Gordon Banham, the long-serving Chief Executive Officer of Hargreaves Services plc, has announced he will step down from his role in July this year. This significant leadership change comes as the North East-based industrial group reveals exceptionally strong unaudited half-year financial results, marked by substantial surges in both revenue and pre-tax profits.
Impressive Financial Performance
For the six-month period ending in November, Hargreaves Services reported a remarkable increase in revenue, which jumped by more than 46% to £183.1 million. Even more strikingly, pre-tax profits soared by nearly 170%, reaching £14.3 million. The core Services business was a primary driver of this success, generating revenue of £171.4 million and a pre-tax profit of £11.7 million during the same period.
Growth Drivers and Key Contracts
The company attributes this robust performance to its expanding operations in the clean energy, connectivity, and environmental services sectors. Notable new contracts have been secured, including waste-to-energy projects for Enfinium and waste management services for Beauparc. Additionally, Hargreaves is in the final stages of agreeing to work on the major Lower Thames Crossing infrastructure project, with hopes to secure earthmoving contracts valued at up to £100 million.
Strategic Land Sale and Shareholder Returns
In a significant strategic move, Hargreaves has completed the long-awaited sale of the first tranche of its renewable energy land assets. This £8.8 million deal encompassed five assets, including two wind farms and three access agreements. The company stands to earn an additional payment of up to £5 million, contingent on future wind yields. As a result of this transaction, the board has decided to return approximately £15 million to shareholders during this financial year. Furthermore, the interim dividend has been raised by 5.4% to 19.5p per share.
CEO Transition and Future Role
Gordon Banham, who has led Hargreaves for more than 20 years, will formally step down as CEO in July. However, he will remain actively involved with the group, continuing to lead its HRMS joint venture and overseeing investments in a zinc recycling plant. Reflecting on his tenure, Mr Banham expressed immense pride in transforming the company from a traditional coal haulage business into a diversified, green-focused services group. He stated, "I was the coal guy, and we transitioned the business—it's now a green services business. It's a real success story for the North East." He emphasised that his successor, Simon, is better equipped to lead the services and land business forward, while he will focus on running the German operations.
Board Confidence and Outlook
Roger McDowell, Group Chair of Hargreaves Services, praised Mr Banham's "entrepreneurial flair" and acknowledged that he will be sorely missed. Mr McDowell also expressed delight at the strong set of results, highlighting the substantial growth within the Services business and the completion of material land sales. He noted that these positive developments bode well for the second half of the financial year and underpin the board's confidence in delivering a full-year result that exceeds current market expectations.
The transition marks the end of an era for Hargreaves Services, as it continues to capitalise on opportunities in sustainable infrastructure and environmental services, positioning itself for future growth under new leadership.
