Hargreaves Services PLC (OTCPK:HGRVF)

Preliminary Q4 2026 Hargreaves Services PLC Earnings Call Transcript

Jul 29, 2026 / 08:30 AM GMT

Release Date Price: $7.33

Transcript

Key Points

Positve

Hargreaves Services PLC (FRA:H6W) delivered a strong financial performance, with services revenue up 35% and profit before tax reaching £40 million, marking the second-best year in the company's 20-year history.
The company returned £32.6 million to shareholders through dividends and a tender offer, while still ending the year with a robust cash position of £21.6 million and no bank borrowings.
The services division secured 70% of FY27 revenue and 51% of FY28 revenue, with 90% of contracts protected against inflation, providing strong visibility and resilience.
The German zinc recycling project received significant de-risking support, including a €2 million development grant and a €12.5 million non-recourse loan from the German government, limiting the company's downside risk to €8 million.
The land business is progressing well, with the first strategic land sale expected within 12 months, continued plot sales at Blindwells, and a growing pipeline of 25 sites under option with nearly 5,000 plots.
The company's strategic shift towards a capital-light model is gaining traction, with the land business transitioning to contracted services for third parties and the services division expanding into higher-margin ancillary services like aggregates supply and logistics.

Negative

The services division's profit margin was slightly suppressed year-on-year due to the lower-margin provision of aggregates, which diluted the overall margin despite strong revenue growth.
The German DK Recycling business continued to incur losses, with pig iron prices remaining stubbornly low, and the anticipated improvement from factors like CBAM and scrap demand has not yet materialized.
The sale of the remaining five renewable energy land assets has been delayed, as the company plans to let the wind farms mature to optimize value, deferring potential cash inflows.
The zinc recycling project carries execution risk, with the company acknowledging that if the plant fails, it could result in an exceptional write-off of up to €8 million.
The land business still has significant capital tied up (£88 million), and the pace of capital release is slower than ideal, with commercial development at Unity progressing slower than anticipated.
The company noted delays in some pipeline projects, including reservoirs and carbon capture schemes, which could impact future revenue growth in the services division.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HASE.L - Hargreaves Services PLC
Preliminary Q4 2026 Hargreaves Services PLC Earnings Call
Jul 29, 2026 / 08:30AM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon and welcome to the Hargreaves Services PLC final results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and they can be submitted at any time using the Q&A tab situated on the right hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll and I would now like to hand you over to CEO designate Simon Hicks. Good afternoon to you.

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Unidentified_2 [2]
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Good afternoon.

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