Harworth Group plc sees revenue hit £53m following 'another strong' year

Harworth Group plc, the brownfield regeneration and property investment firm, has reported a ‘strong’ set of results in 2017 after focusing on the “beds and sheds” sectors.

For the annual results for the year ending 31st December 2017, the Rotherham-based firm reported revenues of £53m which rose from £33m in 2016.

However, Harworth Group also revealed that its pre-tax profits came in at £41.8m, down from £43.4m during the same period the year before.

The company also noted that it has been another year of double-digit growth for EPRA NNNAV – net asset value adjusted to reflect the fair value of debt and derivatives and to include deferred taxation on revaluations.

EPRA NNNAV, which is now the group’s “principal financial measure”, grew by 12.5% per share to £414.2m, compared to the 12.5% per share achieved in 2016 which stood at £334.9m.

During this period, 622 residential plots were sold across six parcels of land, achieving profit on sale of £3.8m. In addition, over 850,000 sq. ft of commercial land sold across five parcels was also sold for £22.7m, delivering a profit on sale of £4.3m.

Planning has been secured for the delivery of 825 residential plots and over 3m sq ft of commercial space, bringing the consented portfolio to 10,448 residential plots and 12.13m sq ft of commercial space.

Owen Michaelson, Harworth’s chief executive, said: “These are another strong set of results where we have again delivered double digit EPRA NNNAV growth, reflecting our continued ability to maximise the value of our portfolio whilst simultaneously growing our strategic landbank and income base through acquisitions and new lettings.

“Our focus, on the “beds and sheds” sectors in the North of England and the Midlands, is firmly underpinned by strong economic and consumer trends in the regions, and reinforced by supportive Government policy. This favourable backdrop coupled with active management has been reflected in 2017’s planning successes and the sales and lettings achieved at our major developments such as Waverley and Logistics North.

“Whilst our existing sites continue to perform well and have plenty of future potential, we are also pleased with the progress of the five new acquisitions to our strategic landbank, which were acquired with the cash proceeds from new equity raised last March.

“These acquisitions delivered significant revaluation gains in 2017 and provide a substantial pipeline for us to deliver further value gains through our market-leading planning and development expertise.

“2018 has started strongly, with over 50% of expected full year sales already agreed since the year-end and the completion of three new lettings generating additional recurring income, further demonstrating the success of our proven and robust strategy. This performance, together with the supportive market fundamentals in the areas in which we operate, means we look to the future with confidence.”

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