REG - Hargreaves Servs PLC - Pre-Close Trading Update & Notification of Results

Hargreaves ServicesAnnouncement

Wed 07:00

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RNS Number : 2249O  Hargreaves Services PLC  25 June 2025

 

Hargreaves Services plc

("Hargreaves" or the "Group")

 

Pre-Close Trading Update and Notification of Preliminary Results

 

Services & HRMS performance expected to push PBT ahead of market
expectations

 

 

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to
the environmental, infrastructure and property sectors, provides the following
update on trading ahead of reporting its preliminary results for the year
ended 31 May 2025, in which the Board expects to report Group revenue and
profit before tax ("PBT") ahead of market expectations*.

 

The Board expects to report another strong set of results for the year ended
31 May 2025, with growth in revenue and profit before tax. The growth in PBT
is anticipated to be delivered by both Services and the Group's German Joint
Venture, Hargreaves Raw Materials Services GmbH ("HRMS"), whilst Hargreaves
Land comes off the back of record profit in the year ended 31 May 2024.

 

Hargreaves Services

 

The Services business has built on a strong first half of the year, securing
additional contract wins across all areas of operation. Progress continues on
the HS2 project, which is now approximately 60% complete. The Group continues
to embed itself with the Sizewell C Nuclear Power Station project and remains
well placed for further activities. The underlying order book continued to
grow, supported by high quality contract wins across the materials handling
and logistics operations. The Board expects the Services business to report
revenue and PBT in excess of market expectations by approximately 6% and 7%
respectively due, in the most part, to increased earthmoving activities.
Furthermore, high levels of visibility within the pipeline lead the Board to
expect that future years will also be better than current expectations in
terms of both revenue and PBT.

 

Hargreaves Land

 

Hargreaves Land has had a stable year compared to the record results achieved
in the previous twelve months. Continual progress is being achieved on the
sale of the first tranche of renewable energy land assets. We are confident
that a transaction will be completed in 2025, and look forward to updating the
market in due course.

 

Hargreaves Raw Material Services

 

Following on from an improved performance in the first half of the financial
year, HRMS is expected to report a significant growth in profitability. Whilst
the trading business remains stable, the improvement has been seen within the
steel waste recycling operations which have seen increased gate fees and lower
input fuel costs.

 

Cash and Debt

 

On 31 May 2025 the Group held cash reserves of £23.3m (2024: £22.7m). The
only debt held by the Group, excluding debt within its Joint Ventures, relates
to leasing debt for a specific operating plant. The total value of this debt
at the year-end was approximately £32.8m (2024: £34.2m).

 

Notification of Preliminary Results

 

The Board expects to report its preliminary results for the year ended 31 May
2025 on Wednesday 30 July 2025. Details of the analyst meeting and investor
meeting to accompany the results, via the Investor Meet Company platform, will
be provided in due course.

 

Investors can sign up to Investor Meet Company for free, add to meet
Hargreaves and receive invitations as soon as they're issued here
(https://www.investormeetcompany.com/hargreaves-services-plc/register-investor)
.

 

* The Company considers consensus market expectations prior to the release of
this announcement for the year ending 31 May 2025 to be revenue of £247.6m,
underlying PBT of £16.5m, EPS of 42.4p and cash of £17.7m.

 

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

 Paul McManus / Lianne Applegarth     Mob: 07980 541 893 / 07584 391 303

 Joe Walker                           07407 020 470

 Singer Capital Markets (Nomad and Corporate Broker)                Tel: 020 7496 3000

 Phil Davies, Sam Butcher, Sara Hale

 Cavendish Capital Markets Ltd (Joint Corporate Broker)             Tel: 020 7220 0500
 Katy Birkin / Hamish Waller - Corporate Finance

Jasper Berry / Tim Redfern - Sales / ECM

 

About Hargreaves Services plc (www.hsgplc.co.uk (http://www.hsgplc.co.uk) )

Hargreaves Services plc is a diversified group delivering services to the
industrial 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 Energy, Environmental, UK Infrastructure and certain
manufacturing industries 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, 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 and a joint venture
in Duisburg, Germany.

 

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