Final Results

Hargreaves Services PLC

29 July 2026

 

 

Hargreaves Services plc

("Hargreaves" the "Company" or the "Group")

Final Results for the year ended 31 May 2026

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

Year ended 31 May 2026	2026	2025
Revenue	£351.4m	£264.4m	+32.9%
EBITDA*	£36.6m	£33.7m	+8.6%
Underlying Profit Before Tax ("UPBT")*	£34.0m	£17.6m	+93.2%
Profit from Germany (net of tax)	£6.3m	£4.1m	+53.7%
Profit Before Tax	£40.3m	£17.5m	+130.3%
Basic underlying EPS*	79.1p	45.2p	+75.0%
Basic EPS	93.3p	44.8p	+108.3%
Proposed Final Dividend	20.5p	18.5p	+10.8%
Cash and cash equivalents	£21.6m	£23.3m	-7.3%
Net Assets	£195.4m	£194.2m	+0.6%

* 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 [e-mail].

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.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9.00 am the day before the meeting or at any time during the live presentation.

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

For further details: 

Hargreaves Services Gordon Banham, Chief Executive Stephen Craigen, Chief Financial Officer Simon Hicks, Chief Executive (designate)		www.hsgplc.co.uk Tel: [phone]
Walbrook PR (Financial PR & IR) Paul McManus / Lianne Applegarth, Anna Dunphy / Nick Rome	Tel: [phone] or [e-mail] Mob: [phone] 07876 741 001
Singer Capital Markets (Nomad and Corporate Broker) Shaun Dobson, Russell Cook, Dan Ingram		Tel: [phone]
Cavendish Capital Markets Ltd (Joint Corporate Broker) Adrian Hadden, Jasper Berry, Sunila de Silva		Tel: [phone]

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, 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.

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

28 July 2026

Chief Executive's Review

Simon Hicks, Group Chief Executive (designate)

CHIEF EXECUTIVE'S REVIEW

£'m	Services	Hargreaves Land	Germany	Unallocated	Total
Revenue (2026)	329.9	21.5	-	-	351.4
Revenue (2025)	244.3	20.1	-	-	264.4
Underlying Profit/(loss) before Tax* (2026)	20.2	12.5	6.3	(5.0)	34.0
Underlying Profit/(loss) before Tax* (2025)	15.9	2.3	4.1	(4.7)	17.6

* 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).

Pipeline Summary	Number of sites	Residential plots	Acres
Residential (planning allocated)	4	5,117	713
Residential (pre-allocation)	2	2,100	179
Residential (planning promotion)	25	4,797	723
	31	12,014	1,615

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)

28 July 2026

Consolidated Statement of Profit and Loss

and Other Comprehensive Income

for the year ended 31 May 2026

	Note
		2026	2025
		£000	£000
Revenue	2	351,391	264,436
Cost of sales		(287,497)	(209,582)
Gross profit		63,894	54,854
Other operating income		21,405	829
Administrative expenses		(50,107)	(40,297)
Operating profit		35,192	15,386
Analysed as:
Operating profit (before exceptional other income, amortisation and impairment charges)		28,937	15,577
Exceptional other income		7,000	-
Amortisation and impairment of intangible assets		(745)	(191)
Operating profit		35,192	15,386
Finance income		2,454	2,013
Finance expense		(3,922)	(3,956)
Share of profit in joint ventures (net of tax)		6,550	4,013
Profit before tax		40,274	17,456
Taxation	3	(9,590)	(2,716)
Profit for the year		30,684	14,740
Other comprehensive (expense)/income
Items that will not be reclassified to profit or loss
Loss in defined benefit pension schemes		(344)	(45)
Tax recognised on items that will not be reclassified to profit or loss	3	86	11
Items that are or may be reclassified subsequently to profit or loss
Foreign exchange translation differences		2,968	(1,733)
Share of other comprehensive income of joint ventures, (net of tax)		826	840
Other comprehensive income/(expense) for the year, net of tax		3,536	(927)
Total comprehensive income for the year		34,220	13,813

.

Profit/(loss) attributable to:
Equity holders of the Company		30,704	14,754
Non-controlling interest		(20)	(14)
Profit for the year		30,684	14,740
Total comprehensive income/(expense) attributable to:
Equity holders of the Company		34,240	13,827
Non-controlling interest		(20)	(14)
Total comprehensive income for the year		34,220	13,813
Basic earnings per share (pence)	4	93.33	44.81
Diluted earnings per share (pence)	4	92.04	44.07
Non-GAAP Measures
Basic underlying earnings per share (pence)*	4	79.06	45.24
Diluted underlying earnings per share (pence)*	4	77.97	44.50

*    See Alternative Performance Measures Glossary.

Group Balance Sheet

at 31 May 2026

		Group
		2026	2025
		£000	£000
Non-current assets
Property, plant and equipment		18,191	10,209
Right-of-use assets		47,012	43,971
Investment property		11,101	15,218
Intangible assets including goodwill		5,112	5,857
Investments in joint ventures		64,703	59,848
Deferred tax assets		11,077	12,124
Retirement benefit surplus		-	641
		157,196	147,868
Current assets
Inventories		48,903	47,519
Trade and other receivables		89,988	84,870
Income Tax Asset		-	2,499
Contract assets		25,832	10,041
Cash and cash equivalents		21,637	23,304
		186,360	168,233
Total assets		343,556	316,101
Non-current liabilities
Other interest-bearing loans and borrowings		(20,939)	(17,579)
Retirement benefit obligations		(2,876)	(2,889)
Provisions		(25,288)	(22,026)
Deferred tax liabilities		(5,697)	(4,353)
		(54,800)	(46,847)
Current liabilities
Other interest-bearing loans and borrowings		(19,486)	(15,204)
Trade and other payables		(68,660)	(45,811)
Provisions		(1,082)	(14,040)
Income tax liability		(4,098)	-
		(93,326)	(75,055)
Total liabilities		(148,126)	(121,902)
Net assets		195,430	194,199

		Group
		2026	2025
		£000	£000
Equity attributable to equity holders of the Parent
Share capital		3,154	3,314
Share premium		54,171	74,005
Other reserves		211	211
Translation reserve		(23)	(2,991)
Merger reserve		1,022	1,022
Hedging reserve		318	318
Capital redemption reserve		1,530	1,530
Share-based payment reserve		3,419	3,029
Retained earnings		132,663	114,046
		196,465	194,484
Non-controlling interest		(1,035)	(285)
Total equity		195,430	194,199

Group Statement of Changes in Equity

for year ended 31 May 2026

	Share capital £000	Share premium £000	Translation reserve  £000	Hedging reserve £000	Other reserves  £000	Capital redemption reserve  £000	Merger reserve £000	Share- based payment reserve  £000	Retained earnings  £000	Total Parent equity £000	Non-controlling interest £000	Total equity £000
At 1 June 2024	3,314	73,990	(1,258)	318	211	1,530	1,022	2,730	110,510	192,367	(271)	192,096
Total comprehensive income/(expense) for the year
Profit/(loss) for the year	-	-	-	-	-	-	-	-	14,754	14,754	(14)	14,740
Other comprehensive (expense)/income	-	-	(1,733)	-	-	-	-	-	806	(927)	-	(927)
Total comprehensive (expense)/income for the year	-	-	(1,733)	-	-	-	-	-	15,560	13,827	(14)	13,813
Transactions with owners recorded directly in equity
Issue of shares	-	15	-	-	-	-	-	-	-	15	-	15
Equity-settled share-based payment transactions	-	-	-	-	-	-	-	299	-	299	-	299
Dividends paid	-	-	-	-	-	-	-	-	(12,024)	(12,024)	-	(12,024)
Total contributions by and distributions to owners	-	15	-	-	-	-	-	299	(12,024)	(11,710)	-	(11,710)
At 31 May 2025 and 1 June 2025	3,314	74,005	(2,991)	318	211	1,530	1,022	3,029	114,046	194,484	(285)	194,199
Total comprehensive income/(expense) for the year
Profit/(loss) for the year	-	-	-	-	-	-	-	-	30,704	30,704	(20)	30,684
Other comprehensive income	-	-	2,968	-	-	-	-	-	568	3,536	-	3,536
Total comprehensive income/(expense) for the year	-	-	2,968	-	-	-	-	-	31,272	34,240	(20)	34,220
Transactions with owners recorded directly in equity
Issue of shares	-	6	-	-	-	-	-	-	-	6	-	6
Equity-settled share-based payment transactions	-	-	-	-	-	-	-	390	-	390	-	390
Share buyback via tender offer	(160)	(19,840)	-	-	-	-	-	-	-	(20,000)	-	(20,000)
Dividends paid	-	-	-	-	-	-	-	-	(12,560)	(12,560)	(200)	(12,760)
Purchase of NCI of a subsidiary	-	-	-	-	-	-	-	-	(95)	(95)	(530)	(625)
Total contributions by and distributions to owners	(160)	(19,834)	-	-	-	-	-	390	(12,655)	(32,259)	(730)	(32,989)
At 31 May 2026	3,154	54,171	(23)	318	211	1,530	1,022	3,419	132,663	196,465	(1,035)	195,430

Group Cash Flow Statement

for year ended 31 May 2026

		Group
		2026	2025
		£000	£000
Cash flows from operating activities
Profit for the year		30,684	14,740
Adjustments for:
Depreciation of property, plant and equipment and right-of-use assets		21,902	18,775
Amortisation and impairment of intangible assets		745	191
Net finance expense		1,468	1,943
Share of profit in joint ventures (net of tax)		(6,550)	(4,013)
Profit on sale of property, plant and equipment, investment property, right-of-use assets and subsidiaries		(14,246)	(629)
Equity-settled share-based payment expenses		390	299
Income tax expense		9,590	2,716
Contributions to defined benefit pension schemes		(299)	(276)
Translation of investments		196	(361)
		43,880	33,385
Change in inventories		(1,384)	2,467
Change in trade and other receivables		(22,585)	(16,975)
Change in trade and other payables		22,760	(1,683)
Change in provisions and employee benefits		(9,697)	16,253
		32,974	33,447
Interest received		2,454	1,891
Interest paid		(3,339)	(3,075)
Income tax paid		(489)	(2,960)
Net cash inflow from operating activities		31,600	29,303
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		568	775
Proceeds from sale of investment property		16,052	-
Proceeds from sale of right of use assets		1,269	257
Proceeds from sale of subsidiary		1,425	-
Acquisition of property, plant and equipment		(5,057)	(3,406)
Acquisition of investment property		(30)	(389)
Acquisition of right of use assets		-	(83)
Payment for acquisition of subsidiaries		-	(661)
Dividend received from joint ventures		6,605	6,267
Increase in loans due from joint ventures		-	(1,573)
Repayment of loan from pension scheme in relation to buy-in		-	4,000
Net cash inflow from investing activities		20,832	5,187
Cash flows from financing activities
Principal elements of lease payments		(21,022)	(21,648)
Dividends paid		(12,560)	(12,024)
Dividends paid to NCI		(200)	-
Purchase of own shares		(20,000)	-
Payment for acquisition of NCI of subsidiaries		(625)	-
Net cash outflow from financing activities		(54,407)	(33,672)
Net (decrease)/increase in cash and cash equivalents		(1,975)	818
Cash and cash equivalents at 1 June		23,304	22,700
Effect of exchange rate fluctuations on cash held		308	(214)
Cash and cash equivalents at 31 May		21,637	23,304

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.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these consolidated financial statements.

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:

	Services	Hargreaves Land	Unallocated	Germany	Total
	2026	2026	2026	2026	2026
	£000	£000	£000	£000	£000
Revenue
Total revenue	335,713	21,507	-	-	357,220
Intra-segment revenue	(5,829)	-	-	-	(5,829)
Revenue from external customers	329,884	21,507	-	-	351,391
Operating profit/(loss) (before exceptional other income, amortisation and impairment)	22,548	12,283	(5,722)	(172)	28,937
Share of profit in joint ventures (net of tax)	-	23	-	6,527	6,550
Net finance (expense)/income	(2,387)	172	767	(20)	(1,468)
Underlying profit/(loss) before tax	20,161	12,478	(4,955)	6,335	34,019
Amortisation and impairment charge	(745)	-	-	-	(745)
Exceptional other income	7,000	-	-	-	7,000
Profit/(loss) before taxation	26,416	12,478	(4,955)	6,335	40,274
Taxation	(4,852)	(3,723)	(1,015)	-	(9,590)
Profit/(loss) after taxation	21,564	8,755	(5,970)	6,335	30,684
Depreciation charge	21,504	135	263	-	21,902
Capital expenditure	30,848	58	364	2,415	33,685
Net assets/(liabilities)
Segment assets	138,129	87,341	49,804	3,579	278,853
Segment liabilities	(128,589)	(4,965)	(14,572)	-	(148,126)
Segment net assets	9,540	82,376	35,232	3,579	130,727
Joint ventures	-	5,789	-	58,914	64,703
Total net assets	9,540	88,165	35,232	62,493	195,430

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).

	Services	Hargreaves Land	Unallocated	Germany	Total
	2025	2025	2025	2025	2025
	£000	£000	£000	£000	£000
Revenue
Total revenue	247,688	20,078	-	-	267,766
Intra-segment revenue	(3,330)	-	-	-	(3,330)
Revenue from external customers	244,358	20,078	-	-	264,436
Operating profit/(loss) (before amortisation)	18,393	1,931	(4,747)	-	15,577
Share of profit in joint ventures (net of tax)	-	(143)	-	4,156	4,013
Net finance (expense)/income	(2,508)	515	50	-	(1,943)
Underlying profit/(loss) before tax	15,885	2,303	(4,697)	4,156	17,647
Amortisation charge	(191)	-	-	-	(191)
Profit/(loss) before taxation	15,694	2,303	(4,697)	4,156	17,456
Taxation	(3,430)	(183)	897	-	(2,716)
Profit/(loss) after taxation	12,264	2,120	(3,800)	4,156	14,740
Depreciation charge	18,396	141	238	-	18,775
Capital expenditure	22,775	411	474	-	23,660
Net assets/(liabilities)
Segment assets	115,303	80,979	59,971	-	256,253
Segment liabilities	(107,482)	(3,774)	(10,646)	-	(121,902)
Segment net assets	7,821	77,205	49,325	-	134,351
Joint ventures	-	5,764	-	54,084	59,848
Total net assets	7,821	82,969	49,325	54,084	194,199

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

	2026 £000	2025 £000
Current tax
Current year	7,108	255
Adjustments for prior years	5	(1,102)
Current tax expense/(credit)	7,113	(847)
Deferred tax
Origination and reversal of temporary timing differences	1,948	2,561
Adjustments for prior years	529	1,002
Deferred tax expense	2,477	3,563
Tax expense in Income Statement (excluding share of tax of equity accounted investees)	9,590	2,716

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

	2026 £000	2025 £000
Deferred tax credit
Remeasurements of defined benefit pension schemes	86	11
	86	11

Reconciliation of Effective Tax Rate

	2026 £000	2025 £000
Profit for the year	30,684	14,740
Total tax expense	9,590	2,716
Profit before taxation	40,274	17,456
Tax using the UK corporation tax rate of 25.00% (2025: 25.00%)	10,069	4,364
Effect of tax rates in foreign jurisdictions	74	(245)
Tax effect of joint ventures	(1,632)	(1,311)
Changes in unrecognised tax losses	3	20
Non-deductible expenses	526	80
Other temporary trading differences	16	(92)
Adjustment in respect of previous periods	534	(100)
Effective total tax expense	9,590	2,716

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.

	2026			2025
	Earnings £000	EPS Pence	DEPS Pence	Earnings £000	EPS Pence	DEPS Pence
Underlying earnings per share	25,993	79.06	77.97	14,883	45.24	44.50
Amortisation and impairment (net of tax)	(559)	(1.70)	(1.68)	(143)	(0.43)	(0.43)
Exceptional items (net of tax)	5,250	15.97	15.75	-	-	-
Basic earnings per share	30,684	93.33	92.04	14,740	44.81	44.07
Weighted average number of shares (000's)		32,877	33,337		32,898	33,444

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.

Alternative Performance Measure	Definition and Purpose
Underlying profit before tax ("UPBT")	Represents the profit before tax prior to amortisation of intangible assets, and, in accordance with International Accounting Standards, includes the Group's share of the post-tax profit of its German joint venture. This measure is consistent with how the business measures performance and is reported to the Board.
			2026 £000	2025 £000
	Profit before tax		40,274	17,456
	Amortisation and impairment of intangible assets		745	191
	Exceptional other income		(7,000)	-
	Underlying Profit before Tax		34,019	17,647
Basic underlying earnings per share	Profit attributable to the equity holders of the Company prior to amortisation of intangible assets after tax divided by the weighted average number of ordinary shares during the financial year adjusted for the effects of any potentially dilutive options. See Note 4.
EBITDA	EBITDA is defined as profit before tax prior to charges for depreciation, amortisation and interest and excludes the share of profit from joint ventures and gains and losses on the sale of fixed assets and investment property. 2026 £000  2025 £000 Profit before tax 40,274 17,456 Depreciation 21,902 18,775 Amortisation and impairment of intangible assets 745 191 Net finance expense 1,468 1,943 Share of profit in joint ventures (net of tax) (6,550) (4,013) Exceptional other income (7,000) - Profit on disposal of subsidiary (1,236) - Profit on sale of fixed assets and investment property (13,010) (629) EBITDA 36,593 33,723

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:

www.hsgplc.co.uk

 

END