Harworth “optimistic" following major acquisitions at Enterprise Zone
DEVELOPMENT group Harworth is optimistic following major acquisitions including Temple Green at Leeds City Region’s Enterprise Zone.
The first half of the year to June 2016 saw Rotherham-based Harworth make £12.8m of acquisitions, including the 50% purchase of Aire Valley Land, owners of Temple Green the live logistics development on the outskirts of Leeds.
The group returned operating profits of £8.3m, down from £9.2m (and underlying profits £14.8m) in 2015. Harworth said this reflected the a £2.9m cost of 2016 stamp duty changes.
It said it had submitted planning applications for 400 residential plots since the end of the period and are planning to submit further planning applications for 700 residential plots and in excess of 1.5m sq ft of commercial space by the end of year.
Though profits dipped, revenue rose to £17.4m from £4.2m in the same period in 2015.
Harworth said this was as a result of the recognition of construction costs and development fee arising from the construction of two industrial units at Logistics North being forward funded by M&G and due to increased rent from business parks and low-carbon energy sites.
The group sold £13.3m of property as part of its ongoing programme to “increase our focus on sites with higher value-add potential.”
Harworth’s chief executive, Owen Michaelson, said: “We have progressed well during the first half, seeing continued momentum in the business, which is reflective of the underlying strength of the Group.
“We selectively grew our direct commercial development capabilities, through schemes at Logistics North, the Advanced Manufacturing Park and Gateway 36, as well as making excellent progress with the forward funded M&G development.
“We have continued confidence in the economic potential of the regions in which we operate and the long term market fundamentals remains in place. Our strategy affords us flexibility to manage potential periods of uncertainty.
“Together with our strong balance sheet, we are robustly positioned to capitalise on new opportunities, both for development and income generation. Based on current market conditions, we expect our full-year performance to be in line with our expectations.”
