Positive impact of Tungsten West fundraising
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HARGREAVES SERVICES PLC
(the "Group", the "Company" or "Hargreaves")
Positive impact of Tungsten West fundraising
Successful fundraise by Tungsten West to result in £10m cash inflows for the Group
Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the environmental, infrastructure and property sectors, announces the positive impact to the Group of the recently announced successful fundraise by Tungsten West plc ("Tungsten West") (AIM: TUN).
The Group holds the Mining Services Contract ("MSC") with Tungsten West for mining operations at the Hemerdon tungsten and tin mine in Devon. When the Group sold the mine to Tungsten West in 2019, there was a requirement for £8 million to be paid in annual £1 million instalments secured by the minerals lease. The Group has received £5 million in total, with three instalments still due.
Following Tungsten West's successful fundraising announcement, the Group has now received the outstanding £3 million and confirms that this has led to the immediate release of the security held over the mineral lease. This payment settles the remaining balance, thereby removing the previously scheduled £1 million annual revenue for FY27 and FY28.
Furthermore, Tungsten West has notified the Group of its intention to terminate the MSC and assume the mining activities directly. Accordingly, an agreed £7 million compensation fee will be paid to Hargreaves no later than 15 May 2027, which will be recognised as a non-recurring gain in the current financial year.
The Group remains in discussion with Tungsten West regarding future opportunities to support this strategic asset in the UK.
Other than the impact of the transaction with Tungsten West the Group continues to trade in line with expectations and is unaffected by the conflict in the Middle East.
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Commenting on the Tungsten West fund-raise, Simon Hicks, Chief Operating Officer of Hargreaves Services plc, said: "We are pleased to see the successful completion of the latest Tungsten West fund-raise which accelerates the return of the three remaining £1 million annual instalments. The decision to terminate the Mining Services Contract is positive for both parties and results in a material cash inflow to the Group effectively representing the acceleration and de-risking of several years of trading activity."
*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 £30.4m, EPS of 64.1p and cash of £15.8m.
For further details:
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Hargreaves Services Gordon Banham, Chief Executive Officer Stephen Craigen, Chief Financial Officer Simon Hicks, Chief Operating Officer
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Tel: 0191 373 4485 |
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Walbrook PR (Financial PR & IR) Paul McManus, Lianne Applegarth, Anna Dunphy
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Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com Mob: 07980 541 893 / 07584 391 303 07876 741 001 |
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Singer Capital Markets (Nomad and Joint Corporate Broker) Phil Davies, Sara Hale, Dan Ingram
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Tel: 020 7496 3000 |
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Cavendish Capital Markets Ltd (Joint Corporate Broker) Adrian Hadden, Jasper Berry, Sunila de Silva |
Tel: 020 7220 0500 |
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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.
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