Harworth Group (HWG) H1 2025 earnings summary

Executive summary

• Achieved strong operational momentum in H1 2025, with portfolio growth driven by industrial and logistics (I&L) assets and stable but cost-impacted residential performance.

• EPRA NDV rose to £725 million, moving closer to the £1 billion target for 2027, with a Total Accounting Return of 1.1%.

• Revenue increased to £47.5m, supported by higher rental and development income, though residential land sales were lower.

• Net debt increased to £179.4 million (LTV 19.0%) due to development spend and acquisitions, with liquidity at £59.8m.

• Full acquisition of Aire Valley Land JV and strategic partnership with Church Commissioners for England expanded development pipeline.

Financial highlights

• Portfolio value reached £944.2m, up 10% from FY2024 and 53% since end of 2020.

• EPRA NDV per share increased to 223.7p.

• Value gains totaled £15.5m, mainly from I&L revaluation gains, offset by residential cost increases.

• Operating profit was £7.1m, with profit after tax at £9.7m, reflecting lower revaluation gains and higher costs.

• Interim dividend increased by 10% to 0.538p per share.

Outlook and guidance

• Targeting delivery of over 5m sq ft of I&L space by 2027, with a roadmap to £1bn EPRA NDV and £0.9bn investment portfolio by 2029.

• Majority of annual sales expected in H2 2025, supporting a reduction in LTV to 10–15% by year-end.

• Prudent development approach prioritizes pre-let, build-to-suit, and land sales to de-risk exposure.

• Continued investment in enabling works, land assembly, and selective acquisitions planned.

• I&L market outlook remains positive, while residential outlook is cautious due to economic uncertainties.