Harworth Group Plc – Unaudited Interim Results For The Half Year Ended 30 June 2017

Ø Continuing benefits from management action led model with over 80% of first half value gains as a result of milestone delivery as opposed to reliance on market movements

Ø Outline planning agreed at Kellingley (1.45m sq. ft commercial space) and Swadlincote (42k sq. ft commercial space).  Further planning success targeted in the second half of the year with more decisions due which will underpin the expected full year value gains

Ø Three acquisitions made in August 2017 across the Midlands and North West – all above expected target rate of return.  Total consideration of £16.3m (plus costs) with further infrastructure investment planned to bring the sites forward

Ø Options signed on two sites in the North West and preferred bidder positions secured on a further four sites in the North West, Yorkshire and the Midlands.  It is expected that all the £27.1m capital raised in March will be committed by the year end towards strategic land

Harworth's Chief Executive, Owen Michaelson, said:

“We have had another strong first half, with good progress being made in all of our key business areas.  We have executed a number of market leading deals at our flagship Advanced Manufacturing Park and Logistics North developments that further grow our commercial development capabilities, both directly and in partnership.  We have also continued to make progress in securing planning consents to grow the value of the portfolio, most notably at Kellingley. 

“We are well advanced with deploying the new capital raised in March and expect to have committed all the proceeds by the year end on strategic land sites.  Our future acquisitions pipeline remains strong and we continue to rationalise our portfolio, with the intention of reducing our sites under management to less than 100 within two years.

“The economic potential of the regions in which we operate remains good and the long-term market fundamentals are solid.  Based on current market conditions, we expect our full-year performance to be in line with our expectations.”