REG - Harworth Group PLC - Results for the six months ended 30 June 2025
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RNS Number : 4229Z Harworth Group PLC 16 September 2025
HARWORTH GROUP PLC
('Harworth' or the 'Group' or the 'Company')
Half Year Results for the six months ended 30 June 2025
Strong momentum underpins continued NDV growth
Harworth Group plc, a leading regeneration and strategic land owner and
developer, today announces its results for the six months ended 30 June 2025.
See page 3 for summary of business and abbreviations(1).
Summary highlights(2) H1-25 H1-24 FY24 H1-25 H1-24 FY24
Total accounting return (%) 1.1 4.0 9.1 Value gains (£m) 15.5 47.0 97.2
EPRA NDV per share (p)(3) 223.7 212.3 222.3 Total Property sales (£m)(4) 18.9 41.7 215.8
EPRA NDV (£m)(3) 725.0 687.0 719.5 Residential plots sales(5) 649 357 2,385
Net loan to portfolio value (%) 19.0 9.8 5.4 Inv. Portfolio value (£m)(6) 319.3 231.2 297.2
Liquidity (£m) 59.8 154.2 192.4 Inv. Portfolio Grade A (%)(7) 48 37 45
Financial highlights(8) H1-25 H1-24 FY24 H1-25 H1-24 FY24
Total dividend per share (p)(9) 0.538 0.489 1.614 Operating profit (£m) 7.1 21.1 74.6
Net debt (£m) 179.4 80.5 46.7 Stat. portfolio value (£m)(10) 908.6 772.5 821.6
Net assets per share (p) 215.5 200.9 213.7 Net asset value (£m) 698.3 650.0 691.7
Lynda Shillaw, Chief Executive of Harworth, commented: "Our sustained
operational momentum is providing a strong platform for future growth and
reflects the strength of our execution in progressing our land bank. A key
highlight during the period was the timely acquisition of our joint venture
partner's shareholding at Gateway 45, which not only grows our I&L
pipeline, but also adds attractive near-term opportunities with the release of
HS2 land from Government safeguarding.
"We are advancing the planning status and de-risking the delivery of our land
bank, with significant investment in enabling works to open up our consented
sites and increase our serviced land capacity by year-end. This, coupled with
the submission of a number of significant planning applications totalling 8.1m
sq. ft, will add value as they move towards a consent, driving performance
into the medium-term.
"Our teams are working hard to convert a strong transaction pipeline, with
healthy demand across our I&L land and property portfolio. Whilst
transaction timelines remain elongated, as occupier and investor sentiment
continues to be impacted by macroeconomic weakness and soft UK growth, letting
activity is beginning to crystallise and our de-risked serviced land products
across both I&L and Residential remain appealing, with a solid pipeline in
the second half of the year.
"We are seeing sustained demand for our residential serviced land, although
costs to deliver increased in some instances impacting valuations and the
market seems to be softer, an outlook we consider may continue to 2026,
particularly with uncertainty around the UK Budget and the timing of further
rate cuts. Our I&L portfolio continues to perform well with good momentum
and the ability to generate material value.
"Our land bank remains one of our superpowers and with our proven track record
in unlocking its embedded value, we remain focussed on identifying and
executing those opportunities that optimise returns and drive the business
forward to reach our strategic goals of £1bn of EPRA NDV and the growth of
our core Investment Portfolio to £0.9bn by the end of 2029."
Strategic acquisitions underpinning future growth
· Completed acquisitions of 1.2m sq. ft and 2,000 plots, including
taking 100% control at Gateway 45 (Leeds) | YAC | I&L | MD via the buyout
of our joint venture ('JV') partner's shareholding, bringing an additional c.
0.4m sq. ft of consented I&L space (ownership now up to 0.8m sq. ft).
· Release from safeguarding of HS2 land has benefited 1.2m sq. ft of
our portfolio. With Gateway 45 being the biggest beneficiary of land released,
this provides momentum to move our near-term plans forward. The site is
adjacent to Skelton Grange (Leeds) | YAC | I&L | MD, where we are
undertaking enabling works on behalf of Microsoft for its proposed hyperscale
data centre.
· New strategic partnership with Church Commissioners for England
where we conditionally exchanged on a JV to deliver a significant mixed-use
development in West Yorkshire. The JV will deliver c. 1.2m sq. ft of
employment space and c. 1,500 Residential plots.
Financial firepower deployed to scale I&L
· Leveraged our balance sheet capacity to undertake strategic
acquisitions and advance enabling works at our I&L sites. Available
liquidity at period-end was £59.8m with LTV at 19.0% (FY2024: £192.4m, LTV
5.4%), within our self-imposed target of up to 25% during the year.
· Looking towards H2, when the majority of our sales typically close, we
have a further 1,593 Residential plots either conditionally exchanged or
subject to legal documentation in addition to continuing to recycle capital
deployed as we complete asset management activity and evolve our core
investment portfolio towards 100% grade A. Using these proceeds, coupled with
receipts from deferred consideration on prior period sales, to pay down debt
we would expect LTV to come down to within the 10%-15% range by the end of the
year.
Significant investment in enabling works builds momentum in pipeline
· 3.3m sq. ft of enabling works were underway at period-end, primarily
at the first phase at Wingates (Bolton) | NOW | I&L | MD and at Gascoigne
Wood (North Yorkshire) | YAC | I&L | SL, alongside continuing progress on
Plot 2 at Skelton Grange, in support of the £53.2m second phase of the sale
to Microsoft for its proposed hyperscale data centre, targeted for completion
in 2026.
· Completed enabling works at Chatterley Valley (Stoke) | NOW | I&L
| MD, Gateway 36 (Barnsley) | YAC | I&L | MD, and Waverley AMP (Rotherham)
| YAC | I&L | MD, , positioning the sites ready to deliver up to 2.4m sq.
ft of I&L space.
· Practical completion achieved at Droitwich post period-end with the
first phase of development at Chatterley Valley expected to start later this
year.
EPRA NDV driven by value gains
· Period-end EPRA NDV per share of 223.7p (FY2024: 222.3p) was primarily
driven by value gains. Adding paid dividends of 1.125p resulted in a total
accounting return ('TAR') of 1.1%.
· Value gains of £15.5m comprised £21.7m in revaluation gains across
our portfolio, driven by I&L overall, and partially offset by £6.3m in
losses on sale, driven by higher site wide costs on a small number of mature
Residential Major Developments ('MD').
Planning applications totalling 8.1m sq. ft submitted create the potential for
medium-term value gains
· Planning applications for c. 1,200 Residential plots and 8.1m sq. ft
of I&L space were submitted (HWG share 4.9m sq. ft), including the largest
planning application in the North West at Northern Gateway (Greater
Manchester) | NOW | I&L | SL). Since June, applications for a further 1.5m
sq. ft of I&L space and c. 4,900 Residential plots (HWG share 2,800 plots)
have been submitted.
· The land bank has capacity to deliver up to 34.6m sq. ft of I&L
space, and 31,636 Residential plots, across the Midlands and the North of
England.
Further growth in Grade A quality of highly reversionary I&L Investment
Portfolio
· The Investment Portfolio was valued at £319.3m (FY2024: £297.2m), with
EPRA vacancy rate reduced to 4.9% (FY2024: 5.6%)
· The sale of a 61,000 sq. ft of secondary I&L asset alongside the
80,000 sq. ft practical completion and letting to Technicut at the AMP (South
Yorkshire) | YAC | I&L | IP increased the portfolio to 48% Grade A by area
and 66% by value (Dec 2024: 45% by area, 63% by value).
· Leasing activity added £1.0m of headline rental income, achieving
1.9% increase on a like for like basis (2024: 2.4%), with renewals and rent
reviews achieving, on average, a 16% uplift to previous passing rents.
· The Investment Portfolio is reversionary, with headline rental income
15% below year-end ERVs, alongside a net initial yield of 5.0% (2024: 4.8%),
and a reversionary yield of 6.4% (2024: 6.5%).
Completed 649 Residential plot sales, on track to exceed annual target of
2,000
· Completed the sale of 649 Residential plots, including via a notable
number of Planning Promotion Agreements ('PPAs'), generating fees of £4.0m as
revenue in the period. A further 1,593 Residential plots sales were
conditionally exchanged or subject to legal documentation at period-end,
demonstrating resilience in the demand for our de-risked residential serviced
land product, despite headwinds.
Delivering sustainable, innovative and scalable solutions across our land and
property portfolio
· In our role as a responsible developer, we have taken a sector
leadership position, launching and managing our first registered Biodiversity
Gain Habitat Bank at Killamarsh (Sheffield) | YAC | R | SL, where we have sold
Biodiversity Net Gain ('BNG') units alongside a serviced land sale. This
continues to evolve our serviced land offering, issuing biodiversity units to
meet our BNG obligations and allocating any surplus units to our other
projects or for sale to other developers.
· We have incorporated renewable energy through an innovative green lease
structure at our development for Technicut at the AMP, reaching practical
completion in the period, and our delivery for communities continues with the
recent openings of forest schools at Thoresby and Coalville, and Olive Lane,
the local centre at Waverley.
About Harworth
We aim to create long-term, through-the-cycle value by focusing on:
Two structurally undersupplied sectors: Two core products:
1. Industrial & Logistics ('I&L') 1. Serviced remediated land for sale
2. Residential ('R')
2. Development land to hold and for sale
Three portfolios: Three regions:
1. I&L Investment Portfolio ('IP'), 1. Yorkshire & Central ('YAC'),
2. Strategic Land ('SL')
2. Midlands ('MID')
3. Major Developments ('MD')
3. North West ('NOW')
Our land bank stands at 34.6m sq. ft of I&L of which 71% is derisked(12)
(Dec 2024: 33.6m sq. ft; 63% derisked) and 31,636 Residential plots of which
44% are derisked (Dec 2024: 31,264; 46% derisked).
Since 2021, we have achieved planning on 9.2m sq. ft of I&L space with an
estimated Gross Development Value ('GDV') of £1.3bn, we have concluded on
cumulative sales of c. £607m, including. 7,800 Residential plots and we have
bought or taken options over I&L land totalling 14.3m sq. ft, with an
estimated GDV of £2.1bn.
Harworth Group plc (LSE: HWG), is a leading regeneration and strategic land
owner and developer focused on the Industrial & Logistics (I&L) and
Residential sectors. We own, develop, and manage a portfolio of over 15,000
acres of Strategic Land over 100 sites located throughout the North of England
and Midlands. We specialise in delivering long-term value for all stakeholders
by regenerating large, complex sites, into new I&L developments and
serviced remediated land for sale into the I&L and Residential land
markets. Our long-term through-the-cycle business model is to create
sustainable places, support new homes, jobs and communities where people want
to live and work. Visit www.harworthgroup.com for further information. LEI:
213800R8JSSGK2KPFG21
Notes:
(1) All values are Harworth's share, unless noted otherwise
(2) Represent our Alternative Performance Measures (APMs). A full description
of these is set out in Note 2 to the financial statements with a
reconciliation between statutory measures and APMs set out in the appendix to
the financial statements.
(3) European Public Real Estate Association Net Disposal Value
(4) Total property sales for H1-25 include £10.9m development property sales,
£3.0m of Investment Portfolio properties, and £5.0m of Industrial &
Logistics land sales and other sales
(5) Residential plot sales for H1-25 includes 149 freehold plot sales and 500
plot sales through Planning Promotion Agreements (PPAs)
(6) The Investment Portfolio represents our primary income generating
Industrial & Logistics portfolio. It excludes Strategic Land, Major
Developments, Natural Resources, and Agricultural land
(7) Measured by area. Grade A by value is 66%
(8) The financial highlights represent our statutory measures
(9) The Ex-dividend date, Record date and Payment date for the 2025 interim
dividend can be found in the Shareholder Information section of this
announcement
(10) Statutory portfolio value includes investment properties, development
properties, AHFS, occupied properties and investment in joint-ventures, refer
to Note 2 to the financial statements
(11) European Public Real Estate Association vacancy rate
(12) Pipeline with a consent or in the planning system
For further information
Harworth Group plc
Lynda Shillaw (Chief Executive) T: +44 (0)114 349 3131
Kitty Patmore (Chief Financial Officer) E: investors@harworthgroup.com (mailto:investors@harworthgroup.com)
Juliana Weiss Dalton (Investor Relations)
FTI Consulting
Dido Laurimore T: +44 (0)20 3727 1000
Richard Gotla E: Harworth@fticonsulting.com (mailto:Harworth@fticonsulting.com)
Eve Kirmatzis
Results presentation
Harworth will host a presentation for analysts and investors at 9.30am today.
A live webcast and playback of this can be accessed at the following link:
https://brrmedia.news/HWG_HY_25
(https://stream.brrmedia.co.uk/broadcast/68baa00cf11b380012ba98a7)
Engage Investor presentation
A presentation relating to these results will also be hosted via the Engage
Investor platform on 22 September 2025 at 4.00pm. Harworth welcomes all
current and interested shareholders and encourages investors to pre-submit
questions. Investors can also submit questions at any time during the live
presentation.
Investors can sign up to Engage Investor at no cost and follow Harworth Group
plc from their personalised investor hub. Please register for the event here:
https://engageinvestor.news/HWG_IP_0925
(https://engageinvestor.news/HWG_IP_0925)
Chief Executive's review
For the six months ended 30 June 2025
We are now more than halfway through our strategic plan. The positive and
sustained operational momentum of the business and the consistency of that
delivery against our milestones, especially in challenging markets, reinforce
the strength of our through-the-cycle business model.
Operational performance
Having launched our strategy in 2021 to grow EPRA NDV to £1bn by the end of
2027 and in mid-2024 to grow our Investment Portfolio to £0.9bn by the end of
2029, we have followed a clear road map and transparent set of growth drivers
against which to judge our progress, as set out in the table below. In a
challenging market, we continue to focus on the areas we can control to drive
our extensive land bank forward and remain committed to achieving our goals by
accelerating the delivery of our sites whilst achieving our Net Zero Carbon
('NZC') ambitions, drawing on our highly specialist expertise.
Growth drivers 2020(1) 2024 2025 progress to June Ambition by the end of 2027
Repositioning our core Investment Portfolio to modern Grade A <10% Grade A at year-end 45% Grade A by area / 63% by value 48% Grade A by area / 100% of core Investment Portfolio to be Grade A
66% by value
Increasing direct development of I&L stock 200,000 sq. ft completed(2) 107,000 sq. ft completed 100,500 sq. ft completed 800,000 sq. ft run-rate of space
0.4m sq. ft of enabling works 270,000 sq. ft started 187,000 sq. ft in progress (average per annum)
3.1m sq. ft of enabling works(3) 3.3m sq. ft of enabling works underway at period-end
2.4m sq. ft now enabled and ready for development, supporting the targeted
delivery of 4.0m sq. ft, including serviced land sales, by the end of 2027
Accelerating sales and broadening the range of our Residential products 862 plots sold(2) 2,385 plots sold 649 plots sold 2,000 plots sold on average per annum
Scaling up through land acquisitions and promotion activities Land supply of 12 to 15 years Maintained 12 to 15-year land supply through acquisitions representing 1.2m Maintain a land supply of 12 to 15 years
sq. ft
and 2,000 plots
Targets
Grow EPRA NDV £515.9m(4) £719.5m £725.0m £1bn
Grow Investment Portfolio £297.2m(5) £319.3m £0.9bn by end of 2029
(1) Targets announced 2021. FY20 used as baseline.
(2) Annual average 2015 to 2020.
(3) Total enabling works in 2024 included 1.3m sq. ft of works completed and
1.8m sq. ft underway at year-end
(4) EPRA NDV at 31 December 2020.
(5) Target announced H2 2024. FY2023 used as baseline.
Our Investment Portfolio stood at £319.3m at 30 June 2025, comprising 34% of
the overall portfolio. Repositioning our Investment Portfolio to modern Grade
A continues to progress and stood at 48% by area and 66% by value, from a
starting point of <10% by area, five years earlier. Our aim is to use a
combination of sales of secondary and some older Grade A assets, where we have
already maximised value through asset management or re-development
initiatives, with direct development, letting of new space, and selective
acquisitions, where appropriate, to achieve our 100% Grade A target.
Our I&L Major Developments ('MD') portfolio value was £179.0m, comprising
19% of the overall portfolio. It is the main driver of direct development,
together with our I&L Strategic Land ('SL') portfolio providing future
sites. The I&L MD portfolio consists of 9 sites at various stages of
development, ranging from early enabling works, like Wingates, to
near-complete Grade A units, like Droitwich. In the first six months of 2025,
we either completed or progressed 287,500 sq. ft of modern Grade A I&L
space, of which almost 250,000 sq. ft has either already transferred or will
transfer, once built, into our Investment Portfolio. Our target is to deliver
800,000 sq. ft run-rate of I&L space by 2027 and a cumulative total of 4m
sq. ft. This is split between c. 40% developed for our Investment Portfolio,
with the remaining 60% to be delivered via either traditional serviced land
sales, built-to-suit (serviced land sale with a development management fee) or
forward funding (serviced land sale with a development management and asset
management fee).
Regardless of the route, our enabling works create development platforms for
vertical construction, are a critical component of our pipeline to reach our
direct development targets. As such, we will continue to scale our enabling
works to hold sufficient serviced land to support these ambitious delivery
targets. Whilst our programme to 2027 remains back-end weighted, in the
period, we leveraged our balance sheet capacity to invest in our sites, in the
creation of service land parcels. At period end our total completed enabling
works had capacity to deliver 2.4m sq. ft of I&L space, with Chatterley
Valley (Stoke) and Gateway 36 (Barnsley) forming the majority of this future
capacity. At period-end, a further 3.3m sq. ft of enabling works were
underway.
We completed 649 Residential plot sales in the period, with 149 freehold plot
sales generating headline sales of £10.0m and 500 plots through PPAs,
generating fee revenue of £4.0m. Refer to Financial review for further
detail. A further 1,593 Residential plots sales were conditionally exchanged
or subject to legal documentation at period-end, demonstrating the depth of
demand for our de-risked serviced land product in the face of softening market
dynamics. Residential sales were completed at headline sales values in line
with FY24 book values before transaction costs and the impact of increased
site wide costs on a small number of mature residential development sites.
Scaling up our land bank through acquisitions and promotions of our
high-quality strategic land is a key skillset and fundamental to our business
model. Both the quality of the land bank and our ownership structure have a
role to play. We are increasingly pursuing more capital light ownership,
including strategic partnerships, to ensure we are well placed to deliver
product into the market and optimise returns. In the period, we completed
acquisitions of 1.2m sq. ft and 2,000 plots, including taking 100% control at
Gateway 45 (Leeds) | YAC | I&L | MD via the buyout of our JV partner's
shareholding, bringing an additional c. 0.4m sq. ft of consented I&L space
(ownership now up to 0.8m sq. ft).
We are committed to our sustainability targets and our framework, The Harworth
Way, integrates sustainability and social value into our business and the
developments we create. A key element to our approach is placemaking. This is
the work we do across our sites that makes them places where people want to
live and work. It is at the heart of our business, drives value for our
communities and our shareholders, and is critical to the success of our
schemes. All our schemes have placemaking initiatives and we have continued to
be active throughout 2025 including opening the heart of the community Olive
Lane development at Waverley and, post period end, achieving practical
completion of Thoresby Vale Primary Academy and Greenstone Primary School at
our Coalville site in time for the new school year. We have also incorporated
renewable energy through an innovative green lease structure on completed
direct development at the AMP (Rotherham) and launched and managed our first
registered Biodiversity Gain Habitat Bank, generating income for the Group
while helping to address developers' challenges in meeting BNG legislation.
Our markets
We concentrate on the I&L and residential markets, with two-thirds of our
portfolio weighted towards I&L. Both sectors remain critical to the UK's
economic growth whilst continuing to face structural undersupply. Their
success depends on the delivery of essential infrastructure, making them a key
focus for the Government and highlights the importance of our key sites to
regional growth. Recent policy initiatives, including the Revised National
Planning Policy Framework, the Planning and Infrastructure Bill, the Modern
Industrial Strategy, the English Devolution and Community Empowerment Bill and
AI Opportunities Action Plan are set to provide strong support for these
priority areas over the medium-term. Against this backdrop, broader market
sentiment is cautious, impacting decision-making and keeping the market
polarised towards high quality assets. The cumulative impact of Government
policies and fiscal and monetary decisions, a weaker growth outlook and
global, economic and geopolitical tensions continue to affect many facets of
the economy.
Industrial & Logistics
The UK's industrial & logistics property sector remains well supported by
structural demand drivers and increasing infrastructure requirements from
cloud computing, online retail, the government's commitment to AI and advanced
manufacturing whilst national security is also expected to increase demand for
space. According to JLL, take-up in H1 2025 reached 12.7m sq. ft for big-box
units (over 100,000 sq. ft), up 33% on the previous six months. Occupiers'
priorities for modern, efficient space are driving strong demand for Grade A
space, with new space accounting for 79% of units. Grade A supply increased to
45m sq. ft with new space comprising 51%. Prime headline rents grew by 2%
nationally, with the North West benefiting from more attractive rental growth,
in excess of 6% annually, driven by rents in and around Manchester, where we
hold a significant portfolio including our Northern Gateway JV, for which we
have recently submitted a 6.5m sq. ft planning application.
Data centres
In the data centre sector, 2025 is set to be a record-breaking year. The
Government's recognition of data centres as 'Critical National Infrastructure'
will help to drive schemes through planning and shorten delivery timelines.
The sector is driven by unprecedented demand for cloud services, AI computing
and data storage. Data centres are increasingly competing directly with
industrial & logistics for resources - namely land, power, infrastructure
and planning consent - blurring the line between digital infrastructure and
traditional industrial real estate. While London and the South East have
traditionally been the go-to locations, the Midland and North of England are
proving to be important alternatives, evidenced by our own site at Skelton
Grange, where Microsoft is pursuing its hyperscale data centre. Proximity to
robust power grids, fibre connectivity, good transportation access and
planning permission potential remain key for data centre operators' ambitions
for strategic sites.
Residential
The first half of 2025 saw the UK housing market stabilise, with demand
proving resilient in the North and Midlands, even as higher interest rates
continued to challenge affordability. House price growth in these regions
edged up modestly year-on-year to 30 June 2025, and our own regions saw
attractive growth of +3.3% in the North West, +3.5% in West Midlands, +5.1% in
Yorkshire, outpacing the South where growth was closer to zero. Given economic
uncertainties, housebuilders are being selective and focused on prime sites.
Land values remained broadly flat overall amid ongoing viability pressures for
high-density sites. Despite subdued investment volumes, there is cautious
optimism for the second half of the year, particularly for high-demand regions
like the North West and Yorkshire, with increased overseas investor interest,
a return to larger deal size and renewed demand for the 'living' sectors,
including Build-to-rent and affordable housing as government supply
initiatives start to feed into the market.
Volume housebuilders are faced with multiple headwinds, including inflation,
regulations and associated higher build costs from the likes of the Building
Safety Levy. These, in combination with strained demand - from the expiry of
temporary stamp duty relief in March, continued affordability challenges and
finance-constrained housing associations unable to underpin demand for
affordable homes, are having a knock-on effect on site feasibility and
volumes. According to Knight Frank, 98% of housebuilders polled said they do
not believe the Government will hit its annual 300,000 new homes target this
year. These factors are compounded by a sluggish planning system, despite
planning policy reforms; according to BNP Paribas, planning approvals are at a
two-decade low, justifying concerns about the Government's targets.
Outlook
Our long-term, through-the-cycle approach means we can navigate through
changing conditions and various cycles. The business is underpinned by a
high-quality, substantial land bank and our proven expertise in unlocking
value as we take sites through the planning process and deliver serviced,
remediated land to the market, for sale or development. Since unveiling our
strategy in 2021, we have focused on advancing our sites, growing our
business, and investing in our teams-planning, development, and
acquisitions-to drive progress. To support our strategic priorities,
stakeholder management and continued operational success, we announced that
Kitty Patmore, under her existing role as CFO has expanded her leadership role
for the Group across Portfolio Strategy, Strategic Partnerships and
Sustainability, Energy & Natural Capital.
As we move through the second half of the year and the next phase of our
strategy, we are advancing an 8.7m sq. ft consented I&L pipeline,
targeting delivery of approximately £0.6bn of GDV by the end of 2027. We
continue to explore alternative higher value uses, including data centres and
energy assets on our I&L sites, and senior living opportunities on our
Residential sites, in combination with alternative ways to generate additional
revenue streams from natural capital on our sites, including surface water
drainage and BNG units. These initiatives will help us unlock the full
potential of our 34.6m sq. ft I&L portfolio and our 31,636 plot
Residential pipeline, while continuing to drive better outcomes for our
people, the planet, and communities.
I&L makes up two-thirds of our portfolio with the ambition to drive this
to 85% by 2029. The I&L market's structural demand drivers - such as
online retail, Third Party Logistics (3PLs) and manufacturing - are robust,
with sectors such as data centres and defence beginning to emerge, while
supply of suitable sites and power capacities remain constrained. These
emerging sectors, and other high value uses, improve the opportunities across,
and liquidity of, our consented land bank. Our portfolio is well-positioned to
deliver into the market, and we have healthy levels of interest in our
near-term sites, which we are working hard to convert. However, given
short-term economic uncertainties, we are taking a prudent approach by
continuing to prioritise pre-let and build-to-suit opportunities, as well as
land sales to de-risk development.
Our Residential portfolio continues to bring forward an attractive de-risked
serviced land product to a range of buyers, including housebuilders,
developers and social housing operators. The market is experiencing a range of
challenges, including the Building Safety Act and Future Home Standards,
adding to costs and delivery times, which, when combined with affordability
constraints, are contributing to a softening market, albeit government policy
is firmly focussed on increasing housing delivery. Notwithstanding these
constraints, our diversified product range and the limited availability of
development-ready land in the market support our sales targets. So far this
year, we have reached practical completion on our first phase of affordable
housing at Wheatley Hall Road for Great Places with homes now occupied, and we
are delivering on a further two sites.
Our land bank remains one of our superpowers and we continue to invest
through-the-cycle to make our consented sites as liquid as possible, putting
us into a strong position to deliver into what we are expecting to be an
improving market. With a proven track record in unlocking the embedded value
in our land bank, we remain focussed on identifying and executing those
opportunities that optimise returns and drive the business forward to reach
our strategic goals of £1bn of EPRA NDV and the growth of our Investment
Portfolio to £0.9bn.
Lynda Shillaw
Chief Executive
15 September 2025
Operational review
The land & property portfolio value totalled £944.2m (FY2024: £858.8m)
and is weighted two-thirds to I&L. The income generation portfolio makes
up 37% of the portfolio value and comprises the I&L Investment Portfolio
and Natural Resources & Agriculture, with the remaining 63% being the
capital growth portfolio of SL and MD across I&L and Residential. The
portfolio split sets out in the table below alongside movements since
year-end. Our investment in opening up sites and acquisitions were the biggest
contributors, followed by revaluation movements.
Land & property portfolio value Portfolio value movements
(£m) H1-2025 FY2024
(£m)
I&L 31-Dec-2024 858.8
Strategic Land 125.2 109.7 Development spend 54.0
Major Developments 179.0 138.1 Acquisitions 23.7
Investment Portfolio 319.3 297.2 Revaluations 21.7
Subtotal I&L 623.5 545.0 Disposals (14.9)
Residential Net JV invests. / dists. 0.8
Strategic Land 62.9 61.0 30-Jun-2025 944.2
Major Developments 225.5 223.8
Subtotal Residential 288.4 284.8
Total NRS & other 32.3 29.0
Total portfolio value 944.2 858.8
Portfolio value movements
(£m)
31-Dec-2024 858.8
Development spend 54.0
Acquisitions 23.7
Revaluations 21.7
Disposals (14.9)
Net JV invests. / dists. 0.8
30-Jun-2025 944.2
INDUSTRIAL & LOGISTICS (I&L)
Land portfolio
At 30 June, the I&L pipeline totalled 34.6 m sq. ft (FY2024: 33.6m sq. ft)
comprising a consented pipeline of 8.7m sq. ft (FY2024: 8.4m sq. ft). The
I&L pipeline & planning progress table below sets out the stage our
pipeline had reached at 30 June 2025 in comparison to the year-end. More of
our pipeline is either consented or in the planning system, with 71% de-risked
at the end of the period. The pipeline was 49% owned freehold, with the
remaining 51% controlled through JV arrangements 8%, options 37% or PPAs 5%
(FY2024: 50% freehold).
Planning
I&L pipeline & planning progress(1)
(m sq. ft) H1-2025 FY2024
Pre-planning 9.9 12.5
Draft allocations 4.0 2.9
Allocations 2.9 4.9
Awaiting determination 9.1 4.9
Consented 8.7 8.4
Total pipeline 34.6 33.6
De-risked(2) 71% 63%
(1) Harworth's share
(2) Consented or in the planning system
· In the period, draft allocations were received for 1.1m sq. ft (total
draft allocations now 4.0m sq. ft) and allocations were received for 3.5m sq.
ft on sites at Northern Gateway (Greater Manchester) and Junction 15
(Northampton), both are now awaiting determination and with planning
applications submitted as set out below.
· Applications totalling 9.1m sq. ft are in the planning system
awaiting determination. This is up significantly from year-end, mainly due to
new planning applications submitted for 1.5m sq. ft of I&L employment
space at Junction 15 (Northampton) MID | I&L | SL, where we benefit from
an option agreement and a draft allocation for strategic warehousing, and
Northern Gateway (Greater Manchester) | NOW| I&L | SL where our JV
benefits from being within an allocation of 11m sq. ft, primarily for advanced
manufacturing and I&L space. In the period, the largest planning
application in the North West was submitted for 6.5m sq. ft as part of the
phase 1 development at this site. These sit alongside planning applications at
Rothwell (North Northamptonshire) | MID | I&L | SL for 1.8m sq. ft and
Bradholme (Doncaster) YAC | I&L | SL for 2.9m sq. ft already in the
planning system.
Land assembly
· At Gateway 45 (Leeds), we acquired our JV partner's 50% holding in
what was previously called the Aire Valley Land LLP JV. Adjacent to our
Skelton Grange (Leeds) site, where we are undertaking enabling works on behalf
of Microsoft for its proposed hyperscale data centre, this tactical
acquisition underpins the future growth of the broader site as the land was
recently released from HS2 safeguarding and has the capacity to deliver up to
0.8m sq. ft of I&L space.
· This took our I&L pipeline to 34.6m sq. ft at 30 June 2025
(FY2024: 33.6m sq. ft), reflecting the sales of Ansty (Rugby) | MID | I&L
| SL and land at Skelton Grange (Leeds) |YAC | I&L | MD late in 2024.
Direct development
· At the Advanced Manufacturing Park (AMP) (Rotherham) YAC | I&L |
IP, we completed an 80,000 sq. ft unit pre-let to Sheffield-based Technicut, a
global leader in the design and manufacture of high-performance components for
the aerospace industry. This advanced manufacturing facility included the
incorporation of renewable energy through an innovative green lease structure
and transferred into our Investment Portfolio during the period.
· At Droitwich (Worcester) MID | I&L | MD, our largest development
in the year, at 169,300 sq. ft of Grade A I&L space, practical completion
was achieved post period-end.
· Enabling works to create development platforms for vertical
construction, are a critical component of our progress towards our direct
development targets. In the period, we invested significantly in our sites in
the creation of serviced land parcels. We have enabled sites which will have
capacity to deliver 2.4m sq. ft of I&L space, with Chatterley Valley
(Stoke) and Gateway 36 (Barnsley) forming the majority of this capacity.
· At period-end, a further 3.3m sq. ft of enabling works were underway
primarily at Phase 1, Wingates (Bolton) and at Gascoigne Wood (North
Yorkshire) | YAC | I&L | SL, alongside continuing progress on Plot 2 at
Skelton Grange, in support of the £53.2m second phase of the sale to
Microsoft for its proposed hyperscale data centre, targeted for completion in
2026.
Key I&L development sites
Site Site type / Sold or developed Consented / planned Estimated GDV remaining to develop (£) Stage Forecast
Ownership(1)
site completion
(sq. ft) (sq. ft)
Advanced Manufacturing Park (AMP) (Rotherham) MD / FH 1.8m 0.2m / 0.0m £30m - £40m Direct development or plot sale 2026-27
Gateway 36 MD / FH 0.4m 0.6m / 0.5m £130m - £150m Direct development or plot sale 2033
(Barnsley)
Chatterley Valley MD / FH 0.0m 1.2m / 0.0m £160m - £170m Land remediation and infrastructure development 2027
(Stoke-on-Trent)
Wingates MD & SL / FH & O 0.0m 1.0m / 1.9m £510m - £540m Land remediation and infrastructure development 2033
(Bolton)
Skelton Grange SL / FH 0.6m 0.5m / 0.3m Confidential Land remediation and infrastructure development 2026
(Leeds)
Gateway 45 MD / FH 0.0m 0.8m / 0.0m £110m-£120m Planning approval 2029
(Leeds)
Cinderhill SL / FH & 0.0m 1.5m / 0.0m £180m - £190m Planning approval 2030
(Derby)
PPA
Gascoigne Wood SL / FH 0.0m 1.5m / 0.5m £270m - £290m Planning approval 2028
(Selby)
Northern Gateway(2) SL / JV & O 0.0m 0.0m / 3.3m Confidential Masterplanning 2026-2035
(Greater Manchester)
N. Yorkshire site SL / O 0.0m 0.0m / 3.3m Confidential Masterplanning 2040
Rothwell SL / FH 0.0m 0.0m / 1.8m £310m - £330m Masterplanning 2028
(Kettering)
Junction 15 SL / O 0.0m 0.0m / 1.5m £260m - £280m Masterplanning 2030
(Northampton)
(1) Site type includes SL: Strategic Land, and MD: Major Developments,
Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Join-
venture and O: Option
(2) Harworth's share of a joint-venture, adjacent to the M62 and close to the
M66, Northern Gateway is the core site of the Atom Valley Mayoral Development
Zone, comprising a mix of freehold and optioned land.
I&L INVESTMENT PORTFOLIO
Our Investment Portfolio targets of transforming the portfolio to 100% Grade A
by the end of 2027 and growing the portfolio to £0.9bn by the end of 2029 are
being delivered through a direct development programme where we plan to retain
c. 40% of sites that we develop in the medium term alongside selective
acquisitions and disposals. The portfolio generates recurring rental income,
with the potential for capital value growth via active asset management.
At 30 June 2025, the I&L IP was valued at £319.3m, up 7% on the year end
(FY2024: £297.2m), reflecting the completion of the Technicut unit at the AMP
(Rotherham) and subsequent transfer to the Investment Portfolio as well as
valuation gains following asset management on the portfolio. The portfolio
comprised 11 sites covering 2.8m sq. ft. Headline rental income stood at
£18.3m and annual passing rental income was £16.9m, increased from £15.8m
at the year end. This equates to a net initial yield of 5.0% and a
reversionary yield of 6.4% (FY2024: 6.5%) demonstrating reversionary
potential. At period-end, the quality of the portfolio had increased to 48%
Grade A by area, equating to 66% by value.
I&L Investment Portfolio
H1-2025 FY2024 % change
Portfolio value (£m) 319.3 297.2 +7
Number of sites 11 12 -8
Area (m sq. ft) 2.8 2.8 -
Grade A space - by area (%) 48 45 3pp(1)
Grade A space - by value (%) 66 63 3pp(1)
Annual Passing rental income (£m) 16.9 15.8 +7
Weighted average passing rent(2) (£ psf) 6.27 5.90 +6
Grade A ERV(3) (£ psf) 9.44 9.10 +4
WAULT(4) to first break (years) 9.3 10.1 -8
WAULT(4) to expiry (years) 10.4 11.4 -9
EPRA vacancy(5) (%) 4.9 5.6 -0.7pp(1)
Net initial yield (%) 5.0 4.8 +0.2pp(1)
Reversionary yield (%) 6.4 6.5 -0.1pp(1)
(1) Percentage points
(2) Calculated on occupied space
(3) Estimated rental values
(4) Weighted average unexpired lease term
(5) European Public Real Estate Association vacancy
Disposals
As part of our strategy to transition the core IP to 100% Grade A, we will
continue to selectively dispose of secondary assets and older Grade A assets
where we have delivered our asset management plans and where the viability to
transform or upgrade is limited. During the period, we sold the A19 Business
Park (Selby, North Yorkshire) ahead of its December 2024 book value; this is a
61,000 sq. ft secondary, multi-let asset. Post period-end, we also sold
Brierley Hill (West Midlands), a 373,000 sq. ft secondary multi-let asset,
with headline pricing ahead of its December 2024 book value.
Asset management
During the period, 634,500 sq. ft of leasing activity was completed (H1-2024:
45,000 sq. ft), including 106,000 sq. ft of new leases (H1-2024: 146,000 sq.
ft) at a headline rent of £1.0m. The largest contributor was a new 80,000 sq.
ft lease to Technicut at the AMP (Rotherham). Lettings on existing space,
renewals and reviews were completed 16.0% ahead of annualised previous passing
rents. Post period-end, we let the final vacant unit of 50,000 sq. ft at
Gateway 36 (Barnsley), at a headline rent ahead of valuers' ERVs This,
alongside the post period-end sale of Brierley Hill further reduces the EPRA
vacancy rate from 4.9% to 3.2%.
Investment Portfolio sites
Location Region Ownership Area
(sq. ft)
Site
Advanced Manufacturing Park (AMP) South Yorkshire YAC FH 442,000
Bardon Hill Leicestershire MID FH 338,000
Catalyst South Yorkshire YAC FH 285,000
Bradford West Yorkshire YAC FH 252,000
Knowsley Merseyside NOW FH 422,000
Logistics North Greater Manchester NOW FH 104,000
Multiply Logistics North Greater Manchester NOW 20% JV 87,000
Brierley Hill(1) West Midlands MID FH 373,000
Gateway 36 South Yorkshire YAC FH 110,000
Sherburn in Elmet North Yorkshire YAC FH 253,000
Glossop Derbyshire NOW FH 168,000
(1) Brierley Hill was sold after the period end
RESIDENTIAL PORTFOLIO
At 30 June 2025, the Residential pipeline totalled 31,636 plots (FY2024:
31,264 plots) including 3,919 consented plots (FY2024: 4,568 plots). The
Residential pipeline & planning progress table below shows the stage our
pipeline had reached at 30 June 2025 in comparison to the year-end. The
pipeline that is either consented or in the planning system sits at 44%,
marginally down on 46% at year-end. The pipeline was 40% owned freehold, with
the remaining 60% controlled through JV arrangements 13%, options 9% or PPAs
38% (H12024: 48% freehold, FY2024: 41% freehold), continuing our strategy of
increasingly favouring more capital light ownership structures to facilitate
growth and maximise returns.
Planning
Residential pipeline & planning progress(1)
(m sq. ft) H1-2025 FY2024
Pre-planning 17,735 17,035
Draft allocations 2,655 2,275
Allocations 4,080 5,250
Awaiting determination 3,247 2,136
Consented 3,919 4,568
Total pipeline 31,636 31,264
De-risked(2) 44% 46%
(1) Harworth's share
(2) Consented or in the planning system
· At 30 June 2025, 3,247 plots across seven sites continued to await
determination in the planning system. The increase reflects planning
applications submitted in the period at Coalville (Leicester) MID | R | MD |
and Cefn Park (Wrexham) NOW | R | PPA.
· At Diseworth West (East Midlands) MID | R | SL | FH/ PPA, a mixed-use
development, a planning application was submitted for 2,275 Residential plots
post period end.
Acquisition & land assembly
· We conditionally exchanged on a new strategic partnership with the
Church Commissioners for England to deliver a significant mixed-use
development in West Yorkshire of c. 1,500 Residential plots and c. 1.2m sq. ft
of I&L employment space.
Key Residential development sites
Site Site type / Stage Forecast
Ownership(1)
site completion
Sold Consented / planned
(plots) (plots)
Waverley MD / FH 2,727 244 / - Mixed tenure delivery or plot sale 2025
(Rotherham)
Thoresby Vale MD / FH 650 150 / 286 Mixed tenure delivery or plot sale 2027
(Nottingham)
Staveley SL / FH - - / 950 Masterplanning 2030
(Chesterfield)
Rossington MD / FH 927 273 / 206 Mixed tenure delivery or plot sale 2027
(Doncaster)
Stewartby MD / FH - 1,000 / - Planning approval 2029
(Bedford)
Ironbridge MD / FH 312 688 / 350 Mixed tenure delivery or plot sale 2030
(Telford)
Coalville MD / FH 1,334 682 / 290 Mixed tenure delivery or plot sale 2030
(Leicester)
Diseworth SL / FH & PPA - - / 2,275 Masterplanning 2035
(East Midlands)
Cinderhill SL / FH & PPA - 150 / 1,200 Planning approval 2039
(Derby)
Grimsby West SL / JV - - / 3,044 Acquisitions and land assembly 2044
(Grimsby)
(1) Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV:
Joint-venture and O: Option. Site type includes SL: Strategic Land and MD:
Major Developments.
Land sales on track to beat target of 2,000 plots per annum
We operate a diversified serviced land sales model including freehold serviced
land, mixed-tenure products such as social housing, build-to-rent and senior
living. These sales can be freehold as well as through PPAs, which generate
fees.
By 30 June 2025, we had completed 649 Residential plot sales, comprising 500
plots through PPAs generating fee revenue, and 149 freehold plots at Waverley.
Together, the transactions delivered attractive headline sales totalling
£46.9m. At period-end, a further 1,593 Residential plots sales had
conditionally exchanged or were subject to legal documentation, of which 146
have since completed, demonstrating that our de-risked residential serviced
land product continues to progress, despite headwinds.
NATURAL RESOURCES PORTFOLIO
At 30 June 2025, the Natural Resources portfolio had a value of £21.1m
(FY2024: £21.5m) and headline rental income of £2.0m (FY2024: £2.1m). The
portfolio comprises sites used for a wide range of energy production,
including wind and solar energy, battery storage, and reforestation schemes,
delivered as part of our Energy & Natural Capital strategy. The aim is to
leverage our land and property to grow this portfolio, alongside strategic
partners where appropriate, through developing renewable energy generation
solutions and other sustainability initiatives such as battery storage, solar,
EV charging, multi-fuel hubs and reforestation/rewilding. The strategy has a
wider focus on embedding these energy concepts and future-proofing principles
across all Harworth sites to maximise energy availability and resilience,
create economic value, and help fulfil the Group's NZC ambitions.
As part of our strategy to deliver our serviced land product as a responsible
developer, alongside addressing developers' challenge to meet Biodiversity Net
Gain legislation, we have taken a sector leadership position, launching and
managing our first registered Biodiversity Gain Habitat Bank at our site at
Killamarsh (Sheffield) | YAC | R | SL. On this site, as part of the sale of a
parcel of serviced land to a housebuilder, we were able to sell BNG units on
the wider land at the same time. We retain some BNG units on this site and see
the potential to drive growth in future years as this market continues to
develop, issuing biodiversity units to meet our own obligations and allocating
any surplus units to our other projects alongside selling units to other
developers.
Financial review
Overview
Our first half financial performance delivered a Total Accounting Return 1
(#_ftn1) of 1.1% (H1 2024: 4.0%) reflecting revaluation gains on our I&L
assets partly offset by lower valuations on Residential major development
sites, predominantly driven by increased costs of delivery.
During the period the Group acquired the remaining ownership of the Aire
Valley Land Joint Venture, adjacent to the Group's Skelton Grange site, for
£20.0m leading to its de-recognition as a joint venture and full
incorporation into the Group balance sheet.
Sales of serviced land and property, in addition to income from rent,
royalties, development and other fees, resulted in Group revenue of £47.5m
(H1 2024: £41.3 million).
Revenue from the sale of Residential serviced land was £10.9m (H1 2024:
£22.2m) demonstrating, when combined with the forward pipeline of sales,
continued demand for the Group's de-risked land products. Development revenues
of £18.4m (H1 2024: £6.9m) were driven by higher activity delivering our
affordable residential product, as part of our continued focus on
acceleration, as well as development for Microsoft at Skelton Grange. In
addition, residential PPA revenue contributed £4.0m (H1 2024: £nil)
reflecting fees from a sale under a planning promotion agreement.
Revenue from Income Generation increased as a result of higher rental income
(£13.6m, H1 2024: £10.3m), due to the acquisition of Catalyst in October
2024 alongside asset management activity; like-for-like annualised headline
rental income grew by 1.9% (H1 2024: 2.4%).
Total property sales, which included proceeds from the sales of investment
properties, assets held for sale ('AHFS') and overages, amounted to £18.9m
(H1 2024: £41.7m) reflecting the higher residential sales during the first
half of 2024.
The Investment Portfolio value increased to £319.3m at the end of June 2025
(December 2024: £297.2m) reflecting the completion of direct development of
the latest phase at our Waverley site (£19.5m) as well as the impact of
revaluation gains driven by asset management and market rental growth, offset
by the disposal of property following completed asset management activity
(£2.7m). The Group is targeting an Investment Portfolio of approximately
£0.9bn by the end of 2029 through a combination of retained developments and
selective acquisitions, with the additional target of this portfolio becoming
100% Grade A by the end of 2027.
BNP Paribas, Jones Lang LaSalle and Savills, our independent valuers,
completed a desktop valuation of our portfolio as at 30 June 2025, resulting
in half year revaluation gains of £21.7m (H1 2024: gains of £46.6m),
including the movement in the market value of development properties. These
external independent valuations have regard to conditions in the residential
and industrial and logistics markets as well as the positive impact of
management actions at our sites. Outside the valuation movements, losses on
sales were £6.3m (H1 2024: gain of £0.4m). These losses largely related to
the allocation of increased site wide infrastructure costs to sales completed
in prior periods on a small number of mature residential sites. Overall, this
led to total value gains of £15.5m (H1 2024: £47.0 gains).
The fair value of investment properties increased by £17.4m (H1 2024: £26.7m
increase), which resulted in an underlying operating profit of £7.1m (H1
2024: £21.1m) and profit after tax of £9.7m (H1 2024: £14.8m).
Over the period, the net asset value of the Group grew by 1.0% to £698.3m (31
December 2024: £691.7m). With EPRA adjustments for development property
valuations included, EPRA NDV at 30 June 2025 increased to £725.0m (31
December 2024: £719.5m) representing a per share increase of 0.6% to 223.7p
(31 December 2024: 222.3p).
During the period the Group took advantage of the particularly dry weather to
advance site delivery in support of our ambitious I&L delivery targets, as
well as acquiring the remaining 50% interest in our Aire Valley Land joint
venture. As a result, net debt increased to £179.4m (30 June 2024: £80.5m,
31 December 2024: £46.7m) resulting in an LTV at 30 June 2025 of 19.0% (31
December 2024: 5.4%), well within our self-imposed maximum target of 25%
during the year. The Group remains well capitalised and, at 30 June 2025, had
available liquidity of £59.8m (30 June 2024: £154.2m, 31 December 2024:
£192.4m). As is typical for the Group, sales activity is weighted to the
second half of the year: we have confidence in the forward sales pipeline and
the crystallisation of this sales activity, coupled with receipts from
deferred consideration on prior period sales, will lead to lower net debt at
the year-end when we would expect LTV to come down to within the 10% - 15%
range. We currently do not have interest rate hedging in place against
drawings under our Revolving Credit Facility (RCF), although this continues to
remain under review.
Presentation of financial information
As our property portfolio includes development properties and joint venture
arrangements, Alternative Performance Measures ('APMs') can provide valuable
insight into our business alongside statutory measures. In particular,
revaluation gains on development properties are not recognised in the
Consolidated Income Statement and the Balance Sheet. The APMs outlined below
measure movements in development property revaluations, overages and joint
ventures. We believe that these APMs assist in providing stakeholders with
additional useful disclosure on the underlying trends, performance and
position of the Group.
Our key APMs are:
· Total Accounting Return: the movement in EPRA NDV plus dividends per
share paid in the period expressed as a percentage of opening EPRA NDV per
share.
· EPRA NDV per share: EPRA NDV aims to represent shareholder value
under an orderly sale of the business, where deferred tax, financial
instruments and certain other adjustments are calculated to the full extent of
their liability net of any resulting tax. EPRA NDV per share is EPRA NDV
divided by the number of shares in issue at the end of the period (less shares
held by the Employee Benefit Trust or Equiniti Share Plan Trustees Limited to
satisfy Restricted Share Plan, Share Incentive Plan and Deferred Share Bonus
awards).
· Value gains: the realised profits from the sale of properties and
unrealised profits from property valuation movements including joint ventures,
and the mark-to-market movement on development properties and overages.
· Net LTV: Group debt net of cash held expressed as a percentage of
portfolio value.
A full description of all non-statutory measures is set out in the appendix to
the financial statements and reconciliations between all statutory and
non-statutory measures are provided in the same appendix. From December 2025,
the Group plans to report an additional APM, Total Property Return, calculated
in line with the MSCI Property Index Methodology. This will provide increased
information to shareholders on the Group's relative performance and supports
the implementation of relative operational performance measures for the
short-term and long-term incentive schemes under the revised Remuneration
Policy.
Our financial reporting is aligned to our business units of Capital Growth and
Income Generation, with any items that are not directly allocated to specific
business activities held centrally and presented separately.
Income Statement
H1 2025 H1 2024
Capital Income Generation Central Overheads Total Capital Income Generation Central Overheads Total
Growth
£m
Growth
£m
£m £m £m
£m £m £m
Revenue 33.9 13.6 - 47.5 31.1 10.3 - 41.3
Cost of sales (38.6) (3.4) - (42.1) (31.5) (2.6) - (34.1)
Gross profit/(loss) (4.8) 10.2 - 5.4 (0.5) 7.7 - 7.2
Administrative expenses (3.3) (0.9) (12.9) (17.1) (3.2) (1.4) (12.2) (16.8)
Other gains/(losses) 13.0 5.8 - 18.8 23.2 7.5 - 30.7
Operating profit/(loss) 4.9 15.1 (12.9) 7.1 19.6 13.8 (12.3) 21.1
Share of profit / (loss) of JVs 3.6 0.7 - 4.4 (0.7) 1.1 - 0.4
Net interest credit / (expense) 2.4 0.1 (6.5) (4.0) 0.7 - (3.5) (2.8)
Profit/(loss) before tax 10.9 15.9 (19.4) 7.4 19.6 14.9 (15.8) 18.7
Tax charge - - 2.3 2.3 - - (3.9) (3.9)
Profit/(loss) after tax 10.9 15.9 (17.1) 9.7 19.6 14.9 (19.7) 14.8
Note: There are minor differences on some totals due to roundings.
Revenue in the period was £47.5m (H1 2024: £41.3m), of which Capital
Growth contributed £33.9m (H1 2024: £31.1m) and Income Generation
contributed £13.6m (H1 2024: £10.3m).
Capital Growth revenue of £33.9m included revenue from the sale of
development properties of £10.9m (H1 2024: £24.0m) and development revenue
of £18.4m (H1 2024: £6.9m) relating to the delivery of the Group's
affordable residential product and development work for Microsoft at Skelton
Grange. Capital Growth revenue also included fees from PPAs of £4.0m (H1
2024: nil).
Revenue from Income Generation mainly comprised property rental and royalty
income from the Investment Portfolio, Natural Resources and Agricultural Land.
Revenue of £13.6m (H1 2024: £10.3m) in the first 6 months was £3.3m higher
than that in the same period in 2024 predominantly due to the additional
rental income generated from the acquisition of the Catalyst portfolio in the
second half of 2024 alongside asset management initiatives. Like-for-like
headline rent (excluding the impact of acquisitions, completed development and
disposals) from the Investment Portfolio increased by 1.9% (H1 2024: 4.9%)
during the period, following new lettings, lease regears and rent reviews on
existing assets. The total headline annualised rental income for the
Investment Portfolio, including the impact of disposals, increased by 4.3% to
£18.3m at the period end (31 December 2024: £17.5m).
Cost of sales comprises the inventory cost of development property sales,
increased site wide infrastructure costs impacting a small number of mature
residential sites, costs incurred in undertaking build-to-suit development and
both the direct and recoverable service charge costs of the Income Generation
business. Cost of sales increased to £42.1m (H1 2024: £34.1m), of which
£15.6m (H1 2024: £24.8m) related to the inventory cost of development
property sales and increased site wide infrastructure costs, with the latter
resulting in an overall gross loss for the period within Capital Growth. In
the period, there was an increase in the net realisable value provision on
development properties of £1.5m (H1 2024: £0.7m decrease) following the
valuation process as at 30 June 2025.
Administrative expenses increased in the period by £0.3m to £17.1m (H1 2024:
£16.8m). This was due to higher salary expenses, resulting from increased
employee numbers, offset by lower legal and professional costs.
Other gains comprised a £17.3m net increase (H1 2024: £26.5m) in the fair
value of investment properties and assets held for sale ('AHFS') combined with
the profit on sale of investment properties, AHFS and overages of £1.5m (H1
2024: £4.3m).
Joint venture profits of £4.4m (H1 2024: £0.4m) were the result of valuation
gains at the Aire Valley Land Joint Venture prior to de-recognition as part of
the acquisition of the remaining interest during the period, as well as at
Multiply Logistics North.
Non-statutory value gains/(losses)
Value gains/(losses) are made up of profit on sale, revaluation gains/(losses)
on investment properties (including joint ventures), and revaluation
gains/(losses) on development properties, AHFS and overages. A full
description of, and reconciliation between, statutory and non-statutory value
gains can be found in Note 2 and the appendix to the consolidated financial
statements.
£m Category H1 2025 H1 2024 31 December 2024
30 June 2025
Profit /(loss) Reval. gains/ Total Profit /(loss) Reval. gains/ Total Total valuation Total valuation
on sale (losses) on sale (losses)
Capital Growth
Residential Development (6.1) (8.4) (14.5) 0.3 9.2 9.5 225.5 223.8
Major Developments
Industrial & Logistics Major Developments Mixed (0.9) 14.1 13.2 (0.2) 6.7 6.5 179.0 138.1
Residential Investment (0.1) (0.1) (0.2) 0.2 3.3 3.5 62.9 61.0
Strategic Land
Industrial & Logistics Investment (0.2) 10.4 10.2 0.2 18.6 18.8 125.2 109.7
Strategic Land
Income Generation
Investment Portfolio Investment 0.1 4.8 4.9 - 8.2 8.2 319.3 297.2
Natural Resources Investment 0.9 0.6 1.5 - 0.2 0.2 21.1 21.5
Agricultural Land & other Investment - 0.3 0.3 (0.1) 0.4 0.3 11.2 7.5
Total (6.3) 21.7 15.5 0.4 46.6 47.0 944.2 858.8
Notes: There are some minor differences on some totals due to
roundings. Profit/(loss) on sale is stated net of the impact of transaction
fees incurred.
Loss on sale of £6.3m (H1 2024: £0.4m profit) reflected the impact of
transaction costs, pricing being broadly in line with book value before
transaction costs, discounting of deferred consideration to present value, and
retentions not recognised on completion. The loss incurred was driven by
£6.1m increases in the estimated costs for the completion of site wide works
at a small number of mature residential sites, impacting the proportional
share of site wide costs allocated to prior period sales at the point of sale
completion.
Revaluation gains were £21.7m (H1 2024: £46.6m) and are outlined in the
table below.
H1 2025 H1 2024
£m £m
Increase in fair value of investment properties 17.4 26.7
Decrease in value of assets held for sale (0.1) (0.2)
Movement in net realisable value provision on development properties (1.6) (0.3)
Contribution to statutory operating profit 15.7 26.2
Share of profit of joint ventures 4.4 0.4
Unrealised gains on development properties and overages 1.6 20.0
Total non-statutory revaluation gains 21.7 46.6
Note: There are minor differences on some totals due to roundings
The principal revaluation gains and losses across the divisions reflected the
following:
· Industrial & Logistics:
· Valuation gains totalling £23.5m across Major Developments and
Strategic Land driven by planning progress, continued progression on
developments, occupier and investor demand and improvement in market rents.
· Revaluation gains on the Investment Portfolio from letting progress
and improvement in market rents.
· While investment yields remained stable during the period, the industrial
and logistics market continued to benefit from rental growth supporting our
Industrial & Logistics Major Development sites, Strategic Land sites and
the Investment Portfolio, alongside the impact of management actions.
· Residential:
· Continued operational progress at our residential sites and demand for
serviced land sales underpinned valuations, although the broader residential
market and policy challenges impacted on sentiment.
· Cost increases on Residential major development sites included increases
across infrastructure works and professional fees as well as increases in the
expected costs of meeting CIL and s106 planning obligations. CIL and s106
costs are a normal part of development delivery but are one-off for the
relevant development.
· Savills reported that the residential development land market
remained stable but performance has not been as positive as expected as a
result of economic uncertainties, cost pressures and viability challenges
impacting housing delivery.
· Government policy remains focused on significantly increasing the
level of housing delivery but is taking time to have an impact.
· Natural Resources: valuations increased in the period, reflecting
higher royalties from wind assets.
· Agricultural Land and Other experienced a small valuation increase
during the year.
The net realisable value provision on development properties as at 30 June
2025 was £9.9m (31 December 2024: £8.5m). This provision is held to reduce
the value of six (31 December 2024: seven) development properties from their
deemed cost (the fair value at which they were transferred from an investment
to a development categorisation) to their net realisable value at 30 June
2025. The transfer from investment to development property takes place once
planning is secured and development with a view to sale has commenced.
Cash and sales
Group revenue from property sales in the period was £18.9m (H1 2024:
£41.7m). Revenue from sales comprised:
H1 2025 H1 2024
£m £m
Residential land sales 10.9 24.0
Industrial & Logistics land sales 1.9 0.2
Sales of Investment Portfolio properties 3.0 13.3
Natural resources land sales 2.1 -
Overages 1.0 4.2
Total group revenue from property sales 18.9 41.7
Cash proceeds from sales in the period were £12.7m (H1 2024: £30.0m) as
shown in the table below:
H1 2025 H1 2024
£m £m
Total property sales 18.9 41.7
Less deferred consideration on sales in the period (10.9) (13.6)
Add receipt of deferred consideration from sales in prior years 4.7 1.9
Total cash proceeds 12.7 30.0
Tax
The income statement credit for taxation for the period was £2.3m (H1 2024:
£3.9m charge), which comprised a current tax charge of £nil (H1 2024: £nil
charge) and a deferred tax credit of £2.3m (H1 2024: £3.9m
charge).
The current tax is determined by profits from the sale of development
properties, investment property, AHFS, profit on the rental of investment
property, royalties and other fees after taking into account overheads and
interest costs. The deferred tax balance has been calculated based on the
rate expected to apply on the date the liability is crystallised. Lower
profits on the sale of development property offset by increases in site wide
costs, coupled with the impact of overhead and interest costs resulted in a
nil current tax charge for the period (H1 2024: £nil) with the deferred tax
credit generated by losses offsetting the deferred tax charge arising from
valuation gains, leading to an overall tax credit for the period.
At 30 June 2025, the Group had deferred tax liabilities of £39.6m (31
December 2024: £37.0m) and deferred tax assets of £6.3m (31 December 2024:
£3.3m). The net deferred tax liability was £33.3m (31 December 2024:
£35.9m).
Basic earnings per share and dividends
Basic earnings per share for the period decreased to 3.0p (H1 2024: 4.6p)
reflecting lower increases in valuation of investment properties in H1 2025,
lower profits from sales in the period partly offset by higher rental income.
The Board has determined to pay an interim dividend of 0.538p (H1 2024:
0.489p) per share, an increase of 10% in line with the Group's policy.
Property categorisation
Until sites receive planning permission and their future use has been
determined, the Group's view is that the land is held for a currently
undetermined future use and should, therefore, be held as investment property.
Properties and land that have received planning permission, and where
development with a view to sale has commenced, are categorised as development
properties.
The table below sets out the top 10 sites by value, which represent 53% of the
total portfolio, split according to their categorisation, including currently
consented Residential plots and commercial space:
Top 10 sites by value
Site Region Use Site BS Progress to date
type
category
Ironbridge (Telford) MID R MD Dev. prop 1,000 Residential units consented, land sold representing 312 units, further
enabling works underway
Continue to progress master planning for the scheme in collaboration with the
SL Inv. prop Local Authority
R
Advanced Manufacturing Park (AMP) (Rotherham) YAC I&L MD Inv. prop 2.1m sq. ft of Industrial & Logistics space consented, 1.8m sq. ft built
or sold.
I&L IP Inv. prop
0.4m sq. ft of Grade A held in Investment Portfolio
Bardon Hill (Leicester) MID I&L IP Inv. prop 0.3m sq. ft of fully-let Grade A held in Investment Portfolio
Wingates (Bolton) NOW I&L MD Inv. prop Up to 0.8m sq .ft of Industrial and Logistics space consented with buildings
up to 0.3m sq. ft achievable in Phase 1. Enabling and site infrastructure
works ongoing with completion due Q3 2026.
Work to submit a planning application for a further 1.9m sq. ft is ongoing
R/I&L SL
Inv. prop
Catalyst (Rotherham) YAC I&L IP Inv. prop 90% let, letting of Unit 4, the final vacant unit, subject to legal
documentation
Coalville (Leicester) MID R MD Dev. prop 2,016 Residential units consented, land sold representing 1,334 units with a
further 146 units completed in July
Wyke Lane (Bradford) YAC I&L IP Inv. prop 0.3m sq. ft fully-let
Chatterley Valley (Stoke) NOW I&L MD Dev. prop 1.17m sq. ft of Industrial and Logistics space consented with single buildings
of up to 0.5m sq. ft achievable. Enabling and infrastructure site works now
complete
I&L MD Inv. prop
Logistics North (Bolton) NOW I&L IP Inv. prop 104k sq. ft owned freehold retained in Investment Portfolio.
I&L IP JV 87k sq. ft controlled through joint venture retained in Investment Portfolio
Skelton Grange (Leeds) YAC I&L MD Dev. prop 0.3m sq. ft of I&L space remaining on the retained land.
Enabling works are ongoing in relation to the previously sold plot 1 and
remain on track to complete on time.
I&L SL Inv. prop
As at 30 June 2025, the balance sheet value of our development properties was
£202.0m (31 December 2024: £190.9m; 30 June 2024: £250.5m) and their
independent valuation was £232.4m, reflecting a £30.4m cumulative uplift in
value since they were classified as development properties. In order to
highlight the market value of development properties, and overages, and to be
consistent with how we state our investment properties, we use EPRA NDV,
which includes the market value of development properties and overages less
notional deferred tax, as our primary net assets metric.
Net asset value
30 June 2025 30 June 2024 31 Dec 2024
£m £m £m
Properties((1)) 908.6 772.5 821.6
Cash 9.8 9.2 117.4
Trade and other receivables 118.5 68.9 98.2
Other assets 20.1 15.9 15.3
Total assets 1,057.0 866.5 1,052.5
Gross borrowings (189.2) (89.7) (164.1)
Deferred tax liability (33.3) (33.7) (35.9)
Other liabilities (136.2) (93.1) (160.9)
Statutory net assets 698.3 650.0 691.7
Mark to market value adjustment on development properties and overages less 26.7 37.0
notional deferred tax
27.8
EPRA NDV 725.0 687.0 719.5
Number of shares in issue less Employee Benefit Trust & Equiniti Share 324,104,549 323,592,468
Plan Trustees Limited-held shares
323,640,852
EPRA NDV per share 223.7p 212.3p 222.3p
(1) Properties include investment properties, development properties, AHFS,
occupied properties and investment in joint ventures.
EPRA NDV at 30 June 2025 was £725.0m (31 December 2024: £719.5m), which
includes the mark to market adjustment on the value of the development
properties and overages. The total portfolio value as at 30 June 2025 was
£908.6 million, an increase of £87.0m from 31 December 2024 (£821.6m).
The Group's share of gains from joint ventures of £4.4m (30 June 2024:
£0.4m), was primarily as a result of the revaluation gains on The Aire Valley
Land LLP joint venture in the period prior to the acquisition described below,
and the performance of Multiply Logistics North LLP in the six months to June
2025.
A total of £20.0m, before costs and stamp duty, was paid in March 2025 to
acquire the remaining 50% of the joint venture. As a result of the
acquisition, the carrying amount of the investment totalling £16.1m was
derecognised from the Investments in Joint Venture on the balance sheet and is
now shown as a 100% wholly owned Subsidiary. Excluding the gain on the
revaluation of The Aire Valley Land LLP joint venture and its derecognition,
there was a £0.7m increase in the like-for-like value of joint ventures in
the six months to June 2025.
Trade and other receivables include deferred consideration on sales. At 30
June 2025, deferred consideration of £77.3m was outstanding (31 December
2024: £72.9m), of which 63.8% is due within one year, the current level being
the result of the higher level of residential land sales completed during
2024: where deferred payment terms are agreed, the Group maintains security in
order to mitigate credit risk.
Financing strategy
Harworth's financing strategy remains to be prudently geared. The Income
Generation portfolio provides a recurring income source to service debt
facilities and this is supplemented by proceeds from sales.
As part of its strategic plan, the Group maintains a self-imposed target LTV
of below 20% at year ends, with a maximum of 25% in-year, reflecting the
cyclical nature of the Group's cashflows. As a principle, the Group seeks to
maintain its cash flows in balance by funding the majority of infrastructure
expenditure through disposal proceeds, while allowing for growth in the
portfolio.
Debt facilities
The Group has a £240m RCF provided by NatWest, Santander and HSBC, providing
significant liquidity and flexibility to enable the Group to pursue its
strategic objectives. The interest rate on the RCF is based on an LTV ratchet
mechanism with a margin payable above SONIA in the range of 2.25% to 2.50%.
Whilst there are no refinancing requirements until 2027, the Group is
currently proceeding with a refinancing with the intention to complete this
within the next six months.
As part of its funding structure, the Group also uses infrastructure financing
provided by public bodies and site-specific direct development loans to
promote the development of major sites and bring forward the development of
Industrial & Logistics units.
The Group had net debt of £179.4 million at 30 June 2025 (31 December 2024:
£46.7 million; 30 June 2024: £80.5 million). The increase in net debt during
the period reflects the significant investment and operational progress on
sites alongside the acquisition of the remaining interest in Aire Valley Land
LLP, partly offset by proceeds from sales in line with the typical second half
weighting of Group property sales. Tax payments made during the period
reflected the timing of sales activity in 2024 which was weighted to the final
quarter of 2024. The movements in net debt over the period are shown below:
H1 2025 H1 2024
£m £m
Opening net debt as at 1 January (46.7) (36.4)
Cash outflow from operations (59.5) (32.8)
Property expenditure and acquisitions (52.4) (21.1)
Disposal of investment property, AHFS and overages 4.5 17.5
Net investments in joint ventures (0.8) (1.2)
Interest and loan arrangement fees (5.2) (2.2)
Dividends paid (3.7) (3.3)
Tax paid (11.6) (0.2)
Fixed assets expenditure (3.0) -
Other cash and non-cash movements (1.0) (0.8)
Closing net debt as at 30 June (179.4) (80.5)
The Group's hedging strategy to manage its exposure to interest rate risk is
to hedge the lower of around half its average debt during the year or its net
debt balance at year end. As at 30 June 2025, none of the Group's drawn debt
was subject to interest rate hedging. The Group is proceeding with a
refinancing of its main RCF, in advance of a maturity date in 2027, with the
intention to conclude this, and a revised hedging profile alongside this, in
the next six months. Projected drawn debt, including the profile following
completion of year-end sales, and hedging requirements remains under active
review with any new hedging to be aligned to future net debt requirements.
As at 30 June 2025, the Group's net LTV was 19.0% (31 December 2024: 5.4%; 30
June 2024: 9.8%). If gearing is assessed against the value of the income
generation portfolio (the Investment Portfolio and Natural Resources
portfolio) only, this equates to a net loan to income generation portfolio
value of 58.2% (31 December 2024: 15.7%; 30 June 2024: 34.4%). Under the RCF,
the Group could withstand a material fall in portfolio value, property sales
or rental income before reaching covenant levels.
At 30 June 2025, Group liquidity of £59.8m (31 December 2024: £192.4m)
included undrawn capacity under the RCF of £50.0m (31 December 2024: £75.0m)
in addition to the period-end cash balance of £9.8m (31 December 2024:
£117.4m). The forward sales programme for the remainder of the year continues
to be strong and in line with our typical cashflow profile of second half
weighted sales. We, therefore, expect sales in H2 2025 to reduce drawn debt
and increase available liquidity by the end of the year, putting us in a
strong position to finance the next stage of sites going into 2026.
Kitty Patmore
Chief Financial Officer
15 September 2025
( )
Key performance indicators
2.1 Financial track record
KPI H1-2025 result H1-2024 result FY2024 result H1-2025
performance commentary
Total Accounting Return (%) 1.1% 4.0% 9.1% Our total return of 1.1% was the result of a 0.6% increase in EPRA NDV during
the year, as well as the payment of a 1.125p dividend.
Growth in EPRA NDV during the period in addition to dividends paid, as a
proportion of EPRA NDV at the beginning of the year.
EPRA Net Disposal Value ('NDV') per share 223.7p 212.3p 222.3p The increase resulted from revaluation gains driven by management actions to
progress sites, partially offset by increases in site wide costs at a small
A European Public Real Estate Association ('EPRA') metric that represents a number of mature residential sites.
net asset valuation where development property is included at fair value
rather than cost and deferred tax, financial instruments and other adjustments
as set out in Note 2 and the appendix to the financial statements, are
calculated to the full extent of their liability.
Net asset value £698.3m £650.0m £691.7m Net asset value increased as a result of value gains on investment property
and the Group's share of profit from joint ventures.
The value of our assets less the value of our liabilities, based on IFRS
measures, which excludes the mark-to-market value of development properties.
Net LTV 19.0% 9.8% 5.4% Our LTV increased as we drove significant investment and operational progress
on sites as well as from the acquisition of the remaining 50% interest in Aire
Net debt as a proportion of the aggregate value of properties and investments. Valley Land LLP, with LTV remaining well within our self-imposed target within
year of less than 25% as we continue to carefully manage levels of net debt.
2.2 Strategic track record
KPI H1-2025 result H1-2024 result FY2024 result H1-2025
performance commentary
Industrial & Logistics space direct development 100,500 nil 107,000 sq. ft Completed direct development during the period included the completion and
sq. ft
sq. ft letting of 80,000 sq. ft at the Advanced Manufacturing Park (AMP) - Rotherham
The amount of Industrial & Logistics space developed by Harworth, either
speculatively or on a build-to-suit basis for an end occupier or investor,
achieving practical completion during the year.
Total Industrial & Logistics pipeline 34.6m 38.8m 33.6m The increase since year-end included the addition of 0.4m sq. ft through the
acquisition of the remaining 50% interest in the Aire Valley Land joint
The total amount of Industrial & Logistics space that could be delivered sq. ft sq. ft sq. ft venture at Gateway 45, adjacent to our Skelton Grange site.
from our land bank, including freehold land, options and PPAs.
Proportion of Investment Portfolio that is A: 48% A: 37% A: 45% The increase reflects the transfer of 80,000 sq. ft completed and let at the
V: 56%
Advanced Manufacturing Park (AMP) Rotherham
Grade A by area & value V: 66% V: 63%
The proportion of our Investment Portfolio by area that could be classified as
modern Grade A Industrial & Logistics space. Grade A is a widely-used
industry term that is understood to mean 'best in class', space which is new
or relatively new, high-specification and in a desirable location, allowing
the unit to attract a rent that is above the market average.
Number of plots sold 649 357 2,385 Sales during the period include 149 freehold plot sales and 500 PPA plot sales
in line with normal weighting of sales towards the end of the year following
The number of plots equivalent to land parcel sales to housebuilders or completing work on sites.
registered providers during the year.
Total Residential pipeline 31,636 26,638 plots 31,264 plots The residential pipeline remained stable during the period with additions
plots slightly ahead of sales completed.
The total number of Residential plots that could be delivered from our
pipeline including freehold land, options and PPAs.
Principal risks & uncertainties
A detailed explanation of the Group's risk management framework, the principal
risks and uncertainties affecting the Group and the steps it takes to mitigate
these risks, can be found on pages 68 to 85 of the Annual Report and Financial
Statements for the year ended 31 December 2024 (the "2024 Annual Report"),
available at within the "Investors" section of our website.
During H1 of 2025 the Board undertook a comprehensive review of the principal
risks to ensure they remain aligned with our strategic objectives and are
reflective of the evolving external landscape. This review was informed by
consideration of:
· Scaling up of vertical development delivery and growth in the
Investment Portfolio.
· Early outputs from the enhancement and standardisation of our
'bottom-up' operational risk management framework.
· The current macroeconomic and geopolitical environment.
The review did not result in a fundamental revision of the risk profile of the
Group. Instead, it led to a refinement of the existing risk set, including the
following:
· There are now 11 principal risks and one emerging risk, compared
to the previous 12 principal risks.
· Five risk descriptions were clarified and refined, with no
material changes to the nature of the risk.
· Five risks were renamed to reflect better the strategic
objectives of the Group.
· Two new risks were introduced and named 'Physical Climate Events'
and 'Government Policy Implementation,' reflecting the growing significance
and potential impact these could have on the Group.
· Two risks were updated to consolidate principal risks and
consider wider potential impacts to the Group.
· Three risks were removed from the principal risk set, with two
incorporated into other principal risks and one which had diminished in impact
such that it will now be considered in operational risk processes.
The detailed description of changes and the new set of principal risks for the
Group are outlined below:
Risk Risk title Risk description Description of change
1 Power Infrastructure Capacity Challenges in securing power infrastructure for schemes at a viable cost and No material change. Refinement of risk description.
time scale.
2 Planning System Challenges in obtaining planning permission for schemes impacting financial No material change. Refinement of risk description.
returns.
3 Construction Supply Chain Exposure to construction supply chain may lead to increased pricing pressures, No material change. Previously called 'development supply chain'.
labour constraints, and risk of disputes, default and/or insolvency of supply
chain partners.
4 Physical Climate Events Extreme weather events and long-term climate shifts (e.g. storms, floods, New principal risk. The risk has been elevated to a principal risk to reflect
wildfires, temperature extremes) disrupt construction supply chains, impacts the growing likelihood and impact of extreme weather events on our ambitious
development operations, increases costs, and damages assets. development programmes.
5 Real Estate End Markets Deterioration of core end markets, driven by macroeconomic factors and No material change. Refinement of risk description. Previously called
investor sentiment, impacting valuations, financial returns and recycling of 'residential and commercial markets'.
capital.
6 Capital Inability to source adequate equity or debt capital at viable costs. No material change. Previously called 'availability of appropriate capital'.
7 People Inadequate employee value proposition impacting the ability to attract, No material change. Refinement of risk description. Previously called
retain, and develop quality talent, while also impacting succession planning 'organisational development and design'.
efforts.
8 Health and Safety Injury / death to employees, subcontractors, visitors, and/or occupiers No material change.
resulting in operational impacts, liabilities, penalties and/or reputational
damage.
Risk Risk title Risk description Description of change
9 Responsible Business Failure to discharge societal obligation to contribute positively to ESG Updated principal risk. Incorporates previous risk of 'Net Zero Carbon
outcomes, including failure to meet our Net Zero Carbon pathway commitments, pathway', while also including wider ESG considerations, and costs of
and non-compliance with regulations and reporting requirements, resulting in development.
financial loss and/or reputational damage.
10 Digital Transformation and Resilience Failure to realise effective digital architecture to preserve business No material change. Refinement of risk description.
continuity, protect IP and data, prevent and recover from cyber incidents, and
support growth, evolution and AI integration.
11 Government Policy Implementation Challenges in slow and/or inconsistent implementation of Government policy New principal risk.
across our regions alongside devolution and local government reform changing
the landscape that we (investors and businesses) are operating in.
EMERGING Investment Partner Selection and Management Flaws in governance and management of stakeholder relationships impacting Updated principal risk. Incorporates elements of the previous 'Counterparties:
operations, availability of capital and costs. Investment partners and service providers', however with a focus on the
governance and management of these relationships.
REMOVED Availability of and competition for strategic sites Failure to acquire strategic land at appropriate prices due to constrained Risk removed. Harworth's extensive land bank, development pipeline and
supply or competition. investment strategy mean this is no longer a principal risk to achievement of
Harworth's strategic objectives.
REMOVED Counterparties: Investment partners and service providers Increase in exposure to investment partners and critical dependencies on Risk removed. Incorporated into other principal risks.
certain service providers, leading to increased risk from disputes with and/or
default by and/or insolvency of these counterparties.
REMOVED Statutory costs of development Legislative reforms which do, or may, impose a tax or levy on development or Risk removed. Incorporated into other principal risks.
have the effect of levying an additional cost on development.
The Group continues to monitor its risk environment closely and remains
confident that its risk management framework is robust and responsive to
change. A full description of the Group's Principal Risks, including the
changes made throughout the financial reporting year, will be reflected in the
year-end disclosures for 31 December 2025.
Directors' Responsibilities statement
For the six months ended 30 June 2025
The Directors who held office at the date of approval of these Financial
Statements confirm that to the best of their knowledge:
1. the Condensed Consolidated Interim Financial Statements have been
prepared in accordance with the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority and in accordance with IAS 34 'Interim
Financial Reporting' as contained in UK-adopted international accounting
standards; and
2. the Interim Management Report includes a fair review of the
information required by:
a) Rule 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the six months ended
30 June 2025 and their impact on the Condensed Consolidated Interim Financial
Statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
b) Rule 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the six months ended 30 June 2025
and that have materially affected the financial position or performance of the
Group during that period, and any changes in the related party transactions
described in the last Annual Report and Financial Statements that could do so.
The Directors who served during the six months ended 30 June 2025 were as
follows:
· Alastair Lyons, Chair
· Lynda Shillaw, Chief
Executive
· Katerina Patmore, Chief Financial Officer
· Angela Bromfield, Senior Independent Director
· Lisa Scenna, Independent Non-Executive Director
· Patrick O'Donnell Bourke, Independent Non-Executive Director
· Marzia Zafar, Independent Non-Executive Director
· Martyn Bowes, Non-Executive Director
Ruth Cooke, an independent Non-Executive Director, retired from the Board at
the Company's AGM on 19 May 2025. Phil Redding, an independent Non-Executive
Director, was appointed to the Board on 10 September 2025.
By order of the Board
Chris Birch
General Counsel and Company Secretary
15 September 2025
Cautionary statement
This report for the six months ended 30 June 2025 contains certain
forward-looking statements with respect to the Company's financial condition,
results, operations and business. These statements and forecasts involve
risk and uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are factors that could
cause actual results or developments to differ materially from those expressed
or implied by these forward-looking statements and forecasts. Nothing in
this report should be construed as a profit forecast.
Directors' liability
Neither the Company nor the Directors accept any liability to any person in
relation to this report for the six months ended 30 June 2025 except to the
extent that such liability could arise under English law. Accordingly, any
liability to a person who has demonstrated reliance on any untrue or
misleading statement or omission shall be determined in accordance with
section 90A of the Financial Services and Markets Act 2000.
Shareholder information
Financial calendar
Interim results for the six months ended 30 June 2025 Published 16 September 2025
Interim dividend for the year ended 31 December 2025 Ex-dividend date 25 September 2025
Record date 26 September 2025
Payable 04 November 2025
Results for the year ended 31 December 2025 Scheduled March 2026
Annual report and financial statements for the year ended 31 December 2025 Scheduled April 2026
2026 Annual General Meeting Scheduled May 2026
Final dividend for the year ended 31 December 2025 Ex-dividend date April 2026
Record date April 2026
Payable May 2026
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Any shareholder wishing dividends to be paid directly into a bank or building
society should instruct this via the Shareview service, or contact the
Registrars for a dividend mandate form. Dividends paid in this way will be
paid through the Bankers' Automated Clearing System ('BACS').
Shareview service
The Shareview service from Equiniti allows shareholders to manage their
shareholding online. It gives shareholders direct access to their data held on
the share register, including recent share movements and dividend details and
the ability to change their address or dividend payment instructions online.
To visit the Shareview website, go to www.shareview.co.uk. There is no charge
to register but the 'shareholder reference number' printed on proxy forms or
dividend stationery will be required.
Website
The Group's website (harworthgroup.com (http://harworthgroup.com/) ) provides
further information. Detailed information for shareholders can be found at
harworthgroup.com/investors.
Consolidated income statement
Unaudited Unaudited Audited
6 months ended
6 months ended
Note
30 June
30 June Year ended
2025
2024
31 December
£'000
£'000
2024
£'000
Revenue 3 47,471 41,306 181,585
Cost of sales 3 (42,070) (34,110) (150,508)
Gross profit 3 5,401 7,196 31,077
Administrative expenses 3 (17,071) (16,779) (33,185)
Other gains 3 18,810 30,736 78,113
Other operating expenses 3 (57) (44) (1,371)
Operating profit 3 7,083 21,109 74,634
Finance costs 4 (6,499) (3,614) (9,900)
Finance income 4 2,479 801 3,166
Share of profit/(loss) of joint ventures 9 4,356 430 1,487
Profit before tax 7,419 18,726 69,387
Tax credit/(charge) 5 2,273 (3,942) (12,150)
Profit for the period/year 9,692 14,784 57,237
Earnings per share from operations pence pence pence
Basic 7 3.0 4.6 17.7
Diluted 7 2.9 4.5 17.3
The Notes 1 to 15 are an integral part of these condensed consolidated interim
financial statements.
All activities are derived from continuing operations.
Consolidated statement of comprehensive income
Unaudited Unaudited Audited
6 months ended
30 June 6 months ended Year ended
2025
30 June
31 December
£'000
2024
2024
£'000
£'000
Profit for the period/year 9,692 14,784 57,237
Other comprehensive (expense)/income - items that will not be reclassified to
profit or loss:
Net actuarial loss in Blenkinsopp Pension scheme (34) (123) (239)
Revaluation of Group occupied property - (300) (515)
Total other comprehensive expense (34) (423) (754)
Total comprehensive income for the period/year 9,658 14,361 56,483
Consolidated balance sheet
ASSETS Unaudited Unaudited Audited
As at
Note
30 June As at As at
30 June
31 December
2025
£'000 2024 2024
£'000
£'000
Non-current assets
Property, plant and equipment 5,178 1,442 1,529
Right of use assets 1,330 463 1,443
Trade and other receivables 26,729 23,046 25,638
Investment properties 8 658,854 479,564 585,489
Investments in joint ventures 9 22,661 32,346 33,553
Retirement benefit asset 48 938 -
714,800 537,799 647,652
Current assets
Inventories 10 218,506 264,721 205,985
Trade and other receivables 91,795 47,324 72,580
Assets held for sale 11 18,641 7,491 8,910
Cash 12 9,798 9,207 117,382
Current tax asset 3,474 - -
342,214 328,743 404,857
Total assets 1,057,014 866,542 1,052,509
LIABILITIES
Current liabilities
Borrowings 13 - (35,708) -
Trade and other payables (116,857) (88,485) (135,998)
Lease liabilities (253) (176) (271)
Current tax liabilities - (2,406) (8,130)
(117,110) (126,775) (144,399)
Net current assets 225,104 201,968 260,458
Non-current liabilities
Borrowings 13 (189,164) (53,983) (164,125)
Trade and other payables (18,071) (1,673) (15,226)
Lease liabilities (1,086) (371) (1,196)
Net deferred tax liabilities (33,297) (33,748) (35,853)
Retirement benefit obligations - - (45)
(241,618) (89,775) (216,445)
Total liabilities (358,728) (216,550) (360,844)
Net assets 698,286 649,992 691,665
SHAREHOLDERS' EQUITY
Called up share capital 14 32,575 32,486 32,495
Share premium account 25,177 25,112 25,157
Fair value reserve 237,794 245,766 216,704
Capital redemption reserve 257 257 257
Merger reserve 45,667 45,667 45,667
Investment in own shares (1,036) (134) (138)
Retained earnings 348,160 286,054 314,286
Current year profit 9,692 14,784 57,237
Total shareholders' equity 698,286 649,992 691,665
Condensed consolidated statement of changes in shareholders' equity
Called up share capital £'000 Share Fair Capital redemption reserve Investment in own
premium account Merger reserve value £'000 shares Retained earnings Total
£'000 £'000 reserve £'000 £'000 equity
£'000 £'000
Balance at 1 Jan 2024 32,408 25,034 45,667 225,177 257 (99) 309,278 637,722
Profit for the six months to 30 June 2024 - - - - - - 14,784 14,784
Fair value gains - - - 28,770 - - (28,770) -
Transfer of unrealised gains on disposal of investment property - - - (7,881) - - 7,881 -
Other comprehensive (expense)/income:
Actuarial loss in Blenkinsopp pension scheme - - - - - - (123) (123)
Revaluation of group occupied property - - - (300) - - - (300)
- - - 20,589 - - (6,228) 14,361
Transactions with owners:
Purchase of own shares - - - - - (35) - (35)
Share-based payments - - - - - - 1,099 1,099
Dividends paid - - - - - - (3,311) (3,311)
Share issue 78 78 - - - - - 156
Balance at 30 June 2024 (unaudited) 32,486 25,112 45,667 245,766 257 (134) 300,838 649,992
Profit for the year to 31 December 2024 - - - - - - 42,453 42,453
Fair value gains - - - 34,564 - - (34,564) -
Transfer of unrealised gains on disposal of investment property - - - (63,411) - - 63,411 -
Other comprehensive (expense)/income:
Actuarial loss in Blenkinsopp pension scheme - - - - - - (116) (116)
Revaluation of group occupied property - - - (215) - - - (215)
- - - (29,062) - - 71,184 42,122
Transactions with owners:
Purchase of own shares - - - - - (4) - (4)
Share-based payments - - - - - - 1,089 1,089
Dividends paid - - - - - - (1,588) (1,588)
Share issue 9 45 - - - - - 54
Balance at 31 December 2024 32,495 25,157 45,667 216,704 257 (138) 371,523 691,665
Profit for the six months to 30 June 2025 - - - - - - 9,692 9,692
Fair value gains - - - 23,287 - - (23,287) -
Transfer of unrealised gains on disposal of investment property - - - (2,197) - - 2,197 -
Other comprehensive (expense)/income:
Actuarial loss in Blenkinsopp pension scheme - - - - - - (34) (34)
- - - 21,090 - - (11,432) 9,658
Transactions with owners:
Purchase of own shares - - - - - (898) - (898)
Share-based payments - - - - - - 1,415 1,415
Dividends paid - - - - - - (3,654) (3,654)
Share issue 80 20 - - - - - 100
Balance at 30 June 2025 (unaudited) 32,575 25,177 45,667 237,794 257 (1,036) 357,852 698,286
Consolidated statement of cash flows
Unaudited Unaudited Audited
6 months ended
30 June 6 months ended year ended
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Cash flows from operating activities
Profit before tax for the period/year 7,419 18,726 69,387
Net finance costs 4,020 2,813 6,734
Other gains (18,810) (30,736) (78,113)
Share of profit of joint ventures (4,356) (430) (1,487)
Share-based transactions((1)) 1,346 1,114 2,287
Depreciation of property, plant and equipment and right of use assets 307 188 406
Pension contributions in excess of charge (127) (1,072) (205)
Operating cash outflows before movements in working capital (10,201) (9,397) (991)
(Increase)/decrease in inventories (13,463) (1,648) 57,088
Increase in receivables (16,215) (21,785) (52,774)
(Decrease)/increase in payables (19,658) 50 39,297
Cash generated (used in)/generated from operations (59,537) (32,780) 42,620
Interest paid (5,039) (2,055) (7,568)
Corporation tax paid (11,604) (236) (516)
Cash (used in)/generated from operating activities (76,180) (35,071) 34,536
Cash flows from investing activities
Interest received 141 801 810
Investment in joint ventures (1,010) (2,422) (3,048)
Distribution from joint ventures 179 1,228 1,704
Net proceeds from disposal of investment properties, AHFS and overages 4,475 17,517 80,028
Property acquisitions (including acquisition of group of assets) (19,578) (2,649) (69,478)
Expenditure on investment properties and AHFS (32,736) (18,491) (47,009)
6
Expenditure on property, plant and equipment (3,039) (176) (600)
Cash (used in)/generated from investing activities (51,568) (4,192) (37,593)
Cash flows from financing activities
Net proceeds from issue of ordinary shares (843) 87 137
Proceeds from other loans - 5,510 5,510
Repayment of other loans - (852) (37,134)
Proceeds from bank loans 222,000 40,000 205,000
Repayment of bank loans (197,000) (20,000) (75,000)
Loan arrangement fees (193) (101) (151)
Payment in respect of leases (146) (45) (206)
Dividends paid (3,654) (3,311) (4,899)
Cash generated from/(used in) financing activities 20,164 21,288 93,257
(Decrease)/increase in cash (107,584) (17,975) 90,200
Cash as at beginning of period/year 117,382 27,182 27,182
(Decrease)/increase in cash (107,584) (17,975) 90,200
Cash as at end of period/year 9,798 9,207 117,382
( )
((1)) Share-based transactions reflect the non-cash expenses relating to
share-based payments included within the income statement
Notes to the condensed consolidated interim financial statements
for the six months ended 30 June 2025
1. Accounting policies
The principal accounting policies adopted in the preparation of this condensed
consolidated interim financial information are set out below. These policies
have been consistently applied to all of the periods presented, unless
otherwise stated.
General information
Harworth Group plc (the "Company") is a company limited by shares,
incorporated and domiciled in the UK (England). The address of its registered
office is Advantage House, Poplar Way, Catcliffe, Rotherham, South Yorkshire,
S60 5TR.
The Company is a public company listed on the London Stock Exchange.
The condensed consolidated interim financial statements for the six months
ended 30 June 2025 comprise the accounts of the Company and its subsidiaries
(together referred to as the "Group").
These condensed consolidated interim financial statements do not comprise
statutory accounts within the meaning of section 434 of the Companies Act
2006. The financial information presented for the year ended 31 December 2024
is derived from the statutory accounts for that year. Statutory accounts for
the year ended 31 December 2024 were approved by the Board of Directors on 19
March 2025 and delivered to the Registrar of Companies. The report of the
auditor on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under section 498 of the
Companies Act 2006.
The condensed consolidated interim financial statements for the six months
ended 30 June 2025, which have not been audited, were approved by the Board on
15 September 2025.
Basis of preparation
These condensed consolidated interim financial statements for the six months
ended 30 June 2025 have been prepared in accordance with the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority and in
accordance with IAS 34 'Interim Financial Reporting' as contained in
UK-adopted international accounting standards.
These condensed consolidated interim financial statements should be read in
conjunction with the Group's annual financial statements for the year ended 31
December 2024, which were prepared in accordance with
international accounting standards in conformity with the requirements of the
Companies Act 2006 and in accordance with UK adopted International Financial
Reporting Standards ("IFRS").
Going-concern basis
These condensed consolidated interim financial statements are prepared on the
basis that the Group is a going concern. In forming its opinion as to going
concern, the Company prepares cash flow and banking covenant forecasts based
upon assumptions, with particular consideration to the key risks and
uncertainties and the macro-economic environment as well as taking into
account available borrowing facilities. The going concern period assessed is
until December 2026 which has been selected as it can be projected with a
reasonable degree of accuracy and covers a complete period of reporting under
the Group's RCF.
A key focus of the assessment of going concern is the management of liquidity
and compliance with borrowing facilities for the period to December 2026. A
£240m RCF is available to the group and is aligned to the Group's strategy
and provides significant liquidity and flexibility to enable it to pursue its
strategic objectives. The facility is subject to financial covenants,
including minimum interest cover, maximum infrastructure debt as a percentage
of property value and gearing, all of which are tested as part of the going
concern assessment undertaken. Available liquidity, including cash and cash
equivalents and bank facility headroom, was £59.8m as at 30 June 2025
(December 2024: £192.4m), reflecting investment in sites through the first
half of 2025.
The Group benefits from diversification across its Capital Growth and Income
Generation businesses including its industrial and renewable energy property
portfolio. Taking into account the independent desktop valuation carried out
by BNP Paribas, JLL and Savills as at 30 June 2025, the Group net
loan-to-portfolio value remains low at 19.0%, within the Board's target range
and with headroom to allow for falls in property values. Rent collection on
investment properties remained strong, with 98% collected to date for H1 2025.
In addition to the Company's base cashflow forecast, a sensitised forecast was
produced that reflected a number of severe but plausible downsides. This
downside included: 1) a severe reduction in sales to the housebuilding sector
as well as lower investment property sales; 2) notwithstanding strong rent
collection to date in line with previous quarters, a prudent material increase
in bad debts across the portfolio over the majority of the going concern
assessment period; 3) a material decline in the value of land and investment
property values as a result of macro-economic conditions; and 4) increases in
interest rates, impacting the cost of the Group's borrowings.
A scenario was also run which demonstrated that very severe loss of revenue,
valuation reductions and interest cost increases would be required to breach
cashflow and banking covenants. The Directors consider this very severe
scenario to be remote. A scenario with consideration of potential climate
change and related transition impacts was also examined as part of the Group's
focus on climate-related risks and opportunities.
Under each downside scenario, for the going concern period to December 2026,
the Group expects to continue to have sufficient financial reserves to
continue to operate with headroom on lending facilities and associated
covenants and has additional mitigation measures within management's control,
for example reducing development and acquisition expenditure and reducing
operating costs, that could be deployed to create further cash and covenant
headroom.
Based on these considerations, together with available market information and
the Directors' knowledge and experience of the Group's property portfolio and
markets, the Directors considered it appropriate to adopt a going concern
basis of accounting in the preparation of the Group's and Company's financial
statements.
Accounting policies
Changes in accounting policy and disclosures
(a) New standards, amendments and interpretations
No new standards and one amendment to standards and interpretation is
effective for annual periods beginning on or after 1 January 2025. This does
not have a significant effect on the financial statements of the Group.
(b) New standards, amendments and interpretations not yet adopted
A number of new standards and amendments to standards and interpretations are
effective for annual periods beginning on or after 1 January 2026 and have not
been applied in preparing these financial statements. None of these are
expected to have a significant effect on the financial statements of the
Group.
Estimates and judgements
The preparation of the condensed consolidated interim financial statements
requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expense. Actual results may differ from these
estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied in the consolidated financial statements for the year ended 31
December 2024.
2. Alternative Performance Measures ("APMs")
Introduction
The Group has applied the December 2019 European Securities and Markets
Authority ("ESMA") guidance on APMs and the November 2017 Financial Reporting
Council ("FRC") corporate thematic review of APMs in these results. An APM
is a financial measure of historical or future financial performance, position
or cash flows of the Group which is not a measure defined or specified under
IFRS.
Overview of use of APMs
The Directors believe that APMs assist in providing additional useful
information on the underlying trends, performance and position of the Group.
APMs assist stakeholder users of the accounts, particularly equity and debt
investors, through the comparability of information. APMs are used by the
Directors and management, both internally and externally, for performance
analysis, strategic planning, reporting and incentive-setting purposes.
APMs are not defined by IFRS and therefore may not be directly comparable with
other companies' APMs, including those of peers in the real estate industry.
APMs should be considered in addition to, and are not intended to be a
substitute for, or superior to, IFRS measurements.
The derivations of our APMs and their purpose
The primary differences between IFRS statutory amounts and the APMs that we
use are as follows:
1. Capturing all sources of value creation - Under IFRS, the
revaluation movement in development properties which are held in inventory is
not included in the balance sheet. Also, overages are not recognised in the
balance sheet until they are highly probable. These movements, which are
verified by our independent valuers BNP Paribas, JLL, and Savills, are
included within our APMs;
2. Re-categorising income statement amounts - Under IFRS, the grouping
of amounts, particularly within gross profit and other gains, does not clearly
allow Harworth to demonstrate the value created through its business model.
In particular, the statutory grouping does not distinguish value gains (being
realised profits from the sales of properties and unrealised profits from
property value movements) from the ongoing profitability of the business which
is less susceptible to movements in the property cycle. Finally, the Group
includes profits from joint ventures within its APMs as its joint ventures
conduct similar operations to Harworth, albeit in different ownership
structures; and
3. Comparability with industry peers - Harworth discloses some APMs
which are EPRA measures as these are a set of standard disclosures for the
property industry and thus aid comparability for our stakeholder users.
Our key APMs
The key APMs that the Group focuses on are as follows:
· Total Return - The movement in EPRA NDV plus dividends per share
paid in the year expressed as a percentage of opening EPRA NDV per share
· EPRA NDV per share - EPRA NDV aims to represent shareholder value
under an orderly sale of the business, where deferred tax, financial
instruments and certain other adjustments are calculated to the full extent of
their liability net of any resulting tax. EPRA NDV per share is EPRA NDV
divided by the number of shares in issue at the end of the period, less shares
held by the Employee Benefit Trust or Equiniti Share Plan Trustees Limited to
satisfy Long Term Incentive Plan and Share Incentive Plan awards
· Value gains - These are the realised profits from the sales of
properties and unrealised profits from property value movements including
joint ventures and the mark to market movement on development properties, AHFS
and overages
· Net loan to portfolio value ("LTV") - Group debt net of cash and
cash equivalents held expressed as a percentage of portfolio value
3. Segment information
Segmental Income
Statement
Unaudited 6 months ended 30 June 2025
Capital Growth
Sale of development properties Other property activities Income Central Total
Generation
£'000 £'000 £'000 £'000 £'000
Revenue ((1)) 10,850 23,044 13,577 - 47,471
Cost of sales (17,075) (21,569) (3,426) - (42,070)
Gross (loss)/profit ((2)) (6,225) 1,475 10,151 - 5,401
Administrative expenses((4)) - (3,297) (896) (12,878) (17,071)
Other gains ((3)) - 12,966 5,844 - 18,810
Other operating expense - - - (57) (57)
Operating profit/(loss) (6,225) 11,144 15,099 (12,935) 7,083
Finance costs - - - (6,499) (6,499)
Finance income - 2,382 97 - 2,479
Share of profit of joint ventures - 3,623 733 - 4,356
Profit/(loss) before tax (6,225) 17,149 15,929 (19,434) 7,419
((1)) Revenue
Revenue is analysed as follows:
Sale of development properties 10,850 - - - 10,850
Revenue from PPAs - 4,007 - - 4,007
Development revenues - 18,393 - - 18,393
Rent, service charge and royalties revenue - 636 11,956 - 12,592
Other revenue - 8 1,621 - 1,629
10,850 23,044 13,577 - 47,471
((2)) Gross profit
Gross profit is analysed as follows:
Gross profit excluding sales of development properties - 1,475 10,151 - 11,626
Gross loss on sale of development properties* (4,772) - - - (4,772)
Net realisable value provision on development properties (4,476) - - - (4,476)
Reversal of previous net realisable value provision on development properties 2,921 - - - 2,921
Release of previous net realisable value provision on disposal of development 102 - - - 102
properties
(6,225) 1,475 10,151 - 5,401
*Gross loss on sale of development properties includes a reduction of £0.5m
relating to the discounting of deferred consideration receivable.
((3)) Other gains
Other gains are analysed as follows:
Increase in fair value of investment - 12,449 4,929 - 17,378
properties
Decrease in the fair value of AHFS - (4) (43) - (47)
(Loss)/profit on sale of investment properties - (225) 949 - 724
(Loss)/profit on sale of AHFS - (229) 9 - (220)
Profit on sale of overages - 975 - - 975
- 12,966 5,844 - 18,810
((4)) Administrative expenses
Administrative expenses are analysed as follows:
Wages and salaries (3,023) (542) (8,511) (12,076)
Legal and professional 92 (259) (621) (788)
Other administrative expenses (366) (95) (3,746) (4,207)
(3,297) (896) (12,878) (17,071)
Segmental Balance
Sheet
As at 30 June
2025
Capital Income Central Total
£'000
Growth Generation £'000
£'000 £'000
Non-current assets
Property, plant and equipment - - 5,178 5,178
Right of use assets - - 1,330 1,330
Other receivables 26,729 - - 26,729
Investment properties 344,017 314,837 - 658,854
Investments in joint ventures 7,489 15,172 - 22,661
Retirement benefit asset - - 48 48
378,235 330,009 6,556 714,800
Current assets
Inventories 218,244 262 - 218,506
Trade and other receivables 76,301 11,276 4,218 91,795
AHFS 1,800 16,841 - 18,641
Cash and cash equivalents - - 9,798 9,798
Current tax asset - - 3,474 3,474
296,345 28,379 17,490 342,214
Total assets 674,580 358,388 24,046 1,057,014
Financial liabilities and derivative financial instruments are not allocated
to the reporting segments as they are managed and measured at a Group level.
Segmental Income
Statement
Unaudited 6 months ended 30 June 2024
Capital Growth
Sale of development properties Other property activities Income Central Total
Generation
£'000 £'000 £'000 £'000 £'000
Revenue ((1)) 24,006 7,047 10,253 - 41,306
Cost of sales (24,080) (7,474) (2,556) - (34,110)
Gross profit ((2)) (74) (427) 7,697 - 7,196
Administrative expenses((4)) - (3,162) (1,388) (12,229) (16,779)
Other gains ((3)) - 23,243 7,493 - 30,736
Other operating expense - - - (44) (44)
Operating profit/(loss) (74) 19,654 13,802 (12,273) 21,109
Finance costs - (119) - (3,495) (3,614)
Finance income - 799 - 2 801
Share of loss of joint ventures - (707) 1,137 - 430
Profit/(loss) before tax (74) 19,627 14,939 (15,766) 18,726
((1)) Revenue
Revenue is analysed as follows:
Sale of development properties 24,006 - - - 24,006
Development revenue - 6,880 - - 6,880
Rent, service charge and royalties revenue - 106 10,188 - 10,294
Other revenue - 61 65 - 126
24,006 7,047 10,253 - 41,306
((2)) Gross profit
Gross profit is analysed as follows:
Gross profit excluding sales of development properties - (427) 7,697 - 7,270
Gross loss on sale of development properties* (801) - - - (801)
Net realisable value provision on development properties (4,303) - - - (4,303)
Reversal of previous net realisable value provision on development properties 4,009 - - - 4,009
Release of previous net realisable value provision on disposal of development 1,021 - - - 1,021
properties
(74) (427) 7,697 - 7,196
*Gross profit on sale of development properties includes a reduction of £2.0m
relating to the discounting of deferred consideration receivable.
((3)) Other gains
Other gains are analysed as follows:
Increase in fair value of investment - 19,080 7,608 - 26,688
properties
Decrease in the fair value of AHFS - (200) (16) - (216)
Loss on sale of investment properties - (33) - - (33)
Profit/(loss) on sale of AHFS - 204 (99) - 105
Profit on sale of overages - 4,192 - - 4,192
- 23,243 7,493 - 30,736
((4)) Administrative expenses
Administrative expenses are analysed as follows:
Wages and salaries - (2,546) (507) (7,161) (10,214)
Legal and professional - (289) (294) (1,404) (1,987)
Other administrative expenses - (327) (587) (3,664) (4,578)
- (3,162) (1,388) (12,229) (16,779)
Segmental Balance
Sheet
As at 30 June
2024
Capital Income Central Total
£'000
Growth Generation £'000
£'000 £'000
Non-current assets
Property, plant and equipment - - 1,442 1,442
Right of use assets - - 463 463
Other receivables 23,046 - - 23,046
Investment properties 238,385 241,179 - 479,564
Investments in joint ventures 18,318 14,028 - 32,346
Retirement benefit asset - - 938 938
279,749 255,207 2,843 537,799
Current assets
Inventories 264,721 - - 264,721
Trade and other receivables 31,479 14,678 1,167 47,324
AHFS 3,602 3,889 - 7,491
Cash and cash equivalents - - 9,207 9,207
299,802 18,567 10,374 328,743
Total assets 579,551 273,774 13,217 866,542
Financial liabilities and derivative financial instruments are not allocated
to the reporting segments as they are managed and measured at a Group level.
Segmental Income
Statement
Audited year ended 31 December 2024
Capital Growth
Sale of development properties Other property activities Income Central Total
Generation
£'000 £'000 £'000 £'000 £'000
Revenue ((1)) 140,253 19,841 21,491 - 181,585
Cost of sales (126,320) (19,534) (4,654) - (150,508)
Gross profit ((2)) 13,933 307 16,837 - 31,077
Administrative expenses((4)) - (6,367) (1,107) (25,711) (33,185)
Other gains ((3)) - 59,722 18,391 - 78,113
Other operating expense - - - (1,371) (1,371)
Operating profit/(loss) 13,933 53,662 34,121 (27,082) 74,634
Finance costs - (119) - (9,781) (9,900)
Finance income - 2,974 125 67 3,166
Share of (loss)/profit of joint ventures - (717) 2,204 - 1,487
Profit/(loss) before tax 13,933 55,800 36,450 (36,796) 69,387
((1)) Revenue
Revenue is analysed as follows:
Sale of development properties 140,253 - - - 140,253
Revenue from PPAs - 593 - - 593
Development revenue - 18,690 - - 18,690
Rent, service charge and royalties revenue - 412 21,358 - 21,770
Other revenue - 146 133 - 279
140,253 19,841 21,491 - 181,585
((2)) Gross profit
Gross profit is analysed as follows:
Gross profit excluding sales of development properties - 307 16,837 - 17,144
Gross profit on sale of development properties* 8,248 - - - 8,248
Net realisable value provision on development (5,664) - - - (5,664)
properties
Release of previous net realisable value 6,950 - - - 6,950
provision on development properties
Release of previous net realisable value provision on 4,399 - - - 4,399
disposal of development properties
13,933 307 16,837 - 31,077
*Gross profit on sale of development properties includes a reduction of £4.3m
relating to the discounting of deferred consideration receivable.
((3)) Other gains/(losses)
Other gains/(losses) are analysed as follows:
Increase in fair value of investment - 43,004 17,813 - 60,817
properties
Decrease in the fair value of AHFS - (201) (165) - (366)
Profit on sale of investment properties - 12,476 826 - 13,302
Profit/(loss) on sale of AHFS - 97 (83) - 14
Profit on sale of overages - 4,346 - - 4,346
- 59,722 18,391 - 78,113
((4)) Administrative expenses
Administrative expenses are analysed as follows:
Wages and salaries - (5,255) (902) (16,398) (22,555)
Legal and professional - (531) (408) (3,683) (4,622)
Other administrative expenses - (581) 203 (5,630) (6,008)
- (6,367) (1,107) (25,711) (33,185)
Segmental Balance
Sheet
As at 31 December
2024
Capital Income Central Total
£'000
Growth Generation £'000
£'000 £'000
Non-current assets
Property, plant and equipment - - 1,529 1,529
Right of use assets - - 1,443 1,443
Other receivables 25,638 - - 25,638
Investment properties 281,635 303,854 - 585,489
Investments in joint ventures 18,935 14,618 - 33,553
326,208 318,472 2,972 647,652
Current assets
Inventories 205,985 - - 205,985
Trade and other receivables 61,404 10,948 228 72,580
AHFS 2,450 6,460 - 8,910
Cash - - 117,382 117,382
269,839 17,408 117,610 404,857
Total assets 596,047 335,880 120,582 1,052,509
Financial liabilities and derivative financial instruments are not allocated
to the reporting segments as they are managed and measured at a Group level.
4. Finance costs and finance income
Unaudited Unaudited Audited
6 months ended
30 June 6 months ended year ended
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Finance costs
- Bank interest (4,564) (1,208) (6,201)
- Facility fees (475) (715) (1,235)
- Amortisation of up-front fees (232) (383) (727)
- Other interest (1,228) (1,308) (1,737)
Total finance cost (6,499) (3,614) (9,900)
Finance income
- Bank interest 141 94 810
- Unwind of discounting on deferred consideration 2,338 707 2,356
Total finance income 2,479 801 3,166
Net finance costs (4,020) (2,813) (6,734)
5. Tax
The Group calculates the period tax expense using the tax rate that would be
applicable to the expected total annual earnings. The major components of
tax expense in the interim condensed consolidated statement of profit or loss
are:
Unaudited Unaudited Audited
6 months ended
30 June 6 months ended year ended
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Current tax
Current year/period - - (7,931)
Adjustment in respect of prior periods - - 1,925
Total current tax charge - - (6,006)
Deferred tax
Current year/period - - (5,807)
Adjustment in respect of prior periods - - (337)
Deferred tax credit/(charge) relating to origination and reversal of temporary 2,273 (3,942) -
differences
Total deferred tax credit/(charge) 2,273 (3,942) (6,144)
Tax charge recognised in income statement 2,273 (3,942) (12,150)
The tax credit is driven by lower profit on sale of development property
combined with lower valuation gains.
6. Dividends
Unaudited Unaudited Audited
6 months ended
30 June 6 months ended year ended
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Full year dividend of 1.022p per share for the year ended 31 December 2023 - 3,311 3,310
Interim dividend of 0.489p per share for the year ended 31 December 2024 - - 1,589
Full year dividend of 1.125p per share for the year ended 31 December 2024 3,654 - -
3,654 3,311 4,899
The Board has determined that it is appropriate for an interim dividend for
the year ending 31 December 2025 to be paid of 0.538p (H1 2024: 0.489p) per
share, an increase of 10% in line with the Group's policy.
There is no change to the current dividend policy to continue to grow
dividends by 10% each year.
7. Earnings per share
Earnings per share have been calculated by dividing the profit attributable to
ordinary shareholders by the weighted average number of shares in issue and
ranking for dividend during the period/year.
Unaudited Unaudited Audited
6 months ended
30 June 6 months ended year ended
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Profit from continuing operations attributable to owners of the Company 9,692 14,784 57,237
(£'000)
Weighted average number of shares used for basic earnings per share 323,893,262 323,369,861 323,497,275
calculation
Basic earnings per share (pence) 3.0 4.6 17.7
Weighted average number of shares used for diluted earnings per share 333,524,686 330,745,233 331,274,223
calculation
Diluted earnings per share (pence) 2.9 4.5 17.3
The difference between the weighted average number of shares used for the
basic and diluted earnings per share calculation is due to the effect of share
options that are dilutive.
8. Investment properties
The Group holds five categories of investment property being Agricultural
Land, Natural Resources, the Investment Portfolio, Major Developments and
Strategic Land in the UK, which sit within the operating segments of Income
Generation and Capital Growth.
Income Generation Capital Growth
Agricultural Land Investment Major Strategic Land
£'000 Natural Portfolio Developments £'000 Total
£'000
Resources £'000 £'000
£'000
At 1 January 2024 (audited) 6,510 19,901 208,315 58,340 140,876 433,942
Direct acquisitions - - - - 2,649 2,649
Subsequent expenditure - 559 452 16,768 673 18,452
Disposals - - - - - -
Increase/(decrease) in fair value 364 170 7,075 (3,023) 22,102 26,688
Transfers between divisions - (1,285) 1,285 1,860 (1,860) -
Transfer to assets held for sale - (2,167) - - - (2,167)
At 30 June 2024 (unaudited) 6,874 17,178 217,127 73,945 164,440 479,564
Direct acquisitions - - 44,833 30,494 12,813 88,140
Subsequent expenditure 36 64 1,042 24,965 2,438 28,545
Disposals - - - - (648) - (40,022) (40,670)
-
(Decrease)/increase in fair value (642) 519 10,327 6,679 17,247 34,130
Transfers between divisions - - 9,864 (9,979) 115 -
Transfer to assets held for sale - - (2,720) - (1,500) (4,220)
At 31 December 2024 (audited) 6,268 17,761 279,825 126,104 155,531 585,489
Direct acquisitions - - - 36,904 1,599 38,503
Subsequent expenditure 25 94 565 25,011 7,030 32,725
Disposals - (824) - - (310) (1,134)
Increase in fair value 236 600 4,094 2,159 10,289 17,378
Transfers between divisions - - 19,449 (19,449) - -
Transfers from development properties - - 155 - - 155
Transfer to assets held for sale - - (13,412) - (850) (14,262)
At 30 June 2025 (unaudited) 6,529 17,631 290,676 170,729 173,289 658,854
Valuation process
The Directors' valuation as at 30 June 2025 was based on a desktop valuation
completed by BNP Paribas Real Estate (BNP Paribas), Jones Lang LaSalle (JLL)
and Savills on the portfolio of properties. BNP Paribas, JLL and Savills are
independent firms acting in the capacity of external valuers with relevant
experience of valuations of this nature.
9. Investment in joint ventures
Unaudited Unaudited Audited
As at 30 June
2025 As at 30 June As at 31 December 2024
£'000
£'000
2024
£'000
At 1 January 33,553 30,722 30,722
Investments in joint ventures 1,010 2,422 3,048
Distributions from joint ventures (179) (1,228) (1,704)
Share of profits of joint ventures 4,356 430 1,487
Derecognition on acquisition of group of assets (16,079) - -
At end of period/year 22,661 32,346 33,553
Summary of acquisition in stages of group of assets
On 25 March 2025, Harworth Group acquired the remaining 50% interest in The
Aire Valley LLP ("AVL LLP") for consideration of £20.0m. The Group had
previously acquired a 50% interest in AVL LLP from Keyland Developments
Limited on 14 March 2016, at which point the Group entered into a joint
venture agreement with Evans Management Limited. As at 30 June 2024 and 31
December 2024, the Group's interest in AVL LLP was recognised as an investment
in joint venture following the equity method of accounting under IAS 28.
The acquisition was not treated as the acquisition of a business, as AVL LLP
held only assets and liabilities and there were no activities or operational
processes acquired. Accordingly, no goodwill or deferred taxation arose.
The identifiable assets and liabilities acquired were recorded at acquisition
cost with subsequent measurement to their fair values where appropriate on the
acquisition date.
£000
Investment properties 31,900
Current assets 280
Current liabilities (25)
Net Assets acquired in stages 32,155
The fair value of investment property was determined in line with the Group's
policy and processes for the valuation of investment property.
As an acquisition of assets achieved in stages, the total consideration
includes the derecognition of the Group's previous interest in AVL LLP.
£000
Carrying value of previously held interest in ADV LLP as at 1 January 2025 12,079
Share of profits in joint ventures prior to full acquisition driven by fair 4,000
value uplift
Cash consideration and fees 21,079
Total consideration of acquisition achieved in stages 37,158
Fees of £1.1m were incurred as part of the acquisition and are reflected in
the table above. Due to minimal activity within Aire Valley LLP during the
period from acquisition on 25 March 2025 to 30 June 2025, the post-acquisition
impact on the Group's consolidated results was negligible.
The acquisition related cash outflows were as follows:
Unaudited
As at 30 June
2025
£'000
Cash consideration paid 20,000
Cash outflow - acquisition related costs 1,079
Cash outflow of acquisitions 21,079
Analysis of impact of Group interests in AVL LLP on Group profit before tax
during H1 2025
Unaudited
6 months ended
30 June
2025
£'000
Share of profits in joint ventures prior to full acquisition driven by fair 4,000
value uplift
Fair value loss recognised on investment property at acquisition: (5,003)
Overall impact on profit before tax (1,003)
10. Inventories
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Development properties 202,012 250,548 190,888
Planning promotion agreements 4,049 4,354 4,655
Option agreements 12,183 9,819 10,442
Biodiversity Net Gain units* 262 - -
At end of period 218,506 264,721 205,985
*Inventory of biodiversity units registered on the national biodiversity gain
sites register in line with the mandatory Biodiversity Net Gain requirements
per Schedule 7A of the Town and Country Planning Act 1990 (as inserted by
Schedule 14 of the Environment Act 2021).
The movement in development properties is as follows:
Unaudited Unaudited Audited
6 months ended
30 June 6 months ended year ended
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
At start of period 190,888 250,024 250,024
Acquisitions 1,255 - 1,419
Subsequent expenditure 18,550 13,639 38,919
Disposals (6,286) (13,842) (105,159)
Net realisable value provision release / (charge) (1,453) 727 5,685
Transfer to fixed assets (787) - -
Transfer to investment properties (155) - -
Total development properties 202,012 250,548 190,888
The movement in net realisable value provision was as follows:
Unaudited Unaudited Audited
6 months ended
30 June 6 months ended year ended
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
At start of period 8,451 14,136 14,136
Charge for the period 4,476 4,303 5,664
Reversal of previous net realisable value provision (2,921) (4,009) (6,950)
Released on disposals (102) (1,021) (4,399)
At end of period 9,904 13,409 8,451
11. Assets held for sale
AHFS relate to investment properties identified as being for sale within 12
months, where a sale is considered highly probable and the property is
immediately available for sale.
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
At start of period 8,910 18,752 18,752
Net transfer from investment properties 14,262 2,167 6,387
Subsequent expenditure 11 39 163
Decrease in fair value (47) (216) (366)
Disposals (4,495) (13,251) (16,026)
At end of period 18,641 7,491 8,910
12. Cash
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Cash 9,798 9,207 117,382
13. Borrowings
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Current:
Secured - infrastructure and direct development loans - (35,708) -
- (35,708) -
Non-current:
Secured - bank loan (189,164) (53,983) (164,125)
Total non-current borrowings (189,164) (53,983) (164,125)
Total borrowings (189,164) (89,691) (164,125)
Loans are stated after deduction of unamortised fees of £0.8m (June 2024:
£1.2m, December 2024: £0.9m).
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December 2024
£'000
2024
£'000
Infrastructure and direct development loans
South Yorkshire Pension Fund/ Scrudf Limited Partnership Rotherham AMP - (7,412) -
Scrudf Limited Partnership Gateway 36 - (6,279) -
Merseyside Pension Fund Bardon Hill - (22,017) -
Total infrastructure and direct development loans - (35,708) -
Bank loan (189,164) (53,983) (164,125)
Total borrowings (189,163) (89,691) (164,125)
The Group's Revolving Credit Facility (RCF) was increased to £240 million (H1
2024: £200 million) in December 2024 through activation of an accordion
option. The facility is provided by Natwest, Santander and HSBC. The RCF is
repayable in February 2027 (five-year term) on a non-amortising basis.
The RCF is subject to financial and other covenants. The bank borrowings are
secured by way of a floating debenture over assets not otherwise used as
security under specific infrastructure or direct development loans. Proceeds
from and repayments of bank loans are reflected gross in the Consolidated
Statement of Cash Flows and reflect timing of utilisation of the RCF.
Infrastructure and direct development loans are provided by public and
private bodies in order to promote the development of major sites or assist
with vertical direct development. The loans are drawn as work on the
respective sites is progressed and they are repaid on agreed dates or when
disposals are made from the sites.
14. Share capital
Unaudited Unaudited Audited
As at
30 June As at As at
2025
Issued, authorised and fully paid
£'000 30 June 31 December 2024
£'000
2024
£'000
At start of period/year 32,495 32,408 32,408
Shares issued 80 78 87
At end of period/year 32,575 32,486 32,495
Unaudited Unaudited Audited
As at
30 June As at As at
2025
Issued, authorised and fully paid - number of shares 30 June 31 December 2024
2024
At start of period/year 324,955,414 324,084,072 324,084,072
Shares issued 801,359 783,677 871,342
At end of period/year 325,756,773 324,867,749 324,955,414
Own shares held (1,652,224) (1,275,281) (1,314,562)
At end of period/year 324,104,549 323,592,468 323,640,852
There is only one class of share in issue: ordinary shares of 10 pence each.
All shares carry equal rights to dividends, voting and return of capital on a
winding up of the Company, as set out in the Company's Articles of
Association.
15. Related party transactions
The Group carried out the following transactions with related parties. The
following entities are related parties as a consequence of shareholdings,
joint venture arrangements and partners of such and/or common Directorships.
All related party transactions are clearly justified and beneficial to the
Group, are undertaken on an arm's-length basis on fully commercial terms and
in the normal course of business.
Unaudited Unaudited Audited
6 months ended/as at 6 months ended/as at year ended/
30 June 2025 30 June 2024 as at
£000 £000 31 December 2024
£000
MULTIPLY LOGISTICS NORTH HOLDINGS LIMITED &
MULTIPLY LOGISTICS NORTH LP
Sales
Recharges of costs - - 176
Asset management fee 56 52 107
Water charges 80 66 132
Purchases
Recharge of costs - 3 3
Receivables
Trade receivables 49 38 39
Payables
Other payables (66) (68) (66)
CRIMEA LAND MANSFIELD LLP
Investment made during the year 100 25 25
NORTHERN GATEWAY DEVELOPMENT VEHICLE LLP
Purchases
Recharge of costs - 5 5
Investment made during the year 835 2,497 3,023
INVESTMENT PROPERTY FORUM
Purchases - 1 3
BRITISH PROPERTY FEDERATION
Purchases - 1 20
On 25 March 2025, the Group acquired the remaining interest of Harworth
Gateway 45 LLP (formerly The Aire Valley Land LLP) for £20.0m. The joint
venture now represents as a wholly owned subsidiary of the Group, Harworth
Gateway 45 LLP is no longer subject to related party disclosure requirements.
16. Post balance sheet events
There are no post balance sheet events to disclose that have not been
disclosed publicly by a regulatory news announcement.
Appendix
EPRA Net Asset Measures
EPRA introduced its current set of Net Asset Value metrics in 2020: EPRA Net
Reinstatement Value ("NRV"), EPRA Net Tangible Assets ("NTA") and EPRA NDV.
While the Group uses only EPRA NDV as a key APM, the EPRA Best Practices
Recommendations guidelines require companies to report all three EPRA NAV
metrics and reconcile them to IFRS. These disclosures are provided below.
30 June 2025
EPRA NDV EPRA NTA EPRA NRV
£'000 £'000 £'000
Net assets 698,286 698,286 698,286
Cumulative unrealised gains on development properties 30,391 30,391 30,391
Cumulative unrealised gains on overages 5,250 5,250 5,250
Deferred tax liabilities (IFRS) - 33,297 33,297
Notional deferred tax on unrealised gains (8,882) - -
Deferred tax liabilities @ 50% - (21,090) -
Purchaser costs - - 64,561
725,045 746,134 831,785
Number of shares used for per share calculations 324,104,549 324,104,549 324,104,549
Per share (pence) 223.7 230.2 256.6
30 June 2024
EPRA NDV EPRA NTA EPRA NRV
£'000 £'000 £'000
Net assets 649,992 649,992 649,992
Cumulative unrealised gains on development properties 43,947 43,947 43,947
Cumulative unrealised gains on overages 5,400 5,400 5,400
Deferred tax liabilities (IFRS) - 30,089 30,089
Notional deferred tax on unrealised gains (12,309) - -
Deferred tax liabilities @ 50% - (21,199) -
Purchaser costs - - 59,019
687,030 708,229 788,447
Number of shares used for per share calculations 323,592,468 323,592,468 323,592,468
Per share (pence) 212.3 218.9 243.7
31 December 2024
EPRA NDV EPRA NTA EPRA NRV
£'000 £'000 £'000
Net assets 691,665 691,665 691,665
Cumulative unrealised gains on development properties 31,026 31,026 31,026
Cumulative unrealised gains on overages 6,100 6,100 6,100
Deferred tax liabilities (IFRS) - 35,853 35,853
Notional deferred tax on unrealised gains (9,253) - -
Deferred tax liabilities @ 50% - (22,553) -
Purchaser costs - - 58,616
719,538 742,091 823,260
Number of shares used for per share calculations 323,640,852 323,640,852 323,640,852
Per share (pence) 222.3 229.3 254.4
1) Reconciliation to statutory measures
Unaudited Unaudited
6 months ended
a. Revaluation gains/(losses)
30 June 6 months ended Audited
2025
£'000 30 June year ended
2024 31 December
£'000 2024
£'000
Increase in fair value of investment properties 17,378 26,688 60,817
Decrease in fair value of AHFS (47) (216) (366)
Share of profit of joint ventures 4,356 430 1,487
Net realisable value provision on development properties (4,476) (4,303) (5,664)
Reversal of previous net realisable value provision on development properties 2,921 4,009 6,950
Amounts derived from statutory reporting 20,132 26,608 63,224
Unrealised gains on development properties 1,462 19,948 21,874
Unrealised gains on overages 150 19 854
Revaluation gains 21,744 46,575 85,952
b. Profit/(loss) on sale Unaudited Unaudited
6 months ended
30 June 6 months ended Audited
2025
£'000 30 June year ended
2024 31 December
£'000 2024
£'000
Profit/(loss) on sale of investment properties 724 (33) 13,302
(Loss)/profit on sale of AHFS (220) 105 14
(Loss)/profit on sale of development properties (4,772) (801) 8,249
Release of net realisable value provision on disposal of development 102 1,021 4,399
properties
Profit on sale of overages 975 4,192 4,346
Amounts derived from statutory reporting (3,191) 4,484 30,310
Less previously unrealised gains on development properties released on sale (2,096) (83) (14,932)
Less previously unrealised gains on overages (1,000) (4,019) (4,154)
Profit/(loss) on sale contributing to growth in EPRA NDV (6,287) 382 11,224
c. Value gains/(losses) Unaudited Unaudited
6 months ended
30 June 6 months ended Audited
2025 30 June year ended
£'000
2024 31 December 2024
£'000
£'000
Revaluation gains 21,744 46,575 85,952
(Loss)/profit on sale (6,287) 382 11,224
Value gains 15,457 46,957 97,176
d. Total property sales Unaudited Unaudited
6 months ended
30 June 6 months ended Audited
2025
£'000 30 June year ended
2024 31 December
£'000 2024
£'000
Revenue 47,471 41,306 181,585
Less revenue from other property activities (23,044) (7,047) (19,841)
Less revenue from income generation activities (13,577) (10,253) (21,491)
Add proceeds from sales of investment properties, AHFS and overages 8,019 17,700 75,541
Total property sales 18,869 41,706 215,794
e. Operating profit contributing to growth in EPRA NDV Unaudited Unaudited
6 months ended
30 June 6 months ended Audited
2025
£'000 30 June year ended
2024 31 December
£'000 2024
£'000
Operating profit 7,083 21,109 74,634
Share of profit on joint ventures 4,356 430 1,487
Unrealised gains on development properties 1,462 19,948 21,874
Unrealised gains on overages 150 19 854
Less previously unrealised gains on development properties released on sale (2,096) (83) (14,932)
Less previously unrealised gains on overages released on sale (1,000) (4,019) (4,154)
Operating profit contributing to growth in EPRA NDV 9,955 37,404 79,763
f. Portfolio value Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Land and buildings (included within Property, plant and equipment) 4,662 1,114 1,188
Investment properties 658,854 479,564 585,489
Investments in joint ventures 22,661 32,346 33,553
AHFS 18,641 7,491 8,910
Development properties (included within inventories) 202,012 250,548 190,888
Amounts recoverable on contracts (included within receivables) 1,729 1,456 1,604
Amounts derived from statutory reporting 908,559 772,519 821,632
Cumulative unrealised gains on development properties as at period/year end 30,391 43,947 31,026
Cumulative unrealised gains on overages as at period/year end 5,250 5,400 6,100
Portfolio value 944,200 821,866 858,758
g. Net debt
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Gross borrowings (189,164) (89,691) (164,125)
Cash and cash equivalents 9,798 9,207 117,382
Net debt (179,366) (80,484) (46,743)
h. Net loan to portfolio value (%)
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Net debt (179,366) (80,484) (46,743)
Portfolio value 944,200 821,866 858,758
Net loan to portfolio value (%) 19.0% 9.8% 5.4%
i. Net loan to core income generation portfolio value (%) Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Net debt (179,366) (80,484) (46,743)
Core income generation portfolio value (investment portfolio and natural 308,307 234,305 297,587
resources excluding AHFS)
Net loan to core income generation portfolio value (%) 58.2% 34.4% 15.7%
645
j. Gross loan to portfolio value (%) Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Gross borrowings (189,164) (89,691) (164,125)
Portfolio value 944,200 821,866 858,758
Gross loan to portfolio value (%) 20.0% 10.9% 19.1%
k. Gross loan to core income generation portfolio value (%) Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Gross borrowings (189,164) (89,691) (164,125)
Core income generation portfolio value (investment portfolio and natural 308,307 234,305 297,587
resources
Gross loan to core income generation portfolio value (%) 61.4% 38.3% 55.2%
l. Number of shares used for per share calculations (number)
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Number of shares in issue at end of period/year 325,756,773 324,867,749 324,955,414
Less Employee Benefit Trust and Equiniti Share Plan Trustees Limited held (1,652,224) (1,275,281) (1,314,562)
shares (own shares) at end of period/year
Number of shares used for per share calculations 324,104,549 323,592,468 323,640,852
m. Net Asset Value (NAV) per share
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
NAV (£'000) 698,286 649,992 691,665
Number of shares used for per share calculations 324,104,549 323,592,468 323,640,852
NAV per share (p) 215.5 200.9 213.7
n. Underlying revenue Unaudited
6 months ended
30 June Unaudited Audited
2025
£'000 6 months ended year ended
30 June 31 December
2024 2024
£'000
£'000
Total property sales 18,869 41,706 215,794
Income generation portfolio revenue (Investment Portfolio, Natural Resources 13,576 10,253 21,491
and Agriculture)
Development revenues 18,393 6,880 18,690
Other revenue 4,652 167 1,151
Total underlying revenue 55,490 59,006 257,126
Less proceeds from sale of investment properties, AHFS and overages (8,019) (17,700) (75,541)
Statutory revenue 47,471 41,306 181,585
2) Reconciliation to EPRA measures
a) EPRA NDV Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Net assets 698,286 649,992 691,665
Cumulative unrealised gains on development properties 30,391 43,947 31,026
Cumulative unrealised gains on overages 5,250 5,400 6,100
Notional deferred tax on unrealised gains (8,882) (12,309) (9,253)
EPRA NDV 725,045 687,030 719,538
b) EPRA NDV per share (p)
Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
EPRA NDV £'000 725,045 687,030 719,538
Number of shares used for per share calculations 324,104,549 323,592,468 323,640,852
EPRA NDV per share (p) 223.7 212.3 222.3
EPRA NDV growth and total return
Opening EPRA NDV/share (p) 222.3 205.1 205.1
Closing EPRA NDV/share (p) 223.7 212.3 222.3
Movement in the period/year (p) 1.4 7.2 17.2
EPRA NDV growth 0.6% 3.5% 8.4%
Dividends paid per share (p) 1.1 1.0 1.5
Total return per share (p) 2.5 8.2 18.7
Total return as a percentage of opening EPRA NDV 1.1% 4.0% 9.1%
To help retain and incentivise a management team with the requisite skills,
knowledge and experience to deliver strong, long-term, sustainable growth for
shareholders, Harworth runs a number of share schemes for employees. The
dilutive impact of these on the number of shares at 30 June is set out below:
Unaudited Unaudited Audited
As at
30 June As at As at
2025
30 June 31 December
2024 2024
Number of shares used for per share calculations 324,104,549 323,592,468 323,640,852
Outstanding share options and shares held in trust under employee share 9,308,007 6,998,372 7,135,161
schemes
Number of diluted shares used for diluted per share calculations 333,412,556 330,590,840 330,776,013
c) Diluted EPRA NDV per share (p) Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
EPRA NDV £'000 725,045 687,030 719,538
Number of diluted shares used for diluted per share calculations 333,412,556 330,590,840 330,776,013
Diluted EPRA NDV per share (p) 217.5 207.8 217.5
Diluted EPRA NDV growth and total return
Opening EPRA NDV/share (p) 217.5 201.9 201.9
Closing EPRA NDV/share (p) 217.5 207.8 217.5
Movement in the period/year (p) - 5.9 15.6
Diluted EPRA NDV growth 0.0% 2.9% 7.7%
Dividends paid per share (p) 1.1 1.0 1.5
Total return per share (p) 1.1 6.9 17.1
Total return as a percentage of opening diluted EPRA NDV 0.5% 3.4% 8.5%
d) Net loan to EPRA NDV Unaudited Unaudited Audited
As at
30 June As at As at
2025
£'000 30 June 31 December
2024 2024
£'000
£'000
Net debt (179,366) (80,484) (46,743)
EPRA NDV 725,045 687,030 719,538
Net loan to EPRA NDV 24.7% 11.7% 6.5%
1 (#_ftnref1) Total Accounting Return is the movement in EPRA NDV plus
dividends per share paid in the period expressed as a percentage of opening
EPRA NDV per share
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