Harworth Group (HWG) H2 2025 earnings summary

Executive summary

• Achieved strong operational momentum and disciplined delivery in 2025, advancing the industrial and logistics growth strategy and unlocking value from a substantial land bank, outperforming sector benchmarks despite a challenging market.

• Strategic pivot to industrial and logistics, now 70% of the portfolio, with the largest ever volume of development-ready land—4.0m sq ft enabled or underway and a 15.2m sq ft pipeline.

• Power-enabled land platform gaining traction, supporting digital infrastructure and advanced manufacturing opportunities.

• Cumulative total property return since 2021 reached 73.5%, with gross portfolio value up 52% since 2020.

• Major transaction with Microsoft at Skelton Grange highlights success in powered land strategy.

Financial highlights

• Gross portfolio value increased to £937.2m, up 9.1% year-over-year from £858.8m.

• EPRA NDV per share increased to 224.4p, up from 222.3p in 2024 and 160.0p in 2020, driven by £44.5m value gains mainly from industrial and logistics.

• Total property return was 8.4%, outperforming the MSCI UK Annual Property Index by 280bps.

• Net loan to value at 15.6%, well within the 20% target; net debt increased to £145.9m; refinancing completed with increased facility to £275m.

• Total property sales of £115m, consistent with prior years; annual headline rent up 4.6% to £18.3m; dividend per share increased to 1.775p, marking the 11th consecutive year of progression.

Outlook and guidance

• Targeting portfolio weighting of 85% industrial and logistics, with a clear path to £1bn EPRA NDV and a growing pipeline of power-enabled land.

• Expecting 15%-25% annual return on capital employed from land sales and direct development.

• High single- to low double-digit sustainable total accounting returns projected through 2029 and beyond.

• Near-term focus on serviced land sales, forward funding, and strategic partnerships to sustain capital velocity.

• Focus on developing the next generation of sites and maintaining balance sheet strength.