Hargreaves Services PLC – HSP – Preliminary Results

Hargreaves Services PLC – HSP – Preliminary Results

Hargreaves Services plc (AIM: HSP), a diversified group delivering key services to the industrial and property sectors, announces its preliminary results for the year ended 31 May 2020.

 

KEY FINANCIAL RESULTS

 

Year ended 31 May

   2020

2019

Revenue

£222.2m

£302.6m

Operating Profit/(loss)

£1.3m

£(9.7)m

Underlying Profit Before Tax*

£4.9m

£6.4m

Profit/(loss) Before Tax

£2.2m

£(9.9)m

Basic earnings/loss per share from continuing operations

13.4p

(25.7p)

Underlying basic EPS* from continuing operations

19.9p

15.3p

Final Dividend

4.5p

4.5p

Net Debt (after IFRS 16 adjustments)

£28.1m

£24.5m

Net Assets

£130.1m

£127.5m

Net Assets per Share

403p

397p

                                   

* Underlying Profit Before Tax and underlying basic EPS is stated prior to exceptional items, fair value adjustments, amortisation and impairment of intangible assets, fair value gains on acquisition and includes the Group's share of the post-tax profit in joint ventures, see note 6.

 

HIGHLIGHTS

 

·      Underlying performance of the Group has been satisfactory

·      Revenue fell as expected to £222.2m (2019: £302.6m) as Specialist Earthworks awaits HS2 contract full mobilisation

·      Impact of Covid-19 on Distribution & Services trading has been modest

·      Underlying PBT lower than prior year due to sales at Blindwells delayed to FY21 by Covid-19

·      £25m conditional contract exchanged at Unity Joint Venture for a 32 hectare commercial development

·      Decision to cease coal mining results in a £4.1m exceptional charge

·      Progress at German Joint Venture

Carbon Pulverisation Plant now operational

DK Recycling delivering break even performance since acquisition in December 2019

·      Christopher Jones appointed as Non-executive Director on 1 April 2020

·      Final dividend of 4.5p (2019: 4.5p) maintained following cancellation of interim due to Covid-19

Commenting on the preliminary results, Chairman Roger McDowell said: "My second annual report as Chairman is set against the background of the Covid-19 coronavirus pandemic which has impacted all of our personal lives and many businesses in an unprecedented manner. The Board has prioritised the health and safety of our employees above all else during this time and I am very grateful to all of our employees who have continued to support the business and work hard through this difficult period. Whilst Covid-19 has caused some delay to transaction completions within the Hargreaves Land business, the rest of the Group has been able to continue to trade without any material adverse impact and I would characterise the year as one of solid progress by the Group."

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