Harworth Group (HWG) H2 2025 earnings summary

Executive summary

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

• Strategic pivot to industrial and logistics, now 70% of portfolio, with significant progress in enabling works and planning pipeline.

• Largest ever volume of development-ready land, with 4.0m sq ft enabled or underway and a 15.2m sq ft pipeline for future growth.

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

• Major transaction with Microsoft at Skelton Grange highlights success in securing power-enabled land for data centers.

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, 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; refinancing completed with a £275m revolving credit facility.

• 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.

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

• Anticipate continued high single- to low double-digit sustainable total accounting returns through 2029 and beyond.

• I & L market remains stable and resilient, with rent growth and improving demand; vacancy rates near historic lows.

• Near-term plan weighted towards serviced land sales, forward funding, and strategic partnerships.