Harworth Group Reports Strong H1 2025 Results with EPRA NDV Growth and Strategic Acquisitions

Harworth’s H1 2025: steady EPRA NDV growth, big I&L moves, and a busier second half ahead

Harworth Group’s half-year update shows a business leaning into its strengths – Industrial & Logistics (I&L) land and long-cycle regeneration – while keeping an eye on debt and delivery. EPRA NDV per share nudged up, the investment portfolio grew in value and quality, and management deployed capital into strategic sites, most notably taking full control of Gateway 45 in Leeds.

There are some trade-offs: operating profit is down year-on-year, liquidity has dipped as cash is put to work, and residential remains softer. But the direction of travel for the I&L platform looks constructive, with clear catalysts set up for H2 and beyond.

Key numbers investors care about

Metric	H1 2025	Comparative	Why it matters
EPRA NDV per share	223.7p	222.3p (FY2024)	Book value proxy that includes development property at fair value.
EPRA NDV	£725.0m	£719.5m (FY2024)	Up on revaluation gains, offset by losses on sale at some mature resi sites.
Total accounting return (TAR)	1.1%	4.0% (H1 2024)	NDV growth plus dividends – lower than last year but positive.
Operating profit	£7.1m	£21.1m (H1 2024)	Softer due to lower valuation uplift and sales mix.
Investment Portfolio value	£319.3m	£297.2m (FY2024)	Grew 7%, with Grade A by value at 66% and vacancy down to 4.9%.
Net loan-to-value (LTV)	19.0%	5.4% (FY2024)	Higher after acquisitions and capex; expected to fall to 10%-15% by year-end.
Liquidity	£59.8m	£192.4m (FY2024)	Reflects H1 spend pace; sales are typically H2-weighted.
Residential plots sold	649	357 (H1 2024)	Solid progress, with a further 1,593 plots exchanged or in legals.
Dividend per share (interim)	0.538p	0.489p (H1 2024)	+10% in line with policy.

Strategic land engine: what moved the dial

Gateway 45 buyout and HS2 release boost Leeds platform

Harworth acquired its JV partner’s stake at Gateway 45 (Leeds) for £20.0m, taking control of c. 0.8m sq. ft of consented I&L space. The release of HS2 safeguarding has unlocked 1.2m sq. ft across the portfolio, with Gateway 45 the biggest beneficiary. This sits next to Skelton Grange, where enabling works continue for Microsoft’s proposed hyperscale data centre, tied to a £53.2m second phase targeted for completion in 2026.

New West Yorkshire JV with Church Commissioners

Harworth conditionally exchanged on a JV to deliver c. 1.2m sq. ft of employment space and c. 1,500 residential plots – a neat fit with its “two products, two sectors” model and a clear feeder for medium-term value creation.

Planning momentum and enabling works

• Planning applications submitted for c. 1,200 residential plots and 8.1m sq. ft of I&L (Harworth share 4.9m sq. ft) in the period, plus a further 1.5m sq. ft of I&L and c. 4,900 plots since June.
• 3.3m sq. ft of enabling works underway at period-end (Wingates, Gascoigne Wood and Skelton Grange), with 2.4m sq. ft now enabled and ready for development across several sites including Chatterley Valley and Gateway 36.
• Practical completion achieved post period-end at Droitwich (169,300 sq. ft of Grade A I&L).

I&L portfolio: quality up, reversion still to play for

The I&L Investment Portfolio reached £319.3m, with EPRA vacancy down to 4.9% and Grade A now 48% by area (66% by value). Headline rents added £1.0m in the half and renewals/rent reviews achieved a 16% uplift on passing rents. The portfolio remains highly reversionary: headline rental income is 15% below ERVs, with a 5.0% net initial yield and 6.4% reversionary yield.

Harworth continues to recycle into Grade A by disposing of secondary assets. A 61,000 sq. ft Selby asset sold during the period and Brierley Hill (373,000 sq. ft) was sold post period-end, taking pro forma vacancy to 3.2%.

Residential: demand holds for serviced land, but costs bite

Harworth sold 649 plots in H1, including 500 via Planning Promotion Agreements (PPAs) generating £4.0m of fees. Another 1,593 plots were conditionally exchanged or in legals at period-end. Management flags cost increases on certain mature residential sites impacting valuations and losses on sale (£6.3m overall), and expects a softer market potentially into 2026, pending clarity on the UK Budget and rate cuts.

Balance sheet: spending now to create saleable stock later

LTV rose to 19.0% as Harworth leaned into acquisitions and enabling works. Liquidity reduced to £59.8m, with a £240m RCF in place. The group plans to refinance its main RCF within six months and is reviewing interest-rate hedging (currently none on the RCF). Management guides to year-end LTV of 10%-15% as H2-weighted disposals and deferred consideration receipts come in.

NDV drivers and returns

EPRA NDV per share increased to 223.7p, with value gains of £15.5m comprising £21.7m of revaluation gains (largely I&L-driven) offset by £6.3m of losses on sale from higher site-wide costs on some mature residential developments. Total accounting return was 1.1% including 1.125p of dividends (period paid).

The land bank is the story

• I&L pipeline: 34.6m sq. ft (71% de-risked), up from 33.6m sq. ft at FY2024.
• Residential pipeline: 31,636 plots (44% de-risked).
• Strategic targets: EPRA NDV £1bn by end-2027, Investment Portfolio £0.9bn by end-2029, and 100% Grade A core IP by 2027.

This is classic “prepare the ground, then build/sell” execution. The step-up in enabling works is exactly what should precede a ramp in development and land sales from 2026 onwards, especially as planning consents land.

What looks positive

• Clear I&L momentum: portfolio growth, quality upgrades, letting uplifts and reversion yet to capture.
• Strategic acquisitions: Gateway 45 consolidation and the Church Commissioners JV add near-term visibility and scale.
• Planning and enabling: 8.1m sq. ft of I&L applications submitted in H1 and 3.3m sq. ft works underway support medium-term delivery.
• Dividend discipline: interim DPS up 10% to 0.538p, consistent with policy.

Where to keep a cautious eye

• Operating profit: £7.1m vs £21.1m in H1 2024 – softer half reflecting mix, valuation gains and residential cost pressures.
• Residential headwinds: management expects softness possibly into 2026; cost inflation on site-wide infrastructure needs managing tightly.
• Leverage and liquidity: LTV at 19.0% and liquidity at £59.8m are within guardrails, but de-risking depends on H2 sales completing on time.
• Interest-rate exposure: no current hedging on the RCF; refinancing is in train over the next six months.

Outlook and investment take

Harworth is doing the hard yards that tend to be underappreciated mid-cycle: buying well, unlocking planning, laying infrastructure, and steadily upgrading its income assets to Grade A. The near-term picture is more about conversion than discovery – converting a solid H2 sales pipeline, crystallising reversion in the investment portfolio, and securing key consents.

If management executes, the guide to a lower year-end LTV looks achievable, and the I&L platform should continue to support NDV growth. Residential is the swing factor, but Harworth’s de-risked serviced land model and PPA income help cushion that exposure.

Overall, a measured but credible half: NDV edged higher, I&L strengthened, and the business invested for future gains. For long-term investors in UK regeneration and logistics land, the thesis remains intact – with H2 deal flow and 2026-2027 delivery the next big markers.