Hargreaves Services PLC (GB:HSP)
LSE:HSP
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Hargreaves Services
(LSE:HSP)
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Rating:77Outperform
Price Target:
915.00 p
▲(39.06% Upside)
Action:ReiteratedDate:01/29/26
The score is driven primarily by solid financial performance (strong growth and cash generation with low leverage) and supportive technical strength (price above major moving averages with positive MACD). Valuation is a notable positive given the low P/E and high dividend yield, while the earnings call adds support via clear capital returns and momentum but is tempered by execution and timing risks in land/renewables and the zinc project.
Hargreaves Services (HSP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£265.12M
Dividend Yield4.85%
Average Volume (3M)40.41K
Price to Earnings (P/E)4.9
Beta (1Y)0.75
Revenue Growth42.35%
EPS Growth48.46%
CountryUK
Employees1,346
SectorN/A
Sector StrengthN/A
IndustryIntegrated Freight & Logistics
Share Statistics
EPS (TTM)0.33
Shares Outstanding33,057,453
10 Day Avg. Volume67,693
30 Day Avg. Volume40,407
Financial Highlights & Ratios
PEG Ratio0.82
Price to Book (P/B)1.15
Price to Sales (P/S)0.85
P/FCF Ratio8.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hargreaves Services Business Overview & Revenue Model
Company Description
Hargreaves Services (HSP) is a diversified company based in the UK, primarily operating in the energy and environmental sectors. The company specializes in the provision of services related to the logistics and handling of coal and other bulk mate...
How the Company Makes Money
HSP makes money primarily through (1) contracted industrial services and logistics-type activities and (2) value creation from its property/land portfolio.
1) Contracted services / industrial operations revenue: The company earns revenue by provi...
Hargreaves Services Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented substantial positive momentum: strong services revenue growth (+41% H1), improved group profitability (PBT GBP 14m, PAT GBP 11m), enhanced cash generation (EBITDA +23%), a progressive dividend (+5.5%) and clear plans to return capital (GBP 15m tender offer) and realise significant value from Land and Renewables over the next five years. Operational headwinds were acknowledged — slight services margin compression, weaker HRMS revenue (EUR 20m decline), seasonal losses at DK Recycling and execution/scale-up risk on the zinc project — but management quantified these risks, set conservative caps on downside exposure (zinc project max shareholder cost ~EUR 12m), and outlined mitigation plans (government grant/guarantee support, staged realizations, contract inflation protection). Overall, the positive operational momentum, cash-return program, and clear strategic plans materially outweigh the manageable short-term and execution risks.Positive Updates
Strong Services Revenue Growth
Services revenue increased from GBP 121m to GBP 171m (+41% year-on-year). Services remain the group's growth engine with a 5-year revenue CAGR of ~25% and profit growth nearly 40% p.a.
Negative Updates
Slight Services Margin Compression
Services margin fell from 7.3% to 6.8%, driven by lower-margin aggregates and subcontracted civils work despite strong revenue growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Services Revenue Growth
Services revenue increased from GBP 121m to GBP 171m (+41% year-on-year). Services remain the group's growth engine with a 5-year revenue CAGR of ~25% and profit growth nearly 40% p.a.
Read all positive updates
Company Guidance
Management guidance: the Board will return up to £15m to shareholders via an April tender offer (12–15% premium) funded by the first renewables tranche (upfront just under £9m, up to £5m deferred to Sep‑2029); the dividend was raised 5.5% to 19.5p for the half (targeting 39p FY), EPS was 33p and FY PBT £14m (PAT £11m). Operationally services revenue grew 41% H1 (£121m→£171m) with margins ~6.8–7.3% (services margin ~7%), order cover 90% for FY26/55% for FY27, 94% of contracts inflation‑protected, group ROCE ~7.5%, EBITDA +23% (~£18m), cash £37m at November, fixed assets £62m and lease liabilities £43m. Land guidance: £80m tied up to be reduced to ~£20m capital employed delivering £3–4m PBT pa (~20% ROCE) and £60–80m cash to be realised (Blindwells inventory ~£45m; near‑term renewables valued ~£15m). HRMS/Germany: H1 profit c.£1m, £4m dividend received so far (up to £7m expected by year‑end), DK expected to be a small full‑year profit, and a zinc‑recycling plant capex EUR18m (max shareholder downside ~EUR12m after grants/guarantee) targeted to deliver ~20% ROCE (~EUR3–4m pa if successful); management expect c.£150m potential cash repatriation over five years.Hargreaves Services Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
80
Positive
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Hargreaves Services Technical Analysis
Positive
658.00
Price Trends
759.07
Positive
704.81
Positive
696.29
Positive
Market Momentum
13.68
Negative
57.03
Neutral
65.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSP, the sentiment is Positive. The current price of 658 is below the 20-day moving average (MA) of 757.10, below the 50-day MA of 759.07, and below the 200-day MA of 696.29, indicating a bullish trend. The MACD of 13.68 indicates Negative momentum. The RSI at 57.03 is Neutral, neither overbought nor oversold. The STOCH value of 65.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSP.
Hargreaves Services Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
77 Outperform | £265.12M | 4.85 | 11.00% | 4.85% | 42.35% | 48.46% | |
70 Outperform | £213.48M | 7.49 | 36.50% | 5.18% | -3.57% | -0.80% | |
57 Neutral | £54.42M | 2,272.39 | 0.90% | 3.29% | 1.64% | -87.40% | |
55 Neutral | £27.80M | 19.38 | 10.68% | 3.37% | ― | ― | |
46 Neutral | £91.22M | -2.27 | -7.68% | 8.43% | 0.38% | -273.53% | |
42 Neutral | £35.86M | -1.79 | -89.16% | ― | ― | ― |
* Sector Average
GB:HSP
Hargreaves Services
806.00
226.04
38.98%
GB:ASY
Andrews Sykes
510.00
29.39
6.12%
GB:PRO
HSS Hire
4.25
-2.85
-40.14%
GB:SDY
Speedy Hire
20.10
1.78
9.69%
GB:VANL
Van Elle Holdings
50.60
16.79
49.66%
GB:HERC
Hercules Site Services Plc
34.50
-11.84
-25.55%
Hargreaves Services Corporate Events
Stock BuybackShareholder Meetings
Hargreaves Wins Strong Shareholder Backing for Tender Offer
Positive
Apr 29, 2026
Hargreaves Services plc has secured shareholder approval for its proposed Tender Offer at a General Meeting held in London, with 99.97% of votes cast in favour of the special resolution. The poll-based vote represented 55.91% of the issued share c...
Business Operations and StrategyFinancial Disclosures
Hargreaves Services gains £10m cash boost from Tungsten West deal
Positive
Apr 8, 2026
Hargreaves Services expects a £10 million cash boost following Tungsten West’s successful fundraising, comprising £3 million of accelerated deferred consideration from the 2019 sale of the Hemerdon tungsten and tin mine and a £...
Stock BuybackShareholder Meetings
Hargreaves Services Launches £20m Premium Tender Offer for 7.12% of Shares
Positive
Mar 27, 2026
Hargreaves Services plans to return up to £20 million to shareholders through a tender offer for up to 2,352,941 ordinary shares, representing about 7.12% of its expected issued share capital. The offer is priced at 850 pence per share, a pre...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Hargreaves Services Sells BESS Land Asset at Premium to Valuation
Positive
Mar 6, 2026
Hargreaves Services has agreed the unconditional sale of a second tranche of its renewable energy land portfolio, disposing of freehold land leased to a battery energy storage system in South Lanarkshire for £6.8m to Meadow Partners. The deal...
Business Operations and StrategyDividendsFinancial Disclosures
Hargreaves Services Lifts 2027 Outlook After Key Infrastructure Contract Wins
Positive
Mar 5, 2026
Hargreaves Services has secured an enabling earthworks subcontract worth about £10m from Balfour Beatty on the Lower Thames Crossing project, with work on the Roads North of the Thames set to ramp up in the 2027 financial year and further tal...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.