Harworth performance ahead of expectations

By James Buckley - Tuesday, January 09, 2018 10:16

Harworth Group this morning delivered its trading update for the financial year ended 31 December 2017, saying it anticipates that its financial performance for the year ended 31 December 2017 will be ahead of expectations.

Value gains (revaluation gains and profit on disposals) are anticipated to be appreciably ahead of expectations. As a result, group EPRA NNNAV as at 31 December 2017 is anticipated to be moderately ahead of expectations, ensuring another year of double-digit growth; and profit excluding value gains is anticipated to be in line with expectations.

Harworth has now invested all the £27.1m raised in the group’s March 2017 equity placing into five sites.

Owen Michaelson, Chief Executive Officer, said: “The Group had a strong first half of the year as highlighted in our interim results.  This momentum has continued into the second half, with full year results anticipated to exceed our expectations.  Sales on consented land at our key development sites have been achieved at above book value and good progress on planning and lettings has driven the growth in the valuation of our portfolio. 

“This includes progress at Riverdale Park in Doncaster, where we have realised an engineered land sale above book value less than two years after we purchased the site. 

“This robust position reflects the underlying strength of our business model and the ability of our management team to deliver the majority of our value gains.  We remain confident in the long-term fundamentals of the residential and commercial markets in the North of England and the Midlands. This in turn gives us the assurance we need to continue to invest in new sites to deliver future shareholder value.”

jbuckley@costar.co.uk

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