2nd tranche of Renewable Energy Land Assets sold
Hargreaves Services plc has completed the unconditional sale of the second tranche of its renewable energy land portfolio for £6.8 million in gross cash consideration to Meadow Partners. This asset, a Battery Energy Storage System site in South Lanarkshire generating £0.5 million in annual rental income, was valued at £6.4 million by Jones Lang Lasalle, representing a 6% uplift on the independent valuation. The disposal is expected to result in a one-off net benefit to profit before tax of £5.3 million and cash of £6.0 million for the financial year ending 31 May 2026, aligning with the Group's strategy to realise value from its renewable energy land assets.
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Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the environmental, infrastructure and property sectors, announces exchange of contracts for the unconditional sale of the second tranche of the renewable energy land portfolio (the "Sold Asset") to Meadow Partners, a real estate investment and asset management firm, for gross cash consideration of £6.8m (the "Disposal"). The long stop date for completion of the sale is 30 April 2026.
The Sold Asset represents freehold land leased to a Battery Energy Storage System ("BESS") in South Lanarkshire, Scotland, generating a current rental income of £0.5m per annum. BESS plays a vital role in enabling the integration of renewable energy sources such as wind and solar by storing excess electricity and releasing this back to the grid when needed.
The Sold Asset formed part of the renewable energy land asset portfolio independently valued by Jones Lang Lasalle at a minimum of, in aggregate, £27.0m in July 2025, of which this asset represented £6.4m of the total. The £6.8m cash consideration represents a 6% uplift on the independent valuation.
The Board anticipates that the Disposal will result in a one-off net benefit to PBT and cash in the financial year ending 31 May 2026 of £5.3m and £6.0m respectively*.
The Disposal is another step forward in the Group's stated strategy of realising value from its renewable energy land asset portfolio.
Commenting on the Disposal, Roger McDowell, Chair of Hargreaves Services plc, said: "We are delighted to announce this second transaction in relation to our portfolio of renewable energy land assets. The sale further demonstrates the ability of the Group to realise material value from existing assets. This gives us greater flexibility to invest in opportunities that either support sustainable long term value creation or alternatively to return cash to shareholders."
*The Company considers consensus market expectations prior to the release of this announcement for the year ending 31 May 2026 to be revenue of £286.7m, underlying PBT of £25.0m, EPS of 53.3p and cash of £9.8m.
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