HARGREAVES SERVICES PLC
(“Hargreaves” or the “Group”)
Results for the year ended 31 May 2022
Hargreaves Services plc (AIM: HSP), a diversified group delivering key services to the industrial and property sectors, announces its results for the year ended 31 May 2022. The Group has delivered very strong results and developed a strong platform from which to create, deliver and realise value for shareholders.
KEY FINANCIAL RESULTS
|
Year ended 31 May |
2022 |
2021 |
|
|
|
Revenue* |
£177.9m |
£204.8m |
|
|
|
Underlying Profit Before Tax (“UPBT”)** |
£32.7m |
£21.2m |
|
|
|
Profit from joint ventures |
£28.2m |
£17.7m |
|
|
|
Profit Before Tax from continuing operations |
£34.5m |
£14.4m |
|
|
|
Basic earnings per share |
113.8p |
50.8p |
|
|
|
Basic underlying EPS from continuing operations* |
103.2p |
70.7p |
|
|
|
Proposed Final Dividend |
5.6p |
4.5p |
|
|
|
Proposed Additional Dividend Cash and cash equivalents*** |
12.0p £13.8m |
12.0p £28.3m |
|
|
|
Net (Debt)/Cash (including leasing debt) |
(£4.6m) |
£16.5m |
|
|
|
Net Assets |
£183.1m |
£144.3m |
|
|
|
Net Assets per Share |
563p |
447p |
|
|
* Revenue reduced following exit from coal activities in 2021, while like-for like Services revenue increased by 18.7% to £162.8m (2021: £137.2m)
** The basis of Underlying Profit Before Tax and basic underlying EPS is set out in Note 7
*** Excludes £15m loan made to HRMS, £12m of which was repaid in July
HIGHLIGHTS
· UPBT improved materially to £32.7m (2021: £21.2m), including £28.2m (2021: £17.7m) contribution from joint ventures
German joint venture contributed £27.3m (2021: £13.6m) benefitting from:
- Very strong commodity market conditions
- DK Recycling sustainable cost reductions and operational improvements
· Services UPBT increased to £7.6m from £5.1m as HS2 contract progresses
· Hargreaves Land momentum continues:
- Further sales delivered at Blindwells
- £50m of conditional contracts exchanged at Unity JV
- Renewable energy land portfolio records first rental incomes
· Balance sheet free of bank debt
· Net assets increased by 26.9% to £183.1m (2021: £144.3m)
· Final dividend of 5.6p (2021: 4.5p) proposed, an increase of 24.4%
· Additional dividend of 12p (2021: 12p) proposed, funded by dividend to be received from HRMS
Commenting on the preliminary results, Chairman Roger McDowell said: “The Board has a clear, strategic investment proposition from which to create, deliver and realise shareholder value. These results, which include the highest level of profit recorded in seven years, illustrate the Group's agility in taking advantage of market conditions whilst also delivering strong, underlying and sustainable profits. The Board is alive to current economic issues and our balance sheet strength will serve the Group well in a period of challenging global economic outlook.”