Hargreaves Services (HSP) Trading update summary

Financial performance and trading update

• Revenue expected ahead of market expectations, with profit before tax in line and year-on-year profitability growth across all business units.

• Services segment delivered strong results, supported by high activity in Connectivity, Clean Energy, and Environment, and secured a major contract on the Lower Thames Crossing.

• Settlement of the Mining Services Contract with Tungsten West plc generated a one-off profit of £7m.

• Hargreaves Land saw a substantial profit increase, driven by renewable energy land disposals yielding £14m net cash and successful sales at Blindwells.

• HRMS joint venture maintained momentum, with higher profits aided by a stabilizing German economy and steady steel waste recycling operations.

Cash, debt, and capital allocation

• Cash reserves at year-end were £21.6m, exceeding market expectations due to working capital timing.

• £20m was returned to shareholders via a tender offer, funded by renewable energy land asset disposals.

• Group debt, excluding joint ventures, relates only to leases for operating plant, totaling £40.5m.

Strategic and operational developments

• Early-stage investment in the Zinc Recycling facility is on track, with construction set for summer and commissioning in early 2028.

• The Group now operates three major UK infrastructure projects, including HS2, Sizewell C, and Lower Thames Crossing.