Harworth shares up as it targets £1bn

Harworth Group CEO Lynda Shillaw

Shares of Rotherham-based property and land regeneration firm Harworth Group rose about 6% on Wednesday after it published a trading update for the six months ended June 30, 2022.

Harworth said it now anticipates that EPRA NDV (European Public Real Estate Association Net Disposal Value) as at June 30 will be ahead of current analyst consensus for December 31, 2022.

Harworth’s CEO Lynda Shillaw said the firm now has a platform for growth as it aims to deliver on its strategic plan to reach £1 billion of EPRA NDV over the medium term.

“Due to Harworth’s strong operational progress in the first half, and the resilience of its markets in the year to date, the company now anticipates that EPRA NDV as at 30 June 2022 will be ahead of current analyst consensus for 31 December 2022,” said Harworth.

CEO Shillaw said: “We made significant operational and financial progress in the first half: our Grade A logistics direct development at Bardon Hill is letting well and close to practical completion, and we continue to accelerate our residential sales including the largest ever sale to date at Waverley.

“This has driven our EPRA NDV and means we are continuing to deliver successfully against our growth strategy supported by a robust market for our residential and industrial & logistics products.

“Harworth is particularly well-positioned within our markets: we sell serviced and therefore de-risked residential land to housebuilders, we develop industrial & logistics sites in underserved regional markets, and the scale of our portfolio and range of our products, including our newly launched single-family Build to Rent portfolio, provide significant diversification.

“We are alive to the complex geopolitical and macro-economic environment impacting economies across the world, and we remain closely attuned to their potential impact on our markets.

“We are cautious that the anticipated uncertainty in near-term market conditions in the UK, combined with the strong performance in the first 6 months of the year, mean that our 2022 results will likely be first half weighted.

“Despite this, 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, combined with our strong financial position, provide a stable platform for growth as we continue to deliver on our strategic plan to reach £1bn of EPRA NDV over the medium term.”