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Hargreaves Services PLC on Tuesday announced a sharply higher dividend as it noted an improvement in the second half of the financial year just past, amid a contraction in full-year profit. The Durham, England-based provider of services to industrial and property sector said pretax profit fell 39% to £16.7 million in the financial year ended May 31, from £27.2 million a year prior. ‘The reduction is due, in most part, to the challenges faced by [Hargreaves Raw Material Services]. HRMS did see an improved second half of the year with more favourable, although still uncertain, market conditions resulting in increased volumes. There are also early signs of improvement in gate-fees and commodity pricing,’ the company explained. HRMS is its German joint venture. Revenue edged down 0.2% to £211.1 million from £211.5 million. The company said: ‘At the start of FY24 demand for both residential and commercial plots was very subdued as rapidly rising interest rates and wider macro-economic uncertainty weighed on markets. This market fragility persisted into the second half of the year but as conditions stabilised and the medium-term outlook for interest rates moderated we saw a return of demand from house builders for serviced residential land in quality locations although values have yet to recover to levels seen at the peak of the market.’ Net asset value per share declined to £5.86 as at May 31, from £6.18 a year ago. Hargreaves Services proposed a final dividend of 18.0 pence per share, sharply up from 6.0p a year prior. This brings the total payout to 36.0p, up 71% from 21.0p. Looking ahead, Chair Roger McDowell said: ‘The group remains steadfast in its core objective to create, realise and deliver value for our shareholders. Despite challenges faced by HRMS, the notable improvement in the second half of the year gives us confidence in an improved contribution for the current financial year. We are also excited to introduce the first tranche of renewable energy land assets to the market, marking the start of substantial realisation events within this business sector.’ Hargreaves Services shares rose 4.8% to 566.00 pence each on Tuesday afternoon in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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