Hargreaves Services (AIM:HSP) said on Wednesday that current-year trading is in line with the board's expectations, as the AIM-listed environmental, infrastructure and property services group reiterated it expects to meet market forecasts for the year ending 31 May 2027.
Chair Roger McDowell told the group's annual general meeting that Hargreaves has made "a good start to the financial year", pointing to new contract wins in its target markets including the previously announced Sizewell C engineering project and a new 15-year logistics contract with Re.Group supporting the UK Deposit Return Scheme in Scotland.
The Sizewell C award, under which Hargreaves will design, procure, manufacture, install, test and commission three foul water treatment facilities for the nuclear power project, is expected to run for two years from early 2027 and contribute to revenue across the 2027 and 2028 financial years.
The Re.Group logistics contract is expected to start in October 2027, contributing from the 2028 financial year with its full impact landing in the 2029 financial year and beyond, McDowell said.
"The Board remains confident in the Group's prospects and expects to deliver results for the year ending 31 May 2027 in line with current market expectations," he said.
The company said consensus market expectations for the year ending 31 May 2027, prior to today's statement, stood at revenue of £292.1m, pre-tax profit of £17.8m, earnings per share of 48.8p and cash of £26.3m.
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Hargreaves posted revenue of £351.4m and underlying pre-tax profit of £34m for the year ended 31 May, up 32.9% and 93.2% respectively, with cash at £21.6m after the group returned £32.6m to shareholders through dividends and a tender offer.
The board expects to issue a further trading update in December, ahead of interim results for the six months to 30 November, due on Wednesday 27 January 2027.