Harworth Group (HWG) H1 2026 earnings summary

Executive summary

• Accelerated transition to a pure-play powered land and industrial & logistics specialist, exiting residential sector to focus on higher-returning opportunities.

• Strong operational momentum in industrial & logistics and data centre pipelines, supported by the largest-ever construction-ready land bank and robust occupier demand.

• Substantial data centre pipeline, including a £106.6m powered land sale to Microsoft, exclusivity on a second hyperscale site, and identification of further opportunities.

• Board unanimously rejected an unsolicited takeover offer, citing undervaluation and confidence in long-term prospects.

Financial highlights

• H1 2026 total accounting return was (3.7)%, down from 1.1% in H1 2025, driven by residential market headwinds and a reduction in EPRA NDV per share from 224.4p to 214.8p.

• Revenue for H1 2026 was £41.3m, down from £47.5m in H1 2025; operating loss of £24.9m and loss after tax of £25.4m.

• Total property sales in H1 were £13.2m, down from £18.9m year-over-year; post period, a further £8.1m disposal was completed.

• Net loan-to-portfolio value increased to 20.3% (31 Dec 2025: 15.6%), with net debt at £190.0m and available liquidity of £99.5m.

• Interim dividend increased by 10% to 0.592p per share, reflecting confidence in recurring income growth.

Outlook and guidance

• Targeting low double-digit total accounting returns in the long term through a pure-play powered land and industrial logistics strategy.

• Board will consider returning surplus capital to shareholders following material asset sales and assessment of future capital deployment opportunities.

• Implementation of the new platform is underway, with ongoing cost base reductions and digital transformation to support higher, sustainable returns.