Rotherham-based property and land regeneration firm Harworth Group said its statutory net asset value rose to £637.7 million in 2023 from £602.7 million in 2022.
Operating profit rose to £54.2 million from £44.5 million. Total dividend per share rose to 1.466p from 1.333p.
Revenue fell to £72.4 million from £166.7 million in 2022.
“Sales of serviced land and property, in addition to income from rent, royalties and fees, resulted in group revenue of £72.4m (2022: £166.7m),” said the company.
“The reduction in the year reflected reduced rental income following our successful sales programme in the investment portfolio and lower development property sales resulting from us bringing forward residential sales to 2022 to take advantage of market conditions, as well as the prior year figures including the £54m sale of the Kellingley development site.”
Harworth Group’s EPRA NDV (European Public Real Estate Association Net Disposal Value) rose 4.4% to £662.9 million.
Harworth CEO Lynda Shillaw said: “Harworth once again delivered another strong performance in 2023, ahead of the MSCI All Property Index and resulting in one of the sector’s leading total returns, while maintaining a low loan-to-value of just 4.7% and significant financial liquidity.
“We continue to benefit from the unique combination of our extensive landbank and the application of our specialist skillset to develop new market opportunities and realise the highest value from each of our sites.
“This saw us complete serviced land and property sales at prices broadly in line with book values before transaction costs, achieve lettings ahead of estimated rental values, and progress some exciting acquisitions as we build our future pipeline and continue to move sites through the planning system.
“Since 2015, Harworth has undergone a transformation as a business whilst doubling its EPRA NDV. The progress made across our portfolio in 2023 underpinned a 4.4% increase in our EPRA NDV, to £663m, and we remain confident of achieving our strategic ambition of becoming a £1bn business by the end of 2027.
“I am delighted with the performance of the business over the year, which was a tough one against a continued challenging macroeconomic backdrop, ongoing structural changes in parts of the market and domestic political uncertainty.
“So far in 2024, macroeconomic conditions remain challenging but there are signs of optimism.
“Our key markets remain characterised by structural undersupply and we are seeing good demand for our serviced residential land as well as high levels of occupier interest in our employment sites.
“We have a self-propelled growth strategy driven by our landbank and the skills of our people, and our long-term through-the-cycle approach means that, as well as securing and progressing opportunities to deliver long-term value to investors, we are well positioned to take the management actions that will generate further value gains from our portfolio in the year ahead.”