Harworth Group (HWG) H2 2024 earnings summary

Executive summary

• Achieved a 9.1% total accounting return for FY 2024, up from 5.1% in 2023, driven by operational outperformance and management actions.

• EPRA NDV rose 8.5% year-over-year to £719.5 million (222.3p per share).

• Record property sales of £215.8 million, up 71% year-on-year, including major land sales to Microsoft (£53.4m) and Frasers Group (£53.5m).

• Entered the FTSE 250 in September 2024, marking a major milestone.

Financial highlights

• Revenue increased to £181.6 million (FY 2023: £72.4m); underlying revenue rose 70% to £257 million.

• Profit after tax increased over 50% to £57.2 million (FY 2023: £38.0m); operating profit reached £74.6m.

• Dividend per share increased by 10% to 1.125p (statutory) and 1.614p (total), marking eight consecutive years of 10% growth.

• Net debt at year-end was £46.7 million, with a net loan-to-value of 5.4%.

• Property portfolio valuation grew to £858.8 million (2023: £768.2m).

Outlook and guidance

• On track to reach £1 billion EPRA NDV by end of 2027 and £900 million investment portfolio by end of 2029.

• Targeting delivery of 5 million sq ft of industrial & logistics space and 2,000 residential plots per annum by 2027.

• Anticipates 11.6% compound annual growth rate to reach 2027 targets.

• Expects forward funding market to improve in 2025 as interest rates ease.

• Growth underpinned by a well-located, consented pipeline and supportive market conditions.