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(Alliance News) - Harworth Group PLC on Friday said it delivered a strong performance in the first half of the year, helped by a buoyant land market, which led to broker Liberum to upgrade its year-end forecast for the firm.
The Rotherham, Yorkshire-based land regenerator expects its EPRA net disposal value at June 30 to be "materially ahead" of the current analyst consensus for December 31 of 167 pence. The consensus comprised of three broker forecasts from Liberum, Peel Hunt and Goodbody.
"Harworth has delivered a strong first half performance, advancing planning, development activity, sales and lettings across our portfolio," said Chief Executive Lynda Shillaw.
Harworth said its success is a result of "strong operational performance and the effect of the buoyant land market, particularly in the industrial and logistics sectors".
As a result, Liberum has upgraded Harworth's year-end EPRA NDV forecast by 6.8% to 179 pence.
"We continue to believe the risk to our forecasts is to the upside as planning gains on the strategic land portfolio and further progress on the major development sites could drive significant NAV growth over the next twelve months," the London-based investment bank said.
Harworth's net debt widened from GBP71.2 million for the six months ended 31 December to GBP100.2 million as at June 30.
However, the half year saw the developer's industrial and logistics pipeline total 26.2 million sq ft and its residential pipeline total 60,655 housing plots. The firm said that it remains well-capitalised and managing its cash flows sustainably.
Shares in Harworth were up 5.6% at 154.75 pence in London on Friday.
By Josie O'Brien; josieobrien@alliancenews.com
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