Hargreaves Services Expects to Exceed Market Expectations
Why we think this is very good
The trading update from Hargreaves Services plc indicates the company is performing strongly, with both the Services and Hargreaves Raw Materials Services GmbH (HRMS) segments expected to deliver profit growth ahead of market expectations. The Services business has secured additional contract wins, while HRMS has seen improved profitability in its steel waste recycling operations. The company also has a healthy cash position and is reducing debt, further strengthening its financial position. Overall, the update paints a very positive picture of the company's performance.
Key Points
- Services and HRMS segments expected to drive profit growth ahead of market forecasts
- Services business secures additional contract wins, including progress on HS2 project
- HRMS joint venture sees significant growth in profitability
- Group holds £23.3m in cash reserves, reducing debt levels
Summary
Hargreaves Services plc has provided a trading update ahead of its preliminary results, indicating that the Group is expected to report revenue and profit before tax (PBT) ahead of market expectations for the year ended 31 May 2025. The Services business has secured additional contract wins, including progress on the HS2 project, and the Hargreaves Raw Materials Services GmbH (HRMS) joint venture has seen a significant growth in profitability. The company also has a healthy cash position and is reducing debt levels.