Hargreaves Services plc Pre-Close Trading Update and Notification of Preliminary Results

Hargreaves Services plc

(“Hargreaves” or the “Group”)

Pre-Close Trading Update and Notification of Preliminary Results

Hargreaves Services plc (AIM: HSP), a diversified group delivering services to the industrial and property sectors, provides the following update on trading ahead of reporting its preliminary results for the year ended 31 May 2023.

The Board expects to report results at least in line with market expectations. A strong performance from the Services business as a result of increased revenue including that at HS2, as well as a better than expected contribution from the German Joint Venture (“HRMS”), albeit a substantial year-on-year reduction in contribution as commodity prices have normalised, has offset the impact of some delayed transactions within Hargreaves Land.

At 31 May 2023, the Group held cash reserves of approximately £22m (2022: £14m). This increase in cash is primarily due to the repayment of a short term loan of £15m by HRMS. This receipt has been offset by investment into the Group’s land assets, with Hargreaves Land adversely impacted by the deferral of certain transactions into the year ending 31 May 2024. Other than in its Joint Ventures, the Group has no bank debt. The Group’s leasing debt which relates to specific operating plant amounts to approximately £37m (2022: £18m). The increase in leasing debt is due to investment in plant to support the HS2 earthmoving contract.

Notification of Preliminary Results

The Board expects to report its preliminary results for the year ended 31 May 2023 on Wednesday 26 July 2023. Details of the analyst meeting and investor meeting, via the Investor Meet Company platform, to accompany the results will be provided in due course.

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