Harworth Group Plc · LSE:HWG
Harworth — H1 2025 Earnings Presentation
36 slides from Harworth's earnings presentation, Sep 16, 2025
Slide 1: Half year results
2025 Half year results 16 September 2025
Slide 2: H1-2025 results presentation highlights
H1-2025 results presentation Half year ended 30 June 2025 Highlights ■ Operational momentum underpins progress against strategy ■ I&L land and development 8% property return – driver of future Transform Regenerate Revitalise growth Lynda Shillaw Kitty Patmore Chief Executive Chief Financial Officer
Slide 3: Long term view - continuing to execute our growth strategy
Long term view - continuing to execute our growth strategy while selling £607m 1,000 + 53% £ 944.2m 1,000 900 £858.8m +10% 900 800 800 + 41% £719.5m £ 725.0m 700 700 +0.8% £618.2m 600 600 £515.9m 500 500 Transform Regenerate Revitalise 400 400 160.0p 222.3p 223.7p 300 300 FY2020 FY2024 HY2025 FY2020
Slide 4: H1 2025 progress
H1 2025 progress Lynda Shillaw, Chief Executive
Slide 5: Investing for growth: advancing an attractive pipeline of I&L sites
Investing for growth: advancing an attractive pipeline of I&L sites ❶ Investment in our I&L sites 32.3m AMP (Rotherham) Wingates (Bolton) £ YAC | I&L | MD NOW | I&L | MS+D Development spend & investment in JVs Chatterley Valley (Stoke-on-Trent) Droitwich (Worcester) H1-2024: £18.1m NOW | I&L | MD MI
Slide 6: I&L planning submissions to deliver medium-term value gains
I&L planning submissions to deliver medium-term value gains ❷ Strong level of I&L planning applications submitted 3.25m sq ft Northern Gateway (Greater Manchester) NOW | I&L | SL 4.9m sq ft 1 Planning risk reduces Planning applications submitted Transform Regenerate Revitalise H1-2024: 6.4msq ft 71%
Slide 7: Significant investment in enabling works builds pipeline momentum
Significant investment in enabling works builds pipeline momentum ❸ I&L enabling works to increase serviced land capacity IN DELIVERY Consented 2.4m sq ft Enabling complete 8.7 66% m sq ft 3.3m sq ft Enabling works ongoing Transform Regenerate Revitalise Planning risk reduces Harworth Group plc | H1
Slide 8: Significant investment in enabling works builds pipeline momentum (cont'd)
Significant investment in enabling works builds pipeline momentum ❸ I&L enabling works to increase serviced land capacity (cont’d) Gateway 36 Gascoigne Wood Enabling works (Barnsley) Enabling works (North Yorkshire) YAC | I&L | MD YAC | I&L | SL completed underway1 at 30-Jun-2025 at 30-Jun-2025 2.4
Slide 9: On track to deliver 100% Grade A core IP by end of 2027
On track to deliver 100% Grade A core IP by the end of 2027 ❹ Increasing Grade A quality of core I&L Investment Portfolio 80k sq ft Grade A value Non-Grade A value £ 319.3m £327.0m £297.2m Technicut pre-let at AMP (Rotherham) £227.6m 61k sq ft Sale of secondary asset1 Post period-end Transform Regen
Slide 10: Property portfolio overview
Property portfolio overview Kitty Patmore, Chief Financial Officer
Slide 11: Significant embedded value to unlock from land bank
Significant embedded value to unlock from land bank RESIDENTIAL LANDBANK I&L LANDBANK 31,636 plots Residential I&L 34.6 m sq ft Strategic Land Strategic Land £62.9m £125.2m Residential Major Developments Capital growth £225.5m 63% I&L Major Developments £ 944.2m £179.0m Transform Regenerate Revitali
Slide 12: Improving I&L Investment Portfolio benefits from healthy rental growth
Improving I&L Investment Portfolio benefits from healthy rental growth Headline rent pa + 7.4% £ 18.3m FY2024: £17.5m + 4.6% Driven by positive 4.8m leasing activity 20.2m + £ 319.3m Passing rent psf 6.27 + (2.9)m £ FY2024: £5.90 + 6.3% £ 297.3m Driven by directly developed Grade A EPRA vacancy 4.9%
Slide 13: Transforming Residential allocations into planning submissions
Transforming Residential allocations into planning submissions Healthy volume of planning applications awaiting determination 900 plots Cefn Park (Wrexham) NOW | R | SL / PPA 1,200 plots Planning applications submitted Planning risk reduces Transform Regenerate Revitalise H1-2024: 2,269 plots 44% c.
Slide 14: Residential: Servicing land to drive plot sales & cash generation
Residential: Servicing land to drive plot sales & cash generation 649 146 1,447 Plots sales completed in H1-251 Plots sales completed Plots sales conditionally H1-2024: 357 plots post period-end exchanged or in legals2 On track to achieve or exceed target of 2,000 plots per annum IN DELIVERY Consent
Slide 15: Financial performance
Financial performance Kitty Patmore, Chief Financial Officer
Slide 16: Value gains driving EPRA NDV in H1
Value gains driving EPRA NDV in H1 £ 3.2m £ 15.5m £ 11.6m (17.1)m £ 725.0m £ 719.5m £ £ (4.0)m £(3.7)m Transform Regenerate Revitalise NDV as at Net Revenue Value Gains Other¹ Administration Interest and Dividends NDV as at December 2024 Costs Finance costs June 2025 1. Includes Tax: £2.6m, Share Ba
Slide 17: I&L delivered 5% value return
I&L delivered 5% value return – driven by site progress & market fundamentals Total I&L portfolio £( 1.0)m £ 29.3m £ 28.3m | 4.8% I&L Major Developments £( 0.9)m £ 14.1m £ 13.2m | 8.0% I&L Strategic Land £( 0.2)m 10.4m 10.2m | 8.9% Transform Regenerate Revitalise £ £ Profit / (loss) on sale Revaluat
Slide 18: Residential supports cash generation – value gains impacted by inflation
Residential supports cash generation – value gains impacted by inflation and site-specific costs £( 14.5)m | -5.0% ▪ Headline valuations reflect stable market £( 6.2)m Total Residential portfolio ▪ Strategic Land flat as planning £ (6.2)m applications at early stage ▪ Costs to deliver increased ▪ Si
Slide 19: Overall value gains £15.5m driven by I&L outperformance
Overall value gains £15.5m driven by I&L outperformance to residential Total property portfolio £ 15.5m I&L MD 13.0m £ £10.4m I&L SL £6.5m I&L IP NRS & Agriculture1 Transform Regenerate Revitalise £( 0.2)m Residential SL Profit / (loss) on sale (14.5)m Residential MD Revaluation gains / losses £ -20
Slide 20: Leveraging our balance sheet into our sites and strategic acquisitions
Leveraging our balance sheet into our sites and strategic acquisitions £ 59.8m Cash & debt £ 33.5m £ 9.9m headroom Cash £ 76.0m £(6.0)m £9.8m £179.4m Cash 192.4m £117.4m £ Cash & debt headroom £ 19.3m Transform Regenerate Revitalise £46.7m £ 179.4m FY2024 FY2024 Cash Cash & WC & WC used in Developme
Slide 21: Land & property sales drive cash generation: LTV within 20% target
Land & property sales drive cash generation: LTV within 20% target by year-end Rental Income and fees 19% cover overheads 10-15% Transform Regenerate Revitalise H1-2025 H1 LTV Dev H2 Devspend Admin, Spend & H2 taxand Admin, Tax & H2 Rental RentalIncome Sales H2 Sales Deferred H2 Deferred H2-2025 H2
Slide 22: Strategy & Outlook
Strategy & Outlook Lynda Shillaw, Chief Executive
Slide 23: Successfully scaling I&L pipeline to drive value
Successfully scaling I&L pipeline to drive value VERTICAL BUILD RANGES Activity levels increase on sites On and off-site £8.50-£11.50 each year to 2027 enabling works and ERV psf (Estimated rental values) platform creation and beyond Also feeding sites beyond 2027 6-8% >5m sq ft Yield on cost c. 60%
Slide 24: Roadmap to £1bn EPRA NDV
Roadmap to £1bn EPRA NDV +7.7% +13.3% 4.5-year CAGR delivered 2.5-year CAGR targeted EPRA NDV TARGET Asset Direct management1 £ 1.0bn development Running Serviced costs & £ 725.0m land sales dividends2 Planning & high value uses 515.9m Transform Regenerate Revitalise £ + 40.5% Cumulative growth FY20
Slide 25: Outlook and market opportunity
Outlook Progress Optimise Unlock high Create sustainable planning masterplans value uses developments Market outlook Harworth opportunity Developing I&L market stable, positive Invest to accelerate delivery and drive demand drivers growth the next generation Residential near-term cautious to Land ba
Slide 26: Appendix
Appendix
Slide 27: Targets underpinned by growth drivers
Targets underpinned by growth drivers Baseline Progress Ambition Growth drivers 20201 H1 2025 end of 2027 38pp 1 Repositioning core IP to modern Grade A (% BY AREA) <10 48 100 (% GRADE A BY AREA) 2 Increasing direct development of I&L stock (SQ FT)2 200,000 3 44% 287,500 800,000 (SQ FT AVERAGE RUN-R
Slide 28: Proven business model
Proven business model Residential FY2024 average value per plot Serviced Land (Sold) £50k Major Development £49k Consented Strategic Land £23k Non-Consented Strategic Land £7k Value creation Transform Regenerate Revitalise FY2024 average Industrial & Logistics value psf Grade A Investment Portfolio
Slide 29: Profit & Loss
Profit & Loss Increased diversity in activity driving revenue • Total Property Sales of £18.9m driven by serviced land Income statement HY HY FY sales, including at Waverley alongside sale of a (£m) 2025 2024 2024 secondary asset from the Investment Portfolio Revenue 47.5 41.3 181.6 • Income Generat
Slide 30: Balance Sheet
Balance Sheet Growth supported by a strong balance sheet • EPRA NDV increased to £725.0m, 30 Jun 30 Jun 31 Dec Balance sheet (£m) 2025 2024 2024 • Increase in valuations in I&L properties HY 2025: Increase due to Property portfolio(1) 908.6 772.5 821.6 uptick in valuation of driven by planning progr
Slide 31: Strategic Land (SL)
Strategic Land (SL) SL enables the business to scale and creates value through planning success Industrial & logistics strategic land valuation (£m) Key Management Actions 10.4 125.2 Industrial & Logistics 109.7 • Value gains driven by progress towards planning and de-risking sites 1.6 (1.8) 0.8 (1.
Slide 32: Major Developments (MD)
Major Developments (MD) Focus on enabling works and direct development of Grade A space for IP Industrial & Logistics major developments valuation (£m) Key Management Actions 179.0 Industrial & Logistics 138.1 20.8 (19.5) 14.1 • Significant development activity across sites such as Chatterley, Winga
Slide 33: Investment Portfolio (IP)
Investment Portfolio (IP) I&L IP continues to grow with Grade A at 66% by value, increasing to 71% post period-end Investment Portfolio valuation (£m) 319.3 Key Management Actions 297.2 (0.2) 4.8 I&L Portfolio 0.6 - (2.7) 19.7 • Completion and letting of a unit on the AMP, Rotherham to Technicut whi
Slide 34: Financial track record
Financial track record Income H1 2025 2024 2023 2022 2021 2020 2019 Revenue (£m) 47.5 181.6 72.4 166.7 109.9 70.0 85.5 Gross profit (£m) 5.4 31.1 12.4 83.4 48.7 10.6 27.9 Operating profit (£m) 7.1 74.6 54.2 44.5 121.9 27.8 24.3 Dividend per share (p) 0.538 1.6 1.5 1.3 1.1 1.8(1) 0.3 Total Return (%)
Slide 35: Operational track record
Operational track record Capital growth H1 2025 2024 2023 2022 2021 2020 2019 Residential plots sold 649 2,385 1,170 2,236 1,411 873 1,379 Direct development completed (m sq. ft) 0.1 0.1 0.2 0.4 0.1 - - 30-Jun-25 31 Dec 2024 31 Dec 2023 31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019 Industrial & lo
Slide 36: Proven Business Model
Proven Business Model Transforming land and property into sustainable places where people want to live and work and consistently delivering market leading returns through the cycle Asset management Placemaking Direct development or plot sale Land remediation and infrastructure Planning approval deve