Hargreaves Services
Website:
Hargreaves Services
Index:
AIM
EPIC: HSP
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£249.25M
Payout Frequency: Semi-Annual
Hargreaves Services Dividend Analysis and Summary
Key dividend details
- Interim dividend: 19.5p per share (up 5.4% year-on-year).
- Ex-dividend date: 19/03/2026 (derived from record date).
- Record date: 20/03/2026.
- Payment date: 07/04/2026.
- Policy and run-rate: Board reiterates a progressive policy; the interim represents 50% of the expected FY26 dividend of 39.0p (vs 37.0p in FY25).
- Indicative yield: At a referenced share price of £6.60, the indicated FY26 dividend implies a yield of roughly ~5.9% (39.0p/£6.60).
- Coverage:
- H1 EPS: 33.4p; H1 dividend 19.5p ? ~1.7x coverage.
- Using market EPS expectation of 53.3p for FY26 and DPS 39.0p ? annual payout ratio ~73% (likely modestly lower if EPS outperforms as guided).
Analysis: sustainability and growth
- Earnings and cash support: Strong H1 performance (PBT +170% to £14.3m; EBITDA £18.3m). Operating cash flow of £21.1m in H1, cash of £37.3m at 30 Nov 2025, plus a £4.0m HRMS cash return received in Jan 2026. This comfortably underpins the interim cash outlay (c. £6.5m) and a progressive dividend.
- Visibility: Services revenue is 90% secured for FY26; the Board guides to modest outperformance vs market expectations, supporting dividend growth momentum.
- Balance sheet: No conventional bank debt; liabilities are primarily lease-related (£43.2m). Net assets of £201.4m provide resilience.
- Capital allocation balance: Land asset realisations (e.g., £8.8m proceeds from renewable energy land tranche; Blindwells sale £11.5m) add liquidity that supports both dividends and buybacks. The planned £15.0m tender reduces the future dividend cash requirement per share and can enhance per-share dividend capacity.
- Growth trajectory: DPS up 5.4% aligns with earnings momentum and contract visibility; the stated aim remains progressive dividends.
Structural and policy developments affecting future dividends
- Return of capital: Tender offer of up to £15.0m targeted for April 2026 at a 12–15% premium (indicative price ~£7.50), potentially retiring ~6% of issued shares if fully taken. Near-term cash outflow, but supportive of per-share dividend metrics longer term.
- CEO succession: Gordon Banham to step down on 31/07/2026; COO Simon Hicks to become CEO on 01/08/2026. Continuity likely, but leadership transitions are a watchpoint for capital policy consistency.
- Asset realisations: First tranche of renewable energy land sold for £8.8m initial cash; further tranches expected and a potential top-up of up to £5.0m by Sep 2029 (dependent on wind yields), providing an additional prospective funding source for distributions.
- Capex commitment: Planned zinc recycling project (~€18m through FY28) with a €2m grant and a targeted state-guaranteed loan of =€4m. While strategic, this introduces competing claims on cash until the project becomes cash generative.
Risks and flags for dividend stability
- Timing/cash concentration: The April 2026 tender coincides closely with the 07/04/2026 dividend payment, compressing the cash buffer despite healthy liquidity.
- Seasonality and execution: Management notes results are weighted to H1 due to earthmoving seasonality; any slippage on major projects could impact H2 cash conversion.
- Working capital intensity: Rapid Services growth can absorb cash (receivables and contract assets remain elevated); monitor operating cash conversion.
- HRMS cyclicality: JV cash returns support dividends, but exposure to commodity cycles and tariffs (e.g., pig iron pricing) adds variability.
- Land realisation risk: Proceeds are inherently lumpy; the variable top-up from renewables depends on wind yields, adding uncertainty to medium-term cash inflows.
- Lease commitments: Rising lease liabilities (£43.2m) increase fixed cash outflows, though they are aligned with growth in Services activity.
- Strategic capex: The zinc recycling project carries execution and funding risk until operational (target FY28), potentially competing with distributions if internal cash generation weakens.
Read more
Hargreaves Services Annual Dividend Yield - 4.91%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 20/03/2025 |
08/04/2025 |
Interim |
18.50p |
GBX |
| 25/09/2025 |
03/11/2025 |
Final |
18.50p |
GBX |
Total (Annual Dividends Per Share):
37.00p
Dividend Yield =
Annual Dividends Per Share (37.00p)
÷ Share Price (754p)
= 4.91%
Hargreaves Services Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 19/03/2026 |
07/04/2026 |
Interim |
19.5000p |
GBX |
| 25/09/2025 |
03/11/2025 |
Final |
18.50p |
GBX |
| 20/03/2025 |
08/04/2025 |
Interim |
18.50p |
GBX |
| 26/09/2024 |
04/11/2024 |
Final |
18.00p |
GBX |
| 21/03/2024 |
11/04/2024 |
Interim |
18.00p |
GBX |
| 21/09/2023 |
30/10/2023 |
Special |
12.00p |
GBX |
| 21/09/2023 |
30/10/2023 |
Final |
6.00p |
GBX |
| 23/03/2023 |
06/04/2023 |
Interim |
3.00p |
GBX |
| 22/09/2022 |
31/10/2022 |
Special |
12.00p |
GBX |
| 22/09/2022 |
31/10/2022 |
Final |
5.60p |
GBX |
| 24/02/2022 |
06/04/2022 |
Interim |
2.80p |
GBX |
| 16/09/2021 |
29/10/2021 |
2nd Interim |
12.00p |
GBX |
| 16/09/2021 |
29/10/2021 |
Final |
4.50p |
GBX |
| 16/09/2021 |
29/10/2021 |
Special |
12.00p |
GBX |
| 25/02/2021 |
06/04/2021 |
Interim |
2.70p |
GBX |
| 17/09/2020 |
30/10/2020 |
Final |
4.50p |
GBX |
| 27/02/2020 |
06/04/2020 |
Interim |
2.70p |
GBX |
| 19/09/2019 |
01/11/2019 |
Final |
4.50p |
GBX |
| 28/02/2019 |
08/04/2019 |
Interim |
2.70p |
GBX |
| 20/09/2018 |
02/11/2018 |
Final |
4.50p |
GBX |
| 22/02/2018 |
06/04/2018 |
Interim |
2.70p |
GBX |
| 21/09/2017 |
20/10/2017 |
Final |
4.50p |
GBX |
| 23/02/2017 |
07/04/2017 |
Interim |
2.70p |
GBX |
| 22/09/2016 |
21/10/2016 |
Final |
0.60p |
GBX |
| 25/02/2016 |
08/04/2016 |
Interim |
1.70p |
GBX |
| 24/09/2015 |
23/10/2015 |
Final |
20.00p |
GBX |
| 26/02/2015 |
27/03/2015 |
Interim |
10.00p |
GBX |
| 23/10/2014 |
21/11/2014 |
Final |
16.70p |
GBX |
| 19/02/2014 |
21/03/2014 |
Interim |
8.80p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
18.000 |
18.000 |
|
GBX |
36.000 |
71.420 |
| 2023 |
3.000 |
6.000 |
12.000 |
GBX |
21.000 |
2.940 |
| 2022 |
2.800 |
5.600 |
12.000 |
GBX |
20.400 |
-34.610 |
| 2021 |
2.700 |
4.500 |
12.000 |
GBX |
31.200 |
333.330 |
| 2020 |
2.700 |
4.500 |
|
GBX |
7.200 |
0.000 |
| 2019 |
2.700 |
4.500 |
|
GBX |
7.200 |
0.000 |
| 2018 |
2.700 |
4.500 |
|
GBX |
7.200 |
0.000 |
| 2017 |
2.700 |
4.500 |
|
GBX |
7.200 |
213.040 |
| 2016 |
1.700 |
0.600 |
|
GBX |
2.300 |
-92.330 |
| 2015 |
10.000 |
20.000 |
|
GBX |
30.000 |
17.640 |
| 2014 |
8.800 |
16.700 |
|
GBX |
25.500 |
|
Hargreaves Services Dividend Calculator
Hargreaves Services Dividend Growth
| Dividend Growth (1Y) |
4.11%
|
| Dividend CAGR (5Y) |
14.63%
|
| Years of Growth |
5
|
| Payout Ratio |
56.03%
|
| Buyback Yield |
-2.07%
|
| Shareholder Yield |
3.15%
|
| P/E Ratio (TTM) | 11.63 |
|---|
| Forward P/E | 10.01 |
|---|
| P/FCF | 5.64 |
|---|
| Earnings Yield | 8.75% |
|---|
| FCF Yield | 17.73% |
|---|
| ROE | 11.16% |
|---|
| ROCE | 8.5% |
|---|
| Profit Margin | 6.77% |
|---|
| Operating Margin | 6.8% |
|---|
| Gross Margin | 18.75% |
|---|