Hargreaves Services

Website: Hargreaves Services
Index: AIM
EPIC: HSP
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Business Support Services
Market Cap: £247.93M
Payout Frequency: Semi-Annual

Next Hargreaves Services Dividend

Hargreaves Services next goes ex-dividend on 19/03/2026. This will be the Interim dividend for 2026.

The dividend per share amount is 19.5000p (GBP) and the payment date is 07/04/2026.

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.

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 (750p) = 4.93%

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

Number of Shares:

Payment	Paid	Amount
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