Northern lights for Harworth in ‘solid’ display
LAND REGENERATION firm Harworth Group said it delivered a solid operational performance in the second half of 2019 despite planning headwinds.
The Rotherham-based firm said its regional markets in the North and Midlands remain solid and should benefit from the Government intention to invest in the North.
The group anticipates that its financial performance for the year to December 31 will be in line with expectations and its aim is to deliver long-term, market-leading returns for shareholders.
Harworth said it is transforming its portfolio of land and property through active management across its four main business areas, realising strong financial returns as well as creating new places where people want to live and work.
In 2019, the group completed land purchases of over 33 acres adjacent to two of its major developments for a combined consideration of £6.25m.
It also bought two income-producing industrial units at Brighouse and Sherburn-in-Elmet for a combined sum of £12.8m.
It has entered into five Planning Promotion Agreements across all three core regions to ensure the group’s long term land pipeline and it sold 194.86 acres of non-core land to reduce its agricultural landholding.
Harworth’s chief executive, Owen Michaelson, said: “We anticipate full-year results to be in line with expectations, reflecting good progress being made across all business sectors.
“Our regional markets in the North of England and Midlands remain solid and should benefit further from emerging Government
policy. Looking forward, the planning headwinds that we reported at the half year still remain in place and we continue to manage this risk accordingly on a site-by-site basis.
“We will continue to deploy our capital wisely through our regional operating model on appropriate new land and property opportunities in order to drive returns whilst supporting the ongoing regeneration of our regions through the delivery of new homes and jobs.”
Last year, the group submitted planning applications for over 1.3m sq ft of commercial space and 1,300 residential plots, including the former Ironbridge Power Station in Shropshire.
The planning headwinds at the half year still remain in place. Owen Michaelson, chief executive of Harworth Group
Over 25 acres of serviced residential land was sold for a combined 288 plots at Thoresby Vale, Nottinghamshire (Harron Homes) and Riverdale Park, Doncaster (Taylor Wimpey) for a total consideration of £14m, which was above the 2018 book value.
Some 43 acres of serviced commercial land was sold at its joint venture Gateway 45 Leeds site to PLP for the development of up to 855,000 sq ft of industrial and distribution space.
It also completed the freehold land sale of its Solar Portfolio – seven former colliery sites in Yorkshire, Nottinghamshire and Derbyshire – totalling 251 acres with no further development potential to Lightsource BP for £5m.