Hargreaves Services PLC
LSE:HSP
Hargreaves Services PLC
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 is headquartered in Durham, Durham and currently employs 1,267 full-time employees. The company went IPO on 2005-11-30. The principal activities of the Company are the provision of haulage services, waste transportation, mineral import, mining and processing of coal, mechanical and electrical engineering and materials handling, dealing in plant and machinery, the development and sale of land, civil engineering, and specialist earthworks. The firm operates through four segments: Services, Hargreaves Land, Unallocated and Hargreaves Services Europe (HSEL). Its Services segment provides materials handling, mechanical and electrical engineering logistics and bulk earthmoving into the energy, environmental, infrastructure and industrial sectors. Its Hargreaves Land segment is engaged in the development and realization of value from the land portfolio, including rental income from investment properties and the share of profit from the Unity joint venture.
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 is headquartered in Durham, Durham and currently employs 1,267 full-time employees. The company went IPO on 2005-11-30. The principal activities of the Company are the provision of haulage services, waste transportation, mineral import, mining and processing of coal, mechanical and electrical engineering and materials handling, dealing in plant and machinery, the development and sale of land, civil engineering, and specialist earthworks. The firm operates through four segments: Services, Hargreaves Land, Unallocated and Hargreaves Services Europe (HSEL). Its Services segment provides materials handling, mechanical and electrical engineering logistics and bulk earthmoving into the energy, environmental, infrastructure and industrial sectors. Its Hargreaves Land segment is engaged in the development and realization of value from the land portfolio, including rental income from investment properties and the share of profit from the Unity joint venture.
Strong Revenue Growth: Services revenue rose 41% to GBP 171 million in the first half, driven by major infrastructure projects and growth in water services.
Profitability & Cash: Profit before tax reached GBP 14 million and cash at period-end was GBP 37 million, boosted by a GBP 9 million renewable asset sale.
Shareholder Returns: Board announced a GBP 15 million tender offer and a 5.5% increase in the interim dividend to 19.5p, with a full-year intention of 39p.
CEO Succession: Simon Hicks will succeed Gordon Banham as CEO on August 1, 2024, with Banham staying to oversee German operations and the new zinc project.
Positive Outlook: Management expects up to GBP 150 million of cash returns to shareholders over five years from land and German business realizations.
Zinc Project Investment: New zinc recycling plant in Germany underway, with capped shareholder risk at EUR 12 million and potential for significant upside if successful.
