Hargreaves’ FY24 results confirm an adj. PBT outturn which is in line with expectations at £16.9m (SCMe: £16.6m). It experienced strong performances in Services and Land, with reduced profitability, as well as a significantly increased cash receipt, from HRMS, all as anticipated. With a high level of secured Services revenue (70%), strong opportunities in Land and signs of recovery at HRMS, the outlook is confident. Against this, we continue to see significant value in the shares. The investment case is clear - as Hargreaves transitions to a capital-light and profitable Services and Land Development business, we expect a number of value realisation events, with potential to return up to £150m of capital vs. a market cap of £189m. We reflect one of these events in our FY27 forecasts. Investors are paid to wait for value to be realised, with a sustainable dividend yield of 6.3%. The shares trade broadly in line with NAV of 583p and significantly below our conservative sum of the parts valuation of 757p. Buy.
