Hargreaves Services (HSP) H1 2025 earnings summary

Executive summary

• Revenue grew 13.7% year-over-year to £125.3m, driven by strong Services performance and earthmoving activities.

• EBITDA increased 21.1% to £14.9m, and profit before tax nearly doubled to £5.3m (+96.3%).

• HRMS joint venture returned to profitability after a prior-year loss, contributing a £6.3m dividend.

• Interim dividend increased by 2.8% to 18.5p, reflecting profit growth and strong forward visibility.

• DK operational turnaround delivered a 54% improvement in results.

Financial highlights

• Group revenue rose to £125.3m (up from £110.2m), EBITDA to £14.9m (up from £12.3m), and PBT to £5.3m (up from £2.7m).

• EPS increased 135% to 12.2p; interim dividend per share up 2.8% to 18.5p.

• Services revenue grew 11% with net margin maintained at 7%.

• HRMS returned to profitability with post-tax profit of £0.1m (vs. £1.9m loss prior year).

• Net asset value at £188.9m; net assets per share 580p.

Outlook and guidance

• 90% of FY25 Services revenue already secured; Services expected to exceed revenue expectations by 10%.

• Group performance expected in line with expectations; sustainable full-year dividend increased to 37p.

• Land segment expects further renewable asset sales, though some delays in technical planning may push completions to FY26.

• HRMS expected to remain steady despite German economic slowdown.

• First tranche of renewable energy assets marketed, with sale expected in 2025.