Harworth’s profit has plunged over the past six months as the developer focuses on the long-term.
Pretax profit for the period was £4.5m, down from £98.8m in H1 2022. This was largely due to a steep fall in capital growth profit, from £84.5m to £7.9m, while income generation dropped from £24.1m to £9.5m.
Revenue for the first half of the year was down by two-thirds on H1 2022, at £18.2m.
The regeneration specialist, which was spun out of the property division of UK Coal in 2004, said revenue was in line with expectations, and profit needed to be seen in a long-term context.
Chief executive Lynda Shillaw said: “Harworth’s first-half performance reflected good progress against strategic objectives, coupled with a strong operational delivery, which highlights the resilience of our through-the-cycle model, and sustained demand for our serviced residential land and industrial and logistics assets.”
Net asset value grew slightly to £603m over the six months.
The group has been focused on using cash generated by sales to improve the specification of its other space, as well as to pursue its development programme.
Sales of older industrial and logistics sites alongside new development has accelerated the transition of its 2.9m sq ft investment portfolio to 100% grade A. Currently 29% is grade A.
Shillaw added: “Harworth is a long-term, through-the-cycle business, and we remain confident that our strategy to become a £1bn business by 2027 will deliver long-term value. Our significant landbank, specialist skillset and strong balance sheet position us well to maximise the significant value embedded in our sites.”
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