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(Sharecast News) - Hargreaves Services said on Thursday that it has secured two new contracts in its services division and upgraded market expectations for revenue and profit before tax for the year ending 31 May 2027.
The AIM-traded environmental, infrastructure and property services group said it had been appointed by Balfour Beatty as a subcontractor on the Lower Thames Crossing project, securing an enabling earthworks contract representing aggregate gross revenues of around 10m.
It said the subcontract covered works on the 'Roads North of the Thames' section of the project and was scheduled to begin in the latter part of the financial year ending May 2026, with the majority of the activity expected to take place during the year ending 31 May 2027.
Hargreaves said the award marked a further step in its involvement in the strategically significant Lower Thames Crossing infrastructure scheme, adding that it was also engaged in discussions regarding a potential enterprise agreement for the main earthworks on the same section of the project.
The contract would involve the first UK deployment of battery-electric heavy earthmoving equipment, supporting the group's commitment to delivering carbon-free earthworks by 2040.
It said the technology followed earlier trials conducted at the Sizewell C nuclear power station project.
Separately, Hargreaves said it had secured a contract at the Drax Power Station to construct a beneficiation plant on behalf of Power Minerals.
The facility would process up to 400,000 tonnes of legacy ash into supplementary cementitious material used in the production of low-carbon cement and concrete.
It said its services division, Hargreaves Land business and its joint venture in HRMS were continuing to trade in line with expectations.
Following the contract awards and improved visibility on future revenue, the company said it was upgrading market expectations for the year ending 31 May 2027.
Hargreaves said it expected revenue and profit before tax for the period to be around 4% higher than previous consensus forecasts.
Prior to the update, market expectations for the 2027 financial year were for revenue of 285.2m, underlying profit before tax of 23.5m, earnings per share of 50.5p and cash of 17.2m.
Separately, the board said the interim dividend for the financial year ending 31 May would be paid on 31 March to shareholders on the register as of 20 March.
At 1211 GMT, shares in Hargreaves Services were up 3.1% at 773.26p.
Reporting by Josh White for Sharecast.com.