Rotherham's Harworth Group 'moving closer' to becoming £1bn business by 2027

It said highlights of 2023 included completing development of 110,000 sq ft of space at the Gateway 36 commercial development in Barnsley, as well as 83,000 sq ft at Rotherham’s Advanced Manufacturing Park (AMP).

Work is under way on a further 187,000 sq ft of space at the AMP across three units.

More than £52m of residential plots were sold to housebuilders, while planning approval has been received for the first pilot site for net zero carbon homes at the Prince of Wales development in Pontefract.

The update also noted the post year-end sale of a site in Flaxby, North Yorkshire, which had previouly been occupied by Ilke Homes for £13.3m.

The update said the firm has a strong balance sheet and financial position, with net debt of £36.4m down from the £48.4 recorded at the end of 2022.

The company said that its European Real Estate Association Net Disposal Value (EPRA NDV) is expected to be “slightly ahead of current market consensus” when its results are published. The current consensus is for 194p per share.

The group attributed the anticipated result to “ management actions undertaken on development sites to unlock high value uses, and positive progress with planning applications, which have underpinned valuation gains” .

Lynda Shillaw, Chief Executive of Harworth, said the firm is heading in the right direction with its ambition to become a £1bn business. In its last half-year results, net asset value was listed as £603m with no specific figure given in the new trading update.

She said: “Harworth had a strong 2023 and delivered another robust performance. The unique combination of our extensive landbank and applying our specialist skillset to identify and realise the highest value from each of our sites saw us complete serviced land and property sales at prices in line with, or ahead of, book values, achieve lettings ahead of estimated rental values, and progress sites through the planning system, all against an uncertain market backdrop.

“Since re-listing in 2015, Harworth has doubled its EPRA NDV. The progress made across our portfolio in 2023 has meant that our year-end valuation is slightly ahead of expectations, moving us closer to our strategic ambition of becoming a £1bn business by 2027.

“As we enter 2024, there are some signs of optimism in the macro environment whilst our key markets remain characterised by structural undersupply. We are encouraged that we are seeing continued good demand into the new year for our serviced residential land as well as occupier interest in our employment sites.

"This, combined with our long-term through-the-cycle approach, our low loan-to-value and significant financial liquidity 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.”