Harworth Group Plc · LSE:HWG
Harworth — FY2024 Earnings Presentation
32 slides from Harworth's earnings presentation, Mar 18, 2025
Slide 1: Full year results 2024
2024 Full year results 18 March 2025
Slide 2: Investor Presentation
Investor Presentation Results for the year ended 31 December 2024 ▬ Highlights ▬ Property portfolio overview ▬ Financial performance ▬ Scaling the investment portfolio ▬ Path to £1bn EPRA NDV Lynda Shillaw Dougie Maudsley Chief Executive Interim Chief Financial Officer Harworth Group plc | FY 2024 R
Slide 3: Highlights
Highlights Lynda Shillaw, Chief Executive
Slide 4: Operational outperformance driving strong returns
Operational outperformance driving strong returns Sector-leading returns driven by management actions +8.5% +8.4% 9.1% £719.5m 222.3p Total accounting return EPRA NDV EPRA NDV per share 2023: 5.1% 2023: £662.9m 2023: 205.1p 5.4% £46.7m £192.4m Loan-to-value Net debt Liquidity Index inclusion 2023: 4
Slide 5: Record sales ahead of target run-rate
Record sales ahead of target run-rate Including landmark land sales to global brands +71% +104% £215.8m 4.4m sq ft 2,385 Total Property sales I&L sales by area Residential plot sales 2023: £125.9m 2023: 0.2m sq ft 2023: 1,170 £53.4m £53.5m -17% Skelton Grange (Leeds) I&L | MD Ansty (Rugby) I&L | SL
Slide 6: 2024 I&L planning success unlocks GDV potential
2024 I&L planning success unlocks GDV potential Expertise in securing consents and moving sites through planning system Secured 6.8m sq ft Significant underlying Allocations 3.5m sq ft value to deliver Consented pipeline 8.4m sq ft Target delivery by end of 20271 63% 4m sq ft £0.6bn GDV derisked c.
Slide 7: 2024 Residential planning gains
2024 Residential planning gains Well on track to achieve 2027 sales target Secured 818 plots 14,229 plots consented or in Allocations 600 plots planning system Consented pipeline 4,568 plots Avg. sales p.a. by end of 2027 46% 2,000 plots £50k / plot 1 2 derisked 1. Strategic priority target no. 3 |
Slide 8: Targets underpinned by growth drivers
Targets underpinned by growth drivers £1bn EPRA NDV by end of 2027 and £0.9bn Investment Portfolio by end of 2029 Baseline Progress Ambition Growth drivers 20201 2024 end of 2027 35pp 1 Repositioning core IP to modern Grade A (% BY AREA) <10 45 100 (% GRADE A BY AREA) 2 Increasing direct development
Slide 9: Property portfolio overview
Property portfolio overview Lynda Shillaw, Chief Executive
Slide 10: Land and Property Portfolio
Land and Property Portfolio Significant embedded value still to be unlocked from the high quality extensive landbank, capable of delivering 33.6 million sq. ft. of Industrial & Logistics space plus 31,264 Residential plots INDUSTRIAL & LOGISTICS(2) RESIDENTIAL £247.8 million | 33.6m sq. ft. £284.8 m
Slide 11: Strategic Land
Strategic Land The strategic landbank enables the business to scale and creates value through planning success Industrial & logistics strategic land valuation (£m) Key Management Actions 109.7 105.9 Planning progress 31.4 key driver of Industrial & Logistics revaluation gains 6.7 • Value gains drive
Slide 12: Major Developments
Major Developments Focused on infrastructure investment to create serviced land and enable direct development of Grade A space to be retained for investment purposes Industrial & Logistics major developments valuation (£m) Key Management Actions 136.0 138.1 Industrial & Logistics (42.3) (1.0) 47.7 (
Slide 13: Investment Portfolio
Investment Portfolio Targeting a £0.9 billion Investment Portfolio by the end of 2029 through increased direct development and selective acquisitions, with growth accelerating from 2026 Sector breakdown Strategy evolution to grow Investment Portfolio • On track to meet 2027 target of 100% Grade A co
Slide 14: Financial performance
Financial performance Dougie Maudsley, Interim Chief Financial Officer
Slide 15: P&L: Operational successes reflected in financial performance
P&L Operational successes reflected in financial performance Income statement (£m) FY 2024 FY 2023 FY 2024: Includes higher • Total Property Sales of £215.8m driven by landmark sales to Microsoft and Frasers Group alongside record salary expenses from Revenue 181.6 72.4 increased employee residentia
Slide 16: Balance Sheet
Balance Sheet Growth supported by a strong balance sheet Balance sheet (£m) 31 Dec 2024 31 Dec 2023 • EPRA NDV increased to £719.5m, on Property portfolio(1) 821.6 734.8 FY 2024: Increase due to track to reach the £1bn target by the uptick in valuation of end of 2027 investment properties Trade rece
Slide 17: Funding and liquidity
Funding and liquidity Net Loan to Value of 5.4% with £192.4m cash and facility headroom at year end 2024 £240m RCF in place 5.4% LTV well within 20% £192.4m cash and facility to March 2027 year-end target range headroom 31 December 0.5m 4.9m (5.8m) 7.7m 1.3m (171.3m) 16.2m 69.5m RCF Headroom 75.0m R
Slide 18: Scaling the Investment Portfolio
Scaling the Investment Portfolio Dougie Maudsley, Interim Chief Financial Officer
Slide 19: Scaling the Investment Portfolio
Scaling the Investment Portfolio Leveraging the I&L pipeline to target a core Grade A IP of £0.9bn by end of 2029 Increased rental Larger factor of income & scale Group performance Income component in returns increases Larger role in More options and future funding efficiencies with Advanced Manufac
Slide 20: Evolution of the Investment Portfolio
Evolution of the Investment Portfolio A Acquisition Grade A I&L development selective acquisitions of 900,000+ sq ft D Development 2021 2022 2023 2024 2021 2022 2023 2024 LN50 Logistics North Bardon Hill Gateway 36 Re-Evolution 4 @ AMP Pre-let @ AMP Catalyst @ AMP 50,800 sq ft D 332,000 sq ft D 110,
Slide 21: Evolution of Investment Portfolio
Evolution of Investment Portfolio Journey to Grade A and £0.9bn portfolio value Target: £0.9bn Growth accelerates in the outer years Consented I&L Grade A value Target: developments Non-Grade A value 100% reach completion core Grade A Completed £277.5m £280.9m £297.2m developments Increased transfer
Slide 22: Path to £1bn EPRA NDV
Path to £1bn EPRA NDV Lynda Shillaw, Chief Executive
Slide 23: Driving returns through management actions
Driving returns through management actions Strategic pipeline + specialist skills + capital allocation 1. Pre-Planning 2. Draft Allocation Through-the-cycle business model 12.5m sq ft Progress Planning successes drive 17,035 2.9m sq ft 3. Allocation planning increased velocity and plots 2,275 plots
Slide 24: Scaling I&L pipeline to drive value
Scaling I&L pipeline to drive value Accelerating development opportunities 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
Slide 25: Roadmap to £1bn EPRA NDV
Roadmap to £1bn EPRA NDV Scaling I&L pipeline and accelerating developments Cumulative 39.5% EPRA NDV growth in unstable economic £1bn EPRA NDV environment TARGET £719.6m £515.9m Through-the-cycle business model Progress Optimise Unlock high Create sustainable planning masterplans value uses develop
Slide 26: Summary & outlook
Summary & outlook Proven track record of delivering attractive returns through the cycle Sustained structural Consented, well located pipeline undersupply in industrial can deliver scale and strategic fit and logistics and residential markets Harworth products aligned to investor and occupier demand
Slide 27: Appendix
Appendix
Slide 28: Financial track record
Financial track record Income 2024 2023 2022 2021 2020 2019 Revenue (£m) 181.6 72.4 166.7 109.9 70.0 85.5 Gross profit (£m) 31.1 12.4 83.4 48.7 10.6 27.9 Operating profit (£m) 74.6 54.2 44.5 121.9 27.8 24.3 Dividend per share (p) 1.6 1.5 1.3 1.1 1.8(1) 0.3 Total Return (%) 9.1 5.1 0.1 24.6 3.0 7.8 T
Slide 29: Operational track record
Operational track record Capital growth 2024 2023 2022 2021 2020 2019 Residential plots sold 2,385 1,170 2,236 1,411 873 1,379 Direct development completed (m sq. ft) 0.1 0.2 0.4 0.1 - - 31 Dec 2024 31 Dec 2023 31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019 Industrial & logistics pipeline (m sq. ft
Slide 30: 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
Slide 31: Industrial & logistics land portfolio
Industrial & logistics land portfolio Potential to deliver 33.6m sq. ft of space Main industrial & logistics sites (31 Dec 2024) Sold or Estimated GDV Forecast Site type / Consented or Site developed remaining to Stage completion Ownership planned (sq. ft) (sq. ft) develop (£) date Advanced Manufact
Slide 32: Residential land portfolio
Residential land portfolio Potential to deliver 31,264 new homes Main residential sites (31 Dec 2024) Forecast Site type / Consented or planned Site Sold (plots) Stage completion Ownership (plots) date Mixed tenure delivery 1 Waverley (Rotherham) MD / FH 2,578 393 / 0 2025 or plot sale Mixed tenure