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LONDON (Alliance News) - Harworth Group PLC on Tuesday said it expects full year results in line with its expectations, after having grown net asset value in the first half and as its markets have seen little Brexit impact.
The property regeneration and investment specialist said its net asset value for the six months ended June 30 was GBP303.0 million, up 10% from the GBP274.5 million posted a year earlier and the GBP297.7 million recorded at the end of December.
Its net asset value per share rose to 104.00 pence from 93.90p a year earlier and 102.00p at the year-end.
Harworth said it has seen continued momentum in the business over its first half, having "selectively" grown its direct commercial developments through schemes at Logistics North, the Advanced Manufacturing Park and Gateway 36.
In the first half the company achieves sales of GBP13.3 million which included both serviced plots and agricultural land with limited development potential, it said. The proceeds covered development spend of GBP10.1 million elsewhere in the portfolio. Harworth said it expects "significantly increased levels of disposals in the second half and for cash flow to more than cover the four acquisitions made in the first half."
The company said its operating profit for the six months came in at GBP8.3 million, down from the GBP9.2 million generated a year earlier. This came after it incurred a loss from disposals of investment properties and options of GBP500,000 compared to a profit a year earlier.
"The group is yet to reach any final conclusion as to the likely effect of the EU referendum result on the property markets in which the company operates," Harworth said. However, the company said mitigating factors should include the diversity in its property portfolio and the fact that the effect on markets in London and the South East appears to have been more marked than on the regional markets in which the it operated.
Harworth said it has continued to agree residential land sales since June 23 and noted that the result has had little impact on the regional, commercial property market.
"That said, the group has revised its development expenditure plans to ensure future infrastructure spend is directly linked to anticipated land sales," Harworth added.
The company said it was offering an interim dividend of 0.23 pence per share.
Shares in Harworth were down 5.3% at 86.70p on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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