TIDMHWG
RNS Number : 2572A
Harworth Group PLC
23 May 2023
Harworth Group plc
("Harworth" or "the Company")
AGM Statement
Harworth Group plc, a leading regenerator of land and property
for sustainable development and investment, provides the following
update on its operational performance in advance of its Annual
General Meeting, which will take place at 10am today. Further
information on the AGM can be found at the end of this
announcement. The Company will announce the results of its AGM
following the conclusion of the meeting.
Lynda Shillaw, Chief Executive of Harworth, commented: "Harworth
has had strong strategic and operational momentum so far in 2023,
against a backdrop of robust demand for serviced and therefore
de-risked residential land as well as industrial & logistics
assets. We have made significant sales from our Investment
Portfolio in line with December 2022 valuations which, combined
with our direct development of new places, means we are making good
progress towards transitioning this portfolio to 100% Grade A. Our
sustained progress with acquisitions, planning and development
across our landbank, as well as our strong financial position,
means we are well positioned to continue to drive value for
stakeholders and deliver sustainable places where people want to
live and work."
Harworth has made significant progress so far in 2023 against
all four growth drivers of its strategy to reach GBP1bn of EPRA
NDV(1) by 2027:
Increasing direct development of industrial & logistics
stock:
-- 110,000 sq. ft of Grade A space directly developed so far
this year, at Gateway 36 in Barnsley, which is 35% let with strong
occupier interest for the remaining space
-- On-site with a further 93,000 sq. ft at the Advanced
Manufacturing Park ('AMP') in Rotherham, due to reach practical
completion in autumn 2023
-- Construction will commence shortly of an additional 73,000
sq. ft pre-let and built-to-suit unit at the AMP, and preparation
works are underway to deliver a further 1.8m sq. ft across the
portfolio
-- Occupier interest remains strong across all direct
development sites, with proposed rents in-line with December 2022
ERVs
Accelerating sales and broadening the range of residential
products:
-- Completed, exchanged or in heads of terms on 74% of budgeted
sales for the year across industrial & logistics and
residential land portfolios, at prices in-line with, or at a
premium to, book value
-- Demand for serviced and therefore de-risked residential land
remains strong, with transactions progressing with a range of local
and national housebuilders
-- Working towards exchange of contracts with the selected
investment and construction partners for development of a
single-family Build-to-Rent ('BTR') portfolio
-- Further diversification of residential products with the
launch of an affordable home portfolio in May 2023, to be delivered
through a forward-funding agreement
Scaling up land acquisitions and promotion activities:
-- Strategic land pipeline continues to grow, with acquisitions
representing 1.1m sq. ft of industrial & logistics space
completed in the year to date
-- Planning applications representing 2,040 housing plots and
7.4m sq. ft of space are currently progressing through the planning
system and are awaiting determination
Repositioning our Investment Portfolio to modern Grade A:
-- Significant progress in transitioning portfolio by largely
retaining directly developed assets and disposing of those where
value has been maximised through the completion of asset management
initiatives
-- Investment Portfolio sales completed so far this year total
GBP48.4m, at prices in line with December 2022 valuations.
Following these disposals, and transfers of completed developments
of 110,000 sq. ft, the portfolio is now 27% Grade A (31 December
2022: 18%)
Harworth remains well capitalised with a strong balance sheet
and financial position. As at 30 April 2023, net debt was GBP43.2m
(31 December 2022: GBP48.4m), resulting in a pro-forma LTV of 6.0%
(31 December 2022: 6.6%), based on 31 December 2022 valuations and
adjusting for subsequent completed sales.
In April 2023, Harworth published its Net Zero Carbon Pathway
Report, which outlines the steps that the Group will take to
achieve its ambition of being operationally Net Zero Carbon ('NZC')
by 2030 and NZC for all emissions by 2040, and a framework through
which its progress can be measured. The report can be accessed at
www.harworthgroup.com/sustainability.
Further AGM information
Harworth's AGM will be held today at 10:00 am at The Bessemer
Conference Room, AMP Technology Centre, Advanced Manufacturing
Park, Brunel Way, Catcliffe, Rotherham, S60 5WG.
This year, the Company is holding a partly virtual AGM, with the
meeting being webcast live, which can be accessed via the following
link: https://brrmedia.news/Harworth_AGM. Shareholders who view the
AGM online will not be able to vote during the meeting, but can
submit written questions via the webcast facility.
(1) European Public Real Estate Association Net Disposal Value,
an adjusted Net Asset Value metric which is one of Harworth's key
Alternative Performance Measures.
For further information
Harworth Group plc
Lynda Shillaw (Chief Executive) T: +44 (0114) 349 3131
Kitty Patmore (Chief Financial Officer) E: investors@harworthgroup.com
Tom Loughran (Head of Investor & Stakeholder
Relations)
FTI Consulting
Dido Laurimore T: +44 (0)20 3727 1000
Richard Gotla E: Harworth@fticonsulting.com
Eve Kirmatzis
About Harworth
Listed on the Premium Segment of the Main Market, Harworth Group
plc (LSE: HWG) is a leading sustainable regenerator of land and
property for development and investment which owns, develops and
manages a portfolio of over 13,000 acres of land on around 100
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 and
industrial & logistics developments. Visit
www.harworthgroup.com for further information. LEI:
213800R8JSSGK2KPFG21
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