REG - Hargreaves Servs PLC - Trading Update and Notice of Interim Results

Hargreaves ServicesAnnouncement

06/12/2022 07:01

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RNS Number : 6402I  Hargreaves Services PLC  06 December 2022

Hargreaves Services plc

("Hargreaves" or the "Group")

 

Trading Update and Notice of Interim Results

 

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to
the industrial and property sectors, provides the following update on trading
ahead of reporting its interim results for the six months ended 30 November
2022.

 

The Board anticipates reporting a strong set of results for the period, with
both revenue and profit before tax expected to be higher than in the
comparative period. Improvement has occurred in each of the three business
segments, Services, Hargreaves Land and HRMS (German Joint Venture).

 

The Services business has experienced a growth in revenue and profit primarily
due to an increase in activity on the HS2 contract, which has benefited the
current period, whilst underlying contracts have also performed well. The
Services business remains resilient to the current economic uncertainty, with
over 50 term and framework contracts, most of which contain cost escalator
clauses or are "cost plus" in nature, continuing to provide a reliable profit
stream.

 

Hargreaves Land completed another sale at Blindwells in the first half,
disposing of 4.5 acres to Ogilvie Homes in a deal worth £3.4m, which
continues to demonstrate the long term, recurring revenue generated from the
site.

 

Whilst trading conditions within Germany have softened since the second half
of the previous financial year, they have remained strong and the joint
venture is expected to deliver results ahead of those reported in the
comparative period. As noted previously, the limited visibility within this
business and the current uncertainty within German industrial markets means
that the likely outcome for the second half of the year remains less clear.

 

On 30 November 2022, the Group had cash and cash equivalents of £18.1m
compared to £13.8m at 31 May 2022. The Group also had leasing debt totaling
£30.6m (£18.4m on 31 May 2022) reflecting the additional plant acquired in
the period to service the HS2 contract.

 

The Board remains confident of delivering full year results in line with
market expectations.

 

Notice of Interim Results

 

The Board expects to report its interim results for the six months ended 30
November 2022 on Wednesday 25 January 2023. Details of the analyst and
investor meetings which will accompany the results will be provided in due
course.

 

For further details:

 

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

 Gordon Banham, Chief Executive Officer                             Tel: 0191 373 4485

 John Samuel, Group Finance Director

 Walbrook PR (Financial PR & IR)      Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com

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

 Louis Ashe-Jepson                    07747 515 393

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

 Sandy Fraser / Justin McKeegan

 

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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