REG - Hargreaves Servs PLC - Positive impact of Tungsten West fundraising

Hargreaves ServicesAnnouncement

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RNS Number : 5347Z  Hargreaves Services PLC  08 April 2026

HARGREAVES SERVICES PLC

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

 

Positive impact of Tungsten West fundraising

 

Successful fundraise by Tungsten West to result in £10m cash inflows for the
Group

 

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to
the environmental, infrastructure and property sectors, announces the positive
impact to the Group of the recently announced successful fundraise by Tungsten
West plc ("Tungsten West") (AIM: TUN).

 

The Group holds the Mining Services Contract ("MSC") with Tungsten West for
mining operations at the Hemerdon tungsten and tin mine in Devon. When the
Group sold the mine to Tungsten West in 2019, there was a requirement for £8
million to be paid in annual £1 million instalments secured by the minerals
lease. The Group has received £5 million in total, with three instalments
still due.

 

Following Tungsten West's successful fundraising announcement, the Group has
now received the outstanding £3 million and confirms that this has led to the
immediate release of the security held over the mineral lease. This payment
settles the remaining balance, thereby removing the previously scheduled £1
million annual revenue for FY27 and FY28.

 

Furthermore, Tungsten West has notified the Group of its intention to
terminate the MSC and assume the mining activities directly. Accordingly, an
agreed £7 million compensation fee will be paid to Hargreaves no later than
15 May 2027, which will be recognised as a non-recurring gain in the current
financial year.

 

The Group remains in discussion with Tungsten West regarding future
opportunities to support this strategic asset in the UK.

 

Other than the impact of the transaction with Tungsten West the Group
continues to trade in line with expectations and is unaffected by the conflict
in the Middle East.

Commenting on the Tungsten West fund-raise, Simon Hicks, Chief Operating
Officer of Hargreaves Services plc, said: "We are pleased to see the
successful completion of the latest Tungsten West fund-raise which accelerates
the return of the three remaining £1 million annual instalments. The decision
to terminate the Mining Services Contract is positive for both parties and
results in a material cash inflow to the Group effectively representing the
acceleration and de-risking of several years of trading activity."

 

*The Company considers consensus market expectations prior to the release of
this announcement for the year ending 31 May 2026 to be revenue of £286.7m,
underlying PBT of £30.4m, EPS of 64.1p and cash of £15.8m.

 

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
 Anna Dunphy

                                          07876 741 001

 Singer Capital Markets (Nomad and Joint Corporate Broker)

 Phil Davies, Sara Hale, Dan Ingram                                                             Tel: 020 7496 3000

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

 Adrian Hadden, Jasper Berry, Sunila de Silva

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

Hargreaves Services plc is a diversified group delivering services to the
environmental, infrastructure 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 Connectivity, Clean Energy and
Environmental infrastructure 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 und Roheisen GmbH ("DK"), 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, South Africa and a joint venture in Duisburg, Germany.

 

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