UK's Hargreaves Services revenue up 46% on infrastructure growth

Hargreaves Services

28/01/2026 07:11

Overview

UK diversified group's interim revenue rose 46%, driven by infrastructure projects

Profit before tax increased 169.8% yr/yr, supported by renewable energy asset sales

Company plans to return up to £15 mln to shareholders via tender offer

CEO, Gordon Banham has stated his intention to step down as CEO from 31 July 2026

Banham will be replaced by the current COO, Simon Hicks

Outlook

Services revenue 90% secured under contract for year ending May 2026

Company expects Services to outperform market expectations by 6%

Continued improvement in HRMS and Land expected to align with market expectations

Result Drivers

SERVICES GROWTH - Revenue increased by 46% due to growth in major infrastructure projects within the Services division

RENEWABLE ASSET SALES - Sale of renewable energy land assets contributed to cash position and profit growth

INFRASTRUCTURE PROJECTS - Services division saw growth from contracts in Connectivity, Clean Energy, and Environmental services

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 183.10 mln
H1 EPS
GBP 0.33
H1 EBITDA
GBP 18.30 mln
H1 Net Asset Value
GBP 201.40 mln
H1 Pretax Profit
GBP 14.30 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy."

Wall Street's median 12-month price target for Hargreaves Services PLC is GBp892.00, about 33.1% above its January 27 closing price of GBp670.00

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nRSb6271Qa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)