Final Results

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the environmental, infrastructure and property sectors, announces its final results for the year ended 31 May 2026, a year which delivered significant revenue and EBITDA growth, increased profitability for Germany, and an increase in the proposed final dividend to 20.5p.

The Group has seen growth in revenue and profits across all three business units of Services, Land and Germany. With a strong order book in Services and promising long-term opportunities ahead, the Group is well-positioned to sustain its positive momentum. Backed by a robust, structured debt-free (excluding leases) balance sheet and a clear focus on realising and delivering value to shareholders, the Group remains in a strong strategic position.

KEY FINANCIAL RESULTS

* The basis of EBITDA, underlying profit before tax and basic underlying EPS is set out in Note 5.

HIGHLIGHTS

• Revenue up 32.9% to £351.4m (2025: £264.4m) with revenue growth across all business units.
• UPBT up 93.2% to £34.0m (2025: £17.6m), with an increase following growth in services, realisation within Land and improvement in profitability in Germany
• EBITDA increased 8.6% to £36.6m (2025: £33.7m) due to improved profitability of the Services business
• Cash receipt from HRMS of £6.6m (2025: £6.3m)
• Services business holds a strong contract portfolio, growing to over 75 term and framework contracts following several new contract wins, providing visibility of over 70% of next year's expected revenue
• Proposed final dividend of 20.5p (2025: 18.5p) taking the full year dividend to 40.0p (2025: 37.0p), representing an increase of 8.1%

Commenting on the results, Group Chair Roger McDowell said: "The year just ended was a one of strong operational and financial performance for Hargreaves. We delivered continued progress across the Group, maintained financial discipline, and returned significant capital to shareholders through both dividends and share buybacks. With a strong balance sheet, high-quality businesses and growing opportunities in infrastructure-related markets for our Services division, we enter the new financial year well positioned to deliver further growth and long-term value for all stakeholders."

CEO (designate) and CFO video

Please find a link to a video overview relating to the Company's results from the Group's Chief Executive (designate), Simon Hicks and the Chief Financial Officer, Stephen Craigen here.

Analyst briefing

A briefing open to analysts will take place today, Wednesday 29 July 2026 at 9:30 am BST. To register and for more details please contact Walbrook PR on hargreavesservices@walbrookpr.com.

Investor presentation

Gordon Banham, Group Chief Executive, Simon Hicks, Chief Executive (designate) and Stephen Craigen, Chief Financial Officer, will provide a live presentation on the Company's results via the Investor Meet Company platform today, Wednesday 29 July 2026, at 4.30 pm BST.

Investors can sign up to Investor Meet Company for free here.

Chair's Statement

Roger McDowell, Group Chair

Introduction

I am pleased to report another very strong set of results for the Group, with growth in revenue and profits across all three business units of Services, Hargreaves Land and Germany. The profit before tax ("PBT") of £40.3m (2025: £17.5m) represents a twelve-year high. Services continues to grow materially with the fifth consecutive year of double-digit growth in revenue and PBT, reflecting the ongoing success of our strategic focus on the infrastructure market. Hargreaves Land has been bolstered by the first realisations of our renewable energy land assets and Germany continues its recovery.

Strategy Delivery

The year has demonstrated the benefits of the strategy that the Board has pursued over recent years: building a larger and higher quality Services business, realising value from the Group's land and renewable energy assets, and continuing to support the recovery and development of HRMS. Key achievements during the year included:

• Services - Secured our first position on Lower Thames Crossing, settled the contractual position with Tungsten West plc and grew UPBT by 27.0%.
• Hargreaves Land - Completed the realisation of two renewable energy land assets for initial cash of £15.6m, in line with third party valuations. This supported the decision of the Board to return £20m of surplus cash to shareholders via a tender offer in May 2026.
• Germany - Continued recovery of performance supported the receipt of £6.6m from Germany to support the annual dividend for shareholders.

Results and Progress update

Group revenue has increased by 32.9% to £351.4m (2025: £264.4m) due to a substantial increase in the range of services provided on major infrastructure projects. This has resulted in a 93.2% increase in UPBT to £34.0m (2025: £17.6m). This growth in UPBT has been observed in Services, Hargreaves Land and Germany as all business units have delivered strong annual growth.

Earnings Before Interest Tax Depreciation and Amortisation ("EBITDA") for the Group has improved to £36.6m (2025: £33.7m) reflecting the strong cash generation within the business. The profit generated from the disposal of the renewable energy land assets is not included within EBITDA. Basic earnings per share increased to 93.3p (2025: 44.8p) reflecting the improved profitability of the Group.

Services delivery and outlook

The Services business has gone from strength to strength in recent years and this year has been no different. We continue to have a significant presence on the UK's most high-profile infrastructure projects such as HS2 and Sizewell C Nuclear Station and we have also secured our first position on Lower Thames Crossing. New engineering projects at Drax Power Station and several new contract wins, including a multi-year position with Fortis IBA supporting the recycling of waste ash, demonstrate the value we bring to our clients.

Looking forward, the business is well positioned to capitalise on the significant growth opportunities presented by the UK infrastructure market, focusing on our core target markets of Connectivity, Clean Energy and Environmental services. This market is underpinned by Governmental support and a societal need for investment and Hargreaves is excellently positioned to provide solutions into this market as it grows.

The business holds a broad customer base and a contract book which has grown to over 75 term and framework contracts, which provide excellent revenue and margin visibility for the coming years.

Land realisations

The last period saw the first two realisations from the Group's renewable energy land asset portfolio, which represents the proof of concept for the asset class and underlying value within the portfolio. This demonstrates a landmark step forward in the realisation strategy of this business unit. The remaining near term renewable energy land assets have been independently valued at £9.1m, reflecting the assets that have been realised during the year.

In addition to this, we have seen two plot sales complete at Blindwells generating proceeds of £20.8m. We now have over 500 families living at Blindwells which continues to develop into a highly sought after, thriving community.

Germany

The result from HRMS has improved for the third year in a row as we are starting to see the German economy turn a corner. We received a dividend of £6.6m from the Joint Venture in the period, which has been funded out of the trading side of the business. DK has seen an improvement in performance driven by lower fuel costs.

The innovative zinc recycling facility remains an important strategic investment for the Group, with progress in line with plan and commissioning expected to commence in early 2028.

Capital Returns

The Group has stated consistently that any cash realised from the disposal of the Group's renewable energy land assets would be returned to Shareholders. I'm pleased to confirm that this is precisely what we have done. After making an initial announcement in January 2026, the Group returned the sum of £20m to shareholders via a tender offer in May 2026 which was fully subscribed. Furthermore, the Group has paid dividends totalling £12.6m, meaning a total of £32.6m has been returned to shareholders in the year whilst being able to maintain our cash holdings at £21.6m.

Board changes

It has been well flagged that after 25 years at the helm, Gordon Banham will step down as CEO on 31 July 2026. Gordon will continue to stay involved with the Group as he assumes his new role managing the Group's investment in its German Joint Venture and overseeing the development of the zinc recycling plant. It has been my privilege to work alongside Gordon for the last eight years. It is difficult to overstate the contribution Gordon has made to the success of Hargreaves over his tenure. The Group has transformed itself from a business dominated by solid fuels to the green innovative infrastructure support service Group we are today. Whilst the Board will miss his vision, commitment and entrepreneurial flair, we are delighted to retain his involvement in the German project. Gordon's service has been exemplary and on behalf of the Board and all at Hargreaves I would like to extend my heartfelt thanks.

Gordon will be succeeded as CEO by Simon Hicks, who joined the Group in May 2025 in the role of Chief Operating Officer. Over that time Simon has developed a deep understanding of the Group and has made an excellent impact on the development of our strategy and future trajectory. Gordon and Simon have worked closely together to ensure a smooth transition of responsibility.

Cash and leasing debt

On 31 May 2026 the Group held cash of £21.6m (2025: £23.3m). The business is cash generative, predominantly through the activities in Services and the receipt of HRMS dividends. The Group's debt relates solely to leasing debt and hire purchase arrangements for the acquisition of fixed assets. At the year end the balance of the leasing debt was £40.4m (2025: £32.8m), the increase reflects the investment in the plant fleet to support the substantial increase in activity.

Dividend

The Group paid an interim dividend of 19.5p (2025: 18.5p) on 31 March 2026, reflecting the Group's stated aim of delivering a progressive dividend for shareholders.

Following completion of the tender offer, which resulted in the reacquisition of 7% of the Group's shares, the Board recommends increasing the final dividend to 20.5p (2025: 18.5p) to reflect the corresponding concentration of value. This would take the full year dividend to 40.0p (2025: 37.0p), representing an annual increase of 8.1%.

If approved at the Annual General Meeting, the final dividend of 20.5p will be paid on 2 November 2026 to all shareholders on the register at the close of business on 25 September 2026. The shares will become ex-dividend on 24 September 2026.

Outlook

Looking ahead, the Board remains confident in the Group's prospects. Services enters the new financial year with strong momentum, a substantial contract base and excellent visibility of future revenues, supported by continued demand across the Group's core markets of Connectivity, Clean Energy and Environmental services. Hargreaves Land remains well placed to realise further value from its property portfolios, while the continued recovery at HRMS, together with the progress being made on the zinc recycling facility, provides further confidence in the medium-term outlook.

The Group's strong balance sheet, resilient cash generation and disciplined approach to capital allocation provide a sound platform from which to pursue growth, invest selectively and continue returning value to shareholders where appropriate. With clear strategic priorities, proven execution across each of our businesses and an experienced leadership team in place, the Board believes Hargreaves is well positioned to deliver sustainable long-term value.

On behalf of the Board, I would like to thank all colleagues across the Group for their continued commitment, expertise and professionalism during another successful year.

Roger McDowell

Group Chair

Chief Executive's Review

Simon Hicks, Group Chief Executive (designate)

CHIEF EXECUTIVE'S REVIEW

* The basis of Underlying Profit Before Tax is set out in Note 5.

Services

The Services business unit has delivered strong performance, reporting a fifth consecutive year of growth with a compound annual growth rate of 31.7% in UPBT since 2021. Revenue increased to £329.9m, a substantial improvement of 35.0% against the comparative period (2025: £244.3m). This growth has been driven by the Group's exposure to some of the UK's largest and most high-profile infrastructure projects such as HS2 and Sizewell C Nuclear Station. Our presence on these sites has allowed our earthmoving activity to grow, however our work on site has expanded to the procurement, delivery and logistical management of critical building supplies. We have seen growth within our engineering services provided into the Clean Energy space with a major project undertaken to develop an ash beneficiation plant at Drax Power Station, which will help to reduce the level of waste output from the plant. Furthermore, we are pleased to continue the growth of our waste management service line with revenues in FY26 of £15.6m, representing a steady growth in this service line from zero revenues in FY23.

Services delivered an UPBT of £20.2m compared to £15.9m in 2025, a growth of 27.0% driven by the increased revenue volume. Services net margin is 6.1% compared to 6.5% for the comparative period, reflecting the relative margins achieved on the supply of building aggregate into these projects. The Group's net margin of over 6% represents a better than median margin for the sectors we operate in.

Growing pipeline

The Services business has experienced sustained growth in recent years by demonstrating an excellent level of service for our clients. The interaction of our service offering allows us to bring our experience to complex projects and challenges faced by our client base. The average length of our contractual customer relationships is 3.6 years, which highlights the value clients see in our provision. During the year we have successfully renewed contractual positions with Suez and Enfinium.

The Group entered the year with over 70 term and framework contracts in place and has seen continued success in securing additional positions during the period, including:

• Lower Thames Crossing - first package of enabling works - Connectivity
• Power Minerals at Drax Power Station - engineering contract to design and construct an ash beneficiation plant - Clean Energy
• Fortis IBA contract for logistics services - Environmental

In addition to this success, during the year the Group has secured a significant increase in the task orders performed for Sizewell C Nuclear Station under the existing framework and our exposure to the water sector has furthered as work with M Group has continued to grow.

The UK Government have continued to act positively with regard to UK infrastructure spending and the positive promotion of major schemes. Over £725bn is expected to be funded into such projects over the next 10 years excluding private funding. The longer-term focus for the Group is on the next generation of reservoir creation and the improvement to the UK airport capacity, including Luton and Heathrow. These projects provide opportunities for the Group to bring a wide range of capabilities to bear for which we are ideally suited.

The Services Group holds an increasingly strong contract portfolio which has grown to over 75 term and framework contracts, over 90% of which contain escalation clauses to insulate the Group from inflationary pressures, providing the business with visibility of over 70% of Services budgeted revenue heading into the new financial year. This provides a stable base from which to explore further growth opportunities.

During the year we settled the position with Tungsten West plc (TW) which resulted in the payment of £3.0m to Hargreaves to release the security Hargreaves held over the mineral rights to the mine and a further agreement to pay Hargreaves £7.0m as a termination fee for the Mining Services Contract to be paid in May 2027. Whilst the £3.0m payment to release the security has been recognised as revenue, the termination fee is exceptional in nature and has been recognised as other income in the year ended 31 May 2026.

Hargreaves Land

Hargreaves Land has delivered an UPBT of £12.5m (2025: £2.3m) representing a substantial increase in profitability compared to the prior year. This improvement is principally due to the successful disposal of the first two tranches of the Group's renewable energy land asset portfolio. Due to the fact that these assets were held as Investment Properties the sales are not reflected in revenue.

Revenue for Hargreaves Land of £21.5m (2025: £20.1m) represents the two sales completed at Blindwells during the year. Hargreaves Land completed the sale of a 10-acre plot to Avant Homes for proceeds of £9.25m and a further sale of 16 acres to Bellway Homes for £11.5m. The Blindwells project continues to deliver a long-term regular profit stream for Hargreaves Land, the site is now home to over 500 families and has approximately 55 acres remaining to sell in Phase 1. Once Phase 1 is completed there is a second phase of over 135 acres and up to an additional 1,500 homes. Phase 2 forms part of the wider Blindwells development which is being promoted through the Local Plan process and via the Business Case.

Progress continues at the Group's other multi-phase development sites, including Unity where sales have completed in the period for two commercial roadside development plots to McDonalds and Starbucks.

The UK housing market has remained broadly stable despite ongoing macroeconomic volatility, with house price growth largely flat to modest, underpinned by resilient underlying demand. Supply remains constrained by elevated build costs and a slow planning system, with a persistent shortage of housing - particularly in the rental sector - continuing to support demand dynamics.

Looking ahead, gradual improvement is expected over the next 12 months through expected reduction in inflation and potential decline in borrowing costs. However, risks remain from geopolitical uncertainty, inflation shocks and interest rate movements. Over the longer term, returns are expected to be moderate but stable, with prime, well-located and sustainable assets continuing to outperform, while secondary stock lags and regional divergence remains a key factor in investment performance.

Pipeline

The pipeline of schemes, particularly within our strategic land portfolio, represents a key indicator of the ability of the Group to deliver value in the long-term as the business moves to a capital light model. The team have continued their success in signing up high-quality projects with several new schemes secured in the financial year just ended. Presently the pipeline consists of 31 schemes with over 12,000 residential plots at various stages through the planning and development cycle (2025: 24 schemes with over 10,000 residential plots).

Renewable energy land assets

The year just ended saw the first two realisation events within the renewable energy land assets. In October 2025, the business disposed of two wind farms and three access agreements for an initial consideration of £8.8m and this was followed up by the sale of land relating to a Battery Energy Storage System (BESS) for consideration of £6.8m. The first tranche of assets sold has an element of contingent consideration linked to future energy production on the sites, which could be as much as £5.0m. Variable receipts are expected to be received no later than September 2029.

The Group now has a remaining near-term portfolio of five wind farm and access agreements with a combined energy generation capacity of 300MW. The independent asset valuation of these remaining assets is £9.1m compared to a book value in the Balance Sheet of £3.3m. These assets will continue to be realised at the optimal time to generate value for shareholders. In addition to these near-term schemes, the Group has sight of a further seven longer term opportunities across land within its portfolio that are not currently reflected in the valuation. The estimated energy generating capacity of these schemes is 876MW.

Germany

The Group's share of post-tax profits from Germany was £6.3m (2025: £4.1m), representing a 53.7% improvement on the previous financial year as the joint venture continues to recover from the economic headwinds it has faced.

The trading aspect of the joint venture performed well in the year, after weathering significant economic challenges in Germany, improved demand is beginning to become visible. Focus continues to be on low risk, back to back trading in pig iron, solid fuels and other minerals into the steel, energy and industrial markets throughout Europe. The business traded 846kt of product in the year ended 31 May 2026 compared to 755kt in the previous financial year delivering a local PBT of £11.7m (2025: £10.2m).

The steel waste recycling operation within the joint venture (DK) has delivered a small loss locally of £1.1m (2025: loss of £1.4m), marking a slight improvement on the prior period. The market remains challenging with the price of pig iron remaining stubbornly low with the average price per tonne of pig iron actually 5% lower than in the prior year. This has been offset by increased sales tonnage (255kt vs 251kt) and an improved cost of fuel per tonne of pig iron produced.

Looking forward, we continue to anticipate a recovery in the market price of pig iron which has been at very low levels for the last two years. Upward pressure on pricing is expected to come from the introduction of the Carbon Border Adjustment Mechanism (CBAM) on imported steel products and the anticipated increase in scrap prices that will likely arise should the new Electric Arc Furnace steel production facilities come on line.

During the year, HRMS paid the Group a dividend of £6.6m (2025: £6.3m) reflecting the commitment from local management to continue to return funds to the Group. The distribution from HRMS is funded from the ongoing trading activities and is not dependent on the performance of DK.

Progress on the construction of the zinc processing plant has continued to plan, with £3.6m of capital invested up to 31 May 2026 representing the planning and design work along with order placements for key equipment. To complete the plant total capital expenditure is expected to be £18.5m, this will be funded by means of a £1.8m German government grant and a state backed loan of £10.8m, which is substantially higher than the £3.5m originally announced. This demonstrates the level of support for this project by the local authorities.

Summary

Overall, the Group has delivered a strong year, with underlying profit before tax increasing to £34.0m, reflecting continued growth in Services, a step-up in Hargreaves Land profitability, and improving contribution from Germany. The business is underpinned by a high-quality contract base, a maturing land and renewable portfolio, and disciplined cash generation across all divisions of the Group.

Looking ahead, the Group is well positioned for continued progress, supported by strong revenue visibility, a robust balance sheet, and exposure to long-term UK infrastructure, energy and development opportunities, providing confidence in delivering sustainable shareholder value.

Simon Hicks

Group Chief Executive (designate)

Consolidated Statement of Profit and Loss

and Other Comprehensive Income

for the year ended 31 May 2026

Note

Other comprehensive (expense)/income

Items that will not be reclassified to profit or loss

Items that are or may be reclassified subsequently to profit or loss

.

Profit/(loss) attributable to:

* See Alternative Performance Measures Glossary.

Group Balance Sheet

at 31 May 2026

Group

Notes

1 Basis of preparation and status of financial information

The financial information set out above has been prepared and approved by the Directors in accordance with the recognition and measurement criteria of international accounting standards in conformity with the requirements of the Companies Act 2006.

The financial information set out above does not constitute the Group's statutory accounts for the years ended 31 May 2026 or 31 May 2025. Statutory accounts for 2025 have been delivered to the Registrar of Companies, and those for 2026 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

Going Concern

The Group's financing is not dependent on bank borrowings. However, the Group has access to a £16m invoice discounting facility, which is currently undrawn and will remain in place at this level until 31 October 2027. Notwithstanding that, a rigorous review of cash flow forecasts including testing for a range of challenging downside sensitivities has been undertaken. Mitigating strategies to these sensitivities considered by the Board exclude any remedies which are not entirely within the Group's control. As a result, and after making appropriate enquiries including reviewing budgets and strategic plans, the Directors have a reasonable expectation that the Group has adequate resources to continue in operation for a period of at least 12 months from the approval of the Annual Report and Accounts. Accordingly, the Board continues to adopt the going concern basis in preparing the Annual Report and Accounts.

These results were approved by the Board of Directors on 28 July 2026.

2 Segmental Information

The following analysis by industry segment is presented in accordance with IFRS 8 on the basis of those segments whose operating results are regularly reviewed by the Board of Directors (the Chief Operating Decision Maker as defined by IFRS 8) to assess performance and make strategic decisions about allocation of resources.

The sectors distinguished as operating segments are Services, Hargreaves Land, Unallocated and Germany.

• Services: Provides materials handling, mechanical and electrical engineering, land restoration, logistics and bulk earthworks into the energy, environmental, infrastructure and industrial sectors.
• Hargreaves Land: The development and realisation of value from the land portfolio including rental income from investment properties and the share of profit of the Unity joint venture.
• Unallocated: The corporate overhead contains the central functions that are not devolved to the individual business units.
• Germany: The Group's share of its German joint venture, which includes Hargreaves Services Europe Limited which is the parent company of HRMS and DK. This also includes the subsidiaries Hargreaves Zinc Processing Limited and DK Zinc Recycling GmbH of which operate under the same senior management team.

These segments are combinations of subsidiaries and joint ventures. They have separate management teams and provide different products and services. The four operating segments are also reportable segments.

The segment results, as reported to the Board of Directors, are calculated under the principles of IFRS. Performance is measured on the basis of underlying profit/(loss) before tax, which is reconciled to profit/(loss) before tax in the tables below:

Unallocated net assets of £35.2m include cash and cash equivalents of £21.6m, net deferred tax and corporation tax assets of £1.3m, amounts due from joint ventures of £14.0m, a pension liability of £2.9m, tangible fixed assets of £0.6m and other corporate items (£0.6m asset).

Unallocated net assets of £49.3m include cash and cash equivalents of £23.3m, net deferred tax and corporation tax assets of £10.3m, amounts due from joint ventures of £16.8m, a net pension liability of £2.2m, tangible fixed assets of £1.7m and other corporate items (£0.6m liability).

3 Taxation

The deferred tax adjustment in respect of prior years of £529,000 relates to additional capital allowances obtained and maximisation of the Annual Investment Allowance (2025: £1,002,000 relates to the treatment of losses assumed to be unused in the previous year, which were ultimately utilised).

Recognised in Other Comprehensive Income

Factors That May Affect Future Current and Total Tax Charges

There are no known changes planned for the rate of UK corporate tax. The deferred tax balances at 31 May 2026 and 31 May 2025 have been calculated based on the rate substantively enacted at the balance sheet date of 25%.

4 Earnings per Share

The calculation of earnings per share ("EPS") is based on the profit for the year attributable to equity holders and on the weighted average number of shares in issue and ranking for dividend in the year.

The calculation of weighted average number of shares includes the effect of own shares held of 831,304 (2025: 136,444).

The calculation of diluted earnings per share ("DEPS") is based on the profit for the year and the weighted average number of ordinary shares in issue in the year. The potentially dilutive effect of the share options outstanding (effect on weighted average number of shares) is 459,894 (2025: 546,014); effect on basic earnings per ordinary share in the current year is 1.29p (2025: 0.74p). Effect on underlying earnings per ordinary share is 1.09p (2025: 0.74p).

5 Alternative Performance Measures Glossary

This report provides alternative performance measures ("APMs"), which are not defined or specified under the requirements of International Financial Reporting Standards. The Board believes that these APMs provide readers with important additional information on the business.

6 Posting of Report & Accounts

The Group confirms that the annual report and accounts for the year ended 31 May 2026 will be posted to shareholders as soon as practicable and a copy will be made available on the Group's website: