Harworth Group Reports H1 Performance and Strategic Shift
Harworth Group reported its first-half performance in 2026, highlighting progress across its industrial, logistics, and powered-land pipeline. The company's total pipeline reached 34.8 million square feet with strong planning consent rates and a construction-ready land bank of 3.8 million square feet expected to support £600 million in gross development value over the next three to five years. Despite these developments, Harworth experienced weakened returns due to declining residential demand and rising construction costs. EPRA net development value per share fell from 224.4 pence to 214.8 pence, while total accounting return was negative at -3.7%. Net debt increased to £190 million but remained within the company's leverage limit of 25%, with liquidity standing at £99.5 million. Harworth announced a strategic shift away from residential development toward industrial and logistics sectors where it has historically achieved strong returns on capital employed (ROCE). The board also approved an increased interim dividend, while the firm remains in an offer period following an unrecommended proposal by Peel Pepper.
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Topics: dividend_announcement industrial_development logistics real_estate