Hargreaves Services (HSP) H1 2026 earnings summary

Executive summary

• Revenue rose 46.1% year-over-year to £183.1m, driven by major infrastructure projects and strong Services growth.

• Profit before tax increased to £14.3m, with EPS up to 33.4p; interim dividend up 5.4% to 19.5p per share.

• First tranche of renewables sold for £8.8m upfront, with up to £5m deferred, supporting a £15m tender offer at a 12–15% premium.

• CEO succession announced: Simon Hicks to succeed Gordon Banham, who will focus on German JV and zinc recycling investment.

• Robust balance sheet with no bank debt and strong cash reserves.

Financial highlights

• Group revenue up 46.1% to £183.1m; profit before tax £14.3m, profit after tax £11.1m, and EPS 33.4p.

• EBITDA increased by 22.8% to £18.3m; Services net margin at 6.8–7%.

• Cash position at £37.3m, boosted by asset sales and working capital movements.

• Hargreaves Land revenue rose to £12m, with profit of £4m versus a £1.4m loss last year, driven by land and renewables sales.

• HRMS (German JV) moved from breakeven to £1m profit in H1, with improved margins.

Outlook and guidance

• Over 90% of FY26 Services revenue secured under contract; strong pipeline in infrastructure and land.

• £15m cash to be returned to shareholders in H2; full-year dividend target of 39p.

• Next renewables tranche sale expected within 12 months, with £15m independent valuation.

• Board confident in delivering results ahead of market expectations; further land and renewables sales expected.

• DK improvement in HRMS expected to continue; focus on cash returns and zinc recycling investment.