TIDMHWG
RNS Number : 7111Z
Harworth Group PLC
21 May 2019
21 May 2019
LEI: 213800R8JSSGK2KPFG21
Harworth Group plc ("Harworth" or the "Company")
AGM Statement
Good progress maintained in 2019
Harworth Group plc ("Harworth" or the "Company"), a leading
regenerator of land and property for development and investment,
will hold its Annual General Meeting at 2pm today when it will
provide shareholders with an update on its operational
performance.
Owen Michaelson, Chief Executive, will make the following
statement:
"Harworth has continued to make good operational progress in the
first five months of the year on its in-year priorities, whilst
also evolving its organisational structure to drive the delivery of
its strategic objectives in its core regions. Demand for land for
new homes and high-quality commercial space in our regions
continues to remain solid and is weathering short-term political
headwinds. Trading remains in line with the Board's
expectations.
"Our focus remains consistent: maximising the value of our
strategic land bank and major developments to deliver long-term
value to shareholders; and growing and improving the quality of
income through a combination of new lettings and the selective
recycling of the income portfolio. We are maintaining financial
headroom and low gearing to provide flexibility to support the
continued growth of the business as we drive individual projects
through value growth milestones.
"The recent appointment of our first Chief Operating Officer
will maximise the opportunities for synergies between our Capital
Growth and Income Generation teams, whilst also allowing me to
focus on strategic business development opportunities and
relationships, which help to identify and unlock added value in our
portfolio.
"We look forward to the remainder of 2019 with confidence."
DEVELOPMENT PORTFOLIO
The Capital Growth team across our core regions of Yorkshire
& Central, the North West and the Midlands has continued to
deliver value growth, principally through planning progress and
sales realisations.
The Company has applications for 1,715 residential plots and
just over 1.4m sq. ft of commercial space now awaiting
determination. Planning consent has been secured at Sinfin Business
Park in Derby for an additional 87,500 sq. ft of commercial space.
Applications for a further 3,050 residential plots and 30,000 sq.
ft of commercial space are also being prepared, including for the
former Ironbridge power station that was purchased in June
2018.
Selective disposals to crystallise value gains from the
portfolio have also continued, with over 60% of budgeted sales for
the year having already been completed or agreed, reflecting the
underlying strength of the "beds and sheds" markets in which the
business operates. Land totalling 45.5 acres at two sites that
could deliver a total of 650 residential plots has been sold to
national and regional housebuilders. This includes the sale of 26
acres of residential land at Swadlincote in Derbyshire, where Avant
Homes has plans to build 400 new family homes from two separately
branded outlets over the next five years and a sale to Strata Homes
at Flass Lane in Castleford of 19.5 acres for 250 new family homes.
In March, at Gateway 45 Leeds, our 50/50 joint venture development
with Evans Property Group, 10 acres of fully serviced commercial
land was sold to Leeds University for its new Institute for High
Speed Rail and System Integration, whilst contracts were exchanged
with UKLV in April for the sale of 43 acres of land to deliver
855,000 sq. ft of speculative distribution space. These
transactions represent a total consideration of GBP30.3 million,
Harworth's share of which will be reinvested into the wider
portfolio.
Our move to a regional model has also started to bear fruit,
with two strategic land acquisitions in the North West made for a
total consideration of GBP4.3 million. Selected direct development
on a pre-let and speculative basis is anticipated at the Advanced
Manufacturing Park in Rotherham to support the continued growth of
the income portfolio.
As a result of this activity, Harworth's consented portfolio now
stands at 10,427 plots (31 December 2018: 11,077 plots) and 9.9m
sq. ft (31 December 2018: 10.7m sq. ft) of commercial space.
INVESTMENT PORTFOLIO
The Income Generation team has continued to improve the
resilience of Harworth's recurring income. 12 new and renewed
lettings have been agreed across the Business Space portfolio in
2019, generating approximately GBP1 million per annum.
Harworth continues to dispose of assets which offer limited
further value generating potential and non-core assets on a
selective basis. The Company is also accelerating its programme of
disposals of agricultural sites which offer limited development
potential. This includes a number of sites in the North East, where
the Company is continuing to reduce its number of legacy properties
in order to free-up management time and capital to focus on those
sites in its other regions with the highest value enhancement
potential.
PEOPLE
In addition to the appointment of Ian Ball as Chief Operating
Officer on 1 May, the search for a new Finance Director is
progressing well and an update will be made in due course.
OUTLOOK
Demand for new affordably priced housing and commercial space,
particularly for units under 100,000 sq. ft, remains solid within
the Company's core regions of the North of England and the Midlands
and our portfolio of approximately 21,000 acres of land provides
significant latent value.
As in previous years, residential and commercial sales together
with value gains are expected to be weighted towards the second
half of the current financial year. Overall, trading remains in
line with the Board's expectations.
-ENDS-
Enquiries:
Harworth Group plc
Owen Michaelson T: 0114 349 3131
Andrew Kirkman E: Investors@harworthgroup.com
Iain Thomson
FTI Consulting
Dido Laurimore T: 020 3727 1000
Richard Gotla E: harworth@fticonsulting.com
Eve Kirmatzis
NOTES TO EDITORS
About Harworth Group
Listed on the premium segment of the main market, Harworth Group
plc (LSE: HWG) is a leading regenerator of land and property for
development and investment which owns, develops and manages a
portfolio of approximately 21,000 acres of land on around 120 sites
located throughout the North of England and Midlands. The Group
specialises in the regeneration of large, complex sites, in
particular former industrial sites, into new residential
developments and employment areas (harworthgroup.com).
FORWARD LOOKING STATEMENTS DISCLAIMER
This announcement includes statements that are, or may be deemed
to be, forward-looking statements. These forward-looking statements
can be identified by the use of forward-looking terminology,
including the terms "believes", "estimates", "plans",
"anticipates", "targets", "aims", "continues", "projects",
"assumes", "expects", "intends", "may", "will", "would" or
"should", or in each case, their negative or other variations or
comparable terminology. These forward-looking statements include
all matters that are not historical facts. They include statements
regarding the Company's intentions, beliefs or current expectations
concerning, among other things, the Company's result of operations,
financial condition, prospects, growth strategies and the
industries in which the Company operates. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. A number of factors
could cause actual results and developments to differ materially
from those expressed or implied by the forward-looking statements,
including without limitation: conditions in the markets, market
position, the Company's earnings, financial position, return on
capital, anticipated investments and capital expenditures, changing
business or other market conditions and general economic
conditions. These and other factors could adversely affect the
outcome and financial effects of the plans and events described
herein. Forward-looking statements contained in this announcement
are based on past trends or activities and should not be taken as a
representation that such trends or activities will continue in the
future.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGMUASKRKWAVURR
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