Hargreaves Services (LSE:HSP) reported strong results for the year ended 31 May 2026, with revenue increasing 32.9% to £351.4 million and underlying profit before tax rising to £34.0 million, almost double the previous year’s figure. Statutory profit before tax reached £40.3 million, marking the company’s highest level in twelve years, while basic underlying earnings per share climbed 75% to 79.1p. The performance was supported by growth across the Services division, Hargreaves Land and its German joint venture.
The Services business recorded its fifth consecutive year of double-digit growth, benefiting from increased activity on major UK infrastructure projects and an expanding portfolio of more than 75 term and framework agreements. These contracts provide visibility over more than 70% of the division’s anticipated revenue for the coming financial year. Hargreaves Land also achieved a significant milestone by completing its first sales of renewable energy development sites, generating proceeds of £15.6 million and supporting a £20 million capital return to shareholders through a tender offer. Meanwhile, the German joint venture delivered stronger profits and cash generation, enabling the board to recommend a higher final dividend of 20.5p while maintaining the group’s debt-free balance sheet.
Hargreaves’ outlook continues to be supported by strong financial performance, healthy cash generation and a conservative balance sheet with no debt. Technical indicators also remain favourable, with the shares trading above key moving averages and momentum remaining positive. The company’s valuation is further strengthened by a relatively low price-to-earnings ratio and an attractive dividend yield. Management’s commitment to shareholder returns and continued operational momentum provides additional confidence, although progress at renewable energy developments and the zinc project remains subject to execution and timing risks.
About Hargreaves Services
Hargreaves Services plc is a diversified UK-based group operating across the environmental, infrastructure and property sectors, with activities spanning the United Kingdom, South East Asia and a joint venture in Germany. Its operations are organised into three core divisions: Services, which provides materials handling, engineering, logistics and earthworks for infrastructure, environmental and clean energy projects; Hargreaves Land, which develops brownfield land for residential, commercial and renewable energy uses; and HRMS in Germany, which specialises in commodity trading and steel recycling through its interest in DK Recycling und Roheisen.
The group has established a strong presence on major UK infrastructure projects, including HS2 and Sizewell C, and has recently secured additional work linked to the Lower Thames Crossing and engineering projects at Drax Power Station. Alongside its infrastructure activities, Hargreaves is expanding the value of its land portfolio through renewable energy developments while benefiting from improving profitability and cash generation at its German joint venture, supporting its long-term strategy of delivering sustainable growth and shareholder value.
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