Hargreaves Services (HSP) CMD 2025 summary

Strategic focus and business structure

• Concentration on services and German HRMS business, with land business continuing positively but not a focus for new developments at this time.

• Services business aims to grow through robust contractual positions in target markets, benefiting from sector tailwinds.

• Land business strategy is to realize capital from the portfolio, including renewable energy land asset disposals.

• German joint venture (HRMS) is focused on maximizing returns and creating a unique asset, with new developments in zinc recycling.

• Recent achievements include the sale of renewable energy assets and ongoing cash receipts from HRMS supporting dividends.

Services business performance and growth opportunities

• Services business has achieved 30% annual profit growth over the last five years, with a 6% margin and strong free cash flow.

• Positioned to benefit from the UK government's ten-year, £725 billion infrastructure plan, a 20–25% increase over previous years.

• Active in major infrastructure projects such as HS2, East West Rail, Lower Thames Crossing, and Heathrow expansion.

• Well placed in clean energy (Sizewell, SMRs, nuclear fusion, energy from waste, renewables, and battery storage) and environmental sectors (reservoirs, water treatment, land remediation).

• Focus on sustainable resources, with case studies demonstrating use of low-carbon materials and circular economy practices.

Operating model and people strategy

• Operating model built on three pillars: inspire people, deliver excellence, and win more work.

• Blackwell Earthmoving has grown threefold in ten years, offering career-defining projects and progressive employment practices, including a target of 25% women by 2025.

• Early adopter of battery electric equipment and leader in carbon reduction initiatives in earthworks.

• Retention and repeat business driven by high operating standards, safety, and robust control procedures.

• Measurement of 'inspire' and 'excellence' through employee engagement and contract retention.