AIM-listed Hargreaves Services (HSP) has sold a second plot of renewable energy land, generating a significant uplift to earnings. The group provides services to the environmental, infrastructure and property sectors in the UK.
Pure profit
The plot in South Lanarkshire, currently leased to a battery energy storage system, generates an annual rent of £0.5 million. The sale price of £6.8 million represents an uplift to the latest valuation of £6.4 million in July 2025.
The sale will result in one-off benefits of £5.3 million to FY26 pre-tax profit and £6 million to net cash. The current consensus has FY pre-tax profit at £25 million and net cash at £9.8 million.
The news comes a day after the announcement the groundwork division had won a £10 million contract from Balfour Beatty (BBY). The contract, for enabling earthworks for the Roads North section of the Lower Thames Crossing, is expected to boost FY27 earnings.
Hargreaves is also actively engaged in talks regarding the main earthworks for the Roads North section of the LTC. Additionally, the firm said this week it had secured a contract with Drax (DRX) to recycle ash into cementitious material.
Hargreaves Services is one of the ‘unsung heroes’ without which infrastructure works simply wouldn’t happen. Its earthworks business has literally got major projects like HS2, Sizewell and the water industry’s AMPs off the ground.
When Sharesify caught up with CEO Gordon Banham at the H1 results, he said Hargreaves was ‘well ahead of where we thought we’d be this year’. He also said the firm had ‘a solid view into FY27’, and analysts knew their financial targets were ‘deliverable’.
Banham, who steps down as CEO in July, has done a superb job in his 20 years at the helm. He leaves the firm in fine fettle for Simon Hicks, currently chief operating officer, who steps into the CEO role.
Read the press release here: https://www.hsgplc.co.uk/investors/
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