Pre-Close Trading Update and Notification of Preliminary 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 preliminary results for the year ended 31 May 2022.
The Board expects to report results ahead of market expectations, due to the continued strong performance of the Group’s Joint Venture in Germany (“HRMS”). As noted in the statement released on 3 May 2022, commodity prices, including zinc and pig iron, have maintained their high level, which has led to an expectation that HRMS’ contribution to the Hargreaves results for the year ended 31 May 2022 will now be £3.5m after tax greater than prior consensus estimates.
The Board anticipates reporting strong results in each of its business segments. Revenue will be lower than the prior year due to the cessation of its coal activities, Profit before Tax (“PBT”) is expected to be higher. This improvement on the prior year PBT is anticipated due to increased contributions from the Services and HRMS businesses.
At the end of the financial year, the Group had no bank debt and held cash of £14.0m (31 May 2021: £28.3m). The reduction in cash is due to the provision of an additional short term loan of £15m to HRMS to assist with their trading capacity. The Board has decided to continue to provide this additional funding to HRMS whilst current favourable market conditions prevail. The only non-bank debt held by the Group, excluding its joint ventures, relates to leasing debt related to specific fixed assets. The total leasing debt at the year-end was approximately £18.1m (31 May 2021: £11.8m). The increase is a result of the investment in the plant required for the HS2 contract within Services.
Notification of Preliminary Results
The Board expects to report its preliminary results for the Financial Year on Wednesday 27 July 2022. Details of the analyst meeting to 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: 0191 373 4485
Walbrook PR (Financial PR & IR)
Paul McManus / Lianne Applegarth / Louis Ashe-Jepson
Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com
Mob: 07980 541 893 / 07584 391 303 / 07747 515 393
Singer Capital Markets (Nomad and Joint Corporate Broker)
Sandy Fraser/ Justin McKeegan / Rachel Hayes
Tel: 020 7496 3000
Investec (Joint Corporate Broker)
Sara Hale / David Anderson / Shalin Bhamra
Tel: 020 7597 5970
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.