Hargreaves Services (AIM:HSP), the AIM-listed group delivering services to the environmental, infrastructure and property sectors, reported underlying profit before tax up 93.2% to £34m for the year ended 31 May, from £17.6m a year earlier.
Revenue rose 32.9% to £351.4m, from £264.4m, with growth across all three business units of Services, Land and Germany.
EBITDA increased 8.6% to £36.6m, from £33.7m, driven by improved profitability in the Services business, which grew underlying profit before tax by 27.0% and now holds more than 75 term and framework contracts, giving visibility of over 70% of next year's expected revenue.
Hargreaves Land completed the realisation of two renewable energy land assets for initial cash of £15.6m, in line with third-party valuations, funding a £20m tender offer returned to shareholders in May.
The company's German joint venture, HRMS, paid a £6.6m dividend, up from £6.3m, supporting the Group's payout.
The board proposed a final dividend of 20.5p, up from 18.5p, taking the full-year dividend to 40.0p, up from 37.0p, an increase of 8.1%.
Cash stood at £21.6m, down from £23.3m, after £32.6m was returned to shareholders through dividends and the tender offer, while leasing debt rose to £40.4m from £32.8m to fund plant fleet investment.
"We delivered continued progress across the group, maintained financial discipline, and returned significant capital to shareholders through both dividends and share buybacks", said chair Roger McDowell.
Gordon Banham steps down as Chief Executive on 31 July, succeeded by Simon Hicks, currently Chief Operating Officer.
News Intelligence what this means for the company
Hargreaves Services reported underlying PBT up 93% to £34m on 33% revenue growth, with all three divisions contributing. The Services unit—now holding 75+ term and framework contracts covering 70% of next year's revenue—drove profitability gains, while land realisations of £15.6m funded a £20m shareholder tender, demonstrating capital discipline alongside growth.
The sharp PBT jump masks a more modest EBITDA rise (8.6%), suggesting margin expansion in Services offset by lower-margin revenue mix or one-time land gains. With cash at £21.6m after returning £32.6m to shareholders and leasing debt rising to £40.4m for fleet investment, the company is deploying capital aggressively; the visibility of 70% of next year's Services revenue provides some earnings predictability, but execution risk on the new CEO transition (Gordon Banham steps down 31 July, succeeded by Simon Hicks) and the sustainability of land realisations warrant monitoring.
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