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 2023.
The Board expects to report results at least in line with market expectations. A strong performance from the Services business as a result of increased revenue including that at HS2, as well as a better than expected contribution from the German Joint Venture (“HRMS”), albeit a substantial year-on-year reduction in contribution as commodity prices have normalised, has offset the impact of some delayed transactions within Hargreaves Land.
At 31 May 2023, the Group held cash reserves of approximately £22m (2022: £14m). This increase in cash is primarily due to the repayment of a short term loan of £15m by HRMS. This receipt has been offset by investment into the Group’s land assets, with Hargreaves Land adversely impacted by the deferral of certain transactions into the year ending 31 May 2024. Other than in its Joint Ventures, the Group has no bank debt. The Group’s leasing debt which relates to specific operating plant amounts to approximately £37m (2022: £18m). The increase in leasing debt is due to investment in plant to support the HS2 earthmoving contract.
Notification of Preliminary Results
The Board expects to report its preliminary results for the year ended 31 May 2023 on Wednesday 26 July 2023. Details of the analyst meeting and investor meeting, via the Investor Meet Company platform, to accompany the results will be provided in due course.
For further details:
Gordon Banham, Chief Executive Officer
John Samuel, Group Finance Director
Tel: 0191 373 4485
Walbrook PR (Financial PR & IR)
Paul McManus / Lianne Applegarth / Louis Ashe-Jepson
Tel: 020 7933 8780 or email@example.com
Mob: 07980 541 893 / 07584 391 303 / 07747 515 393
Singer Capital Markets (Nomad and Joint Corporate Broker)
Sandy Fraser/ Justin McKeegan
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.