A fall in property values pushed Harworth’s interim results into the red, but the outgoing chief executive said the role of master developers such as the beds and sheds group has strengthened during the Covid-19 pandemic.
Revenue for the six months to 30 June was £23.7m, less than half of the £58.6m posted a year earlier. Net asset value fell to £458.1m from £463.8m at the end of 2019, leaving the company with an operating loss of £3.7m.
The company has reintroduced a dividend, with an interim payout of 0.334p a share, a 10% increase on its 2019 interim dividend.
Chief executive Owen Michaelson sounded an optimistic note as he prepares to hand over to Lynda Shillaw.
“The group’s purpose of delivering sustainable places for people to live and work remains as relevant as ever to support the UK’s economic recovery. Demand for residential and commercial land in the ‘beds and sheds’ sectors, which have demonstrated their resilience during this unprecedented period, remains strong in the North of England and Midlands.”
Michaelson added: “We believe that the importance and role of master developers like ourselves has been strengthened in the past six months, driven by changing expectations as to what people want from their places of living and working.
“The underlying strength of [our] markets and the wider market opportunities that we believe will be generated as a result of the pandemic, underpin our intent to make further acquisitions over the next 12 months.”
Harworth completed two acquisitions during the six months, of an industrial estate near Dudley and a short-term operating reserve facility in Gloucester.
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