Harworth Group plc (LON:HWG), a leading regeneration, strategic land and development business, today announces its results for the six months ended 30 June 2026. Harworth has also separately published today its response document relating to the unrecommended offer for Harworth Group plc by Peel Pepper (UK) limited, a company indirectly wholly-owned by Peel Holdings Group Limited.
Acceleration of key initiatives to create a simpler, lower-cost and higher-returning platform
Strong industrial & logistics pipeline momentum alongside progress on multiple hyperscale data centre opportunities
Performance measures1,2
| H12026 | H1 2025 | FY2025 | H12026 | H12025 | FY2025 | ||
| Total accounting return (%) | (3.7) | 1.1 | 1.7 | Total portfolio value movement (£m)4 | (14.9) | 15.5 | 44.5 |
| EPRA NDV per share (p)3 | 214.8 | 223.7 | 224.4 | Ind. & logistics value movement (£m)5 | (6.3) | 28.3 | 73.6 |
| EPRA NDV (£m)3 | 697.7 | 725.0 | 727.3 | Residential value movement (£m) | (16.9) | (14.7) | (26.8) |
| Net loan to portfolio value (%) | 20.3 | 19.0 | 15.6 | Total Property sales (£m) | 13.2 | 18.9 | 115 |
| Liquidity (£m) | 99.5 | 59.8 | 127.1 | Investment Portfolio value (£m) | 301.4 | 319.3 | 305.0 |
Statutory measures
| H12026 | H12025 | FY2025 | H12026 | H12025 | FY2025 | ||
| Total dividend per share (p)6 | 0.592 | 0.538 | 1.775 | Operating (loss)/profit (£m) | (24.9) | 7.1 | 21.6 |
| Net debt (£m) | 190.0 | 179.4 | 145.9 | Statutory portfolio value (£m)7 | 900.7 | 908.6 | 899.4 |
| Net assets per share (p) | 206.5 | 215.5 | 215.6 | Net asset value (£m) | 670.8 | 698.3 | 699.0 |
Lynda Shillaw, Chief Executive of Harworth, commented: “Harworth has made good operational and strategic progress during the first half of 2026 and into the second, against a challenging macroeconomic backdrop that has weighed on valuations, particularly in residential. Since 2021 we have successfully repositioned our land and development portfolio, shifting the weighting to 71% industrial & logistics and developing a significant powered land bank, in turn positioning the business to deliver strong returns to shareholders into the medium term.
“Our 34.8m sq ft land and development pipeline, which includes 0.8GW of powered land, would be difficult to replicate today given its scale, together with the advanced planning and power supply status, and strategic locations, of many of its sites. Within this pipeline, we are seeing strong occupier demand across our industrial & logistics products, driven by structural growth trends. This includes the first pre-let at our 1.1m sq ft Chatterley Park site in Staffordshire, to an advanced manufacturing occupier. Our largest-ever substantially construction-ready land bank of 3.8m sq ft positions us to further capture this momentum through a combination of pre-lets, land sales and small to mid-box speculative builds.
“Today we are providing more details on our acceleration of key initiatives, which builds on our successful track record over the past five years and, supported by our in-house skillset and extensive land bank, means we are well positioned to take full advantage of the compelling opportunities that lie ahead. The Board believes that its execution will create a simpler, lower-cost and higher-returning platform to deliver future growth for Harworth shareholders.”
Acceleration towards a simpler, lower-cost and higher-returning platform:
· Becoming a pure play powered land and industrial & logistics specialist, exiting the residential sector
· Refocusing on strategic land, enabling works and selective development to maximise returns
· Sizing the Investment Portfolio to support funding, while recycling to optimise returns
· Aligning our operating model and cost base with a pure play powered land and industrial & logistics approach
· If Group identifies that it holds surplus capital, including following sales of material assets and having assessed future accretive capital deployment opportunities, the Harworth Board will consider returning some or all of such surplus capital to Harworth Shareholders so that they benefit directly from value creation initiatives as they are executed
Progressing a substantial data centre site pipeline, with accepted power offers of 0.8GW
· Final plot sale to Microsoft at Skelton Grange progressing towards completion, concluding first powered land sale
· Entered exclusivity agreement with a leading data centre provider on second powered land sale for a hyperscale DC
· A further four hyperscale data centre opportunities identified; delivery progressing into the near to medium-term
· Potential future profits from the sale of existing powered land portfolio as serviced powered land for data centres, assuming full ownership, planning achieved and power secured are estimated to be £293 million8. Value has the potential to be realised as we continue to advance our data centre strategy
Strong occupier demand across full range of industrial & logistics products, and progress on residential plot sales
· Completed or in legals on three pre-lets, adding £3.7m of annualised rent at a 17% premium to combined ERV9
· In negotiations regarding a further 1.5m sq ft of space across industrial & logistics and powered land
· Investment Portfolio now 77% Grade A by value; post period-end lettings and a secondary asset sale ahead of book value will drive further progress towards 100% Grade A target
· Completed, in negotiation to conclude definitive contracts or subject to agreed terms on 58% of budgeted full year sales, including 952 residential plots
Harworth’s largest-ever substantially construction ready land bank, with strong potential for near-term value creation
· 34.8m sq ft and 0.8GW industrial & logistics and powered land bank, with 73% consented or in the planning system
· 3.8m sq ft substantially construction-ready land, offering c.£600m of GDV potential in the next 3-5 years
· Retaining flexibility on delivery options, including pre-lets, land sales and small to mid-box speculative development
Reduced valuations driven principally by residential market headwinds
· EPRA NDV reduction principally driven by residential market headwinds, namely softer demand and increased costs in housebuilder end markets, resulting in a Total Accounting Return of (3.7)% (H1 2025: 1.1%)
· Industrial & logistics valuations remained broadly stable, as management actions to drive value across pipeline, including on data centre sites, largely offset macroeconomic-driven cost increases in labour and materials
· Natural Resources portfolio and agricultural land valuations increased, reflecting value uplifts for newly created Biodiversity Net Gain schemes and an improved outlook for income from wind turbines
Robust financial position, with low LTV
· Available liquidity of £99.5m as at 30 June 2026 (30 June 2025: £59.8m) providing flexibility and optionality
· Statutory net assets decreased by 4.0% to £670.8m (31 December 2025: £699.0m)
· Low LTV of 20.3% as at 30 June 2026, reduced to 17.1% as of 31 August 202610 (30 June 2025: 19.0%)
· Increase of 10% in the interim dividend to 0.592p per share, in line with Group’s dividend policy
Notes:
| 1. All values are Harworth’s share 2. Comprise Alternative Performance Measures (APMs): a full description of these is set out in Note 2 to the financial statements, with a reconciliation between statutory measures and APMs set out in the appendix to the financial statements 3. European Public Real Estate Association Net Disposal Value 4. Comprises industrial & logistics land and developments, Investment Portfolio, residential land and developments, Natural Resources portfolio and agricultural land 5. Comprises industrial & logistics land and developments and the Investment Portfolio 6. The Ex-dividend date, Record date and Payment date for the 2026 interim dividend can be found in the Shareholder Information section of this announcement 7. Statutory portfolio value includes investment properties, development properties, AHFS, occupied properties and investment in joint-ventures: refer to Note 2 to the financial statements 8. JLL analysis separate to the independent Red Book valuation at 30 June 2026. More details can be found in Harworth’s Response Document issued today 9. Estimated Rental Values 10. Using 30 June 2026 valuations |
