Trading Update and Notice of Interim Results

RNS Number : 6402I

Hargreaves Services PLC

06 December 2022

 

Hargreaves Services plc

("Hargreaves" or the "Group")

Trading Update and Notice of Interim Results

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the industrial and property sectors, provides the following update on trading ahead of reporting its interim results for the six months ended 30 November 2022.

The Board anticipates reporting a strong set of results for the period, with both revenue and profit before tax expected to be higher than in the comparative period. Improvement has occurred in each of the three business segments, Services, Hargreaves Land and HRMS (German Joint Venture).

The Services business has experienced a growth in revenue and profit primarily due to an increase in activity on the HS2 contract, which has benefited the current period, whilst underlying contracts have also performed well. The Services business remains resilient to the current economic uncertainty, with over 50 term and framework contracts, most of which contain cost escalator clauses or are "cost plus" in nature, continuing to provide a reliable profit stream.

Hargreaves Land completed another sale at Blindwells in the first half, disposing of 4.5 acres to Ogilvie Homes in a deal worth £3.4m, which continues to demonstrate the long term, recurring revenue generated from the site.

Whilst trading conditions within Germany have softened since the second half of the previous financial year, they have remained strong and the joint venture is expected to deliver results ahead of those reported in the comparative period. As noted previously, the limited visibility within this business and the current uncertainty within German industrial markets means that the likely outcome for the second half of the year remains less clear.

On 30 November 2022, the Group had cash and cash equivalents of £18.1m compared to £13.8m at 31 May 2022. The Group also had leasing debt totaling £30.6m (£18.4m on 31 May 2022) reflecting the additional plant acquired in the period to service the HS2 contract.

The Board remains confident of delivering full year results in line with market expectations.

Notice of Interim Results

The Board expects to report its interim results for the six months ended 30 November 2022 on Wednesday 25 January 2023. Details of the analyst and investor meetings which will accompany the results will be provided in due course.

For further details:  

Hargreaves Services Gordon Banham, Chief Executive Officer John Samuel, Group Finance Director		www.hsgplc.co.uk Tel: [phone]
Walbrook PR (Financial PR & IR) Paul McManus / Lianne Applegarth / Louis Ashe-Jepson	Tel: [phone] or [e-mail] Mob: [phone] / 07747 515 393
Singer Capital Markets (Nomad and Corporate Broker) Sandy Fraser / Justin McKeegan		Tel: [phone]

About Hargreaves Services plc ( 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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