Wednesday, September 14, 2022

News: Harworth deliver strong returns


Harworth Group plc, the Rotherham-based leading regenerator of land and property for sustainable development and investment, has posted a number of signs in its latest financial results that it continues to deliver successfully against its growth strategy outlined a year ago.

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 Half Year Results for 2022, Harworth posted that EPRA NDV increased by 13.7% to £724.8m. Its ambitious strategy goal is to reach £1bn of EPRA NDV over five to seven years. EPRA NDV is how Harworth measures the value of the its assets.

Bosses said that gains were made across both industrial & logistics and residential sites, largely resulting from progress at development sites.

Total return, the actual rate of return of Harworth's investments, was 14.1%, slightly down from the 15.4% posted in the first half of 2021.

Harworth's focus has been on the "beds and sheds" sectors where demand remains strong. The last 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).

Progress includes starting work on new developments (including 200,000 sq ft of new space on the Advanced Manufcaturing Park (AMP) in Rotherham), reaching practical completion on a number of developments, finalising land sales and launching a new single-family Build to Rent (“BTR”) product.

Lynda Shillaw, Chief Executive, Harworth Group plc, said: "Harworth made significant operational and financial progress in the first half. We undertook a record level of direct development in our industrial & logistics portfolio, continued to accelerate our residential sales, and made several acquisitions to grow our development pipeline. It is our management actions that have materially contributed to the growth in EPRA NDV, supported by the strong market during the period for our residential and industrial & logistics products, demonstrating that we are continuing to deliver successfully against our growth strategy outlined a year ago.

“We are alive to the complex geopolitical and macroeconomic environment impacting economies across the world, and we remain closely attuned to the potential impact on our markets. We are confident that Harworth’s strong financial position, and the scale and mix of our portfolio, positions us well to respond to these challenges and adapt to the changing risk environment. However, as previously stated, it is our expectation that as a result of this market backdrop, valuation gains during 2022 are likely to be first half-weighted.

“The supply and demand factors supporting our markets have been resilient to date, our pipeline remains robust, and our through-the-cycle investment and management actions continue to drive value across our portfolio. Our proven successful track record as a developer of large complex sites to create high-quality sustainable places provides a solid platform for growth as we continue to deliver on our strategic plan to reach £1bn of EPRA NDV.”

Harworth website

Images: Harworth


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