Hargreaves Services trading in line with expectations

(Sharecast News) - Hargreaves Services said in an update Wednesday that all three of its business units were performing in line with expectations, supported by strong demand in the UK infrastructure sector and steady trading in its European operations.

Ahead of its annual general meeting in Durham, chair Roger McDowell said: "the board are pleased to confirm that all three business units; Services, Hargreaves Land and HRMS, have performed in line with expectations throughout the first four months of the year."

McDowell highlighted continued strength in the infrastructure sector, which is benefiting the group's Services division.

"Work continues on the major projects at HS2 and Sizewell C Nuclear Power Station where the group is utilising its broad skill set to bring these critical infrastructure projects to life," he said.

"With over 70 term and framework contracts the services business remains focused on the responsible growth of the contract book through targeting and successfully securing high-quality, robust contracts in areas where the group can bring real value to our clients."

In its property arm, Hargreaves Land completed the first sale of renewable energy land assets, marking what McDowell described as "a key milestone in the business illustrating the intrinsic value of the land and demonstrating our commitment to realising value from these developments".

The division also sold a 16-acre plot at the Blindwells development in Scotland for £11.5m during the first half.

Hargreaves' German associate, HRMS, continued to trade steadily despite weakness in the broader German economy.

"Operations at the DK steel waste recycling facility remain in line with expectations," McDowell said.

The company reiterated that it remains confident in meeting full-year forecasts.

Consensus market expectations for the year ending 31 May 2026 stand at revenue of £270.9m, pre-tax profit of £24.2m, earnings per share of 59.1p and cash of £32.7m.

The company said it planned to issue a trading update in December ahead of interim results for the six months ending 30 November, which would be published on 28 January.

At 1331 GMT, Hargreaves Services shares were down 2.37% at 660p.

Reporting by Josh White for Sharecast.com.