Harworth Confident Going Forward After Solid 2017 Performance

LONDON (Alliance News) - Brownfield land and property developer investor and developer Harworth Group PLC reported on Tuesday "another strong" set of results in 2017, with net asset value growing by double-digits.

Harworth's triple net asset value per share, its main metric, rose by 13% to 128.90 pence per share at the end of 2017 compared to 114.60p at the same date a year earlier.

Triple net asset value is net asset value adjusted to reflect the fair value of debt and derivatives, and to include deferred taxation on revaluations.

Value gains, including development properties, rose by 8.6% due to strong planning, lettings & sales progress, and uplifts from acquisitions made during 2017, Harworth said.

Profit excluding value gains was flat for 2017 at GBP2.2 million, while operating profit before exceptional items fell to GBP39.7 million from GBP45.2 million. However, including joint ventures and revaluation gains, the figure rose 8.1% to GBP49.6 million from GBP45.8 million.

Pretax profit for the year fell slightly to GBP41.8 million from GBP43.4 million.

The company increased its final dividend to 0.575p per share compared to 0.523p. The total for 2017 is thus 0.828p, a 10% rise year-on-year.

Looking ahead, Harworth said it is "well positioned" for the future, with the core markets of the north of England and the Midlands continuing to do well. Government policy remains supportive, Harworth added, with a strong backing for brownfield development.

The company said 2018 has begun "strongly", with over 50% of expected sales for the year already agreed.

Chief Executive Owen Michaelson said: "These are another strong set of results where we have again delivered double digit EPRA NNNAV growth, reflecting our continued ability to maximise the value of our portfolio whilst simultaneously growing our strategic land-bank and income base through acquisitions and new lettings.

"Our focus, on the 'beds and sheds' sectors in the North of England and the Midlands, is firmly underpinned by strong economic and consumer trends in the regions, and reinforced by supportive Government policy."

Harworth shares were up 3.2% on Tuesday at 109.90p each.