Westfield site - major green energy investment
Hargreaves Services plc
("Hargreaves" or the "Group")
Westfield site set for major green energy investment
Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the industrial and property sectors, notes the successful financial close of the Westfield Energy from Waste ("EfW") plant to be constructed by Brockwell Energy Limited ("Brockwell"). The Westfield site, which is in Fife, Scotland, is owned by Hargreaves.
In October 2018, the Group sold its shares in Brockwell for initial gross proceeds of £21m, resulting in a profit of £5.2m. As noted at the time, a further £2m in cash becomes payable to Hargreaves following the successful financial close of the EfW plant.
A key aspect of the sale in 2018 was the careful selection of a partner who would be committed to the successful longer term development of the renewable energy portfolio held by Brockwell. Many of these renewable projects are on land which Hargreaves owns and therefore the successful development of these projects will help to maximise the value of the underlying land retained by the Group.
As well as the £2m additional receipt, which will be recorded as discontinued in the Income Statement, the Group will now benefit from a lease to Brockwell for a minimum term of 35 years. The annual index linked rental starts at £105k per annum and increases to £420k per annum following the construction of the EfW plant but no later than 2025.
Hargreaves will invest £7m in the Westfield site over the next 12 months to deliver services to the eight acre plot for Brockwell. In doing so, a further 40 acres of employment land will be serviced. This land can accommodate a broad range of industrial users, who will be able to benefit from potentially cheaper energy delivered by the EfW plant. The Westfield site also contains approximately 50 further acres of developable land.
Roger McDowell, Non-Executive Chairman of Hargreaves, said : "The Board is delighted to see the progress made by the Brockwell team with whom Hargreaves continues to have a strong relationship. This is another positive step towards maximising the inherent value of the Group's existing renewable land portfolio."
For further details:
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Hargreaves Services Gordon Banham, Chief Executive Officer John Samuel, Group Finance Director
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Tel: 0191 373 4485 |
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Walbrook PR (Financial PR & IR) Paul McManus / Lianne Applegarth / Louis Ashe-Jepson
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Tel: 020 7933 8780 or hargreavesservices@walbrookpr.com Mob: 07980 541 893 / 07584 391 303 / 07747 515 393 |
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Singer Capital Markets (Nomad and Joint Corporate Broker) Sandy Fraser/ Justin McKeegan / Rachel Hayes
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Tel: 020 7496 3000 |
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Investec (Joint Corporate Broker) Sara Hale / David Anderson / Shalin Bhamra |
Tel: 020 7597 5970
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About Hargreaves Services plc ( www.hsgplc.co.uk )
Hargreaves Services plc is a diversified group delivering services to the industrial 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 Energy, Environmental, UK Infrastructure and certain manufacturing industries 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, 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 and a joint venture in Duisburg, Germany.
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