REG - Hargreaves Servs PLC - Westfield site - major green energy investment

Hargreaves ServicesAnnouncement

17/12/2021 07:00

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RNS Number : 9585V  Hargreaves Services PLC  17 December 2021

 

Hargreaves Services plc

("Hargreaves" or the "Group")

 

 Westfield site set for major green energy investment

 

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to
the industrial and property sectors, notes the successful financial close of
the Westfield Energy from Waste ("EfW") plant to be constructed by Brockwell
Energy Limited ("Brockwell"). The Westfield site, which is in Fife, Scotland,
is owned by Hargreaves.

 

In October 2018, the Group sold its shares in Brockwell for initial gross
proceeds of £21m, resulting in a profit of £5.2m. As noted at the time, a
further £2m in cash becomes payable to Hargreaves following the successful
financial close of the EfW plant.

 

A key aspect of the sale in 2018 was the careful selection of a partner who
would be committed to the successful longer term development of the renewable
energy portfolio held by Brockwell. Many of these renewable projects are on
land which Hargreaves owns and therefore the successful development of these
projects will help to maximise the value of the underlying land retained by
the Group.

 

As well as the £2m additional receipt, which will be recorded as discontinued
in the Income Statement, the Group will now benefit from a lease to Brockwell
for a minimum term of 35 years.  The annual index linked rental starts at
£105k per annum and increases to £420k per annum following the construction
of the EfW plant but no later than 2025.

 

Hargreaves will invest £7m in the Westfield site over the next 12 months to
deliver services to the eight acre plot for Brockwell. In doing so, a further
40 acres of employment land will be serviced. This land can accommodate a
broad range of industrial users, who will be able to benefit from potentially
cheaper energy delivered by the EfW plant. The Westfield site also contains
approximately 50 further acres of developable land.

 

Roger McDowell, Non-Executive Chairman of Hargreaves, said: "The Board is
delighted to see the progress made by the Brockwell team with whom Hargreaves
continues to have a strong relationship. This is another positive step towards
maximising the inherent value of the Group's existing renewable land
portfolio."

 

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 / Louis Ashe-Jepson       Mob: 07980 541 893 / 07584 391 303 / 07747 515 393

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

 Sandy Fraser/ Justin McKeegan / Rachel Hayes

 Investec (Joint Corporate Broker)                          Tel: 020 7597 5970

 Sara Hale / David Anderson / Shalin Bhamra

 

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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