Rotherham land regeneration firm Harworth declares year of 'significant progress' despite profit slump

In its full year results for 2022, the business reported a dip in operating profits from £121.9 million last year to £44.5 million this year.

Despite this dip in profits, the firm reported net development value – which is the estimated value of property developments after costs are deducted – as broadly flat at £633.8 million, down slightly from £637.5 million the year prior.

Speaking on the year ahead, Harworth CEO Lynda Shillaw said: “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.

“Harworth is a long-term through-the-cycle business, which means that we look through near-term market conditions. We are confident that our strategy is the right one to deliver long-term value to stakeholders while progressing our Net Zero Carbon commitments.”

One of Harworth's key sites is the Advanced Manufacturing Park in Rotherham, which sits on land which formerly housed Orgreave Colliery. The site hosts global manufacturers including RollsRoyce, Boeing and Mclarren.

Earlier this year, Harworth agreed terms for a 73,000 sq. ft built-to-suit unit at the Rotherham site, to be retained in its investment portfolio after completion.

Other former cole sites developed by the firm include Gascoigne Wood, in North Yorkshire and Gateway 36, which was formerly Rockingham Colliery.

In September 2022, the business completed a 332,000 sq. ft development at Bardon Hill in Leicestershire which achieved Net Zero Carbon in construction status. Harworth also completed residential land sales representing 2.200 plots.

Ms Shillaw added: “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.

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

In early 2023, the firm completed the sale of two sites for a total of £12.6 million.

Acquisitions made by Harworth throughout 2022 added 2,643 plots and 8.5 million sq ft to its pipeline.

The business also secured planning permission for 248 residential units across four sites, and for 278,000 sq. ft of industrial & logistics space after year-end across two sites.

18 months ago, the firm launched a strategy to become a £1 billion business by 2027.