Property People: Harworth executives discuss Budget, Brexit and business in the regions
Following a strong financial performance from regeneration group Harworth earlier this week, chief executive Owen Michaelson and finance director Andrew Kirkman (pictured below) spoke to TheBusinessDesk.com.
“We gained a lot of momentum in the business this year,” said Michaelson. “Six acquisitions encouraged further saes, and we’ve grown dividends by 10% with £2.2m paid out.
“The nice thing about us and the business model is that the performance is as a result of management actions, getting involved in planning, masterplans, remediation of sites.”
This hands on approach led to a 12.5% increase in net asset values to £334.9m, up from £297.7m the year before, but a careful eye has been kept on the wider picture, everything from Brexit and devolution to Philip Hammond’s first and last Spring Budget today.
Ahead of the announcements today, Kirkman said that the best thing the Chancellor could do is not change anything.
“On the whole the planning system is supportive,” said Kirkman. “The recent housing White Paper, emphasised that building on brownfield land is a good thing – it give new life to places which is excellent.
“So actually, we hope nothing changes in the Budget. Last year was a pretty interesting year, with Brexit and ‘The Donald’ being voted in, but we like the market, and want it to remain solid and steady.”
In an ideal world it might, but with decisions regarding Brexit facing the country, it is difficult to see what comes next.
Kirkman said: “Brexit for us hasn’t affected things, but it’s crystal ball gazing really. Housing remains affordable in the regions, we have help-to-buy and there’s a willingness to invest in the regions. There might be a ripple effect from London, which is particularly volatile, we just don’t know.”
Another point of uncertainty is that of devolution. Being a regionally-focused investment group, what does Harworth think about the ongoing process, which has seemingly been put on the backburner?
“As always, it’s about making sure the right decisions are being made for the people on the ground,” said Kirkman. “There is undoubtedly a London and South East focus. If more devolution to the regions helps with ability to make right decisions and make right decisions quicker then we’re all for it.
Michaelson said: “My worry is all the seismic changes at national level and getting to grips with that, but we’ll work with it, and work with whoever gets elected in.
“The market fundamentals in the regions are absolutely unchanged, houses are affordable and that’s the market we go into. Very much a regional player in the North and the Midlands, London market has its ups and downs, but the markets we’re in remain solid and steady.”
