- Hargreaves Lansdown
- 20 October 2025 12:43:02
Source: Sharecast
The AIM-traded firm said the disposal covered land in South Lanarkshire, Scotland, which generates rental income from two wind farms and three access agreements, producing £0.7m a year, including a £0.2m variable top-up linked to wind yields.
A further contingent payment of up to £5m was due by September 2029, with the company expecting around £3.8m based on average yield performance.
The assets sold formed part of a broader renewable energy land portfolio independently valued by Jones Lang LaSalle at a minimum of £27m in July.
Hargreaves said the tranche sold represented £12.6m of that valuation and £4m of book value.
The total expected consideration of £12.6m aligned with the independent valuation.
Hargreaves said the transaction was expected to deliver a one-off benefit of £3m to pre-tax profit and boost cash by around £8m in the financial year ending 31 May.
Chair Roger McDowell said the sale marked the start of a broader disposal programme.
“We are delighted to announce this initial transaction in relation to our portfolio of renewable energy land assets,” he said.
“This sale represents the first phase in the group's strategy to realise cash from these assets, and we are currently evaluating different mechanisms to return this cash to shareholders.
“This transaction marks the beginning of a number of material disposals from our developing renewables portfolio, which we intend to deliver for shareholders in the coming years.”
Consensus market expectations for the year to May 2026, prior to the update, stood at revenue of £270.9m, underlying pre-tax profit of £21.4m, earnings per share of 53.6p and year-end cash of £26.2m.
At 1218 BST, shares in Hargreaves Services were up 0.39% at 660.54p.
Reporting by Josh White for Sharecast.com.
