Hargreaves has announced that its renewable land assets have been independently valued, indicating a current value in the range of £21.6m-£23.1m or £27.2m-£28.9m when the assets commence generation, which is at various points over the period to Jan. ‘27. This excludes the Westfield EfW, where there are further value creation opportunities. It is the intention of the Board to realise the value of these assets over the next five years in an orderly manner and to repatriate proceeds to shareholders. We do not recognise an uplift in the NAV as yet but note that these assets are held in the balance sheet at an historic cost of only £6.6m, resulting in a substantial future potential gain. This is a clear demonstration of Hargreaves’ strategy to create, deliver and then realise value for shareholders, underpinning our Buy recommendation.
