Harworth Group Plc · LSE:HWG
Harworth — Investor Presentation (October 2022)
26 slides from Harworth's investor presentation, Oct 21, 2022
Slide 1: Investor Meet Company Presentation
INVESTOR MEET COMPANY PRESENTATION 21 October 2022 Image: Waverley, South Yorkshire
Slide 2: Today's speakers
Today’s speakers Lynda Shillaw, Chief Executive Joined Harworth in November 2020 Over 30 years’ experience in the UK real estate sector, both in London and the regions, having managed investment and development property portfolios at BT, the Co-op, Lloyds Banking Group and Manchester Airports Gr
Slide 3: Today's agenda
Today’s agenda 1. Introduction to Harworth 2. 2022 Half Year Results 3. Outlook & conclusion 4. Q&A 3
Slide 4: Introduction to Harworth
INTRODUCTION TO HARWORTH LYNDA SHILLAW Chief Executive
Slide 5: One of the UK's leading regeneration companies
One of the UK’s leading regeneration companies Our purpose: to invest to transform land and property into sustainable places where people want to live and work 14,000 acres across c.100 sites valued at £889m with the potential to deliver Harworth office HEAD OFFICE 28,990 32.2m sq. ft £4.1bn homes o
Slide 6: Our investment case
Our investment case OUR PURPOSE: Harworth invests to transform land and property into sustainable places where people want to live and work Uniquely positioned Focused on the highly attractive Regional focus as a specialist regenerator of large, Industrial & Logistics and on areas experiencing signi
Slide 7: How we create value
How we create value Strategic Land Major Developments Investment Portfolio Asset management Placemaking Plot sale / Direct development Value creation Infrastructure development Land preparation Planning approval Masterplanning Acquisitions & land assembly Time 7
Slide 8: A highly-skilled team based across the regions
A highly-skilled team based across the regions Total headcount of 91 as at 31 Dec 2021 (31 Dec 2020: 75) across four offices in Rotherham, Leeds, Manchester and Birmingham Established a regional structure in 2018, creating a Midlands and North West region, operating alongside our existing Yorksh
Slide 9: Our growth strategy
Our growth strategy OUR PURPOSE: Harworth invests to transform land and property into sustainable places where people want to live and work ENABLERS THE HARWORTH WAY OUR KEY MARKETS FINANCING STRATEGY OUR PEOPLE Planet, People, Partnerships, Industrial & Logistics and Residential Prudently geared, e
Slide 10: Focus markets underpinned by strong fundamentals
Focus markets underpinned by strong fundamentals Supply of industrial & logistics units remains close to record lows Home construction remains well below UK Government targets 100 25% 300,000 Long-standing UK Government target 80 20% 250,000 Supply (m sq. ft) 200,000 Vacancy rate 60 15% 150,000 40 1
Slide 11: Delivering the Harworth Way
Delivering the Harworth Way 1. Delivering homes, 3. Reducing CO2 emissions supporting jobs, creating communities Operationally Net Zero Carbon by 2030 2. Promoting healthy lifestyles and wellbeing Fully Net Zero Carbon by 2040 4. Building greener 5. Increasing biodiversity 6. Developing responsibly
Slide 12: Half Year Results 2022
HALF YEAR RESULTS 2022 SIX MONTHS TO 30 JUNE 2022
Slide 13: H1 2022 highlights
H1 2022 highlights INDUSTRIAL & LOGISTICS RESIDENTIAL PIPELINE GROWING OUR STRATEGIC INVESTMENT PORTFOLIO: PIPELINE (SQ. FT) (PLOTS) LANDBANK ROBUST OPERATIONAL METRICS Rent collection Vacancy 32.2m 28,990 99% 3.9% 29,596 30,668 30,804 27.3m 28.2m 24.4m Acquisitions added 3.9m sq. ft 20,490 21.3m of
Slide 14: Continued progress against our growth strategy
Continued progress against our growth strategy GROWTH DRIVERS 2021 H1 2022 AMBITION BY 2027 1. Increasing direct 432,000 sq. ft completed after period-end development of industrial 51,000 sq. ft of direct 800,000 sq. ft developed development completed on average per annum & logistics stock 203,000 s
Slide 15: Financial Review
FINANCIAL REVIEW KITTY PATMORE Chief Financial Officer
Slide 16: EPRA NDV growth to 224.7p per share
EPRA NDV growth to 224.7p per share BALANCE SHEET (£m) 30 June 2022 30 June 2021 31 Dec 2021 PROPERTY PORTFOLIO(1) 800.0 684.6 689.8 TRADE RECEIVABLES & OTHER ASSETS 77.3 62.4 60.4 NET DEBT (67.8) (100.2) (25.7) DEFERRED TAX LIABILITIES(2) (58.6) (37.7) (42.6) OTHER LIABILITIES(3) (95.8) (68.0) (103
Slide 17: Higher serviced land and property sales drive revenues
Higher serviced land and property sales drive revenues Increased revenue with higher serviced land and property INCOME STATEMENT (£m) H1 2022 H1 2021 FY 2021 sales resulting from accelerated sales in line with growth strategy, planning promotion fees and fees from build-to- REVENUE 62.6 18.9 109.9
Slide 18: Portfolio overview £889m
Portfolio overview NATURAL AGRICULTURE & OTHER STRATEGIC LAND: RESOURCES INDUSTRIAL & LOGISTICS RESIDENTIAL £92m | 22,483 plots £584 million | 32.2m sq. ft(1) RESIDENTIAL £268 million | 28,990 plots INCOME GENERATION INVESTMENT PORTFOLIO £889m 37% £294m | 3.7m sq. ft MAJOR DEVELOPMENTS: RESIDENTIAL
Slide 19: Net loan to portfolio value of 7.6%
Net loan to portfolio value of 7.6% Net debt of £67.8m with a net LTV of 7.6% GEARING OVERVIEW 30 June 2022 30 June 2021 31 Dec 2021 Target year-end net loan to portfolio value of NET DEBT (£m) 67.8 100.2 25.7 <20% with a maximum of 25% in year The weighted average cost of debt was 2.89% with
Slide 20: Operational Review
OPERATIONAL REVIEW LYNDA SHILLAW Chief Executive
Slide 21: Industrial & logistics land portfolio: potential to deliver 32.2m sq. ft
INDUSTRIAL & LOGISTICS LAND PORTFOLIO Potential to deliver 32.2m sq. ft of space H1 2022 HIGHLIGHTS MAIN INDUSTRIAL & LOGISTICS SITES (30 June 2022) SOLD OR DEVELOPED / ESTIMATED GDV After period-end, reached practical completion on 432,000 sq. ft of directly NAME CONSENTED OR PLANNED REMAINING TO
Slide 22: Potential to deliver 28,990 new homes
RESIDENTIAL LAND PORTFOLIO Potential to deliver 28,990 new homes H1 2022 HIGHLIGHTS MAIN RESIDENTIAL SITES (30 June 2022) Over 100% budgeted land sales for the year completed, exchanged or in heads NAME PLOTS SOLD / CONSENTED OR PLANNED DELIVERY TIME of terms 1 WAVERLEY 2,336 / 2,900(1) consented
Slide 23: Launch of Harworth's single-family BTR portfolio
RESIDENTIAL LAND PORTFOLIO Launch of Harworth’s single-family BTR portfolio Launched in May 2022, a portfolio of up to 1,200 homes across up to 10 sites in Yorkshire, the Midlands and the North West A unique forward funding and long-term investment opportunity for prospective investment partner
Slide 24: Delivering robust operational metrics
INVESTMENT PORTFOLIO Delivering robust operational metrics KEY STATS DIVERSIFIED OCCUPIER PROFILE 30 June 2022 31 Dec 2021 BREAKDOWN BY SECTOR TOP 5 OCCUPIERS BY RENT ROLL NUMBER OF SITES 18 18 Transport/Logistics OCCUPIER % RENT ROLL Chemicals TOTAL AREA 3.7m sq. ft 3.7m sq. ft 19% 16% Manufacturin
Slide 25: Outlook: a resilient, through-the-cycle business
Outlook: a resilient, through-the-cycle business Consistently strong performance in recent years, despite an unprecedented macroeconomic backdrop Our resilience is not by accident: the result of deliberate management actions to focus on right markets and products, build expertise and maintain st
Slide 26: Harworth
Harworth
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