Harworth Group (HWG) H1 2024 earnings summary

Executive summary

• Achieved strong operational and financial progress in H1 2024, with significant growth in EPRA NDV, total returns, and record land sales, driven by planning gains and portfolio revaluations.

• Largest-ever conditional land sale to Microsoft at Skelton Grange, contributing to value gains and future development pipeline.

• Strategic focus on scaling industrial and logistics development, targeting £1bn EPRA NDV by 2027 and maintaining low leverage.

• Delivered market-leading returns, outperforming sector benchmarks and maintaining a robust balance sheet.

• On track to meet all strategic targets, supported by a significant landbank and specialist team.

Financial highlights

• EPRA NDV increased to £687m, up 3.5% per share to £2.12 (212.3p), with total return of 4% for H1 2024.

• Operating profit rose 164% to £21.1m, profit after tax up over 100% to £14.8m.

• Revenue reached £41.3m, driven by strong serviced land sales.

• Interim dividend per share increased by 10% for the eighth consecutive year.

• Net loan to portfolio value at 9.8%, net debt at £80.5m due to development spend.

Outlook and guidance

• Confident in reaching £1bn EPRA NDV by end-2027 and £900m investment portfolio by 2029.

• Expect to deliver 5.7m–8.1m sq ft of industrial/logistics space by 2027, with £800m GDV.

• Targeting high single to low double digit returns in the medium term.

• Market stability, easing inflation, and interest rate cuts expected to support investment and occupier demand.

• Structural undersupply in industrial/logistics and residential markets supports long-term growth.