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Highlights

  • Hargreaves reported a 13.8% YoY increase in H1FY25 revenue, reaching GBP 125.34 million, driven by growth in the Services segment
  • EBITDA for H1FY25 rose 21.1% YoY to GBP 14.90 million, reflecting improved operating leverage and higher margins
  • Profit for the period soared by 135.5% YoY to GBP 3.98 million, fueled by better performance in HRMS and sustained profitability in Services
  • The Services segment is expected to outperform, with a 10% revenue increase projected for the full year

Hargreaves Services PLC (LSE:HSP) is a diversified group providing services across the industrial and property sectors, mainly in the UK and Southeast Asia. The company operates through three divisions: Services, Hargreaves Land, and a strategic investment in its German joint venture, Hargreaves Raw Materials Services GmbH (HRMS).

For the first half of the financial year 2025 (H1FY25), Hargreaves reported a revenue of GBP 125.34 million, marking a 13.8% increase compared to H1FY24 (GBP 110.17 million). This growth was primarily driven by the performance in the Services segment, particularly with the acceleration of earthmoving operations on major infrastructure projects like HS2 and Sizewell C.

EBITDA for the period rose by 21.1% YoY, reaching GBP 14.90 million, up from GBP 12.30 million in H1FY24. The increase reflects improved operating leverage as services activity expanded, with margins maintained above 7%.

Profit for the period also saw a notable boost, increasing by 135.5% YoY to GBP 3.98 million, driven by the turnaround in HRMS performance and sustained profitability within the services segment, where PBT rose to GBP 8.8 million from GBP 7.8 million in the previous year.

Recent Business Update

The company announced that Simon Hicks would assume the role of Chief Operating Officer (COO) and Executive Director effective 1 June 2025.

Company Outlook

Hargreaves' Services segment is set to outperform, with growth in earthmoving and new contract wins expected to boost revenue by around 10%. This momentum is driving a full-year uplift in both PBT and EBITDA.

However, the overall upside for the year is being tempered by a delay in a key land sale at Blindwells, now expected to complete in early FY26 due to planning-related transport issues. Looking ahead, Hargreaves remains confident, particularly in its renewables strategy, with a potential asset sale in 2025 and a substantial portfolio of 1,398MW in assets and 1,066MW in the pipeline poised to drive future value.

Top 10 Shareholders

The top 10 shareholders of HSP hold approximately 59.14% of the total shares. Harwood Capital LLP (Activist) is the largest shareholder, with around 27.89%. It is followed by Canaccord Genuity Wealth Management, which holds about 9.77%, as shown in the chart below.

Stock Information

The stock has declined approximately 11.18% over the past three months. It has a 52-week range between GBX 479.50 and GBX 720.00, with the current price of GBX 572.00 (as of 08 May 2025) trading below the average of this range.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 08 May 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.