Hargreaves Services PLC (GB:HSP)
LSE:HSP
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Hargreaves Services
(LSE:HSP)
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Select Model
Rating:71Outperform
Price Target:
789.00 p
▲(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
£249.25M
Dividend Yield4.85%
Average Volume (3M)40.41K
Price to Earnings (P/E)4.9
Beta (1Y)0.72
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 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
Hargreaves 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 transp...
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
743.07
Positive
690.79
Positive
691.58
Positive
Market Momentum
0.28
Negative
53.57
Neutral
63.59
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 737.28, below the 50-day MA of 743.07, and below the 200-day MA of 691.58, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.59 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 |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
71 Outperform | £249.25M | 4.85 | 11.00% | 4.85% | 25.24% | 19.81% | |
70 Outperform | £194.22M | 7.49 | 36.50% | 5.18% | -3.57% | -0.80% | |
57 Neutral | £34.62M | 2,272.39 | 0.90% | 3.29% | -6.46% | -56.20% | |
55 Neutral | £27.80M | 19.38 | 10.68% | 3.37% | 11.70% | 79.80% | |
46 Neutral | £89.10M | -2.27 | -7.68% | 8.43% | 0.38% | -273.53% | |
42 Neutral | £37.73M | -1.79 | -89.16% | ― | ― | ― |
* Sector Average
GB:HSP
Hargreaves Services
754.00
259.61
52.51%
GB:ASY
Andrews Sykes
464.00
-9.00
-1.90%
GB:PRO
HSS Hire
4.73
-1.66
-25.94%
GB:SDY
Speedy Hire
19.36
1.65
9.32%
GB:VANL
Van Elle Holdings
32.00
0.60
1.92%
GB:HERC
Hercules Site Services Plc
34.50
-11.84
-25.55%
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 ma...
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 GM...
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 H...
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 in...
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, potenti...
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...
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 connectivi...
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 ...
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...
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.