Rotherham-based property and land regeneration firm Harworth Group reported that its statutory net asset value rose to £602.7 million in 2022 from £578 million in 2021.

Total dividend per share for 2022 will be 1.333p “representing 10% underlying growth from 2021.”

However, Harworth said BNP Paribas and Savills, its independent valuers, completed a full valuation of its portfolio as at December 31 resulting in full-year valuation losses of £15 million, compared to gains of £148 million in 2021, “including the movement in the market value of development properties.”

Harworth said: “These external independent valuations reflect conditions in the industrial & logistics market, offset by the positive factors resulting from management actions on our sites …

“The fair value of investment properties decreased by £19.7m (2021: £84.0m increase), which has fed through to an underlying operating profit of £44.5m (2021: £121.9m) and profit after tax of £27.8m (2021: £94.0m).”

Harworth Group CEO Lynda Shillaw said in her outlook: “At this early stage in the year we remain cautious about the economic backdrop for 2023.

“Uncertainty is likely to remain in our markets until interest rates reach their peak, and inflation falls back to manageable levels, creating the conditions for growth and improved investor confidence.”

Shillaw said the group made progress in the year but “there remains an acute shortage of high-quality consented land.”

Shillaw said: “We continued to make significant operational progress during the year, delivering increased levels of direct development, accelerated land sales and targeted acquisitions in line with our strategy to become a £1bn business by 2027.

“We ended the year in a strong financial position, with a low LTV and significant available liquidity.

“Following a significant increase in valuations during the first half, we saw market-driven outward yield shifts across our investment portfolio and more mature industrial & logistics development sites during the second half.

“Over the course of the year, our management actions have largely offset market movements, and resulted in our valuations, and therefore EPRA NDV, remaining broadly flat year-on-year.

“At this early stage in the year we remain cautious about the economic backdrop for 2023.

“While there have been some recent positive indicators, uncertainty is likely to remain in our markets until interest rates reach their peak, and inflation falls back to manageable levels, creating the conditions for growth and improved investor confidence.

“Against this backdrop, our focus markets of residential and industrial & logistics continue to be drivers of economic growth and have robust fundamentals, while there remains an acute shortage of high-quality consented land.

“Harworth is a long-term through-the-cycle business, which means that we look through near-term market conditions.

“We control our landbank, where and when we invest, and have a highly experienced management team who are focused on execution.

“We are confident that our strategy is the right one to deliver long-term value to stakeholders while progressing our Net Zero Carbon commitments, and our strong financial position, differentiated products, and the scale and mix of our portfolio, position us well to realise the full potential of our sites.”