Harworth Group (HWG) H1 2025 earnings summary

Executive summary

• Achieved strong operational momentum and progress against strategic objectives in H1 2025, with continued investment in industrial, logistics, and residential assets, driving future growth.

• Total Accounting Return of 1.1% for H1 2025, with EPRA NDV per share rising to 223.7p, driven by value gains in Industrial & Logistics (I&L) assets and offset by increased costs in residential developments.

• Net asset value grew to £698.3m, and EPRA NDV reached £725.0m, reflecting portfolio revaluations and the full acquisition of the Aire Valley Land JV.

• Navigated a challenging market backdrop, leveraging a robust land bank and focusing on structurally undersupplied sectors.

• Revenue increased to £47.5m (H1 2024: £41.3m), with higher rental income and development revenues, but lower residential land sales compared to the prior year.

Financial highlights

• Portfolio valued at £944.2 million as of June 30, 2025, with two-thirds weighted to industrial and logistics.

• EPRA NDV increased by 0.8% to £725 million in H1 2025, up 41% since end of 2020.

• Gross assets up 53% to nearly £945 million since end of 2020.

• Net debt rose to £179.4 million (LTV 19.0%) from £46.7 million at end 2024, mainly due to development spend and acquisitions.

• Value gains totaled £15.5m, mainly from £21.7m in revaluation gains, offset by £6.3m losses on sales due to increased site-wide costs on mature residential sites.

Outlook and guidance

• Targeting delivery of over 5 million sq ft of I&L space or serviced land sales by 2027, with a mix of build-to-suit, forward funding, serviced land sales, and build-to-hold strategies.

• Roadmap to £1bn EPRA NDV by FY2027, with a 13.3% 2.5-year CAGR targeted.

• Expecting H2 2025 to deliver the majority of annual sales, supporting a reduction in LTV to 10–15% by year-end.

• Prudent approach to development, prioritizing pre-let, build-to-suit, and land sales to de-risk exposure amid economic uncertainty.

• I&L market remains stable with positive demand drivers; residential outlook is cautious due to near-term market challenges and economic uncertainties.