Industrial group Hargreaves Services says it is well placed to capitalise on renewed appetite for major infrastructure projects in the º£½ÇÊÓƵ.
The County Durham business - which includes industrial services, land regeneration and raw materials supply - has enjoyed strong growth on the back of involvement with high profile projects such as HS2 and Sizewell C Nuclear Power Station. Following a profit upgrade in June, new preliminary 2025 results show the revenue grew more than 25% to £264.4m in the year to the end of May, as underlying pre-tax profits grew more than 4% to £17.6m. Ebitda increased more than 29% to £33.7m.
Speaking to BusinessLive, Hargreaves CEO Gordon Banham said the business was in a strong position, with cash in the bank of more than £23m and a final dividend up nearly 3% to 18.5p. Describing the "solid and steady" numbers in the AIM-listed group's results, Mr Banham pointed to a turnaround in its German metal recycling joint venture, multimillion pound land assets that are to be turned into cash and very strong performance in its Service division where underlying profit before tax was up nearly 40% to £15.9m.
Across the Hargreaves Raw Materials Services (HRMS) GmbH joint venture, profits grew substantially from £1.3m in 2024 to £4.1m. The turnaround was said to be driven by narrowed losses at the firm's steel waste recycling near Duisburg which takes in waste dust from the steel industry and produces pig iron and zinc. The improved performance came from sourcing of low-cost fuels for the blast furnace, negotiated reductions in the cost of materials and favourable zinc pricing.
Meanwhile, in the group's land business, bosses said the pace of sales of renewable energy assets had been slower than expected, but that they were confident in securing deals in the future. Agents have revalued division's assets, which Mr Banham said had revealed a hidden £20m in value to give more than £100m assets, with a plan to sell around £80m.
And as well as the high profile work for the group's Services division, Hargreaves said it had grown its presence in the º£½ÇÊÓƵ water and energy sector thanks to partnerships with Yorkshire Water, Northumbrian Water and M Group. Overall Services revenue was up 20% to £246m.
Roger McDowell, Hargreaves group chair, said the business is well-positioned to capitalise on a strong pipeline of opportunities in the infrastructure sector. He said: "The Services business has already secured over 70% of its budgeted revenue for the upcoming year, showcasing its resilience and strength in key areas such as clean energy, water, and infrastructure projects.
"With further prospects emerging in these sectors, the group continues to demonstrate its capacity to adapt and thrive amidst evolving market conditions, ensuring sustainable growth and delivering continued value to shareholders. Despite challenges faced by HRMS, the notable improvement in the second half of the year, gives us confidence in an improved contribution for the current financial year. We plan to continue the realisation of value from our renewable energy land assets.
"The group maintains a robust, debt free balance sheet, providing a solid foundation for growth, whilst giving optionality as we look to realise value through targeted asset disposals over the coming years."
