the rules of the AIM Market of the London
Stock Exchange.
The condensed consolidated interim financial information, which is neither
audited nor reviewed, has been prepared in accordance with the measurement and
recognition criteria of UK-adopted international accounting standards. This
statement does not include all the information required for the annual
financial statements and should be read in conjunction with the financial
statements of the Group as at and for the year ended 31 May 2025.
There are no new IFRS which apply to the condensed consolidated interim
financial information.
2. Accounting
policies
The accounting policies applied in preparing the condensed consolidated
interim financial information are the same as those applied in the preparation
of the annual financial statements for the year ended 31 May 2025, as
described in those financial statements.
3. Status of financial information
The comparative figures for the financial year ended 31 May 2025 are not the
Group's statutory consolidated financial statements for that financial year.
The statutory financial accounts for the financial year ended 31 May 2025 have
been reported on by the company's auditor and delivered to the Registrar of
Companies. The report of the auditor was (i) unqualified, (ii) did not include
a reference to any matters to which the auditor drew attention by way of
emphasis without qualifying their report, and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
4. Principal risks and uncertainties
The principal risks and uncertainties affecting the Group are unchanged from
those set out in the Group's accounts for the year ended 31 May 2025. The
Directors have reviewed financial forecasts and are satisfied that the Group
has adequate resources to continue in operational existence for the
foreseeable future. Accordingly, the Group continues to adopt the going
concern basis in preparing the condensed consolidated interim financial
information.
5.
Taxation
UK income tax for the period is charged at 25% (2024: 25%). The effective tax
rate, after removing the impact of joint ventures is 24.5% (2024: 24.7%),
representing an estimate of the annual effective rate for the full year to 31
May 2026. This rate is lower than the standard rate of UK income tax due to
the impact of overseas tax which applies a lower tax rate.
6.
Dividends
The final dividend of 18.5p per ordinary share, proposed in the 2025 Annual
Report and Accounts and approved by the shareholders at the Annual General
Meeting on 29 October 2025, was paid on 3 November 2025.
The directors have proposed an interim dividend of 19.5p per share (Nov 2024:
18.5p) which will be paid on 7 April 2026 to shareholders on the register at
the close of business on 20 March 2026. This will be paid out of the Company's
available distributable reserves. In accordance with IAS 1, dividends are
recorded only when paid and are shown as a movement in equity rather than as a
charge in the income statement.
7. Earnings per share
Six months ended 30 November 2025 Six months ended 30 November 2024 Year ended 31 May 2025
Unaudited Unaudited Audited
Earnings EPS DEPS Earnings EPS DEPS Earnings EPS DEPS
£000 Pence Pence £000 Pence Pence £000 Pence Pence
Basic earnings per share 11,027 33.38 32.98 3,981 12.23 12.04 14,740 44.81 44.07
Weighted average number of shares (000's) 33,033 33,441 32,554 33,069 32,898 33,444
The calculation of diluted earnings per share is based on the profit for the
period attributable to equity holders of the Company and on the weighted
average number of ordinary shares in issue in the period adjusted for the
dilutive effect of the share options outstanding. The effect on the weighted
average number of shares is 408,000 (2024: 515,000), the effect on basic
earnings per ordinary share is 0.40p (2024: 0.19p).
8. Segmental information
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker has been identified as the Board of Directors since they are
responsible for strategic decisions. HRMS represents the Groups share of its
German joint venture, which includes Hargreaves Services Europe Limited which
is the parent company of HRMS and DK.
Services Hargreaves Land Unallocated HRMS Total
Unaudited Unaudited Unaudited Unaudited Unaudited
30 November 30 November 30 November 30 November 30 November
2025 2025 2025 2025 2025
£000 £000 £000 £000 £000
Revenue
Total revenue 173,693 11,742 - - 185,435
Intra-segment revenue (2,374) - - - (2,374)
Revenue from external customers 171,319 11,742 - - 183,061
Operating profit/(loss) 12,759 3,945 (3,379) - 13,325
Share of (loss)/profit in joint ventures (net of tax) - (14) - 1,051 1,037
Net finance (expense)/income (1,192) 81 1,018 - (93)
Profit/(loss) before tax 11,567 4,012 (2,361) 1,051 14,269
Services Hargreaves Land Unallocated HRMS Total
Unaudited Unaudited Unaudited Unaudited Unaudited
30 November 30 November 30 November 30 November 30 November
2024 2024 2024 2024 2024
£000 £000 £000 £000 £000
Revenue
Total revenue 122,578 4,179 - - 126,757
Intra-segment revenue (1,414) - - - (1,414)
Revenue from external customers 121,164 4,179 - - 125,343
Operating profit/(loss) 10,104 (1,320) (2,712) - 6,072
Share of (loss)/profit in joint ventures (net of tax) - (145) - 114 (31)
Net finance (expense)/income (1,315) 77 494 - (744)
Profit/(loss) before tax 8,789 (1,388) (2,218) 114 5,297
9. Investments in joint ventures
Hargreaves Services Europe Limited Waystone Hargreaves LLP Interests in immaterial joint ventures Total
£000 £000 £000 £000
At 1 June 2025 54,084 5,858 (94) 59,848
Group's share of profit/(loss) in joint ventures (net of tax) 1,051 (14) - 1,037
Exchange differences 2,060 - 2 2,062
At 30 November 2025 57,195 5,844 (92) 62,947
10. Condensed consolidated interim financial
information
The condensed consolidated interim financial information was approved by the
Board of Directors on 28 January 2026. Copies of this interim statement will
be sent to all shareholders and will be available to the public from the
Group's registered office.
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. END IR BCGDBUUDDGLR
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