Harworth Group delivers 'solid' operational performance

Owen Michaelson, the chief executive officer
Owen Michaelson, the chief executive officer
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The regeneration company Harworth Group today said it had delivered a good operational performance over the last year.

Harworth Group has provided a trading update for the financial year ended December 31 2019.

The statement said: "The group has delivered a solid operational performance in the second half of the year despite the planning headwinds reported as part of its 2019 interim results.

"This, coupled with the indicative outcome of the independent annual valuation of the property portfolio, means that the group anticipates that its financial performance for the year ended December 31 2019..will be in line with expectations and its stated aim of delivering long-term market-leading returns for its shareholders."

Highlights for the period from October 1 to December 31 2019 include the completed land purchases totalling more than 33 acres adjacent to two of Harworth's major developments for a combined consideration of £6.25 million;

Owen Michaelson, the chief executive officer, commented: "We anticipate full year results to be in line with expectations, reflecting good progress being made across all business sectors.

"Our results reflect that the majority of our value gains are realised through the active asset management of our underlying land and property portfolio, including strong residential and commercial land sales and continued efforts to improve the depth and breadth of our income portfolio. Our regional markets in the North of England and Midlands remain solid and should benefit further from emerging government policy.

"Looking forward, the planning headwinds that we reported at the half year still remain in place and we continue to manage this risk accordingly on a site-by-site basis. In addition, the returns from large-scale sites such as ours are not linear. Whilst we therefore continue to target long-term market-leading returns, our current trading plans indicate a profile for our historic site portfolio that anticipates delivering lower returns in the near term whilst our new sites work through the development cycle.

"We will continue to deploy our capital wisely through our regional operating model on appropriate new land and property opportunities in order to drive returns whilst supporting the ongoing regeneration of our regions through the delivery of new homes and jobs."