Harworth ‘cautiously optimistic’ on government policy

The chief executive of Harworth Group has said the developer’s long-term investment focus will allow it to look past near-term worries over the government’s moves to address the public deficit. Announcing results for the six months to the end of June, Lynda Shillaw said: “We are cautiously optimistic that a combination of improving economic stability and supportive government policy will be beneficial for both the real estate sector and Harworth. In the near term we recognise market confidence could potentially be tempered by the extent of the steps taken by the government to address the public funding deficit, but as a long-term investor Harworth is well versed in delivering performance through different policy environments.” Over the six months to the end of June, Harworth’s net development value rose by 3.5% year-on-year to £687m, putting the company on track to meet its £1bn target by the end of 2027. Operating profit stood at £21.1m, rocketing 164%, and the company delivered a total return of 4% versus 0.1% this time a year ago. Shillaw said: “Harworth continues to consistently deliver strong progress against its strategic objectives and we remain on track to reach £1bn EPRA NDV by the end of 2027. “In June we announced that the group would increase its focus on industrial and logistics direct development, with an intention to grow the investment portfolio, through direct development and selective acquisitions, to £0.9bn by the end of 2029. This reflects the opportunity we see to deliver into a sector which is key to economic growth and where there is critical undersupply of high-quality space, in order to grow recurring income and underpin sustainable shareholder returns.” Over the period the company received planning permission for 1.8m sq ft and 500 plots, plus a further 1.5m sq ft and 500 plots since. Harworth now has a land pipeline that could deliver 38.8m sq ft of industrial and logistics development and 26,639 homes.