Hargreaves Services has delivered its highest pre-tax profits in 12 years, with revenue climbing nearly 33% to £351.4m in the year to the end of May. Pre-tax profits surged more than 130% to £40.3m, while underlying pre-tax profits rose 93.2% to £34m. The County Durham-based group saw growth across all three of its key divisions: Services, Land regeneration, and its German joint venture.
Financial Performance Highlights
The bumper results were driven by strong performance in each division. The Services division secured its first work on the Lower Thames Crossing and resolved a deal with Devon mining partner Tungsten West. The Land division sold two pieces of renewable energy land for an initial cash sum of £15.6m, enabling the board to decide on a £20m return of surplus cash to shareholders via a tender offer. In Germany, raw materials supply and metals recycling businesses improved for the third consecutive year, with executives noting the German economy was 'starting to turn a corner' and benefiting from lower fuel costs.
Growth Across Divisions
Group chair Roger McDowell said: 'The year just ended was 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.' He added that the company is well positioned for further growth, with a strong balance sheet, high-quality businesses, and growing opportunities in infrastructure-related markets. Notably, Hargreaves constructed a 650-metre conveyor system for HS2 near Aylesbury, highlighting its role in major infrastructure projects that also impact the Midlands region.
German Joint Venture Progress
The German operations have been a key driver of growth, with results improving for the third year in a row. Lower fuel costs and an improving economy contributed to the upturn. The segment comprises raw materials supply and metals recycling, which are expected to continue benefiting from favourable market conditions.
Leadership Transition
These results are the last before longstanding CEO Gordon Banham steps down at the end of July. Banham has been instrumental in transforming Hargreaves from a coal-based company into a diversified industrial services group. He will take up a new role managing the group's investment in its German joint venture and overseeing the development of a zinc recycling plant in Duisburg. Chairman Roger McDowell thanked Banham for his vision, commitment, and entrepreneurial flair, noting the board will miss his contributions. Banham will be succeeded by Simon Hicks, who joined the group in May 2025 as chief operating officer.
Outlook and Strategic Position
Looking ahead, Hargreaves investors were told that the Services business enters the new financial year with a strong order book and excellent visibility of future revenues across key markets such as infrastructure, clean energy, and environmental services. The Land division is also expected to realise further value from its portfolio. With a solid balance sheet and diversified operations, Hargreaves is poised to deliver further growth and long-term value for all stakeholders.
