Harworth accelerates progress despite uncertain backdrop
Regeneration specialist Harworth Group expects to report figures slightly ahead of market expectations for 2023 after unlocking high value uses on some of its development sites.
It has also seen valuation gains resulting from progress with planning applications.
“Harworth had a strong 2023 and delivered another robust performance,” said Harworth chief executive Lynda Shillaw.
“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.”
Harworth expects its net disposal value (EPRA NDV) to be slightly ahead of the current market consensus of 194.0p per share. Its share price closed last night at 126p – up 30% since October, but still behind the 150p-190p range it held in a 12-month period to summer 2022.
The land and property specialist sold 1,170 residential plots in 2023, with the sales to six different housebuilders totalling £52m.
It has planning approvals for 31% of its portfolio of sites for build-to-rent properties, and has approval for its pilot site for net zero carbon homes product in Pontefract.
Lynda Shillaw
Shillaw added: “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.”
