Positive Contract Awards in Services
Hargreaves Services PLC has announced two significant contract awards in its Services division, contributing to an upgrade in market expectations for the year ending 31 May 2027. The company secured an enabling earthworks subcontract for the Lower Thames Crossing, valued at £10 million, which will commence in late FY26 with the majority of work in FY27, and also a position at Drax Power Station to build a beneficiation plant. These developments, alongside continued trading in line with expectations for other divisions, lead Hargreaves to upgrade its revenue and profit before tax forecasts for FY27 by 4% each. The interim dividend for the financial year ending 31 May 2026 will be paid on 31 March 2026.
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Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the environmental, infrastructure and property sectors announces two new contract positions.
The Group announces it has been appointed by Balfour Beatty and awarded an enabling earthworks subcontract at Lower Thames Crossing ('LTC') representing aggregate gross revenues of £10m.
The enabling earthworks subcontract for the Roads North of the Thames is scheduled to commence in late FY26 with the bulk of the work being undertaken in the financial year ending 31 May 2027. This subcontract represents a significant advancement in the Group's involvement with the strategically important Lower Thames Crossing infrastructure project. In addition, the Group is actively engaged in discussions regarding the Enterprise Agreement for the main earthworks associated with the Roads North of the Thames.
The contract progresses the Group's commitment to carbon free Earthworks by 2040 through the first UK deployment of battery electric heavy earthmoving equipment. This follows successful trials at Sizewell C Nuclear Power Station.
In addition to the subcontract with Lower Thames Crossing, the Group has also secured a position at Drax Power Station to build out a beneficiation plant on behalf of Power Minerals Limited. The plant will process up to 400,000 tonnes of legacy ash into Supplementary Cementitious Material, which is a key ingredient in the production of low carbon cement and concrete in the UK.
The Services Division, Hargreaves Land and the Group's Joint Venture in HRMS have continued to trade in line with expectations.
Following these awarded contracts and the increased revenue visibility the Group are upgrading market expectations* for Revenue and Profit before Tax for the year ending 31 May 2027 by 4% each.
Interim Dividend
The Board have announced that the interim dividend for the financial year ending 31 May 2026 will now be paid on 31 March 2026 to shareholders on the register as at 20 March 2026.
*The Company considers consensus market expectations prior to the release of this announcement for the year ending 31 May 2027 to be revenue of £285.2m, underlying PBT of £23.5m, EPS of 50.5p and cash of £17.2m.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.