Tuesday, March 5, 2019

News: Harworth achieves excellent results again

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Rotherham-based regeneration plc, Harworth Group, has scored another set of positive financial results and is positioned for future growth.

One of South Yorkshire's largest publicly listed companies was created through the complex restructure of what was UK Coal. A specialist in brownfield regeneration, Harworth, which is based close to its own Waverley development, is one of the largest property and regeneration companies working in the North of England and the Midlands.

The focus has been on "beds and sheds" sectors and Harworth owns and manages a growing portfolio of around 21,500 acres of land on around 120 sites located throughout the North of England and the Midlands.

In its unaudited results for the year ended December 31 2018 the premium listed LSE firm, posted revenues of £78.1m, up from £53.7m in the previous year.

Harworth's main metric is EPRA net asset value (EPRA NAV) which provides a fair value of all of its assets and liabilities. Harworth continues to meet its target to grow EPRA NNNAV by at least 10% per annum and saw 13.3% growth in 2018.

Highlights for the year include eleven acquisitions completed for a total of £57.9m, with the potential for the development of 2,000 homes and over 1.5m sq ft of commercial space. Value is raised from securing planning consent and making record property sales of £93.2m, nearly double the 2017 figure of £54.8m.

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Owen Michaelson, chief executive at Harworth, said: "These are excellent results with Harworth again achieving its long-term objective of double-digit total return, reflecting our ability to seize opportunities to maximise the value of our existing portfolio. This has been achieved whilst simultaneously growing our regional land and property portfolio through selective acquisitions and new lettings, positioning us well for future growth.

"With the ongoing under supply of new homes and commercial space across the UK, our focus on the "beds and sheds" sectors in the North of England and the Midlands continues to address a clear economic and social need, evidenced by strong economic and consumer trends in those regions and reinforced by supportive central and local Government policy. This favourable backdrop coupled with our ability to execute a range of deals and our in-house technical expertise has been reflected in the record residential and commercial land sales realised in the year, alongside headline rents being achieved on commercial space that we have directly developed at our flagship sites at Waverley and Logistics North.

"2018 was a record year for acquisitions, with c.£60m of carefully selected purchases. These provided both additional long-term recurring income as we continue to improve the breadth and quality of our income base, and added further strategic land growing our pipeline of large complex sites, particularly those requiring regeneration, to deliver future value gains through our market-leading planning and development expertise.

"Momentum has been maintained, with a significant quantum of new planning applications already in the system awaiting determination and over 50% of expected 2019 full year sales already agreed. Whilst the outcome of Brexit negotiations remains uncertain, Harworth's property portfolio and balance sheet are strong, resilient and well-positioned to provide a platform for future growth."

Harworth Group website

Images: Harworth

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