Harworth Group has made nearly three times as much profit in the last six months as it did in the whole of 2020.
Interim results for the regeneration specialist showed operating profits of £76.5m for H1 2021, up from a loss of £3.7m for the same period last year. In the whole of 2020 it made £27.8m profit.
The group also added nearly £83m to its net asset value, after value gains of £107.5m, taking it to £541m.
Chief executive Lynda Shillaw said: “Harworth delivered a strong first-half performance, advancing planning, development activity, sales and lettings across our portfolio. We continue to see depth of market demand from occupiers and investors for both built stock and, increasingly, strategic land within our industrial and logistics portfolio, as well as for our residential serviced land product. This has resulted in significant growth in EPRA NDV and total returns during the period.”
Total returns increased to 15.4% for the first six months of 2021, driven largely by valuation gains.
Shillaw added that she had concluded the review of the business that started shortly after she joined the group in November last year. “The strategy that we are outlining today builds on our achievements over the last few years and drives growth in the business, maximising returns to investors and setting out a clear roadmap for our stakeholders.”
As part of the plan Shillaw intends Harworth to double in size over the next five to seven years, including “a step-change in the quantum of direct development” in its industrial and logistics pipeline, increasing its residential activity and growing its land portfolio and promotion.
She said Harworth’s development pipeline had grown from 1.3m sq ft between 2015 and 2021 to a projected 3.2m sq ft by 2026.
“This plan represents evolution, not revolution, but with material shifts in the pace and scale of what we do, and will enable us to scale up the creation and delivery of sustainable places where people want to live and work.”
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