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(Sharecast News) - Hargreaves Services said in an update on Wednesday that it expects to report full-year revenue and profit before tax ahead of market expectations, driven by strong performances from both its services division and its German joint venture, Hargreaves Raw Materials Services (HRMS).
The AIM-traded group, which operates across the environmental, infrastructure and property sectors, said it would report preliminary results for the year ended 31 May on 30 July.
It said its services division continued its strong momentum in the second half, securing additional contract wins and benefiting from increased earthmoving activity.
Progress on major projects such as HS2, now around 60% complete, and Sizewell C contributed to the growth.
The company said it expected revenue and profit before tax from the services division to exceed expectations by approximately 6% and 7%, respectively.
It added that the strength of the pipeline provided confidence that future years would also outperform current forecasts.
The HRMS joint venture delivered significant growth in profitability, driven by improved performance in its steel waste recycling operations, which benefited from higher gate fees and lower fuel costs.
Hargreaves Land had a steady year following record profits in the previous period.
The company said progress was continuing on the sale of its first tranche of renewable energy land assets, with a transaction expected to complete in 2025.
Hargreaves said it ended the financial year with cash reserves of £23.3m, up from £22.7m a year earlier.
Net debt, excluding joint ventures, consists solely of £32.8m in leasing debt tied to a specific operating plant, down from £34.2m the prior year.
At 1212 BST, shares in Hargreaves Services were up 6.46% at 723.9p.
Reporting by Josh White for Sharecast.com.
