REG - Harworth Group PLC - Harworth completes 1,896 residential plot sales Q4

HarworthAnnouncement

09/01/2025 07:00

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RNS Number : 6630S  Harworth Group PLC  09 January 2025

 9 January 2025
 Harworth Group plc
 ("Harworth" or "the Group")

 Harworth completes record 1,896 Residential plot sales in the fourth quarter
 of 2024

 Harworth, a leading regenerator of land and property for sustainable
 development and investment, announces that in the fourth quarter of 2024 it
 completed 1,896 Residential plot sales, with a headline sales value of £71.7
 million, bringing total Residential plot sales for FY24 to 2,385 (2023: 1,170
 plots) with a total headline sales value of £104.1 million (2023: £52.1
 million). The volume of sales reflects the continued strong demand for
 Harworth's de-risked serviced Residential land product as well as evidencing
 success of the Group's strategy to accelerate delivery of its Residential
 sites and broaden its range of products. Alongside these Residential plot
 sales, as announced in December, Harworth also completed land sales at Skelton
 Grange (Phase 1, 27 acres) and Ansty (278 acres), for total headline sales
 value of £106.3 million.

 Highlights
 ·                                The Q4 disposals were sold to national and regional housebuilders as well as
                                  registered providers of affordable housing and the total headline sales value
                                  was £71.7 million, plus additional PPA promote fees of £0.4 million
 ·                                Residential plot sales of 2,385 for the year (2023: 1,170) are in line with
                                  the Group's strategic target of 2,000 plot sales per year on average and
                                  represents Harworth's strongest Residential sales performance to date
 ·                                The sales, totalling a headline sales value of £104.1 million, were broadly
                                  in line with, or ahead of, June 2024 book values
 ·                                The Group's extensive Residential land pipeline now totals 31,264 plots, and
                                  with 15% of that pipeline already consented, Harworth is well positioned to
                                  support delivery of the UK's housing targets across our regions

 Delivering on the Group's strategy and supporting sustainable growth
 ·                                Achieving this volume of sales highlights the success of the Group in
                                  delivering on its strategic objective of accelerating Residential sales and
                                  broadening the range of Residential products, including the conclusion of the
                                  Group's third forward funding development agreement to deliver a total of 287
                                  affordable homes. These sales continue to evidence the strong demand for
                                  Harworth's high quality serviced Residential land, and the proceeds are used
                                  as a source of funding for enabling investment into the Group's Industrial
                                  & Logistics developments, land acquisitions, and partnerships to drive
                                  future growth.
 ·                                Alongside these land sales, the Group has also made Residential acquisitions
                                  to re-fill its pipeline, ensuring it is able to continue to operate at scale
                                  and to drive further value creation for stakeholders. These acquisitions
                                  include land at Stewartby, with a planning approval for 1,000 plots, and, in
                                  Strategic Partnership with landowners, part of an allocated site near Grimsby,
                                  for 3,044 plots. These bring the Group's extensive Residential pipeline to
                                  31,264 plots, of which 4,568 are already consented.

 Lynda Shillaw, Chief Executive of Harworth Group, commented: "Harworth had a
 busy fourth quarter in 2024, concluding nine Residential land sales,
 comprising 1,896 plots for £71.7 million. This takes the total plot sales for
 2024 to a new annual Harworth record of 2,385 plots, generating £104.1
 million of cash, split between upfront and deferred payments, and is in line
 with our strategic target of 2,000 per year on average. Throughout the year we
 continued to see healthy demand for our high quality de-risked serviced land,
 and notably we also completed two major land sales at our Skelton Grange and
 Ansty developments in December, for £106.3 million. The proceeds from these
 sales will be reinvested into our Industrial & Logistics development
 programme to continue creating value for our stakeholders.

 "We are committed to delivering sustainable regeneration schemes, creating new
 communities in our regions, and supporting delivery of much needed high
 quality housing in the UK by accelerating delivery at our sites and broadening
 the range of our mixed tenure products, the latter seeing 582 of the year's
 plots sales to affordable housing providers. Our approach to placemaking and
 strong collaboration with strategic partners is key to success on these
 developments, and our extensive consented pipeline of 4,568 plots positions us
 well to continue supporting growth in the UK."

 Key Residential transactions in Q4 2024
 ·                                The largest Residential transaction in Q4 was at Harworth's Coalville
                                  development in Leicestershire, for 357 plots to Taylor Wimpey. The wider
                                  development occupies a 336-acre site and has outline planning consent for more
                                  than 2,000 homes, with land now sold for over 66% of these, together with a
                                  new supermarket, a 21-acre country park and a new 420-place forest primary
                                  school which has just been completed.
 ·                                At Simpson Park, Nottinghamshire, the Group sold 530 plots to Stonebridge and
                                  Bellway Homes, bringing the total plots sold to 1,159. Upon completion, the
                                  development is expected to include a mix of over 1,300 new Residential homes,
                                  retail and employment uses, a family pub, link road, open space and
                                  significant green infrastructure which all support the ongoing regeneration of
                                  the towns of Harworth and Bircotes.
 ·                                At Moss Nook, Merseyside, the Group completed sales of 295 plots to Torus, who
                                  will deliver a mixture of Build-to-Rent and Affordable Housing plots, bringing
                                  the total plots sold to 551. Alongside plans to deliver up to 900 new homes,
                                  this development includes a major spine road through the site that provides a
                                  safe and direct route to and from the town centre from the southwest of St.
                                  Helens, addressing local congestion issues.
 ·                                At Pheasant Hill Park, located on the former Rossington colliery site in South
                                  Yorkshire, the Group completed sales of 282 plots to Homes by Honey and Great
                                  Places, bringing the total plots sold to 927. This development forms a key
                                  part of a wider 'Gateway to the Sheffield City region' programme that is a
                                  game-changing proposition for Yorkshire's economy. Upon completion, Pheasant
                                  Hill Park is expected to deliver up to 1,200 new homes in addition to a mix of
                                  commercial and community uses.

 Financial calendar key dates

 Harworth is scheduled to announce a Trading Update for the year ended 31
 December 2024 on 28 January 2025, followed by its Preliminary Results
 announcement and Investor & Analyst Presentation on 18 March 2025.

 For further information

 Harworth Group plc
 Lynda Shillaw (Chief Executive)                                            T: +44 (0) 7436 167 285
 Dougie Maudsley (Interim Chief Financial Officer)                          E: investors@harworthgroup.com
 Luke Passby (Head of Investor Relations & Communications)

 FTI Consulting
 Dido Laurimore                                                             T: +44 (0) 20 3727 1000
 Richard Gotla                                                              E: Harworth@fticonsulting.com
 Eve Kirmatzis

 About Harworth

 Listed on the equity shares (commercial companies) category of the Main Market
 of the London Stock Exchange, and a constituent of the FTSE 250 index,
 Harworth Group plc (LSE: HWG) is a leading sustainable regenerator of land and
 property for development and investment which owns, develops and manages a
 portfolio of over 14,000 acres of land on over 100 sites located throughout
 the North of England and Midlands. The Group specialises in the regeneration
 of large, complex sites, in particular former industrial sites, into new
 Industrial & Logistics and Residential developments to create sustainable
 places where people want to live and work, supporting new homes, jobs and
 communities across the regions and delivering long-term value for all
 stakeholders. Visit www.harworthgroup.com for further information. LEI:
 213800R8JSSGK2KPFG21.

 

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