Hargreaves Services plc · LSE:HSP
Hargreaves Services — FY2025 Earnings Presentation
31 slides from Hargreaves Services's earnings presentation, Jul 30, 2025
Slide 1: Hargreaves Services plc Preliminary Results
Hargreaves Services plc Preliminary Results for the year ended 31 May 2025 Wednesday 30 July 2025
Slide 2: Presentation team
Presentation team Gordon Banham, Chief Executive Officer • Joined the Group in 2001 and subsequently appointed as CEO • Led management buyout in 2004 and the Company’s flotation on the London Stock Exchange and has since guided a series of major acquisitions for the Company Stephen Craigen, Chief Fi
Slide 3: Strategic Value Proposition
Strategic Value Proposition Gordon Banham Chief Executive Officer 3
Slide 4: Group Strategy
Group Strategy • Organic growth supporting long term sustainable dividend Services • Focus on contract wins in areas of core competence • Realisation of renewable assets • Reduction of capital Land employed from c. £80m to c. £20m • Maximise cash repatriation HRMS • DK adapting to market conditions
Slide 5: FY25 Highlights
FY25 Highlights 01 SERVICES • Services revenue up by 20% and net margin now 6.5% • New contract wins including: • Yorkshire Water, Northumbria Water and M 3% Group • Thalia and Enfinium contract supporting UPBT DPS energy recovery £17.6m 37.0p (FY’24: • Increased Prescence at Sizewell C Nuclear (FY’
Slide 6: Financial Review
Financial Review Stephen Craigen Chief Financial Officer 6
Slide 7: Financial Review - Income Statement
Financial Review - Income Statement Year ended 31 May 2025 2024 Services – Top line growth due to additional Margin £m Margin £m earthmoving activity with margin maintained Revenue – Services 244.3 204.1 +19.7% Revenue – Hargreaves Land 20.1 7.0 +187.1% Group Revenue 264.4 211.1 +25.2% Underlying PB
Slide 8: Financial Review – Balance Sheet
Financial Review – Balance Sheet Renewables: £7.6m Including £42.2m for Other: £8.6m Blindwells 31 May 25 (£’m) Services Land HRMS Unallocated May 25 May 24 Tangible FA’s (incl. ROU assets) 51.5 16.2 - 1.7 69.4 64.9 Goodwill 5.8 - - - 5.8 6.0 Investments in JCEs - 5.8 54.0 - 59.8 62.0 Inventory 0.5
Slide 9: Valuation Considerations
Valuation Considerations Services* Land HRMS (Joint Venture) REVENUE £246m BOOK VALUE (Cost) c£80m BOOK VALUE (Cost) £70m EBIT £14.5m RENEWABLE UPLIFT >£20m ANNUAL CASH RECEIPT £6-7m EBITDA £30.2m Timescale 4-6 years Timescale 4-6 years Equity Employed £7m-£15m Moving to a lower capital model, utili
Slide 10: Finance Review – Cash flow
Finance Review – Cash flow OPERATING ACTIVITIES INVESTING FINANCING 60.0 19.0 4.0 -0.6 6.3 -2.1 -1.2 50.0 -3.0 -3.5 40.0 15.4 -21.6 £m 30.0 22.7 23.3 20.0 -12.0 10.0 EBITDA - Increase Decrease Total 10
Slide 11: Finance Review – HRMS Summary
Finance Review – HRMS Summary Income statement Consolidated financials £’m May 25 May 24 Revenue increase Revenue – HRMS 178.9 222.8 Volume increases (755kt vs 746kt) in HRMS are offset by Revenue – DK 108.0 115.9 lower commodity pricing, particularly coke values. Revenue 286.9 338.7 PBT – HRMS 5.7%
Slide 12: Operating Review Services
Operating Review Services Simon Hicks Chief Operating Officer 12
Slide 13: Risk Management
Services Model 70+ c.70% Frameworks and term Secured orders as contracts 31 May 25 Risk Management Contract Selectivity Limited Credit (driving the below) exposure Inflation resistant contracts Cashflow ROCE Margins Revenue resilience £11m FCF 165% 6%+ Average 5 Typical £36.2m Year ROCE operating EB
Slide 14: Services – Core competencies
Services – Core competencies Major Earthmoving Bulk Logistics Specialist M&E Turnkey Engineering Land Remediation Quarrying and Aggregate Bulk Materials Waste Management Services Handling Solutions 14
Slide 15: Infrastructure Pipeline
Infrastructure Pipeline Connectivity Clean Energy Environment CURRENT CONTRACTS CURRENT CONTRACTS CURRENT CONTRACTS HS2 - two seasons at current Sizewell C - substantial enabling Yorkshire, Northumbria and levels remaining works secured Severn Trent water OUTLOOK OUTLOOK OUTLOOK Lower Thames Crossin
Slide 16: Operating Review Hargreaves Land
Operating Review Hargreaves Land Gordon Banham Chief Executive Officer 16
Slide 17: Hargreaves Land – What we do
Hargreaves Land – What we do Multi Phase Delivering serviced plots for Master residential and commercial Developer development Bespoke Commercial Secure new development opportunities within retail Development warehousing and logistics space Planning Strategic Land adding value through promotion the
Slide 18: Key Events – Transactions FY25
Key Events – Transactions FY25 Blindwells, Edinburgh • Two sales, totaling 310 residential plots completed to Avant and Places for People, combined consideration £13.8m Unity, Doncaster • Planning permissions secured for McDonalds and Starbucks. £1.2m plot sales completed in early July 25 Planning p
Slide 19: Hargreaves Land – Renewables portfolio
Hargreaves Land – Renewables portfolio Independent Status May 25 Book Value Valuation 2 Windfarms OPERATIONAL 206MW 2 Access Agreements 1 Windfarm UNDER 3 Access Agreements 800MW £7.4m £27m-£29m CONSTRUCTION 1 Battery Storage PRE- 1 Solar scheme 142MW First tranche of 5 CONSTRUCTION 1 Access Agreeme
Slide 20: Hargreaves Land – Outlook
Hargreaves Land – Outlook Market outlook • Momentum is building, yet full recovery is hampered by high build costs and increased interest rates • Retail and commercial demand remains cautious Residential Pipeline Pipeline No. of Plots/Sq Acres Summary Sites Ft Residential 4 5,043 698 (Allocated) Res
Slide 21: Operating Review HRMS
Operating Review HRMS Gordon Banham Chief Executive Officer 21
Slide 22: Hargreaves Raw Materials GmbH
Hargreaves Raw Materials GmbH HRMS is a Joint Venture Hargreaves owns 49.9% of voting shares, however, is entitled to 86% of economic benefit through non-voting shares. The results of HRMS are not consolidated in the Group accounts, they are represented by a single line the in the P&L and Balance Sh
Slide 23: HRMS - Trading historic performance
HRMS - Trading Historic performance of the Trading business Profits from trading in HRMS have been variable over the period of 30.0 ownership, given dependency on HARGREAVES SHARE OF PROFIT AFTER TAX commodity cycles and market 25.0 pricing. 20.0 15.0 Trading has remained flat given £M continued Ger
Slide 24: DK Recycling – Operating model
DK Recycling – Operating model Blast Suppliers Inputs Output Customers furnace Coke c130kt Pig iron 250kt Coal c40kt Zinc 5kt Iron ore c30kt Energy Steel waste c500kt DK is a net energy generator with surplus output being sold back to the German grid. 24
Slide 25: DK Recycling – Drivers for improvement
DK Recycling – Operating model Drivers for DK Improvement Significant increase in gate fees provided a benefit of €3.2m Improved solid fuels pricing benefiting from a 15% reduction year on year Pig iron pricing has remained broadly flat 25
Slide 26: Our Commitment to ESG
Lg Hargreaves Our Commitment = to ESG
Slide 27: Hargreaves Services plc – ESG
Hargreaves Services plc – ESG Enabling renewable clean energy Net Zero reviewed May 2025 All Services businesses are supporting Phased reduction to zero carbon by UK Circular Economy through materials 2050 collection, transfer, and reuse/recycling Achieved PAS2080, demonstrating carbon red
Slide 28: Summary
é Ls Hargreaves ~~ Summary
Slide 29: Hargreaves Services plc – Outlook
Hargreaves Services plc – Outlook Services • Over 70% of revenues secured under contract for new financial year providing confidence in the continued delivery of sustainable and reliable profits into the future Group Outlook • Trading outlook for FY26 is Land strong led by Services and • Further rea
Slide 30: Hargreaves Services plc – Investment Case
Hargreaves Services plc – Investment Case Experienced Board with Proven Track Record Strong Balance Excellent and Sheet with No Sustainable Bank Debt Dividend High quality Return asset backed income Strong Three Pillars of Visibility of Business Value – Forward Work Services, Land, Pipeline HRMS 30
Slide 31: Hargreaves Services plc - Disclaimer
Hargreaves Services plc - Disclaimer No representation or warranty, expressed or implied, is made or given by or on behalf of Hargreaves Services plc (the “Company”) or any of its directors or any other person as to the accuracy, completeness or fairness of the information contained in this presen