Hargreaves Services (HSP) AI Stock Analysis

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Hargreaves Services

(LSE:HSP)

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Outperform 71 (OpenAI - 5.2)

Rating:71Outperform

Price Target:

789.00p

▲(19.91% Upside)

Action:UpgradedDate:12/07/25

Hargreaves Services demonstrates strong financial performance with robust revenue growth and cash flow generation. The stock's valuation is attractive, supported by a reasonable P/E ratio and a solid dividend yield. Recent corporate events further bolster confidence in the company's strategic direction. However, technical indicators suggest a cautious outlook due to bearish trends.

Hargreaves Services (HSP) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap

£254.54M

Dividend Yield4.85%

Average Volume (3M)40.41K

Price to Earnings (P/E)4.9

Beta (1Y)0.63

Revenue Growth25.24%

EPS Growth19.81%

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 DescriptionHargreaves 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 materials, as well as offering waste management solutions and energy generation services. HSP's core products include coal handling operations, biomass supply, and environmental services, catering to a range of clients in the energy and industrial sectors.

How the Company Makes MoneyHargreaves Services generates revenue through multiple streams, primarily by providing logistics and material handling services for coal and other bulk materials. This includes managing supply chains for energy companies, which involves the transportation, storage, and processing of coal. Additionally, the company earns income from its waste management services, where it handles and processes waste materials for various industries. Another significant revenue stream comes from energy generation, particularly through the use of biomass and renewable energy sources. HSP has established partnerships with energy providers and industrial clients, which contribute to stable contracts and recurring revenue. The company's position in the energy sector is bolstered by its ability to adapt to changing market demands, including the transition towards more sustainable energy solutions.

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.

Q2-2026 Updates

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.

Improved Group Profitability and EPS

Group profit before tax of GBP 14m and profit after tax of GBP 11m, delivering EPS of 33p for the half-year.

Cash Position and Capital Return

Cash in bank of GBP 37m at period end (partly boosted by working capital timing and renewables sale). Board announced up to GBP 15m return to shareholders via a tender offer (to be executed at 12–15% premium, expected in April).

Renewables Tranche Realisation

First tranche of Renewables sold for upfront cash just under GBP 9m with up to GBP 5m deferred payments to September 2029; sale proceeds aligned with Jones Lang LaSalle valuation and helped fund the GBP 15m tender offer.

Dividend Increase

Interim dividend increased by 5.5% to 19.5p (intend full-year dividend of 39p), described as progressive and above inflation.

EBITDA and Cash Generation

EBITDA increased by 23%, underlining the group's improving cash generation capability and supporting reinvestment and shareholder returns.

Hargreaves Land Sales and Profit Recovery

Hargreaves Land revenue rose from GBP 4m to GBP 12m; Hargreaves Land reported profit of GBP 4m vs a loss of GBP 1.4m in the prior period, reflecting Blindwells sale(s) and the renewables disposal profit (GBP ~3m).

HRMS Joint Venture Performance & Dividends

HRMS moved from breakeven to a GBP 1m profit in H1. The group received GBP 4m dividend from HRMS to date and expects up to GBP 7m by year end.

Order Visibility and Contract Quality

Services order coverage: ~90% for FY2026 and ~55% for FY2027; 94% of contracts provide inflation protection. Top 5 customers represent 65% of contracted revenues and long-term relationships average 3.9 years.

Strategic Investment in Growth (Plant & Equipment)

Fixed assets (plant & machinery) increased to GBP 62m and lease finance increased to GBP 43m, supporting the service business growth and higher volumes on major infrastructure projects (e.g., HS2, Sizewell, AMP8).

Land Strategy and Cash Realisation Target

Plan to realise GBP 60m–80m cash from the Land division over ~5 years and reduce capital employed in Land to ~GBP 20m, targeting a leaner planning/promotional business delivering c. GBP 3m–4m PBT per annum at ~20% ROCE.

Zinc Recycling Project Upside (Managed Risk)

Planned zinc processing plant: total capex EUR 18m with EUR 2m government grant and potential EUR 4m state guarantee. Company capped maximum shareholder exposure at ~EUR 12m; target conservative ROCE c.20% and estimated steady-state profit c. EUR 3–4m if successful.

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.

HRMS Trading Revenue Decline

HRMS trading revenue reduced by approximately EUR 20m in the period due to a difficult German trading environment; although margin per tonne improved, top-line weakness is notable.

DK Recycling Seasonal Loss and Commodity Pressure

DK Recycling incurred a H1 loss (seasonal) though management expects a small full-year profit; pig iron prices have been weak (impacting returns) and long-term availability of steel dust is expected to decline.

Large Capital Tied Up in Land and Timing Risk

Approximately GBP 80m of cash tied up in Land at historic book cost; realization dependent on market timing (e.g., Unity scheme progress slow, Blindwells sales matter). GBP 60m–80m target realizations are multi-year and subject to market risk.

One-off/Timing Effects Inflating Reported Cash

Reported GBP 37m cash balance was partly swelled by beneficial working capital timing; management noted this is not the normal level of cash, implying some volatility in reported liquidity.

Increased Leverage via Finance Leases

Finance lease debt increased to GBP 43m to fund CapEx for growth; while supporting revenue expansion, it increases fixed obligations on the balance sheet.

Unrealized Renewables Value Remaining

GBP 15m valuation remains for near-term renewables tranches (and further ~800MW potential assets several years away); timing and planning risk remain for those future cash flows.

Technical and Execution Risk on Zinc Project

Zinc plant faces scale-up and execution risk (chemistry proven in pilot but unproven at full scale). If unsuccessful, the capped shareholder cost is c. EUR 12m; success is required to realize the projected upside.

Market Liquidity and Shareholder Return Method

Board chose a tender offer (instead of open-market buybacks) due to low market liquidity and a wide shareholder base; this reflects trading/marketability constraints for shareholders who may prefer alternative return methods.

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

Hargreaves Services has shown strong revenue growth and cash flow generation, with a stable balance sheet and low leverage. However, there is room for improvement in operational efficiency and return on equity.

Income Statement

Positive

Hargreaves Services has shown a strong revenue growth rate of 16.84% in the latest year, indicating a positive trajectory. The gross profit margin of 20.74% and net profit margin of 5.58% reflect stable profitability. However, the EBIT margin of 8.01% suggests room for improvement in operational efficiency.

Balance Sheet

Positive

The company maintains a healthy debt-to-equity ratio of 0.17, indicating low leverage and financial stability. The return on equity (ROE) is 7.59%, which is moderate but shows potential for improvement. The equity ratio of 61.53% suggests a strong equity base relative to total assets.

Cash Flow

Positive

Hargreaves Services has demonstrated impressive free cash flow growth of 129.83%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio of 0.39 and free cash flow to net income ratio of 0.88 indicate efficient cash flow management.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Hargreaves Services Technical Analysis

Technical Analysis Sentiment

Positive

Last Price658.00

Price Trends

50DMA

723.92

Positive

100DMA

688.92

Positive

200DMA

699.02

Positive

Market Momentum

MACD

11.89

Positive

RSI

51.60

Neutral

STOCH

18.47

Positive

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 787.60, below the 50-day MA of 723.92, and below the 200-day MA of 699.02, indicating a neutral trend. The MACD of 11.89 indicates Positive momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 18.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSP.

Hargreaves Services Peers Comparison

Overall Rating

UnderperformOutperform

Sector (―)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
HSP	71 Outperform	£254.54M	4.85	7.63%	4.85%	25.24%	19.81%
ASY	69 Neutral	£209.29M	7.49	38.39%	5.18%	-3.57%	-0.80%
HERC	60 Neutral	£39.08M	-101.52	23.37%	3.37%	11.70%	79.80%
VANL	57 Neutral	£39.49M	2,272.39	5.90%	3.29%	-6.46%	-56.20%
SDY	56 Neutral	£105.39M	-2.27	-7.62%	8.43%	0.38%	-273.53%
PRO	42 Neutral	£58.30M	-1.79	―	―	―	―

* Sector Average

Performance Comparison

GB:HSP

Hargreaves Services

770.00

151.20

24.43%

GB:ASY

Andrews Sykes

500.00

14.63

3.01%

GB:PRO

HSS Hire

7.30

1.30

21.67%

GB:SDY

Speedy Hire

22.90

4.87

27.04%

GB:VANL

Van Elle Holdings

36.50

-1.18

-3.12%

GB:HERC

Hercules Site Services Plc

48.50

1.18

2.49%

Hargreaves Services Corporate Events

Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures

Hargreaves Services Lifts Profit, Plans £15m Cash Return and CEO Transition

Positive

Jan 28, 2026

Hargreaves Services reported a strong first-half performance for the six months to 30 November 2025, with revenue up 46.1% to £183.1m and profit before tax surging 169.8% to £14.3m, driven largely by growth in its Services division on major infrastructure projects and supported by profitable contributions from Hargreaves Land and the HRMS joint venture. The Group’s cash position more than doubled to £37.3m, aided by the completion of the first tranche sale of its renewable energy land assets for £8.8m, enabling the Board to announce plans for a cash return of up to £15m via a tender offer at a premium to the current share price, alongside a 5.4% increase in the interim dividend and confirmation of a CEO succession, with long-standing chief executive Gordon Banham set to step down in July 2026 to be succeeded by COO Simon Hicks. With 90% of Services revenue already contracted for the current financial year and strong visibility in Land and HRMS, the company expects its Services division to outperform previous market forecasts and now anticipates full-year profit before tax and EBITDA to be around 4% ahead of expectations, signalling improved earnings momentum and a more assertive capital-return posture for shareholders.

The most recent analyst rating on (GB:HSP) stock is a Buy with a £716.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures

Hargreaves Services Sets January Date for Interim Results and Investor Briefings

Neutral

Jan 6, 2026

Hargreaves Services plc has scheduled its interim results briefings for the six months to 30 November 2025, with a dedicated analyst presentation at 9.30am GMT and a broader investor presentation via the Investor Meet Company platform at 4.30pm GMT, both on 28 January 2026. The company is seeking to engage both sell-side analysts and current and prospective shareholders through these events, underlining its emphasis on transparency and investor relations as it updates the market on performance across its services, land development and raw materials joint venture operations.

The most recent analyst rating on (GB:HSP) stock is a Buy with a £716.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures

Hargreaves Services Projects Strong Interim Results Amid Growth in Key Segments

Positive

Dec 11, 2025

Hargreaves Services plc anticipates strong interim results for the six months ending November 2025, with revenue and profit growth across all segments. The Services business has shown steady growth, particularly in infrastructure projects, while Hargreaves Land has benefited from significant sales, including renewable energy land assets. The group’s joint venture, HRMS, continues stable trading despite economic challenges. The company has increased its cash holdings significantly, reflecting successful sales and positive trading, and remains free from bank debt, supporting ongoing growth in its Services activities.

The most recent analyst rating on (GB:HSP) stock is a Buy with a £716.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

Business Operations and Strategy

Hargreaves Services Hosts Capital Markets Day to Highlight Strategic Growth Opportunities

Neutral

Nov 26, 2025

Hargreaves Services plc is hosting a Capital Markets Day in London, focusing on its Services and HRMS divisions. The event will highlight the company’s target markets in connectivity, clean energy, and environmental support, with insights into specific projects and opportunities in the steel waste market as Europe transitions to green steel. The presentation aims to provide analysts and investors with a deeper understanding of Hargreaves’ strategic operations and growth potential, although no new trading information will be disclosed.

The most recent analyst rating on (GB:HSP) stock is a Hold with a £671.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

Business Operations and Strategy

Hargreaves Services Awards Share Options to Key Personnel

Positive

Nov 21, 2025

Hargreaves Services plc announced the awarding of 210,713 share options to directors, PDMRs, and senior employees under its Executive Share Option Scheme 2025. This move is part of the company’s strategy to incentivize key personnel, potentially impacting its operational efficiency and stakeholder value by aligning management interests with shareholder interests.

The most recent analyst rating on (GB:HSP) stock is a Hold with a £671.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

Other

Hargreaves CEO Increases Stake, Signaling Confidence in Company’s Future

Positive

Nov 5, 2025

Hargreaves Services plc announced that its CEO, Gordon Banham, through his wholly-owned company GB Holdings (2021) Limited, purchased 7,600 ordinary shares at 650 pence each, increasing his stake to 8.45% of the company’s issued shares. This transaction underscores Banham’s confidence in the company’s prospects and could positively influence stakeholder perceptions, potentially impacting the company’s market position and investor relations.

The most recent analyst rating on (GB:HSP) stock is a Hold with a £772.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

Business Operations and Strategy

Hargreaves Services Announces Capital Markets Day to Highlight Strategic Opportunities

Neutral

Nov 3, 2025

Hargreaves Services plc has announced a Capital Markets Day for analysts and institutional investors on November 26, 2025, in London. The event will focus on the company’s Services and HRMS divisions, highlighting opportunities in connectivity, clean energy, and environmental support, as well as the evolving steel waste market in Europe. The event will offer networking opportunities with the senior management team and will be accessible to retail investors via a live webcast.

The most recent analyst rating on (GB:HSP) stock is a Hold with a £772.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

Business Operations and StrategyShareholder Meetings

Hargreaves Services plc Successfully Concludes AGM with All Resolutions Passed

Positive

Oct 29, 2025

Hargreaves Services plc announced that all resolutions were passed at its recent Annual General Meeting. The meeting included a presentation by CEO Gordon Banham, which did not disclose any new material information. The successful AGM resolutions indicate continued support for the company’s strategic direction and operations, potentially strengthening its industry position and reassuring stakeholders.

The most recent analyst rating on (GB:HSP) stock is a Hold with a £772.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures

Hargreaves Services Reports Steady Performance and Strategic Milestones

Positive

Oct 29, 2025

Hargreaves Services plc announced that its three business units have met performance expectations in the first four months of the year. The company has seen continued positive momentum in the infrastructure sector, benefiting its Services business, particularly with major projects like HS2 and Sizewell C. Hargreaves Land has completed significant sales, including renewable energy land assets and a plot at Blindwells, demonstrating value realization. Despite challenges in the German economy, HRMS operations remain stable. The Board is confident in meeting full-year market expectations, with further updates anticipated in December.

The most recent analyst rating on (GB:HSP) stock is a Hold with a £772.00 price target. To see the full list of analyst forecasts on Hargreaves Services stock, see the GB:HSP Stock Forecast page.

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.Date of analysis: Dec 07, 2025