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

Hargreaves ServicesAnnouncement

05/12/2024 07:00

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RNS Number : 8490O  Hargreaves Services PLC  05 December 2024

 

Hargreaves Services plc

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

 

Trading Update and Notice of Interim Results

 

Hargreaves Services plc (AIM: HSP), a diversified group delivering services
to the environmental, infrastructure and property sectors, provides the
following trading update ahead of reporting its interim results for the six
months ended 30 November 2024.

 

The Board expects to report a strong set of results for the period with growth
in both revenue and profit before tax. Improvement over the comparative period
is anticipated to be reported within both Services and HRMS with Hargreaves
Land remaining stable. The Board remains confident of delivering full year
results in line with market expectations* supported by continued strong
performance from Services, improved performance at HRMS and a return to normal
profit levels in Land.

 

Services continues to see steady growth in revenue as the business unit
focuses on growing its underlying contract base. Work continued on HS2
throughout the first six months and the expectation is that the project will
continue for at least a further two years. The Group has also expanded its
preparatory earthworks activities at the Sizewell C Nuclear Power Station. The
Services business remains resilient, with good visibility supported by a solid
portfolio of term and framework contracts with blue-chip customers within the
UK infrastructure and energy sectors. The recent UK Government Budget, in
particular, the increase in Employers National Insurance Contributions, is not
expected to have any significant impact on the business due to the nature of
many of the service contracts, which often include escalation factors or "cost
plus" arrangements.

 

Hargreaves Land remains focused on realising value from the first tranche of
renewable energy land assets. The marketing of these assets is well underway
and interest received to date has been encouraging. A further update will be
provided in due course, as appropriate.

 

HRMS has delivered an improved performance in the first six months of the
financial year as commodity pricing has continued to normalise. As previously
reported, HRMS has already paid the planned dividend to the Group for the
current financial year.

 

On 30 November 2024 the Group held cash of £15.7m (Nov 2023: £18.7m),
reflecting further investment into certain land assets ahead of realisations
anticipated in the second half of the financial year. The Group also had
leasing debt of approximately £34.6m (Nov 2023: £28.8m) and is free from
bank debt.

 

CEO video

Please find a link to a video overview relating to the Company's Trading
Update from the Group's Chief Executive Officer, Gordon Banham here -

https://www.brrmedia.co.uk/broadcasts/674f1c8bb33db8b86d2910d1/hargreaves-services-trading-update/
(https://www.brrmedia.co.uk/broadcasts/674f1c8bb33db8b86d2910d1/hargreaves-services-trading-update/)

 

Notice of Interim Results

The Board expects to report its interim results for the six months ended 30
November 2024 on Wednesday 29 January 2025. Details of the analyst and
investor meetings which will accompany the results will be provided in due
course.

 

*The Company considers that market expectations prior to the release of this
announcement for the year ended 31 May 2025 to be revenue of £222.6m,
underlying PBT of £16.5m and underlying earnings per share of 42.5p.

 

 

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
 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
 Louis Ashe-Jepson

                                    07747 515 393

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

 Sandy Fraser, Phil Davies, Sam Butcher

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

 Katy Birkin / Hamish Waller - 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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