Harworth to beat expectations following strong trading

Harworth Estates, which builds houses on former Yorkshire coal mines, reports strong second half trading

The Rotherham-based firm said it delivered good operational progress during the second half of 2015 and it will benefit from gains on disposals to be completed before the year-end.

"This strong performance, coupled with the indicative outcome of the independent annual valuation of the property portfolio, is expected to result in a financial performance which is significantly ahead of

the board’s expectations for the year," the company said in a trading update.

Chief executive Owen Michaelson said: “The group had a strong first half of the year as highlighted at the time of our interim results in August. The positive momentum has continued into the fourth quarter, which has normally shown a strong result for the property business, and is now expected to exceed our expectations on the back of sales and planning approvals which in turn will improve the valuation of our portfolio.”

In September Harworth announced the acquisition of an industrial park in Derby for £6.95m, with a net initial yield of nine per cent.

Sinfin Lane Industrial Park consists of 471,508 sq ft of industrial space with open storage and development land with a historical consent for residential use adjacent to Rolls Royce’s worldwide headquarters.

It was Harworth’s third acquisition over the past nine months, following the purchases of the 162-acre former Skelton Grange power station in Leeds and the 320-acre former aluminium smelter in Lynemouth, Northumberland.