Harworth Group: Rotherham regeneration specialist sees profits rise after major Microsoft and Frasers Group deals
Rotherham-based land and property regeneration company Harworth Group has increased its operating profit by almost 40 per cent after major deals with the likes of Microsoft and Frasers Group.
The company has published its results for 2024, which showed operating profit increased by 37.6 per cent to £74.6m.
Total property sales were up 71 per cent to £215.8m, while its portfolio value increased by almost 12 per cent to £821m.
The company’s highlights for the year included the agreement of a £106.6m land sale to Microsoft, of which £47.9m was recognised in the 2024 accounts. It has sold land at the former Skelton Grange power station in Leeds to the tech giant for use as a data centre.
Harworth also completed the £53.5m sale of a site in Rugby to Frasers Group which the retail giant intends to use for its new headquarters.
Harworth was the property division of UK Coal, named after the Nottinghamshire village where the latter organisation was based. Now listed on the London Stock Exchange and recently admitted to the FTSE 250, it owns, develops and manages over 14,000 acres of land on around 100 sites across the North and Midlands.
It is also working on the expansion of the Advanced Manufacturing Park site it runs in Rotherham following a £43.7m purchase of an adjacent logistics estate.
Lynda Shillaw, Chief Executive of Harworth, said: "Harworth delivered record revenue and land sales in 2024, generating significant value gains.
"Our strong total accounting return of 9.1 per cent is yet again among the best in the sector and the result of management actions, consistent with our focus on driving value as we continue to progress our sites through development.
"This included two landmark land sales, to Microsoft for a hyperscale data centre and Frasers Group for their global headquarters, alongside record residential plot sales. Our performance continues to demonstrate the resilience of our through-the-cycle business model and highlights our ability to capitalise on emerging sectors, such as data centres, to accelerate our sites. The last four years of investment in strengthening our business to enable growth is bearing fruit and the business is performing across the board.
"While we remain cautious in light of the current macro-economic backdrop, our financial flexibility and careful capital allocation, and alignment to structurally undersupplied sectors fundamental to the UK's growth, mean we are well placed to navigate uncertainty.
"Our consented pipeline and land bank and our ability to deliver at scale are significant strengths against a backdrop of site scarcity in our regions, and a planning system that remains sluggish as the reforms introduced by the government bed in.
"With a significant number of our sites coming on line for development, we are well positioned to continue to deliver strong returns.”
Shares in the company were up 2.7 per cent in Tuesday morning trading.