Hargreaves Services (LSE:HSP) delivered a strong first-half performance for the six months ended 30 November 2025, with revenue rising 46.1% to £183.1 million and profit before tax jumping 169.8% to £14.3 million. The result was driven primarily by significant growth in the Services division, which benefited from increased activity on major infrastructure projects, alongside solid contributions from Hargreaves Land and the HRMS joint venture.
The group’s cash position strengthened materially over the period, more than doubling to £37.3 million. This improvement was supported by the completion of the first tranche sale of renewable energy land assets for £8.8 million. On the back of its stronger balance sheet, the board announced plans to return up to £15 million of cash to shareholders through a tender offer at a premium to the current share price. In addition, the interim dividend was increased by 5.4%. The company also confirmed a planned leadership transition, with long-serving chief executive Gordon Banham set to step down in July 2026 and current chief operating officer Simon Hicks named as his successor.
Operational visibility remains strong. Around 90% of Services division revenue for the current financial year is already contracted, while the Land and HRMS businesses also offer good earnings visibility. As a result, management now expects the Services division to outperform previous market forecasts and anticipates full-year profit before tax and EBITDA to come in around 4% ahead of expectations, signalling improving earnings momentum and a more proactive approach to capital returns.
From an investment standpoint, Hargreaves Services is supported by robust financial performance, strong revenue growth and healthy cash generation. The valuation appears attractive, with a reasonable earnings multiple and a solid dividend yield, while recent corporate actions further reinforce confidence in the group’s strategic direction. These positives are balanced by more cautious share price technical signals, which currently point to bearish trends.
More about Hargreaves Services
Hargreaves Services plc is a diversified UK-based group operating across environmental, infrastructure and property markets, with activities in the UK and South East Asia. The group is organised into three main segments: Services, which provides materials handling, mechanical and electrical contracting, logistics and large-scale earthworks for sectors such as clean energy, connectivity and environmental infrastructure; Hargreaves Land, focused on sustainable brownfield development and the realisation of renewable energy land assets; and HRMS, a German joint venture active in specialist commodity markets and the owner of DK Recycling und Roheisen, a recycler of steel waste materials.
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