News: Record total return as Harworth steps into its growth strategy
Harworth Group plc, the Rotherham-based leading regenerator of land and property for sustainable development and investment, has published a set of strong financial results for 2021.
Listed on the London Stock Exchange, Harworth is based close to its flagship Waverley development and is a specialist in brownfield regeneration, owning and managing approximately 15,000 acres on around 100 sites in the North of England and the Midlands.
In its full year results for the year ended 31 December 2021, the value of the company's assets, measured by EPRA NDV, increased 23.6% to £637.5m from £515.9m in 2020.
Total return, the actual rate of return of Harworth's investments, increased to 24.6% in 2021, from 3.0% in 2020.
Lynda Shillaw, Chief Executive, Harworth Group plc, said: "Harworth maintained its strong momentum throughout 2021, as we stepped into our ambitious strategy to reach £1bn of EPRA NDV over five to seven years. Our performance, combined with tailwinds in our end markets, has translated into a significant increase in EPRA NDV and our highest annual Total Return to date.
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“In addition to the significant progress made in planning, direct development, lettings and land sales across our portfolio during the year, we agreed terms for the sales of our Ansty strategic land site and Kellingley development site, conditional on planning consent, at significant premiums to book value. The proceeds from these sales once completed, alongside the larger senior debt facility we have secured, will provide us with additional firepower to deploy across our development sites and acquisition pipeline.
“Our core sectors continue to perform well, but are not immune to wider macroeconomic pressures. Our focus now is on the execution of the strategy, ensuring that, as we work through our plans, the team has the skills and resources to deliver consistently and successfully, sustainably growing the business and delivering returns through the cycle. This will ensure that we continue to deliver places where people want to live and work.”
The company has also seen growth in its staff numbers, going from 75 to 91 in the year.
Harworth's focus has been on the "beds and sheds" sectors where demand remains strong. The financial year saw the new CEO launch and complete a strategic review of the business. This outlined an ambitious growth strategy but Harworth plans to keep doing what it is doing, with plans to grow its strategic land portfolio and land promotion activities - backed by a new £200m revolving credit facility (RCF).
Shillaw added: "Our strategy is evolution not revolution, and fundamentally we remain a business that is regionally focused in the industrial & logistics and residential sectors. We have a deep understanding of the regions that we operate in and continue to deploy our specialist skills to assemble complex sites and work them through the planning process and into production. Our strategy work has identified the potential of our landbank to do more, faster, and provides a roadmap to enable us to scale up the creation of sustainable places where people want to live and work."
Harworth Group website
Images: Harworth
Listed on the London Stock Exchange, Harworth is based close to its flagship Waverley development and is a specialist in brownfield regeneration, owning and managing approximately 15,000 acres on around 100 sites in the North of England and the Midlands.
In its full year results for the year ended 31 December 2021, the value of the company's assets, measured by EPRA NDV, increased 23.6% to £637.5m from £515.9m in 2020.
Total return, the actual rate of return of Harworth's investments, increased to 24.6% in 2021, from 3.0% in 2020.
Lynda Shillaw, Chief Executive, Harworth Group plc, said: "Harworth maintained its strong momentum throughout 2021, as we stepped into our ambitious strategy to reach £1bn of EPRA NDV over five to seven years. Our performance, combined with tailwinds in our end markets, has translated into a significant increase in EPRA NDV and our highest annual Total Return to date.
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“In addition to the significant progress made in planning, direct development, lettings and land sales across our portfolio during the year, we agreed terms for the sales of our Ansty strategic land site and Kellingley development site, conditional on planning consent, at significant premiums to book value. The proceeds from these sales once completed, alongside the larger senior debt facility we have secured, will provide us with additional firepower to deploy across our development sites and acquisition pipeline.
“Our core sectors continue to perform well, but are not immune to wider macroeconomic pressures. Our focus now is on the execution of the strategy, ensuring that, as we work through our plans, the team has the skills and resources to deliver consistently and successfully, sustainably growing the business and delivering returns through the cycle. This will ensure that we continue to deliver places where people want to live and work.”
The company has also seen growth in its staff numbers, going from 75 to 91 in the year.
Harworth's focus has been on the "beds and sheds" sectors where demand remains strong. The financial year saw the new CEO launch and complete a strategic review of the business. This outlined an ambitious growth strategy but Harworth plans to keep doing what it is doing, with plans to grow its strategic land portfolio and land promotion activities - backed by a new £200m revolving credit facility (RCF).
Shillaw added: "Our strategy is evolution not revolution, and fundamentally we remain a business that is regionally focused in the industrial & logistics and residential sectors. We have a deep understanding of the regions that we operate in and continue to deploy our specialist skills to assemble complex sites and work them through the planning process and into production. Our strategy work has identified the potential of our landbank to do more, faster, and provides a roadmap to enable us to scale up the creation of sustainable places where people want to live and work."
Harworth Group website
Images: Harworth
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