2nd tranche of Renewable Energy Land Assets sold
Summary by AI BETAClose X
HARGREAVES SERVICES PLC
(the "Group", the "Company" or "Hargreaves")
Sale of second tranche of Renewable Energy Land Assets completed
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.
For further details:
|
Hargreaves Services Gordon Banham, Chief Executive Officer Stephen Craigen, Chief Financial Officer Simon Hicks, Chief Operating Officer
|
Tel: 0191 373 4485 |
||
|
Walbrook PR (Financial PR & IR) Paul McManus, Lianne Applegarth, Anna Dunphy
|
Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com Mob: 07980 541 893 / 07584 391 303 07876 741 001 |
||
|
Singer Capital Markets (Nomad and Joint Corporate Broker) Phil Davies, Sara Hale, Dan Ingram
|
Tel: 020 7496 3000 |
||
|
Cavendish Capital Markets Ltd (Joint Corporate Broker) Adrian Hadden, Jasper Berry, Sunila de Silva |
Tel: 020 7220 0500 |
||
About Hargreaves Services plc (www.hsgplc.co.uk)
Hargreaves Services plc is a diversified group delivering services to the environmental, infrastructure and property sectors, supporting key industries within the UK and South East Asia. The Company's three business segments are Services, Hargreaves Land and an investment in a German joint venture, Hargreaves Raw Materials Services GmbH ("HRMS"). Services provides critical support to many core industries including Connectivity, Clean Energy and Environmental infrastructure through the provision of materials handling, mechanical and electrical contracting services, logistics and major earthworks. Hargreaves Land is focused on the sustainable development of brownfield sites for both residential and commercial purposes. HRMS trades in specialist commodity markets and owns DK Recycling und Roheisen GmbH ("DK"), a specialist recycler of steel waste material. Hargreaves is headquartered in County Durham and has operational centres across the UK, as well as in Hong Kong, South Africa and a joint venture in Duisburg, Germany.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 1 hour ago Galliford Try
- 1 hour ago Galliford Try
- 1 hour ago Centrica
- 1 hour ago Smith & Nephew
- 2 hours ago Greencoat UK Wind