The victor of Orgreave: Property group brings prestige to pit clash site
IF THERE is a single date that sums up the clash between Margaret Thatcher and the miners, it is June 18, 1984, when a violent confrontation took place between police and pickets at Orgreave in Rotherham, South Yorkshire. Dubbed the Battle of Orgreave, it arouses strong feelings to this day, with campaigners calling for an independent review into what happened and why.
The site itself has been completely transformed, however, under the auspices of Harworth
Group, a property developer specialising in regeneration throughout the North of England and the Midlands. Harworth shares are £1.54 and should increase in value, as the company has an impressive track record, a strong portfolio and is focused on precisely the areas that Prime Minister Boris Johnson has earmarked for investment.
Orgreave, renamed Waverley, is a case in point. Once a gritty colliery and coking plant, the area now boasts 850 new houses and a massive business park, whose tenants include Rolls-Royce and McLaren Automotive, which makes components for Formula 1 cars on site. In days gone by, around 700 miners were employed at Orgreave. Today, more than 2,000 jobs have been created on site and thousands more will come as Harworth has planning permission to expand the business park and leading manufacturers are keen to move in.
The University of Sheffield has a significant presence there too, with an Advanced Manufacturing Research Centre and an apprentice college, where businesses can find the skilled workers they need.
Over time, 3,000 more homes will be built at Waverley, with schools, hospitals and parkland to complete the area’s transformation.
Harworth’s success on this site is no accident. The group knows more than most about regenerating former coal mines, as it was spun out of UK Coal, formerly British Coal. The group then listed on the stock market in 2015.
Chief executive Owen Michaelson has spent his career taking over neglected brownfield sites and turning them into places where people want to live and work. He has restructured Harworth’s portfolio, selling off farmland with limited development potential and acquiring brownfield sites in the Midlands and NorthWest, where regeneration is sorely needed.
Today, the group owns 120 sites, some residential, some commercial and some a blend of both. These are spread over 20,000 acres, roughly the same size as Rotherham, where Harworth is headquartered.
The company is constantly looking out for new opportunities so further expansion is likely. Property developers have a bad name in some quarters but Harworth has been working in the North for years and local authorities trust the business because its developments bring new homes and jobs to areas that have been neglected for years. Michaelson already has planning consent for 10,000 new homes, with a further 10,000 awaiting permission. And there is a large amount of commercial development too, for tenants ranging from Amazon and Lidl to hundreds of small, local businesses. Residential plots are sold to housebuilders once planning permission has been granted and the sites are ready for construction. But Harworth retains ownership of commercial developments, generating income for the group once tenants move in.
The process sounds straightforward but it can take years, particularly during periods of political volatility. That made 2019 slightly challenging at times but Johnson’s Election victory and pledge to invest in the North have fuelled confidence in the future.
A trading statement is scheduled for this Tuesday and the tone should be upbeat. Brokers expect 2019 revenues of around £80million, rising to £86million in the current year. Harworth pays a nominal dividend – likely to be 0.9p for 2019, rising to 1p in 2020. However, it is primarily a growth stock. The shares have doubled since listing and should continue to rise.
MIDAS VERDICT: The UK needs more homes and it needs to boost productivity. Harworth helps on both fronts and its regional focus is a further plus. The company is well managed, finances are sound and prospects are fair. At £1.54 the shares are a buy.
Traded on: Main market Ticker: HWG Contact: harworthgroup.com or 0114 349 3131