Harworth Group Reports Record Land Sales and Operational Performance
Why we think this is good
Harworth Group has delivered a strong operational performance in 2024, with record land sales and continued progress in its development pipeline. The company's EPRA NDV is expected to be broadly in line with market consensus, driven by management actions and landmark land sales. The Group has a robust balance sheet, with low debt levels and high available liquidity, positioning it well to navigate near-term macro-economic uncertainty. While the RNS contains some cautionary language, the overall tone is positive, highlighting the company's confidence in reaching its £1 billion EPRA NDV target by 2027.
Key Points
- Record Residential plot sales of 2,385 plots and Industrial & Logistics land sales of 4.4 million sq. ft.
- EPRA NDV expected to be broadly in line with current market consensus of £712 million
- Robust balance sheet with low debt levels and high available liquidity of £192.4 million
- Continued progress in development pipeline, with potential to deliver 33.6 million sq. ft. of Industrial & Logistics space and 31,264 new homes
- Opened a new 350-acre country park and completed construction of a 420-place primary school, demonstrating investment in community infrastructure
Summary
Harworth Group plc, a leading UK sustainable regenerator of land and property, has delivered a strong operational performance in 2024, with record land sales and continued progress in its development pipeline. The company expects its EPRA NDV (a key valuation metric) to be broadly in line with current market consensus of £712 million, or 220p per share, as of 31 December 2024. This growth has been driven by management actions, including the completion of a £106.6 million serviced land sale and a £53.5 million land sale. The Group also achieved record Residential plot sales of 2,385 and Industrial & Logistics land sales of 4.4 million sq. ft. Harworth remains well-positioned, with a robust balance sheet, low debt levels, and high available liquidity, to navigate near-term macro-economic uncertainty and continue delivering long-term value.