REG - Hargreaves Servs PLC - First Tranche of Renewable Energy Land Assets Sold

Hargreaves ServicesAnnouncement

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RNS Number : 9097D  Hargreaves Services PLC  20 October 2025

  Hargreaves Services plc

("Hargreaves", the "Company" or the "Group")

 

Sale of first tranche of Renewable Energy Land Assets completed

 

Hargreaves Services plc (AIM: HSP), a diversified group delivering services
to the environmental, infrastructure and property sectors, announces
completion of the sale of the first tranche of renewable energy land assets
(the "Sold Assets") to Meadow Partners, a real estate investment and asset
management firm, for an initial cash consideration of £8.8m. An additional
top up consideration, expected to be £3.8m, is due by September 2029
contingent on future wind yields (combined the "Disposal").

 

The Sold Assets consist of land generating rental income streams from two wind
farms and three access agreements in South Lanarkshire, Scotland, with a
current annual rental income of £0.7m per annum, inclusive of a variable top
up of £0.2m per annum reflecting wind yields experienced to date.

 

Subsequent to the initial receipt of £8.8m, further payments are expected to
be received based on the average additional variable rental income realised in
the second and third years of operation of the Sold Assets. It is expected
that this top up payment will be £3.8m, in aggregate, and could be as much as
£5.0m if wind yields are strong. Top up payments are expected to be received
no later than September 2029, three years post commission of the Sold Assets.

 

The Sold Assets formed part of the renewable energy asset land portfolio
independently valued by Jones Lang Lasalle at a minimum of, in aggregate,
£27.0m in July 2025, and have an aggregate book value of £7.4m. The Sold
Assets represented £12.6m of the Jones Lang Lasalle valuation and £4.0m of
the book value. The £8.8m initial cash consideration plus the anticipated
£3.8m top up consideration is in line with the independent valuation.

 

The Disposal is a significant step forward in the Group's stated strategy of
realising value from its renewable energy land asset portfolio.

 

The Board anticipates that the Disposal will result in a one-off net benefit
to PBT and cash in the financial year ending 31 May 2026 of £3.0m and £8.0m
respectively*.

 

Commenting on the Disposal, Roger McDowell, Chair of Hargreaves Services plc,
said: "We are delighted to announce this initial transaction in relation to
our portfolio of renewable energy land assets. This sale represents the first
phase in the Group's strategy to realise cash from these assets, and we are
currently evaluating different mechanisms to return this cash to shareholders.
This transaction marks the beginning of a number of material disposals from
our developing renewables portfolio, which we intend to deliver for
shareholders in the coming years."

 

*The Company considers consensus market expectations prior to the release of
this announcement for the year ending 31 May 2026 to be revenue of £270.9m,
underlying PBT of £21.4m, EPS of 53.6p and cash of £26.2m.

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 

 

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
 Joe Walker

                                    07407 020 470

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

 Sara Hale, Phil Davies, Sam Butcher

 Cavendish Capital Markets Ltd (Joint Corporate Broker)             Tel: 020 7220 0500

 Katy Birkin - Corporate Finance

 Jasper Berry / Tim Redfern - Sales / ECM

 

 

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

Hargreaves Services plc is a diversified group delivering services to the
environmental, 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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