Half Year Results

Harworth Group PLC

09 September 2026

 

Harworth Group plc

('Harworth' or the 'Group')

Half Year Results for the six months ended 30 June 2026

Acceleration of key initiatives to create a simpler, lower-cost and higher-returning platform

Strong industrial & logistics pipeline momentum alongside progress on multiple hyperscale data centre opportunities

Harworth Group plc, a leading regeneration, strategic land and development business, today announces its results for the six months ended 30 June 2026. Harworth has also separately published today its response document relating to the unrecommended offer for Harworth Group plc by Peel Pepper (UK) limited, a company indirectly wholly-owned by Peel Holdings Group Limited.

Performance measures^1,2

	H1 2026	H1 2025	FY 2025		H1 2026	H1 2025	FY 2025
Total accounting return (%)	(3.7)	1.1	1.7	Total portfolio value movement (£m)4	(14.9)	15.5	44.5
EPRA NDV per share (p)3	214.8	223.7	224.4	Ind. & logistics value movement (£m)5	(6.3)	28.3	73.6
EPRA NDV (£m)3	697.7	725.0	727.3	Residential value movement (£m)	(16.9)	(14.7)	(26.8)
Net loan to portfolio value (%)	20.3	19.0	15.6	Total Property sales (£m)	13.2	18.9	115
Liquidity (£m)	99.5	59.8	127.1	Investment Portfolio value (£m)	301.4	319.3	305.0

Statutory measures

	H1 2026	H1 2025	FY 2025		H1 2026	H1 2025	FY 2025
Total dividend per share (p)6	0.592	0.538	1.775	Operating (loss)/profit (£m)	(24.9)	7.1	21.6
Net debt (£m)	190.0	179.4	145.9	Statutory portfolio value (£m)7	900.7	908.6	899.4
Net assets per share (p)	206.5	215.5	215.6	Net asset value (£m)	670.8	698.3	699.0

Lynda Shillaw, Chief Executive of Harworth, commented: "Harworth has made good operational and strategic progress during the first half of 2026 and into the second, against a challenging macroeconomic backdrop that has weighed on valuations, particularly in residential. Since 2021 we have successfully repositioned our land and development portfolio, shifting the weighting to 71% industrial & logistics and developing a significant powered land bank, in turn positioning the business to deliver strong returns to shareholders into the medium term.

"Our 34.8m sq ft land and development pipeline, which includes 0.8GW of powered land, would be difficult to replicate today given its scale, together with the advanced planning and power supply status, and strategic locations, of many of its sites. Within this pipeline, we are seeing strong occupier demand across our industrial & logistics products, driven by structural growth trends. This includes the first pre-let at our 1.1m sq ft Chatterley Park site in Staffordshire, to an advanced manufacturing occupier. Our largest-ever substantially construction-ready land bank of 3.8m sq ft positions us to further capture this momentum through a combination of pre-lets, land sales and small to mid-box speculative builds.

"Today we are providing more details on our acceleration of key initiatives, which builds on our successful track record over the past five years and, supported by our in-house skillset and extensive land bank, means we are well positioned to take full advantage of the compelling opportunities that lie ahead. The Board believes that its execution will create a simpler, lower-cost and higher-returning platform to deliver future growth for Harworth shareholders."

Acceleration towards a simpler, lower-cost and higher-returning platform:

·      Becoming a pure play powered land and industrial & logistics specialist, exiting the residential sector

·      Refocusing on strategic land, enabling works and selective development to maximise returns

·      Sizing the Investment Portfolio to support funding, while recycling to optimise returns

·      Aligning our operating model and cost base with a pure play powered land and industrial & logistics approach

·     If Group identifies that it holds surplus capital, including following sales of material assets and having assessed future   accretive capital deployment opportunities, the Harworth Board will consider returning some or all of such surplus   capital to Harworth Shareholders so that they benefit directly from value creation initiatives as they are executed

 

Progressing a substantial data centre site pipeline, with accepted power offers of 0.8GW

·      Final plot sale to Microsoft at Skelton Grange progressing towards completion, concluding first powered land sale

·      Entered exclusivity agreement with a leading data centre provider on second powered land sale for a hyperscale DC

·      A further four hyperscale data centre opportunities identified; delivery progressing into the near to medium-term

·     Potential future profits from the sale of existing powered land portfolio as serviced powered land for data centres,   assuming full ownership, planning achieved and power secured are estimated to be £293 million⁸. Value has the    potential to be realised as we continue to advance our data centre strategy

Strong occupier demand across full range of industrial & logistics products, and progress on residential plot sales

·     Completed or in legals on three pre-lets, adding £3.7m of annualised rent at a 17% premium to combined ERV⁹

·     In negotiations regarding a further 1.5m sq ft of space across industrial & logistics and powered land

·    Investment Portfolio now 77% Grade A by value; post period-end lettings and a secondary asset sale ahead of book value will drive further progress towards 100% Grade A target

·    Completed, in negotiation to conclude definitive contracts or subject to agreed terms on 58% of budgeted full year sales, including 952 residential plots

Harworth's largest-ever substantially construction ready land bank, with strong potential for near-term value creation

·      34.8m sq ft and 0.8GW industrial & logistics and powered land bank, with 73% consented or in the planning system

·      3.8m sq ft substantially construction-ready land, offering c.£600m of GDV potential in the next 3-5 years

·      Retaining flexibility on delivery options, including pre-lets, land sales and small to mid-box speculative development

Reduced valuations driven principally by residential market headwinds

·   EPRA NDV reduction principally driven by residential market headwinds, namely softer demand and increased costs in housebuilder end markets, resulting in a Total Accounting Return of (3.7)% (H1 2025: 1.1%)

·     Industrial & logistics valuations remained broadly stable, as management actions to drive value across pipeline, including on data centre sites, largely offset macroeconomic-driven cost increases in labour and materials

·   Natural Resources portfolio and agricultural land valuations increased, reflecting value uplifts for newly created Biodiversity Net Gain schemes and an improved outlook for income from wind turbines

Robust financial position, with low LTV

·      Available liquidity of £99.5m as at 30 June 2026 (30 June 2025: £59.8m) providing flexibility and optionality

·      Statutory net assets decreased by 4.0% to £670.8m (31 December 2025: £699.0m)

·      Low LTV of 20.3% as at 30 June 2026, reduced to 17.1% as of 31 August 2026¹⁰ (30 June 2025: 19.0%)

·      Increase of 10% in the interim dividend to 0.592p per share, in line with Group's dividend policy

Notes:

1.      All values are Harworth's share 2.      Comprise Alternative Performance Measures (APMs): a full description of these is set out in Note 2 to the financial statements, with a reconciliation between statutory measures and APMs set out in the appendix to the financial statements 3.      European Public Real Estate Association Net Disposal Value 4.      Comprises industrial & logistics land and developments, Investment Portfolio, residential land and developments, Natural Resources portfolio and agricultural land 5.      Comprises industrial & logistics land and developments and the Investment Portfolio 6.      The Ex-dividend date, Record date and Payment date for the 2026 interim dividend can be found in the Shareholder Information section of this announcement 7.      Statutory portfolio value includes investment properties, development properties, AHFS, occupied properties and investment in joint-ventures: refer to Note 2 to the financial statements 8.      JLL analysis separate to the independent Red Book valuation at 30 June 2026. More details can be found in Harworth's Response Document issued today 9.      Estimated Rental Values 10.   Using 30 June 2026 valuations

Enquiries:

Harworth Group plc
Lynda Shillaw (Chief Executive) Kitty Patmore (Chief Financial Officer) Tom Loughran (Head of Investor Relations & Communications)	T: [phone] E: [e-mail]
FTI Consulting
Dido Laurimore Richard Gotla Eve Kirmatzis	T: [phone] E: [e-mail]

Results presentation

A webcast will be held today at 10.00am for investors and analysts. This can be accessed at the following link: https://brrmedia.news/HWG_HY_26. A playback will be made available at the same link shortly after broadcast. 

About Harworth

Harworth Group plc (LSE: HWG) is a leading regeneration, strategic land and development business focused principally on the industrial & logistics sector. We own, develop, and manage a portfolio of over 15,000 acres across 100 sites located throughout the North of England and the Midlands. We specialise in delivering long-term value for all stakeholders by regenerating large, complex sites into industrial & logistics developments or serviced remediated land for sale. Our long-term through-the-cycle business model aims to create sustainable places and support new jobs, homes and opportunities across the regions. Visit www.harworthgroup.com for further information. 

LEI: 213800R8JSSGK2KPFG21

Chief Executive's review

For the six months ended 30 June 2026

Harworth has made good operational and strategic progress during the first half of 2026 and into the second, against a continued challenging macroeconomic backdrop, that has weighed on our valuations, particularly in residential. We are seeing strong momentum driven by demand a broad range of industrial and logistics uses and data centre sites across our 34.8m sq ft  land and development pipeline.

Accelerating key initiatives to create a simpler, lower-cost and higher-returning platform

Harworth has a strong record of delivering growth and returns. Since the inception of our current strategic plan in 2021, we have:

·  secured planning on 9.2 million square feet of industrial & logistics space with a GDV of c.£1.3 billion with a consistently high success rate on planning applications;

·    concluded headline sales totalling c.£700.0 million across both its industrial & logistics and residential portfolios at an average 24% profit on historic cost

·    acquired a total of 15.4 million square feet of industrial & logistics land with an estimated GDV of £2.3 billion; and

·   over the five years to 31 December 2025, delivered an average Total Accounting Return of 8.1%, representing upper quartile performance amongst its peers in the listed sector.

Having executed our current strategic plan consistently since 2021 and successfully positioned the business to drive future medium to long-term returns from our industrial & logistics landbank, we are today announcing an acceleration of key initiatives to align capital allocation and organisation design to the structural shifts in our primary markets.

Capital will be directed towards high-performing industrial & logistics opportunities as we exit the residential sector and reduce our exposure to other lower returning assets. These actions will create a simpler, lower-cost and higher-returning platform. The key elements comprise:

i)     Accelerating reallocation of capital to become a pure play powered land and industrial & logistics specialist

In 2024, Harworth announced its intention to position its portfolio to 85% industrial & logistics, and thereby reduce residential exposure to below 15%, by 2029. Due to the scale and strength of opportunities across its industrial & logistics and powered land pipeline, the Group is announcing today its intention to exit the residential sector entirely and accelerate the reallocation of capital to higher returning opportunities aligned to industrial & logistics and powered land, as well as data-led and infrastructure-enabled opportunities.

Industrial & logistics land and developments (including data centres) have delivered an average annual ROCE representing the unlevered total property level return, of 24.5% over the last five financial years, and focusing our expertise on unlocking value from these sectors will improve future returns.

At the same time, we will continue to exit secondary assets and fully optimised industrial & logistics sites, where the future returns profile is generally lower.

ii)     Refocusing on strategic land, enabling works and selective development to maximise returns

To maximise capital returns and velocity, we will allocate capital towards strategic land promotion, enabling infrastructure works and, on a selective basis, development activity where risk-adjusted returns meet attractive thresholds.

As we bring our pipeline forward, we will retain the flexibility to sell serviced land to occupiers and investors, build out (on balance sheet or in partnership) and sell or retain built assets. Harworth has an established track record in all these areas, and this flexible approach helps to actively manage the risk profile of the business and recycle capital more efficiently.

iii)   Sizing the Investment Portfolio to support funding, while recycling to optimise returns

When development assets are transferred to our Investment Portfolio, they provide a recurring source of income, supporting cash generation and facilitating debt financing and asset management-driven value creation. The Investment Portfolio creates opportunities to recycle capital through selective disposals once asset management initiatives have been completed and/or to capitalise on favourable market conditions, helping to finance future value-enhancing developments whilst maintaining balance sheet strength.

Over the last three financial years, the Investment Portfolio has delivered an average unlevered return on capital employed of 9.3% per annum, in excess of the cost of debt, and has the wider benefit of enabling leverage to be introduced into the strategic land portfolio. The portfolio was valued at £301.4 million (as at 30 June 2026) and is 77% Grade A by value.

Going forward, the Investment Portfolio will be more actively managed to crystallise asset management and valuation gains, with the principal aim of supporting the Group's debt funding while also optimising returns. As a result, the portfolio will no longer be managed to a target size, but is expected to reach a medium-term, stabilised value in the order of £500 million to £600 million. This approach will also release capital for higher returning strategic land and development opportunities.

iv)   Aligning our operating model and cost base with a pure play powered land and industrial & logistics approach

The creation of a simpler business model as described above creates operational efficiencies complemented by the programme of digital and wider operational transformation which has been implemented over the last two years and is reaching maturity. Taken together, these will support material reductions in our cost base.

We intend to quantify these cost savings in a Quantified Financial Benefits Statement, which requires reports from Harworth's reporting accountants and financial advisers. The preparation of these reports is underway so that we can publish details of our targeted cost savings as soon as practicable.

A path to value creation

We are firmly focused on pursuing the optimal way to preserve and deliver the full embedded value of Harworth to our shareholders. We believe that the acceleration of key initiatives to alter the capital allocation and organisation design of the Group appropriately reflects the changed external environment and provides a path to long-term value creation, allowing future investment requirements to be substantially funded through internally generated capital.

If we identify that we hold surplus capital, including following sales of material assets and having assessed future accretive capital deployment opportunities, the Board will consider returning some or all of such surplus capital to shareholders so that they benefit directly from value creation initiatives as they are executed. In addition, and consistent with its fiduciary duties, the Harworth Board will continue to consider other strategic opportunities available to it that will enhance shareholder value.

Having been agreed in principle by the Harworth Board earlier this year, the implementation of this platform is already underway and, once completed, the Harworth Board believes that it can deliver higher and more sustainable returns for Harworth Shareholders, targeting low double-digit total accounting return in the longer-term

Our markets

Although the UK economy experienced a relatively resilient start to 2026, heightened macroeconomic and geopolitical volatility weighed on markets from the end of February onwards, with the consequent impact on inflation, interest rate expectations and business and consumer confidence.

As a regeneration, strategic land, and development business, Harworth's primary focus is on the industrial & logistics sector and powered land suitable for uses such as hyperscale data centres and advanced manufacturing. Despite the macroeconomic backdrop, these sectors remain characterised by highly attractive market fundamentals, supported by structural drivers such as cloud computing, AI, online retail, on-shoring, near-shoring, and defence.

Industrial & logistics market

During the first six months of 2026, JLL reported that take-up of big-box assets (over 100,000 sq ft) reached 12.9m sq ft, up 3% year on year. Take-up momentum was particularly strong in Q2, totalling 7.9m sq ft, which is 19% higher than the five-year quarterly average (Q3 2021 to Q2 2026). This occupier demand came from a diverse range of sectors, including manufacturing (such as defence), omni-channel retailers, and third-party logistics providers.

Approximately 63% of all big-box space acquired in the first half of the year was new, while the remaining 37% was high-quality, second-hand space. This represents the highest half-yearly level of second-hand take-up in the last five years, highlighting occupiers' increased focus on immediately available space. Regionally, the Midlands was the most active area in H1 2026, accounting for 70% of transacted floorspace, as logistics firms and retailers focused on expanding their footprint within the critical Golden Triangle, where Harworth has several sites at varying stages in the planning process.

Healthy occupier demand and stabilising construction rates drove the market-wide vacancy rate down to 9.2% at the end of Q2 2026, from 10.1% in Q2 2025. This vacancy rate is projected to fall further during H2 2026, driven by 10m sq ft of stock already under offer at the end of H1 2026, which will be removed from available inventory as transactions finalise. Harworth has seen strong demand from a wide range of occupiers across its product range, recently completing two pre-lets and entering legals on a further one, totalling 319,400 sq ft.

JLL recorded an unweighted average increase of 1.4% in prime headline rents across the UK over H1 2026, which compares to a 2.7% increase in ERVs across Grade A space in Harworth's Investment Portfolio. In the 12 months to Q2 2026, market-wide rents grew on average by 4.1%. Regionally, in the 12 months to Q2 2026, the North West and the East Midlands significantly outperformed the national average, with prime headline big box rents growing on average by 9.7% and 9.2%, respectively.

Data centres market

As the UK's demand for cloud services, AI computing, and data storage continues to accelerate, so does demand for data centres and the land that can accommodate them. In H1 2026, the data centre market continued to experience exceptional property fundamentals, underpinned by an unprecedented demand-supply imbalance. The significant wave of capital expenditure by hyperscalers and the explosion of AI workloads have increased absorption rates. However, structural bottlenecks continue to limit the delivery of new physical facilities.

CBRE notes that, as with industrial & logistics operators, data centre operators and AI hyperscalers will pay a premium for the right location, with the relevant power infrastructure, good transportation access and speed to market. While London continues to dominate market share, attention to campuses and regional locations is rising amid power constraints in the South East and supportive Government policy for other regions.

Residential market

According to Nationwide, the UK housing market experienced modest growth in H1 2026. Nationally, annual growth in house prices to June 2026 was 2.2%, up from 1.7% in May. On a regional basis, Harworth's focus geographies of the North West (+3.9%), West Midlands (+3.2%), Yorkshire and Humber (+2.9%) and the East Midlands (+1.8%) all outperformed London (+1.6%) and the South East (+0.1%).

Higher mortgage rates and broader political and economic uncertainty have kept house buyers cautious. In the absence of any market stimulus, most analysts expect house prices to come under further downward pressure over the next 12 months, particularly in London and the South East.

UK residential development land prices also softened further in H1 2026, driven by increasing viability pressures. Northern England & Scotland outperformed the rest of the UK, showing marginal positive value growth (+0.3% year-on-year in Q2 2026) supported by local market resilience and constrained site availability. House builders continue to experience significant structural and economic headwinds from rising construction costs, additional policy costs, higher taxes, and a growing array of levies that have collectively eroded the viability of many new developments. Overall, these headwinds have resulted in lower valuations for our residential sites at 30 June 2026.

Operational performance

Operational momentum was resilient during the first half, underpinned by progress across our powered land and industrial & logistics pipeline. Across our powered land pipeline, we entered exclusivity on a second hyperscale data centre site, progressed the final Microsoft land sale at Skelton Grange towards completion, and identified four further potential data centre sites in our land bank, capable of being delivered in the short to medium term.

Across our industrial & logistics pipeline, occupier demand remained robust, with three pre-lets completed or in legals post period-end, negotiations ongoing across a further 1.5m sq ft of space, and our largest-ever substantially construction-ready land bank providing flexibility to capture demand through pre-lets, land sales and selective speculative development.

Against a challenging backdrop, we progressed our residential portfolio in order to recycle capital into higher-returning opportunities, with the securing of a planning consent for 660 homes at our Crewe West site and 952 plots completed or in legals in the year to date.

Financial performance

Harworth's financial performance in the first half reflected continued operational progress across the powered land and industrial & logistics portfolio, however, this was more than offset by valuation pressure in residential markets. Total Accounting Return was (3.7)%, compared with 1.1% in H1 2025, principally due to a valuation-driven reduction in EPRA NDV per share to 214.8p from 224.4p as at 31 December 2025. With £18.6m of development spend in the period, which we intentionally curtailed to manage market risk, the overall portfolio valuation remained broadly stable at £936.5m, a robust performance given the challenging macroeconomic backdrop.

The Group maintains a strong balance sheet, with net debt of £190.0m and net loan to portfolio value of 20.3% at 30 June 2026, alongside available liquidity of £99.5m. The value of the Investment Portfolio remained stable at £301.4m, as we continued to increase its weighting towards Grade A industrial & logistics assets, and the portfolio continues to offer strong reversionary potential.

Reflecting the Board's confidence in Harworth prospects and in line with our dividend policy, the interim dividend was increased by 10% to 0.592p per share.

Outlook

The actions we have taken in the first half, including accelerating key initiatives to focus on industrial & logistics and powered land and exiting residential, advancing our strategic land sites and lining up and completing sales and letting transactions, have positioned us well to extract further value from our difficult to replicate powered land and industrial & logistics pipeline over the remainder of the year and beyond.

Having consistently executed on our current strategic plan since 2021 and successfully positioned the business to drive future medium to long-term returns, we are accelerating key initiatives to align capital allocation and organisation design to the structural shifts in our primary markets. The output of this acceleration is more targeted investment into identified high growth sectors and a plan to deliver more sustainable and higher returns for shareholders through a lower-cost and higher-returning platform.

Lynda Shillaw

Chief Executive

8 September 2026

Operational review

Harworth's land and property portfolio value totalled £936.5m at 30 June 2026 (31 Dec 2025: £937.2m) and was weighted 71% (31 Dec 2025 : 70%) to industrial & logistics.

Land & property portfolio value (£m)

	30 Jun 2026	31 Dec 2025
Industrial & logistics
Strategic Land	141.2	149.3
Major Developments	221.3	198.2
Investment Portfolio	301.4	305.0
	663.9	652.5
Residential
Strategic Land	61.9	61.5
Major Developments	171.9	192.3
	233.8	253.7
Total NRS & other	38.7	31.0
Total portfolio value	936.5	937.2

Note: There are minor differences on some totals due to roundings

Portfolio value movements (£m)

31 Dec 2025	937.2
Development spend	18.6
Acquisitions	1.1
Revaluations	(13.4)
Disposals	(10.5)
Net JV acquisitions / disposals	3.4
30 Jun 2026	936.5

Industrial & logistics portfolio

At 30 June 2026, the Group's industrial & logistics and powered land portfolio totalled 34.8 m sq. ft, with accepted power offers of 0.8GW (31 Dec 2025: 35.0m sq ft and accepted power offers of 0.8GW) and a consented pipeline of 8.3m sq ft (31 Dec 2025: 8.4m sq ft). The pipeline was 45% owned freehold, with the remaining 55% controlled through JV arrangements (11%), options (41%) or PPAs (3%).

Acquisitions and land assembly

During the period, the Group signed a new option agreement for a 94-acre strategic land parcel adjacent to the A1 in Nottinghamshire. This option forms part of land assembly works at the site, where the Group first acquired a smaller freehold land parcel in 2023. The combined area now owned by Harworth, either freehold or through option agreements, is 123 acres, with the potential to deliver 1.5 million sq ft of industrial & logistics space. The site is currently unallocated in the relevant authority's local plan, and the Group continues to work with stakeholders to promote it for development.

Planning

The table below breaks down the industrial & logistics pipeline by planning status.

Industrial & logistics pipeline & planning progress¹

(m sq ft)	30 June 2026	31 Dec 2025
Pre-planning	9.5	8.8
Draft allocation in local plan	1.1	1.1
Allocation in local plan	2.9	2.9
Awaiting planning determination	12.9	13.7
Consented	8.3	8.5
Total pipeline	34.8	35.0
Consented or in the planning system2	73%	75%

1. Harworth's share
2. 'In the planning system' comprises draft allocations, allocations and sites awaiting planning determination

As at 30 June 2026, over 70% of Harworth's 34.8m sq ft total pipeline (31 Dec 2025: 35.0m sq ft) was consented or in the planning system. The increase in space at the pre-planning stage was mostly related to the acquisition referenced above, partially offset by small masterplan revisions across several sites. Movements in other planning categories also related to small masterplan revisions across sites.

Following the significant number of applications submitted for industrial & logistics space in 2025, applications totalling 12.9m sq ft across 10 sites remain in the planning system awaiting determination, of which sites totalling 4.7m sq ft have confirmed target planning committee dates in the second half of 2026. Sites currently in planning include Rothwell (Kettering), Northern Gateway (Greater Manchester), where the Group's JV benefits from an allocation in Greater Manchester's Places for Everyone (PfE) joint development plan, and Junction 15 (Northampton), which benefits from a draft allocation in the local plan for strategic warehousing.

Direct development and land sales

Infrastructure and enabling works across Harworth's industrial & logistics sites provide the pipeline for selective de-risked direct development and land sales. Capital allocated to infrastructure and enabling works during 2025 and into 2026 has generated Harworth's largest-ever portfolio of substantially complete serviced land, with the capacity to deliver 3.8m sq ft, providing optionality for development and value realisation.

Occupier demand remains strong across Harworth's product range. So far this year, the Group has completed or entered legal negotiations on three pre-let agreements, under which Harworth will construct the unit and let it to the occupier under leases ranging from 15 to 20 years. The three pre-let agreements total 319,300 sq ft and will generate £3.7m of annualised rental income, at an average 17% premium ERV:

·    a 30,700 sq ft last-mile parcel and postal facility for a logistics operator at Gateway 36, Barnsley, with a straight 20-year lease

·    a 108,600 sq ft advanced manufacturing facility for a global automotive parts designer on Plot D3 at Chatterley Park, Staffordshire, with an 18-year lease

·    a 180,000 sq ft advanced manufacturing facility for an existing occupier at the Advanced Manufacturing Park, Rotherham, with a straight 15-year lease

In addition, the Group intends to develop speculatively a small 58,000 sq ft unit at Plot D2 at Chatterley Park, in response to strong occupier demand for industrial & logistics space in the local area.

As at 31 August 2026, the Group was in leasing and land sale negotiations with occupiers for 1.5m sq ft of space across the Group's industrial, logistics, and powered land portfolio, representing the next phase of opportunities.

Key industrial & logistics development sites

Site	Ownership1	Sold / developed / pre-let (sq ft)	Space remaining (sq ft)	Estimated GDV remaining (£)	Development stage2 (of 5)	Forecast completion year
Advanced Manufacturing Park (AMP) (Rotherham)	FH	1.9m	0.2m	£30m - £40m	5	2028
Gateway 36 (Barnsley)	FH	0.4m	1.1m	£130m -£150m	5	2033
Chatterley Park (Staffordshire)	FH	0.0m	1.1m	£180m - £190m	5	2028
Wingates (Bolton)	FH & O	0.0m	2.9m	£520m - £580m	4	2033
Skelton Grange (Leeds)	FH	0.6m	0.7m	Confidential	4	2027
Gateway 45 (Leeds)	FH	0.0m	0.8m	£150m-£160m	3	2029
Cinderhill (Derby)	FH & PPA	0.0m	1.5m	£180m - £190m	3	2030
Gascoigne Wood (Selby)	FH	0.0m	2.0m	£270m - £290m	3	2028
Junction 15 (Northampton)	O	0.0m	1.5m	£260m - £280m	3	2031
Rothwell (Kettering)	FH	0.0m	1.8m	£300m - £330m	3	2031
Northern Gateway3 (Manchester)	FH & O	0.0m	3.3m	Confidential	3	2029-2038
N. Yorkshire site	O	0.0m	3.3m	Confidential	2	2040

1. Ownership key: FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint Venture, O: Option

2. Development stage key: 1. Acquisitions and land assembly, 2. Masterplanning, 3. Planning system, 4. Land remediation and infrastructure development, 5. Direct development / plot sale / placemaking

3. Harworth's share of a 50:50 joint venture

Data centres

Following Harworth's first hyperscale data centre transaction in 2024, a £106.6m serviced land sale to Microsoft, the Group continued throughout the first half to unlock the embedded value in its power-enabled land portfolio, which benefits from accepted power offers of 0.8GW. This includes a 0.2GW power offer relating to one site that was accepted during the year.

Following period end, Harworth entered into an exclusivity agreement with a leading data centre provider for a powered land sale. The site benefits from strong planning prospects and an accepted power connection offer, with the potential to deliver significant value gains.

Beyond this, the Group has identified a further four sites with the potential to deliver hyperscale data centres, which already benefit from 0.4GW of accepted power offers. All but one are already progressing through the planning system, with stakeholder engagement underway on the final one. The sites also benefit from a supportive central Government policy environment, including through national infrastructure policy, due to the strong contribution of digital infrastructure development to economic growth.

In addition to these opportunities, the Group has identified the potential for further smaller-scale digital infrastructure projects across its portfolio, such as for co-locator and edge providers.

Investment portfolio 

At 30 June 2026, the Investment Portfolio comprised 10 sites covering 2.3m sq ft and was 77% Grade A by value. Headline rental income stood at £17.2m, and annual passing rental income was £15.5m, up from £14.7m at year-end. This equates to a net initial yield of 4.6%, itself reflective of the quality of the portfolio, and a reversionary yield of 6.4% (31 Dec 2025: 6.2%), demonstrating strong reversionary potential.

Investment Portfolio key metrics

	30 June 2026	31 Dec 2025
Portfolio value (£m)	301.4	305.0
Number of sites	10	10
Area (m sq ft)	2.3	2.3
Grade A space - by area (%)	64	64
Grade A space - by value (%)	77	76
Annual headline rental income (£m)	17.2	18.3
Weighted average passing rent1 (£ psf)	7.94	6.38
Grade A ERV2 (£ psf)	10.11	9.84
WAULT3 to first break (years)	9.9	9.6
WAULT3 to expiry (years)	11.6	11.2
EPRA vacancy (%)	8.84	0.9
Net initial yield (%)	4.6	4.6
Reversionary yield (%)	6.4	6.2

1. Calculated on occupied space

2. Estimated rental values

3. Weighted average unexpired lease term

4. Increase largely due to planned vacancy at one asset (see paragraph below)

While seeking to protect and maintain occupancy levels, the Group's strategic plan for certain assets includes agreeing to lease surrenders at a premium, to access rental reversion or undertake refurbishments before reletting or selling the asset. This action was undertaken at our Knowsley site during the period, which caused the EPRA vacancy rate to temporarily rise to 8.8% as at 30 June 2026 (31 December 2025: 0.9%). Excluding this site, EPRA vacancy would be 2.5% as at 30 June 2026.

Investment Portfolio sites

Site	Location	Ownership	Area (sq ft)1
Advanced Manufacturing Park (AMP)	Rotherham	Freehold	368,000
Bardon Hill	Leicester	Freehold	339,000
Catalyst	Rotherham	Freehold	285,000
Wyke Lane	Bradford	Freehold	252,000
Knowsley	Merseyside	Freehold	422,000
Logistics North	Bolton	Freehold	104,000
Multiply Logistics North	Bolton	20% JV	87,000
Gateway 36	South Yorkshire	Freehold	110,000
Droitwich	Worcestershire	Freehold	169,000
Etherow, Glossop	Derbyshire	Freehold	166,000
			2,302,000

1. Harworth's share

Disposals

As part of Harworth's strategy to transition the core Investment Portfolio to 100% Grade A, the Group continues to selectively dispose of secondary assets and older Grade A assets where asset management plans have been delivered and where the viability of transforming or upgrading is limited.

Post period end, in August 2026, the Group sold Etherow Industrial Estate in Glossop, North Derbyshire, for £8.1m, a 3% premium to book value. The Group acquired this multi-let industrial estate, comprising 148,000 sq ft of multi-let warehouse and office space on a long leasehold, for £6.9m in 2019. Before sale, Harworth carried out an extensive asset management programme, which included the acquisition of the freehold, demolition of an office building to increase open storage availability, a refurbishment and lease renewal and lease re-gears for all other occupiers.

Residential portfolio

At 30 June 2026, the residential pipeline totalled 28,584 plots (31 Dec 2025: 29,386 plots), including 3,598 consented plots (31 Dec 2025: 3,065 plots). The pipeline either consented or in the planning system was 47% (31 Dec 2025: 45%). The pipeline was 38% owned freehold, with the remaining 62% controlled through JV arrangements (16%), options (10%) or PPAs (42%), reflecting the Group favouring more capital-light ownership structures to maximise returns.

Planning

The table below breaks down the residential pipeline by planning status.

Residential pipeline & planning progress¹

(plots)	30 June 2026	31 Dec 2025
Pre-planning	15,146	16,116
Draft allocations in local plan	510	84
Allocations in local plan	940	1,036
Awaiting planning determination	8,390	9,085
Consented	3,598	3,065
Total pipeline	28,584	29,386
Consented or in the planning system2	47%	45%

1.     Harworth's share

2.     'In the planning system' comprises draft allocations, allocations and sites awaiting planning determination

As at 30 June 2026, just under half of the Group's total pipeline of 28,584 plots (31 Dec 2025: 29,386 plots) benefitted from planning consent or were progressing through the planning system.

During the period, the Group secured a resolution to grant at its Crewe West (Cheshire) site for up to 660 new homes. The proposed 108-acre development, located two kilometres west of Crewe town centre, will be a mixed-use neighbourhood, providing a range of high-quality family and affordable homes alongside green spaces, community facilities and new active travel routes.

Following this transaction, a total of 8,390 plots across 11 sites were in the planning system awaiting determination, down from 9,085 plots at the year-end. Throughout the remainder of 2026, an additional 1,925 plots across four sites are expected to be submitted for planning.

Key residential development sites

Site	Ownership1	Sold (plots)	Remaining (plots)	Development stage (of 5)2
Waverley (Rotherham)	FH	2,727	244	5
Coalville (Leicester)	FH	1,738	511	5
Rossington (Doncaster)	FH	927	479	5
Ironbridge (Shropshire)	FH	467	1033	5
Stewartby (Bedford)	FH	-	1,000	3
Rufford (Newark)	FH	-	550	3
Staveley (Chesterfield)	FH	-	950	3
Diseworth (East Midlands)	FH & PPA	-	2,125	3
Cinderhill (Derby)	FH & PPA	-	1,350	3
Grimsby West (Grimsby)	JV	-	3,044	3

1.     Ownership key: FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint venture

2.     Development stage key: 1. Acquisitions and land assembly, 2. Masterplanning, 3. Planning system, 4. Land remediation and infrastructure development, 5. Plot sale / mixed-tenure delivery / placemaking

Serviced plot sales

The Group operates a diversified serviced residential land sales model, including freehold serviced land and mixed-tenure products such as social housing, build-to-rent, and senior living. These sales can be sales of freehold land or land controlled through PPAs; the latter generate fees.

During the half, 155 residential plots were sold at Ironbridge (Shropshire) to a national housebuilder, generating headline sales of £14.5m at a small discount to 31 December 2025 book values. After period end, the Group completed a small sale of a further 14 plots at its Prince of Wales (Pontefract) site. A further 783 residential plots were exchanged or in legals, which it expects to complete by the end of the year.

Natural Resources portfolio

The Natural Resources portfolio comprises sites dedicated to clean energy production, including wind and solar energy, battery storage, habitat banks and woodland planting schemes. As of 30 June 2026, the portfolio was valued at £23.7m (31 Dec 2025: £19.9m) and generated headline rental income of £1.7m (31 Dec 2025: £1.8m) across 14 sites. The portfolio is managed in line with the Group's Energy & Natural Capital strategy and will be retained as part of the Harworth development platform under the acceleration of key initiatives announced today.

Where appropriate, Harworth works alongside strategic partners to leverage its extensive land bank, with schemes focused on nature recovery, renewable generation and low-carbon initiatives such as EV charging and multi-fuel hubs. More broadly, this Energy & Natural Capital strategy also focuses on embedding future-proofing principles across all the Group's sites to maximise energy resilience, reduce occupier costs, generate economic value, and fulfil Harworth's Net Zero Carbon (NZC) ambitions. 

As a responsible developer, Harworth has taken a sector-leading position by launching and managing two registered Biodiversity Net Gain (BNG) habitat banks, transforming 153 acres of former coal mining land into areas of nature recovery. The first is at the Group's residential site in Killamarsh, Derbyshire, and the second is located on the former spoil tips of the historic Allerton Bywater Colliery in Leeds. These BNG habitat banks allow Harworth to issue BNG units to meet our own legislative obligations, and as part of our superior serviced land product, we also sell surplus BNG units to third-party developers who cannot meet their own BNG requirements from their portfolios. We are currently working to create further habitat banks across the portfolio.

Financial review

Overview

Total Accounting Return and Balance sheet

Our primary metric, Total Accounting Return ('TAR'), was negative 3.7% for the first half of 2026, compared to a TAR of 1.1% in H1 2025. TAR comprises the movement in EPRA NDV, a net asset measure reflecting valuation movements in the period, plus dividends per share paid in the year.

Despite good operational progress across our sites, delivering value gains from management actions, first half performance was impacted by value losses on residential assets of £16.9m, reflecting continuing challenging residential housebuilder market conditions and market development cost pressures on our residential Major Developments portfolio. Increasing development costs also impacted industrial & logistics site valuations although this was limited to a loss of £2.1m as management actions continued to drive progress on sites through planning, securing power and advancing the strong consumer interest in data centres and industrial & logistics space across the industrial & logistics Major Developments portfolio.

Jones Lang LaSalle, Savills, Carter Jonas and BNP Paribas, our independent valuers, completed a desktop valuation of our portfolio as at 30 June 2026, resulting in overall revaluation losses of £13.3m (H1 2025: gains of £21.7m), including the movement in the market value of development properties. Outside the valuation movements, losses on sales were £1.5m (H1 2025: £6.3m). These losses included the allocation of increased site wide infrastructure costs to sales completed in prior periods on a small number of mature residential sites. Overall, this led to net value losses of £14.9m (H1 2025: £15.5m gains).

The overall performance across industrial & logistics and residential, when combined with asset management initiatives across our Investment Portfolio, resulted in EPRA NDV per share decreasing by 4.3% to 214.8p (31 December 2025: 224.4p). Excluding the impact of EPRA adjustments which uplift Development Property values to fair value, the statutory net asset value of the Group fell by 4.0% to £670.8m (31 December 2025: £699.0m).

Income Statement

The Group's income comprises sales of serviced land and completed properties alongside rental income from our Investment Portfolio and royalties, development income and other fees from the wider portfolio. Combined, these resulted in Group revenue of £41.3m (H1 2025: £47.5m).

Revenue from the sale of serviced land was £13.2m (H1 2025: £10.9m), reflecting sales of our de-risked residential land product within a challenging residential market. Development revenues of £15.5m (H1 2025: £18.4m) were as a result of activity delivering our Affordable Housing residential product, reflecting our continued focus on accelerating through our residential sites to recycle capital, as well as development on behalf of Microsoft at Skelton Grange.

Revenue from Income Generation decreased to £11.4m (H1 2025: £13.6m) following disposals made from the Investment Portfolio during 2025 as part of our programme of capital recycling from mature assets and progressing towards the Group's target of holding a core Investment Portfolio of 100% grade A assets by the end of 2027. Like-for-like annualised headline rental income fell by 6.2%, primarily driven by a planned vacancy on one site to enable it to be repositioned; excluding this site, like-for-like annualised headline rental income decreased by 0.5%.

Total property sales, an APM which incorporates proceeds from the sales of investment properties, assets held for sale ('AHFS'), and overages, amounted to £13.2m (H1 2025: £18.9m).

Administrative costs increased by £0.8m compared to the same period in 2025 and include £0.7m of restructuring costs, as part of headcount and cost reduction measures, as well as £0.9m IT project costs primarily related to the Group's digital transformation project (H1 2025: £0.9m).

These results, when combined with the £3.0m reduction in the fair value of investment properties (H1 2025: £17.4m increase), resulted in an operating loss of £24.9m (H1 2025: £7.1m profit) and loss after tax of £25.4m (H1 2025: £9.7m profit). The gross loss for the period reflects increases in net realisable value provisions on development properties and the impairment of options where the initial cost is anticipated to be lower than the day one market value of the related land.

Capital allocation and Financing

We have a model that is predominantly self-funded, with sales of serviced land and property each year providing the funding for our on-balance sheet spend for the following year, alongside which we put into place partnerships and third-party funding structures. The profile of cash inflows each year is generally second-half weighted with net debt increasing as capital is deployed in preparing sites in the first half for sale before reducing as increased sales complete in the second half.

Consistent with previous years, as a result of the spend and sales profile, net debt increased during the first half, to £190.0m (30 Jun 2025: £179.4m; 31 Dec 2025: £145.9m) resulting in a net LTV at 30 Jun 2026 of 20.3% (30 Jun 2025: 19.0%; 31 Dec 2025: 15.6%), which remains well within our self-imposed maximum target of 25% during the year. At 30 June 2026, the Group had available liquidity of £99.5m (30 Jun 2025: £59.8m; 31 Dec 2025: £127.1m). The Group's LTV on a pro-forma basis using 30 June valuations reduced to 17.1% at 31 August with Group available liquidity of £128.7m, as a result of ongoing management of development spend and working capital.

The Group has a £275m Revolving Credit Facility (RCF) with NatWest, Santander and HSBC being joined by Barclays as a fourth lender during the period. The RCF has a £50m uncommitted accordion facility and Harworth has the option to extend the term to five years. Since year-end, we have put in place interest rate hedging on borrowings of £50m, representing 26% of our net debt position at 30 June 2026 and further hedging continues to remain under review. Alongside the new RCF, we continue to use infrastructure and direct development loans to fund activity on our sites. At the half year of 2026, the Group had £16.4m drawn down on a £26.2m development loan provided by the North West Evergreen Fund in support of development at our Wingates industrial & logistics Major Development site.

Presentation of financial information and alternative performance measures  

As our property portfolio includes development properties and joint venture arrangements, Alternative Performance Measures ('APMs') can provide valuable insight into our business alongside statutory measures. In particular, revaluation gains on development properties are not recognised in the Consolidated Income Statement and the Balance Sheet. The APMs outlined below measure movements in development property revaluations, overages and joint ventures. We believe that these APMs assist in providing stakeholders with additional useful disclosure on the underlying trends, performance and position of the Group.

Our key APMs are:

·   Total Accounting Return: a measure of the Group's return, calculated as the movement in EPRA NDV plus dividends per share paid in the year expressed as a percentage of opening EPRA NDV per share. ·    Total Property Return: a measure of the ungeared return for the property portfolio calculated as the change in capital value, less any capex incurred, plus net income, expressed as a percentage of capital employed over the period concerned, calculated in line with the MSCI Property Index Methodology from 2026 and reported annually. ·    EPRA NDV per share: EPRA NDV is an EPRA metric that represents a net asset valuation where development property is included at fair value rather than cost and deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability net of any resulting tax. EPRA NDV per share is EPRA NDV divided by the number of shares in issue at the end of the year (less shares held by the Employee Benefit Trust or Equiniti Share Plan Trustees Limited to satisfy Restricted Share Plan, Share Incentive Plan and Deferred Share Bonus awards). ·   Value gains: the realised profits from the sale of properties and unrealised profits from property valuation movements including joint ventures, and the mark-to-market movement on development properties and overages. ·     Net LTV: Group debt net of cash held expressed as a percentage of portfolio value.

A full description of all non-statutory measures is set out in the appendix to the interim condensed financial statements and reconciliations between all statutory and non-statutory measures are provided in the same appendix. From December 2025, the Group is reporting an additional APM annually, Total Property Return, calculated in line with the MSCI Property Index Methodology. This provides increased information to shareholders on the Group's relative performance and supports the implementation of relative operational performance measures for the short-term and long-term incentive schemes under the Remuneration Policy. Our financial reporting is aligned to our business units of Capital Growth and Income Generation, with any items that are not directly allocated to specific business activities held centrally and presented separately.

Income Statement 

	H1 2026				H1 2025
	Capital  Growth £m	Income Generation £m	Central Overheads £m	Total  £m	Capital  Growth  £m	Income Generation £m	Central Overheads £m	Total  £m
Revenue	29.9	11.4	-	41.3	33.9	13.6	-	47.5
Cost of sales	(43.6)	(1.8)	-	(45.4)	(38.6)	(3.4)	-	(42.1)
Gross (loss)/profit	(13.7)	9.6	-	(4.1)	(4.8)	10.2	-	5.4
Administrative expenses	(3.8)	(1.0)	(13.0)	(17.9)	(3.3)	(0.9)	(12.9)	(17.1)
Other (losses)/gains	(6.8)	3.8	0.1	(2.9)	13.0	5.8	-	18.8
Other operating income	-	-	0.1	0.1	-	-	-	-
Operating (loss)/profit	(24.3)	12.3	(12.9)	(24.9)	4.9	15.1	(12.9)	7.1
Share of (loss)/profit of JVs	(0.8)	0.2	-	(0.6)	3.6	0.7	-	4.4
Net interest (expense)/ income	0.7	-	(6.6)	(5.9)	2.4	0.1	(6.5)	(4.0)
Profit/(loss) before tax	(24.4)	12.5	(19.5)	(31.4)	10.9	15.9	(19.4)	7.4
Tax credit	-	-	6.0	6.0	-	-	2.3	2.3
(Loss)/profit after tax	(24.4)	12.5	(13.5)	(25.4)	10.9	15.9	(17.1)	9.7

 Note: There are minor differences on some totals due to roundings

Revenue in the period was £41.3m (H1 2025: £47.5m), of which Capital Growth contributed £29.9m (H1 2025: £33.9m) and Income Generation £11.4m (H1 2025: £13.6m).

Capital Growth revenue of £29.9m comprised revenue from the sale of development properties, development revenue, and fee income. The sale of development properties of £13.2m (H1 2025: £10.9m) was higher reflecting a higher average price per plot driven by sale location. Development revenue of £15.5m (H1 2025: £18.4m) relates to the delivery of the Group's Affordable Housing residential product as well as development work on behalf of Microsoft at Skelton Grange, with the movement in revenue driven by the phasing of projects. Capital Growth revenue also included fees from PPAs of £0.7m (H1 2025: £4.0m); the level of fees from PPAs can vary and is driven by the timing of receipt of planning permission and subsequent land sales.

Revenue from Income Generation mainly comprised property rental and royalty income from the Investment Portfolio, Natural Resources and Agricultural Land. Revenue of £11.4m (H1 2025: £13.6m) reflected a £1.1m reduction in rent, service charge and royalties revenue following the sale of Investment Portfolio assets during 2025 and an increase in vacancy at one site in line with plans to re-position the site. Biodiversity Net Gain ('BNG') credit sales in the prior year of £1.3m also contributed to the prior period Income Generation revenue (H1 2026: nil).

Cost of sales comprises: the inventory cost of development property sales; site-wide infrastructure costs; costs incurred in undertaking development on behalf of others, including Affordable Housing delivery and development work for Microsoft at Skelton Grange; and the direct and recoverable service charge costs of the Income Generation business. Cost of sales increased to £45.4m (H1 2025: £42.1m), of which £14.7m (H1 2025: £15.6m) related to the inventory cost of development property sales and £13.3m (H1 2025: £4.9m) to impairments resulting from increased site-wide infrastructure costs on residential sites and an increase in provisions set against the cost of options where the day one realisable value is anticipated to be lower than the costs incurred. The increases in net realisable value provisions were driven primarily by challenging residential market conditions and higher costs impacting developments.  The impact of these impairments resulted in an overall gross loss for the period.

Administrative expenses increased in the year by £0.8m to £17.9m (H1 2025: £17.1m). These include £0.7m of restructuring costs, as part of headcount and cost reduction measures, as well as an increase of £0.3m in IT costs to £1.6m (H1 2025: £1.3) of which £0.9m primarily related to the Group's digital transformation project. Restructuring and digital transformation form an important initial enabler of the Group transitioning to a simpler and therefore lower-cost and higher-returning platform.

Other gains and losses comprised a £3.0m net decrease (H1 2025: £17.3m net increase) in the fair value of investment properties, land and buildings and AHFS, offset by the profit on sale of investment properties, AHFS and overages of £0.1m (H1 2025: £1.5m).

The share of loss on joint ventures of £0.6m (H1 2025: £4.4m share of profit) reflected a valuation loss at Northern Gateway, which offset a positive result from the Multiply Logistics North joint venture. Value gains/(losses) on a non-statutory basis are outlined below.

Non-statutory value gains/(losses) 

Value gains/(losses) are made up of profit on sale, revaluation gains/(losses) on investment properties (including joint ventures), and revaluation gains/ (losses) on development properties, AHFS and overages. A full description of, and reconciliation between, statutory and non-statutory value gains can be found in Note 2 and the appendix to the interim condensed consolidated financial statements.

			H1 2026			H1 2025		30 June 26	31 Dec 25
	Category	(Loss)/ profit on sale	Reval. (losses)/gains	Total	(Loss)/ profit on sale	Reval. (losses)/ gains	Total	Total valuation	Total valuation
Capital Growth
Residential Major Developments	Development	(1.6)	(14.2)	(15.8)	(6.1)	(8.4)	(14.5)	172.0	192.3
Industrial & Logistics Major Developments	Mixed	-	12.7	12.7	(0.9)	14.1	13.2	221.3	198.2
Residential Strategic Land	Investment	-	(1.2)	(1.2)	(0.1)	(0.1)	(0.2)	61.9	61.5
Industrial & Logistics Strategic Land	Investment	0.1	(14.8)	(14.7)	(0.2)	10.4	10.2	141.2	149.3
Income Generation
Investment Portfolio	Investment	(0.1)	(4.2)	(4.3)	0.1	4.8	4.9	301.4	305.0
Natural Resources	Investment	-	3.6	3.6	0.9	0.6	1.5	23.7	19.9
Agricultural Land & other	Investment	-	4.8	4.8	-	0.3	0.3	15.1	11.0
Total		(1.5)	(13.3)	(14.9)	(6.3)	21.7	15.5	936.6	937.2

Notes: There are some minor differences on some totals due to roundings. Profit/(loss) on sale is stated net of the impact of transaction fees incurred.

Total Property Sales in H1 2026 were £13.2m which, alongside increases in costs for the completion of site-wide works relating to prior period sales, generated a loss on sale of £1.5m (H1 2025: loss of £6.3m). The loss was primarily driven by residential sales in a challenging market.  Headline sales pricing was marginally ahead of book value before transaction costs, discounting of deferred consideration to present value, and retentions not recognised on completion. The loss on sale included £0.4m increases (H1 2025: £6.1m increases) in estimated costs for the completion of site wide works at a small number of mature residential sites, impacting the proportional share of site wide costs allocated to prior period sales at the point-of-sale completion.

Revaluation losses were £13.3m (H1 2025: £21.7m gains) and are outlined in the table below.

		H1 2026  £m	H1 2025  £m
(Decrease)/increase in fair value of investment properties		(3.0)	17.4
(Decrease) in value of assets held for sale and owner-occupied property		-	(0.1)
Movement in net realisable value provision on development properties		(7.9)	(1.6)
Contribution to statutory operating profit		(10.9)	15.7
Share of (losses)/profit of joint ventures		(0.6)	4.4
Unrealised (losses)/gains on development properties and overages		(1.8)	1.6
Total non-statutory revaluation (losses)/gains		(13.3)	21.7

 Note: There are minor differences on some totals due to roundings

The principal revaluation gains and losses across the divisions reflected the following:  

-     Industrial & Logistics:
	o  Valuation gains across industrial & logistics Major Developments reflected progress on site towards the sale of plot 2 to Microsoft at Skelton Grange as well as progress furthering data centre and powered land strategies, which offset the impact of market cost inflation on industrial & logistics sites running ahead of ERV growth. o  Across industrial & logistics Strategic Land valuation losses of £14.8m reflected market cost inflation, especially on sites that are closer to planning permission and delivery, with increases noted particularly across vertical build costs. o  Revaluation losses on the Investment Portfolio were driven by increased vacancy at one site as part of a repositioning strategy, excluding the impact of this site the remaining portfolio increased in value by £0.8m reflecting ERV growth, letting progress and improvement in market rents.
-     Residential:
	o  The residential housebuilder market continues to be impacted by subdued demand, slower new build sales rates, and a levelling of house price growth which is running at a slower rate than cost inflation.  This challenging market environment led to revaluation losses across residential sites of £15.4m  o  Savills reported pressures in the residential development land market, noting that greenfield land values fell by an average of 3.3% over the 12 months to 30 June 2026. o  Despite this, sales were completed achieving headline pricing marginally above book values before including the further impact of transaction costs, discounting of deferred consideration to present value, and retentions not recognised on completion.
-     Natural Resources, Agricultural Land and Other: experienced revaluation increases during the period reflecting value increases for newly created BNG schemes and an improved outlook for future income from wind turbines.

Cash and sales 

Total property sales, encompassing proceeds from the sale of investment property, AHFS, overages and PPAs as well as revenue from the sale of development property totalled £13.2m (H1 2025: £18.9m). As noted above, sales tend to be second-half weighted in the year. Total property sales comprised:

	H1 2026  £m	H1 2025 £m
Residential land sales	13.2	10.9
Industrial & Logistics land sales	-	1.9
Sales of Investment Portfolio properties	-	3.0
Natural resources asset sales	-	2.1
Overages & PPAs	-	1.0
Total property sales	13.2	18.9

Cash proceeds from sales in the year were £10.6m (H1 2025: £12.7m; FY 2025: £124.2m) as shown in the table below:

	H1 2026  £m	H1 2025 £m
Total property sales	13.2	18.9
Less deferred consideration on sales in the year	(8.7)	(10.9)
Add receipt of deferred consideration from sales in prior years	6.1	4.7
Total cash proceeds	10.6	12.7

Tax 

The income statement credit for taxation for the period was £6.0m (H1 2025: £2.3m charge), which comprised a current tax charge of £nil (H1 2025: £nil) and a deferred tax credit of £6.0m (H1 2025: £2.3m).

The current tax is determined by profits from the sale of development properties, investment property, AHFS, profit on the rental of investment property, royalties and other fees after taking into account overheads and interest costs. The deferred tax balance is calculated based on the rate expected to apply on the date the liability is crystallised. Losses on sale of development property coupled with the impact of overhead and interest costs resulted in a nil current tax charge for the period (H1 2024: £nil) with the deferred tax credit generated by valuation losses offsetting the deferred tax charge arising from valuation gains, leading to an overall tax credit for the period.

At 30 June 2026, the Group had deferred tax liabilities of £56.1m (31 December 2025: £55.2m) and deferred tax assets of £16.8m (31 December 2025: £10.2m). The net deferred tax liability was £39.3m (31 December 2025: £45.0m).

Basic earnings per share and dividends 

Basic earnings per share for the year decreased to (7.8)p (H1 2025: 3.0p) reflecting increases in net realisable provisions, net losses from sales in the year and higher interest costs partly offset by rental income. The Board has determined to pay an interim dividend of 0.592p (H1 2025: 0.538p) per share, an increase of 10% in line with the Group's policy. 

Property categorisation 

Until sites have received planning permission and a specific future use has been established, the land is held for an undetermined future use and is classified as investment property. Once planning permission has been obtained and active development with a view to sale has commenced, the land and associated properties are reclassified as development properties. Where land is being developed to hold our Investment Portfolio it remains classified as investment property.

The table below sets out the top 10 sites by value, which represent 56% of the total portfolio, split according to their categorisation, including currently consented residential plots and industrial & logistics space.

Top 10 sites by value

Site	Use	Site type	BS category	Progress to date
Ironbridge (Telford)	R R	MD SL	Dev. prop Inv. prop	1,000 residential plots consented, land sold representing 467 plots, further enabling works underway Preparing planning application for additional residential plots
Advanced Manufacturing Park (AMP) (Rotherham)	I&L I&L	MD IP	Inv. prop Inv.prop	2.1m sq ft of industrial & logistics space consented, 1.9m sq ft built or sold 0.4m sq ft of Grade A space held in Investment Portfolio
Gateway 45 (West Yorkshire)	I&L	IP	Inv. prop	0.8m sq ft of industrial & logistics space consented
Skelton Grange (Leeds)	I&L I&L	MD SL	Dev. prop Inv. prop	0.3m sq ft of industrial & logistics space remaining on the retained land Enabling works are ongoing to program progressing toward sale of second plot to Microsoft for data centre use
Bardon Hill (Leicester)	I&L	IP	Inv. prop	0.3m sq ft of Grade A space held in Investment Portfolio
Catalyst (Rotherham)	I&L	IP	Inv. prop	0.3m sq ft Grade A held in Investment Portfolio
Logistics North (Bolton)	I&L I&L	IP IP	Inv. prop JV	0.1m sq ft owned freehold retained in Investment Portfolio 0.1m sq ft controlled through joint venture retained in Investment Portfolio
Wyke Lane (Bradford)	I&L	IP	Inv. prop	0.3m sq ft fully-let industrial & logistics space
Stewartby (Bedford)	R	IP	Inv. prop	1,000 residential plots consented
Wingates (Bolton)	I&L R/IL	MD SL	Inv. Prop Inv. Prop	1.1m sq ft of industrial & logistics space consented preparing a planning application for a further 1.9m sq ft

As at 30 June 2026, the balance sheet value of our development properties was £183.8m (31 Dec 2025: £195.2m) and their independent valuation was £214.0m, reflecting a £30.2m cumulative uplift in value since they were classified as development properties. In order to highlight the market value of development properties, and overages, and to be consistent with how we state our investment properties, we use EPRA NDV, which includes the market value of development properties and overages less notional deferred tax, as our primary net assets metric.

Net asset value 

		30 June 2026   £m	30 June 2025   £m	31 Dec 2025   £m
Properties(1)		900.8	908.6	899.4
Cash		9.5	9.8	27.1
Trade and other receivables		90.0	118.5	12.7
Other assets		22.4	20.1	103.0
Total assets		1,022.7	1,057.0	1,042.2
Gross borrowings		(199.4)	(189.2)	(173.0)
Deferred tax liability		(39.3)	(33.3)	(44.9)
Other liabilities		(113.2)	(136.2)	(125.3)
Statutory net assets		670.8	698.3	699.0
Mark to market value adjustment on development properties and overages less notional deferred tax		26.9	26.7	28.3
EPRA NDV		697.7	725.0	727.3
Number of shares in issue less Employee Benefit Trust & Equiniti Share Plan Trustees Limited-held shares		324,779,508	324,104,549	324,141,060
EPRA NDV per share		214.8p	223.7p	224.4p

(1) Properties include investment properties, development properties, AHFS, occupied properties and investment in joint ventures.  

EPRA NDV at 30 June 2026 was £697.7m (FY 2025: £727.3m), which includes the mark-to-market adjustment on the value of the development properties and overages. The total Portfolio Value as at 30 June 2026 was £936.6m, a decrease of £0.6m from 31 December 2025 (£937.2m).

The Group's share of losses from joint ventures of £0.6m (H1 2025: £4.4m profits), primarily reflects the revaluation of strategic land within the Northern Gateway joint venture offsetting the net positive performance of Multiply Logistics North LLP where the profit from net rental income during the first half of 2026 was reduced by a small valuation loss recognised

Trade and other receivables include deferred consideration on sales. At 30 June 2026, deferred consideration of £63.0m was outstanding (31 December 2025: £60.4m): where deferred payment terms are agreed, the Group maintains security in order to mitigate credit risk.

Financing strategy 

Harworth's financing strategy remains to maintain a prudent loan-to-value against the land and property portfolio. The Income Generation portfolio provides a recurring income source to service debt facilities and this is supplemented by proceeds from sales.

As part of its strategic plan, the Group maintains a self-imposed target LTV of below 20% at year ends, with a maximum of 25% in-year, reflecting the cyclical nature of the Group's cashflows. As a principle, the Group seeks to maintain its cash flows in balance by funding the majority of infrastructure expenditure through disposal proceeds, while allowing for growth in the portfolio.

Debt facilities 

The Group has a £275m RCF provided by NatWest, Santander, HSBC and Barclays, with Barclays having entered the facility syndicate during the period.  The RCF is for an initial four-year term, with no re-financing requirements until November 2029, and may be extended by a further year at Harworth's request.  The RCF includes an uncommitted accordion option which if exercised would take the RCF to £325m. The RCF provides significant liquidity and flexibility to enable the Group to pursue its strategic objectives. The interest rate on the RCF is based on an LTV ratchet mechanism with a margin payable above SONIA in the range of 1.95% to 2.25%.

As part of its funding structure, the Group also uses infrastructure financing provided by public bodies and site-specific direct development loans to promote the development of major sites and bring forward the development of industrial & logistics units.

The Group had net debt of £190.0m at 30 June 2026 (H1 2025: £179.4m; FY 2025: £145.9m). The increase in net debt during the period reflects the significant investment in, and operational progress on, sites, partly offset by proceeds from sales. The movements in net debt during the period are shown below:

			H1 2026  £m	H1 2025  £m
Opening net debt as at 1 January			(145.9)	(46.7)
Cash inflow/(outflow) from operations			(16.3)	(59.5)
Property expenditure and acquisitions			(13.0)	(52.4)
Disposal of investment property, AHFS and overages			0.4	4.5
Net investments in joint ventures			(3.4)	(0.8)
Interest and loan arrangement fees			(6.2)	(5.2)
Dividends paid			(4.0)	(3.7)
Tax paid			(0.8)	(11.6)
Fixed assets expenditure			(0.6)	(3.0)
Other cash and non-cash movements			(0.2)	(1.0)
Closing net debt as at 30 June			(190.0)	(179.4)

The Group's strategy to manage its exposure to interest rate risk is to hedge the lower of around half its average debt during the year or its net debt balance at year end. As at 30 June 2026, £50m of the Group's drawn debt was subject to interest rate hedging; through an interest rate cap to mitigate the risk of interest rates increasing above 4.5%. We continue to monitor projected drawn debt, and hedging requirements with a view to mitigating interest rate risk in line with the Group's strategic objectives.

As at 30 June 2026, the Group's net LTV was 20.3% (30 June 2025: 19.0%; 31 December 2025: 15.6%) within our self-imposed target to be below 25% during the year and 20% at year-ends reflecting the seasonal profile of the Group's cashflows. If gearing is assessed against the value of the income generation portfolio (the Investment Portfolio and Natural Resources portfolio) only, this equates to a net loan to income generation portfolio value of 63.1% (30 June 2025: 58.2%; 31 December 2025: 48.5%). Under the RCF, the Group could withstand a material fall in portfolio value, property sales or rental income before reaching covenant levels.

At 30 June 2026, Group liquidity of £99.5m (31 December 2025: £127.1m) included undrawn capacity under the RCF of £90.0m (31 December 2025: £100.0m) in addition to the period-end cash balance of £9.5m (31 December 2025: £27.1m). The Group's LTV on a pro-forma basis using 30 June valuations was 17.1% at 31 August with Group available liquidity of £128.7m. Going forward, the RCF, alongside selected use of development and infrastructure loans where appropriate, is expected to continue to provide the Group with sufficient liquidity to execute our growth strategy.

Kitty Patmore

Chief Financial Officer 

8 September 2026 

Key performance indicators

2.1 Financial track record

KPI	H1 2026 result	H1 2025 result	FY 2025 result	H1 2026 performance commentary
Total Accounting Return (%) Growth in EPRA NDV during the period in addition to dividends paid, as a proportion of EPRA NDV at the beginning of the year.	(3.7)%	1.1%	1.7%	Our Total Accounting Return ('TAR') of (3.7)% was the result of a 4.3% decrease in EPRA Net Disposal Value per share during the period, offset by the payment of 1.2p in dividends. Since 2021, we have delivered cumulative TAR of 39.3%.
EPRA Net Disposal Value ('NDV') per share A European Public Real Estate Association ('EPRA') metric that represents a net asset valuation where development property is included at fair value rather than cost and deferred tax, financial instruments and other adjustments as set out in Note 2 and the appendix to the financial statements, are calculated to the full extent of their liability.	214.8p	223.7p	224.4p	EPRA Net Disposal Value per share ('EPRA NDV') reduced by 4.3%, driven primarily by valuation losses across Residential Major Development sites, impacted by inflationary pressures and challenging market conditions.
Total Property Return A measure of the ungeared return for the portfolio calculated as the change in capital value, less any capex incurred, plus net income, expressed as a percentage of capital employed over the period concerned, calculated by MSCI.	N/A	N/A	8.4%	Total Property Return ('TPR'), calculated by MSCI, is reported annually.
Net LTV Net debt as a proportion of the aggregate value of properties and investments.	20.3%	19.0%	15.6%	Our Net Loan to Portfolio Value ('LTV') increased as investment in progressing activity on sites more than offset receipts from sales and deferred consideration payments. LTV remained well within our self-imposed target of less than 25% within the year.

2.2 Strategic track record

KPI	H1 2026 result	H1 2025 result	FY 2025 result	H1 2026 performance commentary
Industrial & logistics space developed (m sq ft) The amount of Industrial & Logistics space developed by Harworth, either speculatively or on a build-to-suit basis for an end occupier or investor, achieving practical completion during the year.	-	0.1	0.3	The focus of the first half has been on progressing site enabling works, resulting in our largest-ever pipeline of substantially construction-ready industrial & logistics land.
Total Industrial & Logistics pipeline consented or in the planning system (sq ft) Land in the planning system with an allocation or awaiting determination carries a lower risk to approval, an important step in value creation, as well as alongside consented land, this forms our pipeline for future development.	73%	71%	75%	12.9m sq ft across 10 sites remain in the planning system awaiting determination. This includes sites such as Rothwell (Kettering), Northern Gateway (Greater Manchester), where the Group's JV benefits from an allocation in Greater Manchester's Places for Everyone (PfE) joint development plan of 11m sq ft, and Junction 15 (Northampton), which benefits from a draft allocation in the local plan for strategic warehousing.
Proportion of Investment Portfolio that is Grade A by value (V) & area (A) The proportion of our Investment Portfolio by area that could be classified as modern Grade A Industrial & Logistics space. Grade A is a widely used industry term that is understood to mean 'best in class', space which is new or relatively new, high-specification and in a desirable location, allowing the unit to attract a rent that is above the market average.	V: 77% A: 64%	V: 66% A: 48%	V: 76% A: 64%	The proportion of our Investment Portfolio that is Grade A marginally increased during the period. The Group completed or was in legals on pre-lets totalling 319,400 sq ft post period-end, which will transfer to the Investment Portfolio on completion. These transfers, alongside an ongoing programme of disposing of secondary assets or those where we have maximised value through asset management, will increase the Grade A % further.
Number of plots sold The number of plots equivalent to land parcel sales to housebuilders or registered providers during the year.	155	649	1,837	We completed the sale of 155 Residential plots generating headline sales of £14.5m and completed a further 14 plot sales after period end. The Group has exchanged or is currently in legal on an additional 783 residential plots which it expects to complete by the end of the year.

Principal risks & uncertainties

A detailed explanation of the Group's risk management framework, the principal risks and uncertainties affecting the Group and the steps it takes to mitigate these risks, can be found on pages 58 to 70 of the Annual Report and Financial Statements for the year ended 31 December 2025, available within the "Investors" section of our website.

During H1 of 2026, and in line with our Principal Risk Governance and Review programme, the Board undertook a comprehensive review of the principal risks to ensure they remain aligned with our strategic objectives and are reflective of the evolving external landscape. This review was informed by consideration of:

·    Current, and continuously changing, macroeconomic and geopolitical environment.

·    Recent domestic political uncertainty following the appointment of the new Prime Minister.

·    The shift in corporate strategy towards more Industrial & Logistics development.

·    Outputs from the enhancement and standardisation of our 'bottom-up' operational risk management framework.

·    The identification, monitoring and assurance of our material controls.

The review did not result in a fundamental revision of the risk profile of the Group, but led to a refinement of the existing risk set. Following the unrecommended firm offer by Peel Pepper (UK) Limited, a company indirectly wholly owned by Peel Holdings Group Limited, for Harworth at a price of 172.5p per Harworth share in cash (the "Unrecommended Offer"), the Board undertook a further review of the Company's principal risks, concluding that the Offer resulted in a temporary increase in the People risk.  A summary of the outcome of both reviews is included in the table below:

Risk Ref	Risk Title	Risk Description	Residual Risk Rating	Movement (since 31 Dec 25)	Trending (next 6 months)	Description of Change
1	Power Infrastructure Capacity	Challenges in securing power infrastructure for Schemes at a viable cost and timescale.	Medium	No Movement	Stable	No material movement.
2	Planning System	Challenges in obtaining planning permission for schemes impacting financial returns.	Medium	No Movement	Stable	No material movement.
3	Construction Supply Chain	Exposure to construction supply chain may lead to increased pricing pressures, labour constraints, and risk of disputes, default and/or insolvency of supply chain partners.	High	Increased	Downwards	Continued uncertainty surrounding supply chain costs and availability, due to ongoing geopolitical tensions in the Middle East and the potential wider macroeconomic impacts, has increased this risk to High. The situation remains volatile and with continued uncertainty the risk of disruption has not been fully removed. The implementation of a new supply chain management system has improved oversight and resilience across the supply chain. Combined with anecdotal evidence of strong market capacity and competitive supplier conditions we anticipate a downward trend going forward.
4	Physical Climate Events	Extreme weather events and long-term climate shifts (e.g. storms, floods, wildfires, temperature extremes) disrupt construction supply chains, impact development operations, increase costs and damage assets.	Medium	No movement	Stable	No material movement.
5	Real Estate End Markets	Deterioration of end markets, driven by macroeconomic factors and investor sentiment, impacting valuations, financial returns and recycling of capital.	High	Increased	Stable	Challenges in the residential housing market continue to persist increasing this risk. The resilience in the industrial & logistics sector and our decision to focus on this market has helped mitigate the impact. However, given this is a medium-term transition, risk profile remains High at reporting date and over next 6-month horizon. Stamp duty cuts and other potential Government initiatives could create favourable housing market stimulus in the short-term mitigating this risk slightly.
6	Capital	Inability to source adequate capital to meet our strategic growth aspirations.	High	Increased	Stable	Risk level has increased since 2025 and remains High at the reporting date. This is expected to persist for the next six months as we await completion of FY26 sales, which remain weighted towards year end. We anticipate a downward trend as we move into FY27 due to our continued focus on disciplined cashflow management giving us increased headroom at the start of the year and strong availability of public sector funding aligned to Harworth's needs.
7	People	Inadequate employee value proposition impacting the ability to attract, retain, and develop quality talent, while also impacting succession planning efforts.	High	Increased	Stable	Risk level has increased following the Peel Pepper takeover offer, which creates unavoidable uncertainty and anxiety amongst the workforce, requiring active management in the short term. Absent that corporate activity, in the ordinary course of business, people related workstreams stemming from the acceleration of key initiatives will, in any event, give rise to an elevated risk profile in the short-term (next six months), albeit once any changes are embedded the risk profile should revert back and remain stable.
8	Health & Safety	Serious injury/death to employees, subcontractors, visitors, and/or occupiers resulting in operational impacts, liabilities, penalties and/or reputational damage.	Low	No movement	Stable	No material movement.
9	Liquidity	Inability to maintain optimum levels of working capital to meet business as usual obligations.	Low	No movement	Stable	No material movement.
10	Climate Transition & Reporting	Failure to successfully transition to NZC, leading to non-compliance with regulatory and reporting requirements, inability to meet the NZC targets we set ourselves, and associated reputational damage.	Medium	No movement	Stable	No material movement.
11	Digital Transformation Project	Failure to implement a scalable and integrated digital architecture that enables operational efficiency, business growth, continuous innovation and effective AI adoption.	Medium	No movement	Downwards	No material movement.
12	Digital Resilience	Failure to maintain digital resilience, resulting in compromised business continuity, loss of intellectual property or data, ineffective cyber incident response, and failure to support strategic enablement.	Medium	No movement	Stable	No material movement.
13	Government Policy Implementation	Challenges in slow and/or inconsistent implementation of government policy across our regions alongside devolution and local government reform changing the landscape that we (investors and businesses) are operating in.	Medium	No movement	Stable	No material movement. The new Prime Minister (PM) is now in office and his government formed which reduces an element of recent uncertainty. Early indications suggest that the PM supports maximum devolution which is likely to be positive for Harworth in the medium term being a regional business. However, funding and infrastructure changes could be slow in the short term whilst the new framework is embedded.

The Group continues to monitor its Principal Risks closely and remains confident that its risk management framework is robust and responsive to change. A full description of the Group's Principal Risks will be reflected in the year-end disclosures for 31 December 2026.

In preparation to meet the updated requirements of Provision 29 of the 2024 Corporate Governance Code, which will apply for Harworth's year-end 31 December 2026, the business and its Board have identified its Material Controls and have implemented an assurance programme with quarterly updates provided. The specific effectiveness of these controls will form part of the Board's declaration in the 2026 Annual Report.

Directors' Responsibilities statement

For the six months ended 30 June 2026

The Directors who held office at the date of approval of these Financial Statements confirm that to the best of their knowledge:

1.    the Condensed Consolidated Interim Financial Statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and in accordance with IAS 34 'Interim Financial Reporting' as contained in UK-adopted international accounting standards; and

2.     the Interim Management Report includes a fair review of the information required by:

a)   Rule 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the six months ended 30 June 2026 and their impact on the Condensed Consolidated Interim Financial Statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

b)    Rule 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the six months ended 30 June 2026 and that have materially affected the financial position or performance of the Group during that period, and any changes in the related party transactions described in the last Annual Report and Financial Statements that could do so.

The Directors who served during the six months ended 30 June 2026 were as follows:

·      Alastair Lyons, Chair

·      Lynda Shillaw, Chief Executive                        

·      Katerina Patmore, Chief Financial Officer

·      Angela Bromfield, Senior Independent Director

·      Lisa Scenna, Independent Non-Executive Director

·      Patrick O'Donnell Bourke, Independent Non-Executive Director

·      Marzia Zafar, Independent Non-Executive Director

·      Phil Redding, Independent Non-Executive Director

·      Tony Quinlan, Independent Non-Executive Director

·      Martyn Bowes, Non-Executive Director

Tony Quinlan, an independent Non-Executive Director, was appointed to the Board on 1 June 2026.

By order of the Board

Chris Birch
General Counsel and Company Secretary
8 September 2026

Cautionary statement

This report for the six months ended 30 June 2026 contains certain forward-looking statements with respect to the Company's financial condition, results, operations and business. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this report should be construed as a profit forecast.

Directors' liability

Neither the Company nor the Directors accept any liability to any person in relation to this report for the six months ended 30 June 2026 except to the extent that such liability could arise under English law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.

Shareholder information

Financial calendar

Interim results for the six months ended 30 June 2026	Published	9 September 2026
Interim dividend for the year ended 31 December 2026	Ex-dividend date  Record date  Payable	24 September 2026 25 September 2026 03 November 2026
Results for the year ended 31 December 2026	Scheduled	March 2027
Annual report and financial statements for the year ended 31 December 2026	Scheduled	April 2027
2027 Annual General Meeting	Scheduled	May 2027
Final dividend for the year ended 31 December 2026	Ex-dividend date  Record date  Payable	April 2027 April 2027 May 2027

Registrars

All administrative enquiries relating to shareholdings should, in the first instance, be directed to Equiniti. Help can be found at www.shareview.co.uk. Alternatively, you can contact Equiniti at Highdown House, Yeoman Way, Worthing, BN99 6DA (telephone: [phone]). You should state clearly the registered shareholder's name and address. 

Dividend mandate

Any shareholder wishing dividends to be paid directly into a bank or building society should instruct this via the Shareview service, or contact the Registrars for a dividend mandate form. Dividends paid in this way will be paid through the Bankers' Automated Clearing System ('BACS').

Shareview service

The Shareview service from Equiniti allows shareholders to manage their shareholding online. It gives shareholders direct access to their data held on the share register, including recent share movements and dividend details and the ability to change their address or dividend payment instructions online. To visit the Shareview website, go to www.shareview.co.uk. There is no charge to register but the 'shareholder reference number' printed on proxy forms or dividend stationery will be required. 

Website

The Group's website (harworthgroup.com) provides further information. Detailed information for shareholders can be found at harworthgroup.com/investors.

Consolidated income statement

	Note	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited Year ended 31 December 2025 £'000
Revenue	3	41,271	47,471	129,749
Cost of sales	3	(45,370)	(42,070)	(117,197)
Gross (loss)/profit	3	(4,099)	5,401	12,552
Administrative expenses	3	(17,914)	(17,071)	(36,342)
Other (losses)/gains	3	(2,937)	18,810	45,543
Other operating income/(expenses)	3	66	(57)	(121)
Operating (loss)/profit	3	(24,884)	7,083	21,632
Finance costs	4	(6,670)	(6,499)	(15,203)
Finance income	4	738	2,479	4,573
Share of (loss)/profit of joint ventures (including impairment)	9	(568)	4,356	6,366
(Loss)/profit before tax		(31,384)	7,419	17,368
Tax credit/(charge)	5	5,988	2,273	(7,896)
(Loss)/profit for the period/year		(25,396)	9,692	9,472
Earnings per share from operations		pence	pence	pence
Basic	7	(7.8)	3.0	2.9
Diluted	7	(7.5)	2.9	2.8

The Notes 1 to 15 are an integral part of these condensed consolidated interim financial statements.

All activities are derived from continuing operations.

Consolidated statement of comprehensive income

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited Year ended 31 December 2025 £'000
(Loss)/profit for the period/year	(25,396)	9,692	9,472
Other comprehensive (expense)/income - items that will not be reclassified to profit or loss:
Net actuarial (loss)/gain in Blenkinsopp Pension scheme	(54)	(34)	29
Deferred tax on other comprehensive (expense)/income items	(420)	-	93
Other comprehensive (expense)/income - items that may be reclassified subsequently to profit or loss:
Fair value of financial instruments	(171)	-	-
Total other comprehensive (expense)/income	(645)	(34)	122
Total comprehensive (expense)/income for the period/year	(26,041)	9,658	9,594

Consolidated balance sheet

ASSETS	Note	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Non-current assets
Intangible fixed assets		784	-	450
Property, plant and equipment		7,436	5,178	8,106
Right of use assets		1,073	1,330	1,200
Trade and other receivables		13,879	26,729	5,009
Investment properties	8	677,811	658,854	667,025
Investments in joint ventures	9	28,078	22,661	25,225
Derivative financial asset		252	-	-
Retirement benefit asset		9	48	81
		729,322	714,800	707,096
Current assets
Inventories	10	197,182	218,506	212,065
Trade and other receivables		76,108	91,795	85,493
Assets held for sale	11	7,620	18,641	7,686
Cash	12	9,461	9,798	27,144
Current tax asset		2,962	3,474	2,759
Derivative financial asset		42	-	-
		293,375	342,214	335,147
Total assets		1,022,697	1,057,014	1,042,243
LIABILITIES
Current liabilities
Trade and other payables		(107,976)	(116,857)	(120,220)
Lease liabilities		(232)	(253)	(263)
		(108,208)	(117,110)	(120,483)
Net current assets		185,167	225,104	214,664
Non-current liabilities
Borrowings	13	(199,422)	(189,164)	(173,025)
Trade and other payables		(4,133)	(18,071)	(3,907)
Lease liabilities		(779)	(1,086)	(934)
Net deferred tax liabilities		(39,347)	(33,297)	(44,915)
		(243,681)	(241,618)	(222,781)
Total liabilities		(351,889)	(358,728)	(343,264)
Net assets		670,808	698,286	698,979
SHAREHOLDERS' EQUITY
Called up share capital	14	32,694	32,575	32,587
Share premium account		25,231	25,177	25,224
Fair value reserve		249,931	237,794	254,257
Capital redemption reserve		257	257	257
Merger reserve		45,667	45,667	45,667
Investment in own shares		(224)	(1,036)	(193)
Cash flow hedge reserve		(171)	-	-
Retained earnings		342,820	348,160	331,708
Current year profit		(25,397)	9,692	9,472
Total shareholders' equity		670,808	698,286	698,979

Condensed consolidated statement of changes in shareholders' equity

	Called up share capital £'000	Share premium account £'000	Merger reserve £'000	Fair value reserve £'000	Cash flow Hedge Reserve £'000	Capital redemption reserve £'000	Investment in own shares £'000	Retained earnings £'000	Total equity £'000
Balance at 1 Jan 2025	32,495	25,157	45,667	216,704	-	257	(138)	371,523	691,665
Profit for the six months to 30 June 2025	-	-	-	-	-	-	-	9,692	9,692
Fair value gains	-	-	-	23,287	-	-	-	(23,287)	-
Transfer of unrealised gains on disposal of investment property	-	-	-	(2,197)	-	-	-	2,197	-
Other comprehensive (expense)/income:
Actuarial gain in Blenkinsopp pension scheme	-	-	-	-	-	-	-	(34)	(34)
	-	-	-	21,090	-	-	-	(11,432)	9,658
Transactions with owners:
Purchase of own shares	-	-	-	-	-	-	(898)	-	(898)
Share-based payments	-	-	-	-	-	-	-	1,415	1,415
Dividends paid	-	-	-	-	-	-	-	(3,654)	(3,654)
Share issue	80	20	-	-	-	-	-	-	100
Balance at 30 June 2025 (unaudited)	32,575	25,177	45,667	237,794	-	257	(1,036)	357,852	698,286
Profit for the year to 31 December 2025	-	-	-	-	-	-	-	(219)	(219)
Fair value gains	-	-	-	31,353	-	-	-	(31,353)	-
Transfer of unrealised gains on disposal of investment property	-	-	-	(14,890)	-	-	-	14,890	-
Other comprehensive (expense)/income:
Actuarial gain in Blenkinsopp pension scheme	-	-	-	-	-	-	-	63	63
Deferred tax on other comprehensive income items	-	-	-	-	-	-	-	93	93
	-	-	-	16,463	-	-	-	(16,526)	(63)
Transactions with owners:
Purchase of own shares	-	-	-	-	-	-	843	-	843
Share-based payments	-	-	-	-	-	-	-	1,604	1,604
Dividends paid	-	-	-	-	-	-	-	(1,749)	(1,749)
Share issue	12	47	-	-	-	-	-	-	59
Balance at 31 December 2025	32,587	25,224	45,667	254,257	-	257	(193)	341,180	698,979
Loss for the six months to 30 June 2026	-	-	-	-	-	-	-	(25,396)	(25,396)
Fair value gains	-	-	-	93	-	-	-	(93)	-
Transfer of unrealised gains on disposal of investment property	-	-	-	(4,419)	-	-	-	4,419	-
Other comprehensive (expense)/income:
Actuarial loss in Blenkinsopp pension scheme	-	-	-	-	-	-	-	(54)	(54)
Cash flow hedge reserve	-	-	-	-	(171)	-	-	-	(171)
Deferred tax on other comprehensive expense items	-	-	-	-	-	-	-	(420)	(420)
	-	-	-	(4,326)	(171)	-	-	(21,544)	(26,041)
Transactions with owners:
Purchase of own shares	-	-	-	-	-	-	(31)	-	(31)
Share-based payments	-	-	-	-	-	-	-	1,808	1,808
Dividends paid	-	-	-	-	-	-	-	(4,021)	(4,021)
Share issue	107	7	-	-	-	-	-	-	114
Balance at 30 June 2026 (unaudited)	32,694	25,231	45,667	249,931	(171)	257	(224)	317,423	670,808

Consolidated statement of cash flows

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Cash flows from operating activities
(Loss)/profit before tax for the period/year	(31,384)	7,419	17,368
Net finance costs	5,932	4,020	10,630
Other losses/(gains)	2,937	(18,810)	(45,543)
Share of loss/(profit) of joint ventures (including impairment)	568	(4,356)	(6,437)
Share-based transactions(1)	1,700	1,346	3,296
Depreciation of property, plant and equipment and right of use assets	297	307	608
Pension contributions in excess of charge	18	(127)	(97)
Operating cash outflows before movements in working capital	(19,932)	(10,201)	(20,175)
Decrease/(increase) in inventories	14,883	(13,463)	3,513
Decrease/(increase) in receivables	4,564	(16,215)	11,817
Decrease in payables	(15,830)	(19,658)	(25,519)
Cash generated (used in)/generated from operations	(16,315)	(59,537)	(30,364)
Interest paid	(5,263)	(5,039)	(11,989)
Corporation tax paid	(800)	(11,604)	(9,693)
Cash (used in)/generated from operating activities	(22,378)	(76,180)	(52,046)
Cash flows from investing activities
Interest received	84	141	342
Investment in joint ventures	(3,810)	(1,010)	(1,933)
Distribution from joint ventures Net proceeds from disposal of investment properties, AHFS and overages	389	179	619
Net proceeds from disposal of investment properties, AHFS and overages	410	4,475	53,645
Property acquisitions (including acquisition of a group of assets)	(1,064)	(19,578)	(26,858)
Expenditure on investment properties and AHFS	(11,890)	(32,736)	(55,625)
Expenditure on property, plant and equipment	(223)	(3,039)	(10,052)
Expenditure on intangible fixed assets	(335)	-	(450)
Cash (used in)/generated from investing activities	(16,439)	(51,568)	(40,312)
Cash flows from financing activities
Net proceeds from issue of ordinary shares	20	(843)	59
Proceeds from other loans	16,650	-	-
Repayment of other loans	-	-	-
Proceeds from bank loans	20,000	222,000	492,000
Repayment of bank loans	(10,000)	(197,000)	(482,000)
Loan arrangement fees	(934)	(193)	(2,202)
Payment in respect of leases	(209)	(146)	(334)
Dividends paid	(4,021)	(3,654)	(5,403)
Payment in respect of hedging activities	(372)	-	-
Cash generated from/(used in) financing activities	21,134	20,164	2,120
(Decrease)/increase in cash	(17,683)	(107,584)	(90,238)
Cash as at beginning of period/year	27,144	117,382	117,382
(Decrease)/increase in cash	(17,683)	(107,584)	(90,238)
Cash as at end of period/year	9,461	9,798	27,144

⁽¹⁾ Share-based transactions reflect the non-cash expenses relating to share-based payments included within the income statement

Notes to the condensed consolidated interim financial statements

for the six months ended 30 June 2026

1. Accounting policies

The principal accounting policies adopted in the preparation of this condensed consolidated interim financial information are set out below. These policies have been consistently applied to all of the periods presented, unless otherwise stated.

General information

Harworth Group plc (the "Company") is a company limited by shares, incorporated and domiciled in the UK (England). The address of its registered office is 1 Harworth Way, Unit 1, Harworth Way, Rotherham, United Kingdom, S60 5GR.

The Company is a public company listed on the London Stock Exchange.

The condensed consolidated interim financial statements for the six months ended 30 June 2026 comprise the accounts of the Company and its subsidiaries (together referred to as the "Group").

These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information presented for the year ended 31 December 2025 is derived from the statutory accounts for that year. Statutory accounts for the year ended 31 December 2025 were approved by the Board of Directors on 17 March 2026 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.

The condensed consolidated interim financial statements for the six months ended 30 June 2026 which have not been audited, were approved by the Board on 8 September 2026.

Basis of preparation

These condensed consolidated interim financial statements for the six months ended 30 June 2026 have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and in accordance with IAS 34 'Interim Financial Reporting' as contained in UK-adopted international accounting standards.

These condensed consolidated interim financial statements should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2025, which were prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and in accordance with UK adopted International Financial Reporting Standards ("IFRS").

Going-concern basis

These condensed consolidated interim financial statements are prepared on the basis that the Group is a going concern. In forming its opinion as to going concern, the Company prepares cash flow and banking covenant forecasts based upon assumptions, with particular consideration to the key risks and uncertainties and the macro-economic environment as well as taking into account available borrowing facilities. The going concern period assessed is until 31 December 2027 which has been selected as it can be projected with a reasonable degree of accuracy and covers a complete period of reporting under the Group's RCF.

A key focus of the assessment of going concern is the management of liquidity and compliance with borrowing facilities for the period to 31 December 2027. A £275.0m RCF facility is available to the group and is aligned to the Group's strategy and provides significant liquidity and flexibility to enable it to pursue its strategic objectives. The facility is subject to financial covenants, including minimum interest cover, maximum infrastructure debt as a percentage of property value and gearing, all of which are tested through the going concern assessment undertaken. Available liquidity, including cash and cash equivalents and bank facility headroom, was £99.5m as at 30 June 2026 (30 June 2025: £59.8m, December 2025: £127.1m).

The Group benefits from diversification across its Capital Growth and Income Generation businesses including its industrial and logistics and natural resources property portfolios. Taking into account the independent valuations carried out by JLL, Savills, Carter Jonas and BNP Paribas as at 30 June 2026, the Group net loan-to-portfolio value was 20.3%, within the Board's target range and with sufficient headroom to allow for any falls in property values. Rent collection remained strong, with 99.0% collected to date for H1 2026.

In addition to the Company's base cash flow forecast, sensitised forecasts were produced that included severe but plausible downside scenarios. This downside included: 1) a severe reduction in headline sales; 2) notwithstanding strong rent collection in 2025, a prudent material increase in bad debts across the portfolio over the majority of the going concern assessment period; 3) a material decline in the value of land and investment property values, and 4) increases in interest rates, impacting the cost of the Group's borrowings.

A scenario was also run which demonstrated that very severe loss of revenue, valuation reductions and interest cost increases would be required to breach banking covenants. The Directors consider this very severe scenario to be remote. A scenario with consideration of potential climate change and related transition impacts was also examined as part of the Group's focus on climate-related risks and opportunities.

Under each of the plausible downside scenarios, for the going concern period to 31 December 2027, the Group expects to continue to have sufficient liquidity to continue to operate with headroom on lending facilities and associated covenants and has, in addition, mitigation measures within management's control, for example reducing development and acquisition expenditure and reducing operating costs, that could be deployed to create further liquidity and covenant headroom.

Based on these considerations, together with available market information and the Directors' knowledge and experience of the Group's property portfolio and markets, the Directors considered it appropriate to adopt a going concern basis of accounting in the preparation of the Group's and Company's financial statements.

Accounting policies

Changes in accounting policy and disclosures

(a)   New standards, amendments and interpretations

A number of new standards and amendments to standards and interpretations are effective for annual periods beginning on or after 1 January 2026. None of these have a significant effect on the financial statements of the Group.

(b) New standards, amendments and interpretations not yet adopted

A number of new standards and amendments to standards and interpretations are effective for annual periods beginning on or after 1 January 2027 and have not been applied in preparing these financial statements.

Estimates and judgements

The preparation of the condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied in the consolidated financial statements for the year ended 31 December 2025.

2. Alternative Performance Measures ("APMs")

Introduction

The Group has applied the December 2019 European Securities and Markets Authority ("ESMA") guidance on APMs and the November 2017 Financial Reporting Council ("FRC") corporate thematic review of APMs in these results.  An APM is a financial measure of historical or future financial performance, position or cash flows of the Group which is not a measure defined or specified under IFRS.

Overview of use of APMs

The Directors believe that APMs assist in providing additional useful information on the underlying trends, performance and position of the Group.  APMs assist stakeholder users of the accounts, particularly equity and debt investors, through the comparability of information.  APMs are used by the Directors and management, both internally and externally, for performance analysis, strategic planning, reporting and incentive-setting purposes.

APMs are not defined by IFRS and therefore may not be directly comparable with other companies' APMs, including peers in the real estate industry.  APMs should be considered in addition to, and are not intended to be a substitute for, or superior to, IFRS measurements.

The derivations of our APMs and their purpose

The primary differences between IFRS statutory amounts and the APMs that we use are as follows:

1.    Capturing all sources of value creation - Under IFRS, the revaluation movement in development properties which are held in inventory is not included in the balance sheet. Also, overages are not recognised in the balance sheet until they are highly probable. These movements, which are verified by our independent valuers JLL, BNP Paribas and Savills, are included within our APMs;

2.   Re-categorising income statement amounts - Under IFRS, the grouping of amounts, particularly within gross profit and other gains, does not clearly allow Harworth to demonstrate the value creation through its business model.  In particular, the statutory grouping does not distinguish value gains (being realised profits from the sales of properties and unrealised profits from property value movements) from the ongoing profitability of the business which is less susceptible to movements in the property cycle. Finally, the Group includes profits from joint ventures within its APMs as its joint ventures conduct similar operations to Harworth, albeit in different ownership structures; and

3.     Comparability with industry peers - Harworth discloses some APMs which are EPRA measures as these are a set of standard disclosures for the property industry and thus aid comparability for our stakeholder users.

Our key APMs

The key APMs that the Group focuses on are as follows:

·      Total Accounting Return - The movement in EPRA NDV plus dividends per share paid in the year expressed as a percentage of opening EPRA NDV per share

·      Total Property Return - Calculated in line with the MSCI Property Index Methodology and reported annually

·      EPRA NDV per share - EPRA NDV aims to represent shareholder value under an orderly sale of the business, where deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability net of any resulting tax. EPRA NDV per share is EPRA NDV divided by the number of shares in issue at the end of the period, less shares held by the Employee Benefit Trust or Equiniti Share Plan Trustees Limited to satisfy Long Term Incentive Plan and Share Incentive Plan awards

·      Value gains - These are the realised profits from the sales of properties and unrealised profits from property value movements including joint ventures and the mark to market movement on development properties, AHFS and overages

·      Net LTV - Group debt net of cash and cash equivalents held expressed as a percentage of portfolio value

3.   Segment information

Segmental Income Statement                                                                        Unaudited 6 months ended 30 June 2026

	Capital Growth
	Development properties	Other property activities	Income Generation	Central	Total
	£'000	£'000	£'000	£'000	£'000
Revenue (1)	13,175	16,713	11,383	-	41,271
Cost of sales	(22,574)	(20,947)	(1,849)	-	(45,370)
Gross (loss)/profit (2)	(9,399)	(4,234)	9,534	-	(4,099)
Administrative expenses(4)	-	(3,848)	(1,026)	(13,040)	(17,914)
Other (losses)/gains (3)	-	(6,795)	3,797	61	(2,937)
Other operating income	-	-	-	66	66
Operating (loss)/profit	(9,399)	(14,877)	12,305	(12,913)	(24,884)
Finance costs	-	-	-	(6,670)	(6,670)
Finance income	-	687	37	14	738
Share of (loss)/profit of joint ventures	-	(752)	191	(7)	(568)
(Loss)/profit before tax	(9,399)	(14,942)	12,533	(19,576)	(31,384)

(1) Revenue
Revenue is analysed as follows:
Sale of development properties	13,175	-	-	-	13,175
Revenue from PPAs	-	651	-	-	651
Development revenues	-	15,476	-	-	15,476
Rent, service charge and royalties revenue	-	312	10,860	-	11,172
Other revenue	-	274	523	-	797
	13,175	16,713	11,383	-	41,271

(2) Gross (loss)/profit
Gross (loss)/profit is analysed as follows:
Gross (loss)/profit excluding sales of development properties	-	(4,234)	9,534	-	5,300
Gross loss on sale of development properties*	(1,914)	-	-	-	(1,914)
Net realisable value provision on development properties	(7,890)	-	-	-	(7,890)
Release of previous net realisable value provision on disposal of development properties	405	-	-	-	405
	(9,399)	(4,234)	9,534	-	(4,099)

*Gross loss on sale of development properties includes a reduction of £1.2m (June 2025: £0.5m, December 2025: £1.4m) relating to the discounting of deferred consideration receivable.

(3) Other (losses)/gains
Other (losses)/gains are analysed as follows:
(Decrease)/increase in fair value of investment    properties	-	(7,024)	4,034	-	(2,990)
Increase in the fair value of land and buildings		-	-	61	61
Decrease in the fair value of assets held for sale	-	-	(119)	-	(119)
Profit/(loss) on sale of investment properties	-	169	(103)	-	66
Profit/(loss) on sale of assets held for sale	-	60	(15)	-	45
	-	(6,795)	3,797	61	(2,937)

(4) Administrative expenses
Administrative expenses are analysed as follows:
Wages and salaries	-	(3,593)	(510)	(8,306)	(12,409)
Legal and professional	-	(3)	(229)	(710)	(942)
Other administrative expenses	-	(252)	(287)	(4,024)	(4,563)
	-	(3,848)	(1,026)	(13,040)	(17,914)

Segmental Balance Sheet                                                                                               Unaudited as at 30 June 2026

		Capital Growth £'000	Income Generation £'000	Central £'000	Total £'000
Non-current assets
Intangible fixed assets		-	-	784	784
Property, plant and equipment		-	-	7,436	7,436
Right of use assets		-	-	1,073	1,073
Other receivables		13,879	-	-	13,879
Investment properties		365,242	312,569	-	677,811
Investments in joint ventures		11,525	16,553	-	28,078
Retirement benefit asset		-	-	9	9
Derivative financial asset		-	-	252	252
		390,646	329,122	9,554	729,322
Current assets
Inventories		196,915	267	-	197,182
Trade and other receivables		60,344	10,964	4,800	76,108
AHFS		-	7,620	-	7,620
Cash and cash equivalents		-	-	9,461	9,461
Current tax asset		-	-	2,962	2,962
Derivative financial instruments		-	-	42	42
		257,259	18,851	17,265	293,375
Total assets		647,905	347,973	26,819	1,022,697

Financial liabilities and derivative financial instruments are not allocated to the reporting segments as they are managed and measured at a Group level.

Segmental Income Statement                                                                        Unaudited 6 months ended 30 June 2025

	Capital Growth
	Development properties	Other property activities	Income Generation	Central	Total
	£'000	£'000	£'000	£'000	£'000
Revenue (1)	10,850	23,044	13,577	-	47,471
Cost of sales	(17,075)	(21,569)	(3,426)	-	(42,070)
Gross profit (2)	(6,225)	1,475	10,151	-	5,401
Administrative expenses(4)	-	(3,297)	(896)	(12,878)	(17,071)
Other gains (3)	-	12,966	5,844	-	18,810
Other operating expense	-	-	-	(57)	(57)
Operating profit/(loss)	(6,225)	11,144	15,099	(12,935)	7,083
Finance costs	-	-	-	(6,499)	(6,499)
Finance income	-	2,382	97	-	2,479
Share of loss of joint ventures	-	3,623	733	-	4,356
Profit/(loss) before tax	(6,225)	17,149	15,929	(19,434)	7,419

(1) Revenue
Revenue is analysed as follows:
Sale of development properties	10,850	-	-	-	10,850
Revenue from PPAs	-	4,007	-	-	4,007
Development revenues	-	18,393	-	-	18,393
Rent, service charge and royalties revenue	-	636	11,956	-	12,592
Other revenue	-	8	1,621	-	1,629
	10,850	23,044	13,577	-	47,471

(2) Gross profit
Gross profit is analysed as follows:
Gross profit excluding sales of development properties	-	1,475	10,151	-	11,626
Gross profit on sale of development properties*	(4,772)	-	-	-	(4,772)
Net realisable value provision on development properties	(4,476)	-	-	-	(4,476)
Reversal of previous net realisable value provision on development properties	2,921	-	-	-	2,921
Release of previous net realisable value provision on disposal of development properties	102	-	-	-	102
	(6,225)	1,475	10,151	-	5,401

(3) Other gains
Other gains are analysed as follows:
Increase in fair value of investment    properties	-	12,449	4,929	-	17,378
Decrease in the fair value of AHFS	-	(4)	(43)	-	(47)
Profit/loss on sale of investment properties	-	(225)	949	-	724
(Loss)/profit on sale of AHFS	-	(229)	9	-	(220)
Profit on sale of overages	-	975	-	-	975
	-	12,966	5,844	-	18,810

(4) Administrative expenses
Administrative expenses are analysed as follows:
Wages and salaries		(3,023)	(542)	(8,511)	(12,076)
Legal and professional		92	(259)	(621)	(788)
Other administrative expenses		(366)	(95)	(3,746)	(4,207)
		(3,297)	(896)	(12,878)	(17,071)

Segmental Balance Sheet                                                                                                      Unaudited as at 30 June 2025

		Capital Growth £'000	Income Generation £'000	Central £'000	Total £'000
Non-current assets
Property, plant and equipment		-	-	5,178	5,178
Right of use assets		-	-	1,330	1,330
Other receivables		26,729	-	-	26,729
Investment properties		344,017	314,837	-	658,854
Investments in joint ventures		7,489	15,172	-	22,661
Retirement benefit asset		-	-	48	48
		378,235	330,009	6,556	714,800
Current assets
Inventories		218,244	262	-	218,506
Trade and other receivables		76,301	11,276	4,218	91,795
AHFS		1,800	16,841	-	18,641
Cash and cash equivalents		-	-	9,798	9,798
Current tax asset		-	-	3,474	3,474
		296,345	28,379	17,490	342,214
Total assets		674,580	358,388	24,046	1,057,014

Financial liabilities and derivative financial instruments are not allocated to the reporting segments as they are managed and measured at a Group level.

Segmental Income Statement                                                                        Audited year ended 31 December 2025

	Capital Growth
	Development properties	Other property activities	Income Generation	Central	Total
	£'000	£'000	£'000	£'000	£'000
Revenue (1)	56,928	47,835	24,986	-	129,749
Cost of sales	(64,979)	(46,772)	(5,446)	-	(117,197)
Gross (loss)/profit (2)	(8,051)	1,063	19,540	-	12,552
Administrative expenses (3)	-	(6,755)	(2,148)	(27,439)	(36,342)
Other gains (4)	-	41,492	7,964	(3,913)	45,543
Other operating expense	-	-	-	(121)	(121)
Operating (loss)/profit	(8,051)	35,800	25,356	(31,473)	21,632
Finance costs	-	-	-	(15,203)	(15,203)
Finance income	-	4,374	153	46	4,573
Share of profit of joint ventures	-	3,615	2,751	-	6,366
(Loss)/profit before tax	(8,051)	43,789	28,260	(46,630)	17,368

(1) Revenue
Revenue is analysed as follows:
Sale of development properties	56,928	-	-	-	56,928
Revenue from PPAs	-	4,741	-	-	4,741
Build-to-suit development revenue	-	41,989	-	-	41,989
Rent, service charge and royalties revenue	-	893	23,247	-	24,140
Other revenue	-	212	1,739	-	1,951
	56,928	47,835	24,986	-	129,749

(2) Gross profit
Gross profit is analysed as follows:
Gross profit excluding sales of development properties	-	1,063	19,540	-	20,603
Gross loss on sale of development properties	(3,152)	-	-	-	(3,152)
Net realisable value provision on development properties	(13,915)	-	-	-	(13,915)
Reversal of previous net realisable value provision on development properties	8,163	-	-	-	8,163
Release of previous net realisable value provision on disposal of development properties	853	-	-	-	853
	(8,051)	1,063	19,540	-	12,552

(3) Administrative expenses
Administrative expenses are analysed as follows:
Wages and salaries	-	(6,127)	(1,027)	(17,508)	(24,662)
Legal and professional	-	105	(629)	(1,614)	(2,138)
Other administrative expenses	-	(733)	(492)	(8,317)	(9,542)
	-	(6,755)	(2,148)	(27,439)	(36,342)

(4) Other gains/(losses)
Other gains/(losses) are analysed as follows:
Increase in fair value of investment   properties	-	41,093	6,113	-	47,206
Decrease in fair value of land and buildings	-	-	-	(3,913)	(3,913)
Decrease in the fair value of AHFS	-	(14)	(63)	-	(77)
(Loss)/profit on sale of investment properties	-	(257)	1,421	-	1,164
(Loss)/profit on sale of AHFS	-	(302)	493	-	191
Profit on sale of overages	-	972	-	-	972
	-	41,492	7,964	(3,913)	45,543

Segmental Balance Sheet                                                                                              Audited as at 31 December 2025                                         

		Capital Growth £'000	Income Generation £'000	Central £'000	Total £'000
Non-current assets
Intangible fixed assets		-	-	450	450
Property, plant and equipment		-	-	8,106	8,106
Right-of-use assets		-	-	1,200	1,200
Trade and other receivables		5,009	-	-	5,009
Investment properties		359,614	307,411	-	667,025
Investments in joint ventures		8,475	16,750	-	25,225
Retirement benefit asset		-	-	81	81
		373,098	324,161	9,837	707,096
Current assets
Inventories		211,799	266	-	212,065
Trade and other receivables		76,974	7,761	758	85,493
AHFS		-	7,686	-	7,686
Cash and cash equivalents		-	-	27,144	27,144
Current tax asset		-	-	2,759	2,759
		288,773	15,713	30,661	335,147
Total assets		661,871	339,874	40,498	1,042,243

Financial liabilities and derivative financial instruments are not allocated to the reporting segments as they are managed and measured at a Group level.

4.  Finance costs and finance income

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Finance income
-  Bank interest	83	141	342
-  Unwind of discounting on deferred consideration	655	2,338	4,231
Total finance income	738	2,479	4,573
Finance costs	-	-
- Bank interest	(4,860)	(4,564)	(11,345)
- Facility fees	(403)	(475)	(643)
- Other fees and amortisation of up-front fees	(347)	(232)	(1,102)
- Other interest	(1,060)	(1,228)	(2,113)
Total finance costs	(6,670)	(6,499)	(15,203)
Net finance costs	(5,932)	(4,020)	(10,630)

5.  Tax

The Group calculates the period tax expense using the tax rate that would be applicable to the expected total annual earnings.  The major components of tax expense in the interim condensed consolidated statement of profit or loss are:

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Current tax
Current period/year	-	-	-
Adjustment in respect of prior periods	-	-	1,358
Total current tax charge	-	-	1,358
Deferred tax
Current year/period	5,988	2,273	(5,924)
Adjustment in respect of prior periods	-	-	(3,330)
Total deferred tax credit/(charge)	5,988	2,273	(9,254)
Tax charge/(credit) recognised in income statement	5,988	2,273	(7,896)
Other comprehensive income items
Deferred tax (charge)/credit - current year	(420)	-	93
Total	(420)	-	93

The deferred tax credit for the period is principally driven by carried forward losses.

6.  Dividends

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Full year dividend of 1.125p per share for the year ended 31 December 2024	-	3,654	3,655
Interim dividend of 0.538p per share for the year ended 31 December 2025	-	-	1,748
Full year dividend of 1.237p per share for the year ended 31 December 2025	4,021	-
	4,021	3,654	5,403

The Board has determined that it is appropriate for an interim dividend for the year ending 31 December 2026 to be paid of 0.592p (H1 2025: 0.538p) per share, an increase of 10% in line with the Group's policy.

There is no change to the current dividend policy to continue to grow the dividends by 10% each year.

7.  Earnings per share

Earnings per share has been calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of shares in issue and ranking for dividend during the period/year.

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
(Loss)/profit from continuing operations attributable to owners of parent (£'000)	(25,396)	9,692	9,472
Weighted average number of shares used for basic earnings per share calculation	324,490,895	323,893,262	324,003,413
Basic earnings per share (pence)	(7.8)	3.0	2.9
Weighted average number of shares used for diluted earnings per share calculation	336,580,014	333,524,686	334,337,040
Diluted earnings per share (pence)	(7.5)	2.9	2.8

The difference between the weighted average number of shares used for the basic and diluted earnings per share calculation is due to the effect of share options that are dilutive.

8.  Investment properties

The Group holds five categories of investment property being Agricultural Land, Natural Resources, the Investment Portfolio, Major Developments and Strategic Land in the UK, which sit within the operating segments of Income Generation and Capital Growth.

	Income Generation			Capital Growth
	Agricultural Land £'000	Natural Resources £'000	Investment Portfolio £'000	Major Developments £'000	Strategic Land £'000	Total £'000
At 1 January 2025 (audited)	6,268	17,761	279,825	126,104	155,531	585,489
Direct acquisitions	-	-	-	36,904	1,599	38,503
Subsequent expenditure	25	94	565	25,011	7,030	32,725
Disposals	-	(824)	-	-	(310)	(1,134)
Increase in fair value	236	600	4,094	2,159	10,289	17,378
Transfers between divisions	-	-	19,449	(19,449)	-	-
Transfers from development properties	-	-	155	-	-	155
Transfer to assets held for sale	-	-	(13,412)	-	(850)	(14,262)
At 30 June 2025 (unaudited)	6,529	17,631	290,676	170,729	173,289	658,854
Direct acquisitions	-	286	-	(10)	-	276
Subsequent expenditure	127	(64)	560	17,077	5,467	23,167
Disposals	-	-	(26,880)	-	-	(26,880)
Increase/(decrease) in fair value	215	(362)	1,330	8,312	20,334	29,829
Transfers between divisions	-	2,445	22,601	(22,601)	(2,445)	-
Transfers to development properties	-	-	-	(10,535)	-	(10,535)
Transfer (to)/from assets held for sale	-	-	(7,686)	-	-	(7,686)
At 31 December 2025 (audited)	6,871	19,936	280,601	162,972	196,645	667,025
Direct acquisitions	-	3	-	(5)	1,155	1,153
Subsequent expenditure	51	143	145	8,065	3,434	11,838
Increase/(decrease) in fair value	4,761	3,590	(4,317)	8,299	(15,323)	(2,990)
Transfers to property, plant and equipment	-	-	785	-	-	785
At 30 June 2026 (unaudited)	11,683	23,672	277,214	179,331	185,911	677,811

Valuation process

The properties were valued in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation -Professional Standards (the 'Red Book') by BNP Paribas Real Estate, Jones Lang LaSalle and Savills at 30 June 2026. All three are independent firms acting in the capacity of external valuers with relevant experience of valuations of this nature.

9.  Investment in joint ventures

	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
At 1 January	25,225	33,553	33,553
Investments in joint ventures	3,810	1,010	1,933
Distributions from joint ventures	(389)	(179)	(619)
Share of profits of joint ventures	(568)	4,356	6,437
Derecognition of carrying value on acquisition of joint venture	-	(16,079)	(12,079)
Share of fair value uplift of joint venture prior to derecognition	-	-	(4,000)
At end of period/year	28,078	22,661	25,225

10.          Inventories

	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Development properties	183,781	202,012	195,185
Planning promotion agreements	4,460	4,049	3,768
Option agreements	8,674	12,183	12,846
Biodiversity Net Gain (BNG) units	267	262	266
Total inventories	197,182	218,506	212,065

The movement in development properties is as follows:

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
At start of period	195,185	190,888	190,888
Acquisitions	(4)	1,255	1,256
Subsequent expenditure	6,806	18,550	37,503
Disposals	(10,721)	(6,286)	(39,156)
Net realisable value provision	(7,485)	(1,453)	(4,899)
Net transfer to land and buildings	-	(787)	(787)
Net transfer (to)/from investment properties	-	(155)	10,380
Total development properties	183,781	202,012	195,185

The movement in net realisable value provision was as follows:

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
At start of period	13,350	8,451	8,451
Charge for the period	7,890	4,476	13,915
Reversal of previous net realisable value provision	-	(2,921)	(8,163)
Released on disposals	(405)	(102)	(853)
At end of period	20,835	9,904	13,350

11.  Assets held for sale

AHFS relate to investment properties identified as being for sale within 12 months, where a sale is considered highly probable and the property is immediately available for sale.

	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
At start of period	7,686	8,910	8,910
Net transfer from investment properties	-	14,262	21,948
Subsequent expenditure	53	11	(268)
Decrease in fair value	(119)	(47)	(77)
Disposals	-	(4,495)	(22,827)
At end of period	7,620	18,641	7,686

12.  Cash

	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Cash	9,461	9,798	27,144

13.  Borrowings

	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Current:
Secured - infrastructure and direct development loans	(16,434)	-
	(16,434)	-
Non-current:
Secured - bank loan	(182,988)	(189,164)	(173,025)
Total non-current borrowings	(199,422)	(189,164)	(173,025)
Total borrowings	(199,422)	(189,164)	(173,025)

Loans are stated after deduction of unamortised fees of £2.6m (June 2025: £0.8m, December 2025: £2.0m).

		Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Infrastructure and direct development loans
North West Evergreen LP & GM Evergreen 2 GP Ltd	Wingates	(16,434)	-	-
Total infrastructure and direct development loans		(16,434)	-	-
Bank loan		(182,988)	(189,164)	(173,025)
Total borrowings		(199,422)	(189,164)	(173,025)

In 2025 the Group refinanced and entered into a new £275 million Revolving Credit Facility ('RCF') having repaid the previous facility in full. The RCF is provided by NatWest, Santander, HSBC and Barclays and covers an initial four-year term, which may be extended to five years at Harworth's request, and is repayable on a non-amortising basis. The RCF includes an uncommitted accordion option which if exercised would increase the RCF to £325 million.

The RCF is subject to financial and other covenants. Borrowings are secured by way of a floating debenture over assets not otherwise used as security under specific infrastructure or direct development loans. Proceeds from and repayments of bank loans are reflected gross in the Consolidated Statement of Cash Flows and reflect timing of utilisation of the RCF. In 2026 the Group entered into a 3-year premium paid interest rate cap covering a notional amount of £50 million at a strike rate of 4.5%.

Infrastructure and direct development loans of £16.4m (December 2025: £nil) are provided by public and private bodies in order to promote the development of major sites or assist with vertical direct development. The loans are drawn down as work on the respective sites is progressed and repaid on agreed dates or when disposals are made from the sites.

14.  Share capital

Issued, authorised and fully paid	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
At start of period/year	32,587	32,495	32,495
Shares issued	107	80	92
At end of period/year	32,694	32,575	32,587

Issued, authorised and fully paid - number of shares	Unaudited As at 30 June 2026	Unaudited As at 30 June 2025	Audited As at 31 December 2025
At start of period/year	325,873,292	324,955,414	324,955,414
Shares issued	1,072,770	801,359	917,878
At end of period/year	326,946,062	325,756,773	325,873,292
Own shares held	(2,166,554)	(1,652,224)	(1,732,232)
At end of period/year	324,779,508	324,104,549	324,141,060

There is only one class of share in issue: ordinary shares of 10 pence each. All shares carry equal rights to dividends, voting and return of capital on a winding up of the Company, as set out in the Company's Articles of Association.

15.  Related party transactions

The Group carried out the following transactions with related parties. The following entities are related parties as a consequence of shareholdings, joint venture arrangements and partners of such and/or common Directorships. All related party transactions are clearly justified and beneficial to the Group, are undertaken on an arm's-length basis on fully commercial terms and in the normal course of business.

	Unaudited 6 months ended/as at 30 June 2026 £000	Unaudited 6 months ended/as at 30 June 2025 £000	Audited year ended/ as at 31 December 2025 £000
MULTIPLY LOGISTICS NORTH HOLDINGS LIMITED & MULTIPLY LOGISTICS NORTH LP
Sales
Recharges of costs	205	-	150
Asset management fee	93	56	86
Water charges	83	80	119
Receivables
Trade receivables	-	49	-
Other receivables	14	-	-
Payables
Other payables	-	(66)	(66)
CRIMEA LAND MANSFIELD LLP
Receivables
Other receivables	1	-	-
Investment made during the year	-	100	150
NORTHERN GATEWAY DEVELOPMENT VEHICLE LLP
Sales
Recharge of costs	2	-	11
Receivables
Other receivables	10	-	-
Investment made during the year	3,810	835	1,783
BRITISH PROPERTY FEDERATION
Purchases	-	-	19

16.  Post balance sheet events

On 6th August, Peel Pepper (UK) Limited ("Peel Pepper"), a company indirectly wholly owned by Peel Holdings Group Limited ("Peel") made an unsolicited firm offer for Harworth at a price of 172.5p per Harworth share in cash (the "Offer").  On 7th August Harworth provided a response which detailed that the Board had no substantive engagement with Peel Pepper or Peel about any offer before their announcement and that Board is unanimous and unequivocal in its rejection of the Offer which, in its view, fundamentally undervalues Harworth and its near and longer-term prospects. On 26th August Peel published its offer document in respect of the unrecommended cash offer. Harworth has today published a circular to Harworth shareholders setting out in full the Board's views on the Offer and the reasons for the Board's unanimous and unequivocal rejection of the Offer.

Appendix

EPRA Net Asset Measures

EPRA introduced a new set of Net Asset Value metrics in 2020: EPRA Net Reinstatement Value ("NRV"), EPRA Net Tangible Assets ("NTA") and EPRA NDV. While the Group uses only EPRA NDV as a key APM, the EPRA Best Practices Recommendations guidelines require companies to report all three EPRA NAV metrics and reconcile them to IFRS. These disclosures are provided below.

		30 June 2026
	EPRA NDV	EPRA NTA	EPRA NRV
	£'000	£'000	£'000
Net assets	670,808	670,808	670,808
Cumulative unrealised gains on development properties	30,229	30,229	30,229
Cumulative unrealised gains on overages	5,564	5,564	5,564
Deferred tax liabilities (IFRS)	-	39,347	39,347
Notional deferred tax on unrealised gains	(8,948)	-	-
Deferred tax liabilities @ 50%	-	(24,148)	-
Purchaser costs	-	-	64,031
	697,653	721,800	809,979
Number of shares used for per share calculations	324,779,508	324,779,508	324,779,508
Per share	214.8	222.2	249.4

		30 June 2025
	EPRA NDV	EPRA NTA	EPRA NRV
	£'000	£'000	£'000
Net assets	698,286	698,286	698,286
Cumulative unrealised gains on development properties	30,391	30,391	30,391
Cumulative unrealised gains on overages	5,250	5,250	5,250
Deferred tax liabilities (IFRS)	-	33,297	33,297
Notional deferred tax on unrealised gains	(8,882)	-	-
Deferred tax liabilities @ 50%	-	(21,090)	-
Purchaser costs	-	-	64,561
	725,045	746,134	831,785
Number of shares used for per share calculations	324,104,549	324,104,549	324,104,549
Per share	223.7	230.2	256.6

	31 December 2025
	EPRA NDV £'000	EPRA NTA £'000	EPRA NRV £'000
Net assets	698,979	698,979	698,979
Cumulative unrealised gains on development properties	32,330	32,330	32,330
Cumulative unrealised gains on overages	5,454	5,454	5,454
Deferred tax liabilities (IFRS)	-	44,915	44,915
Notional deferred tax on unrealised gains	(9,446)	-	-
Deferred tax liabilities @ 50%	-	(27,181)	-
Purchaser costs	-	-	64,084
	727,317	754,497	845,762
Number of shares used for per share calculations	324,141,060	324,141,060	324,141,060
Per share (p)	224.4	232.8	260.9

1)    Reconciliation to statutory measures

a. Revaluation gains/(losses)	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
(Decrease)/increase in fair value of investment properties	(2,990)	17,378	47,206
Increase/(decrease) in fair value of land and buildings	61	-	(3,913)
Decrease in fair value of AHFS	(119)	(47)	(77)
Share of (loss)/profit of joint ventures	(568)	4,356	6,366
Net realisable value provision on development properties	(7,890)	(4,476)	(13,915)
Reversal of previous net realisable value provision on development properties	-	2,921	8,163
Amounts derived from statutory reporting	(11,506)	20,132	43,830
Unrealised (losses)/gains on development properties	(1,952)	1,462	9,381
Unrealised gains on overages	110	150	354
Revaluation (losses)/gains	(13,348)	21,744	53,565
b. Profit/(loss) on sale	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Profit on sale of investment properties	66	724	1,164
Profit/(loss) on sale of AHFS	45	(220)	191
Loss on sale of development properties	(1,914)	(4,772)	(3,152)
Release of net realisable value provision on disposal of development properties	405	102	853
Profit on sale of overages	-	975	972
Amounts derived from statutory reporting	(1,398)	(3,191)	28
Less previously unrealised gains on development properties released on sale	(144)	(2,096)	(8,076)
Less previously unrealised gains on overages	-	(1,000)	(1,000)
Loss on sale contributing to growth in EPRA NDV	(1,542)	(6,287)	(9,048)
c. Value (losses)/gains	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Revaluation (losses)/gains	(13,348)	21,744	53,565
Loss on sale	(1,542)	(6,287)	(9,048)
Value (losses)/gains	(14,890)	15,457	44,517
d. Total property sales	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Revenue	41,271	47,471	129,749
Less revenue from other property activities	(16,713)	(23,044)	(47,835)
Less revenue from income generation activities	(11,383)	(13,577)	(24,986)
Add proceeds from sales of investment properties, AHFS and overages	-	8,019	58,069
Total property sales	13,175	18,869	114,997
e. Operating profit contributing to growth in EPRA NDV	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Operating (loss)/profit	(24,884)	7,083	21,632
Share of (loss)/profit on joint ventures	(568)	4,356	6,366
Unrealised (losses)/gains on development properties	(1,952)	1,462	9,381
Unrealised gains on overages	110	150	354
Less previously unrealised gains on development properties released on sale	(144)	(2,096)	(8,076)
Less previously unrealised gains on overages released on sale	-	(1,000)	(1,000)
Operating (loss)/profit contributing to growth in EPRA NDV	(27,438)	9,955	28,657
f. Portfolio value	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Land and buildings (included within Property, plant and equipment)	3,370	4,662	4,155
Investment properties	677,811	658,854	667,025
Investments in joint ventures	28,078	22,661	25,225
AHFS	7,620	18,641	7,686
Development properties (included within inventories)	183,781	202,012	195,186
Amounts recoverable on contracts (included within receivables)	149	1,729	165
Amounts derived from statutory reporting	900,809	908,559	899,441                                 899,442
Cumulative unrealised gains on development properties as at period/year end	30,229	30,391	32,330
Cumulative unrealised gains on overages as at period/year end	5,564	5,250	5,454                                      5,454
Portfolio value	936,602	944,200	937,225                                 937,226
g. Net debt	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Gross borrowings	(199,422)	(189,164)	(173,025)
Cash and cash equivalents	9,461	9,798	27,144
Net debt	(189,961)	(179,366)	(145,881)
h. Net loan to portfolio value (%)	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Net debt	(189,961)	(179,366)	(145,881)
Portfolio value	936,602	944,200	937,225
Net loan to portfolio value (%)	20.3%	19.0%	15.6%

i. Net loan to core income generation portfolio value (%)	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Net debt	(189,961)	(179,366)	(145,881)
Core income generation portfolio value (investment portfolio and natural resources)	300,886	308,307	300,537
Net loan to core income generation portfolio value (%)	63.1%	58.2%	48.5%
j. Gross loan to portfolio value (%)	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Gross borrowings	(199,422)	(189,164)	(173,025)
Portfolio value	936,602	944,200	937,225
Gross loan to portfolio value (%)	21.3%	20.0%	18.5%
k. Gross loan to core income generation portfolio value (%)	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Gross borrowings	(199,422)	(189,164)	(173,025)
Core income generation portfolio value (investment portfolio and natural resources	300,886	308,307	300,537
Gross loan to core income generation portfolio value (%)	66.3%	61.4%	57.6%
l. Number of shares used for per share calculations (number)	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Number of shares in issue at end of period/year	326,946,062	325,756,773	325,873,292
Less Employee Benefit Trust and Equiniti Share Plan Trustees Limited held shares (own shares) at end of period/year	(2,166,554)	(1,652,224)	(1,732,232)
Number of shares used for per share calculations	324,779,508	324,104,549	324,141,060
m. Net Asset Value (NAV) per share	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
NAV (£'000)	670,808	698,286	698,979
Number of shares used for per share calculations	324,779,508	324,104,549	324,141,060
NAV per share (p)	206.5	215.5	215.6

n. Underlying revenue	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited year ended 31 December 2025 £'000
Total property sales	13,175	18,869	114,997
Income generation portfolio revenue (Investment Portfolio, Natural Resources and Agriculture)	11,383	13,576	24,986
Build-to-suit development revenue	15,476	18,393	41,989
Other revenue	1,237	4,652	5,846
Total underlying revenue	41,271	55,490	187,818
Less proceeds from sale of investment properties, AHFS and overages	-	(8,019)	(58,069)
Statutory revenue	41,271	47,471	129,749

2) Reconciliation to EPRA measures

a) EPRA NDV	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Net assets	670,808	698,286	698,979
Cumulative unrealised gains on development properties	30,229	30,391	32,330
Cumulative unrealised gains on overages	5,564	5,250	5,454
Notional deferred tax on unrealised gains	(8,948)	(8,882)	(9,446)
EPRA NDV	697,653	725,045	727,317

b) EPRA NDV per share (p)	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
EPRA NDV £'000	697,653	725,045	727,317
Number of shares used for per share calculations	324,779,508	324,104,549	324,141,060
EPRA NDV per share (p)	214.8	223.7	224.4

EPRA NDV growth and total return
Opening EPRA NDV/share (p)	224.4	222.3	222.3
Closing EPRA NDV/share (p)	214.8	223.7	224.4
Movement in the period/year (p)	(9.6)	1.4	2.1
EPRA NDV growth	(4.3%)	0.6%	0.9%
Dividends paid per share (p)	1.2	1.1	1.7
Total return per share (p)	(8.4)	2.5	3.8
Total return as a percentage of opening EPRA NDV	(3.7%)	1.1%	1.7%

To help retain and incentivise a management team with the requisite skills, knowledge and experience to deliver strong, long-term, sustainable growth for shareholders Harworth runs a number of share schemes for employees. The dilutive impact of these on the number of shares at 30 June is set out below:

	Unaudited As at 30 June 2026	Unaudited As at 30 June 2025	Audited As at 31 December 2025
Number of shares used for per share calculations	324,779,508	324,104,549	324,141,060
Outstanding share options and shares held in trust under employee share schemes	9,270,638	9,308,007	9,396,649
Number of diluted shares used for per share calculations	334,050,146	333,412,556	333,537,709

c) Diluted EPRA NDV per share (p)	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
EPRA NDV £'000	697,653	725,045	727,317
Number of diluted shares used for per share calculations	334,050,146	333,412,556	333,537,709
Diluted EPRA NDV per share (p)	208.8	217.5	218.1

Diluted EPRA NDV growth and total return
Opening EPRA NDV/share (p)	218.1	217.5	217.5
Closing EPRA NDV/share (p)	208.8	217.5	218.1
Movement in the period/year (p)	(9.3)	-	0.6
Diluted EPRA NDV growth	(4.3%)	0.0%	0.3%
Dividends paid per share (p)	1.2	1.1	1.7
Total return per share (p)	(8.1)	1.1	2.3
Total return as a percentage of opening diluted EPRA NDV	(3.7%)	0.5%	1.0%

d) Net loan to EPRA NDV	Unaudited As at 30 June 2026 £'000	Unaudited As at 30 June 2025 £'000	Audited As at 31 December 2025 £'000
Net debt	(189,961)	(179,366)	(145,881)
EPRA NDV	697,653	725,045	727,317
Net loan to EPRA NDV	27.2%	24.7%	20.1%

Disclaimer

This document does not and is not intended to constitute or form part of an offer to sell or issue, nor the solicitation of an offer to buy or subscribe for, Harworth shares in any jurisdiction in which such offer or solicitation is unlawful. This document is not a prospectus or prospectus-equivalent document or exempted document.

The release, publication or distribution of this document (in whole or in part), directly or indirectly, in or into or from jurisdictions other than the United Kingdom may be restricted by the laws of those jurisdictions. Therefore, persons into whose possession this document comes should inform themselves about, and observe, any applicable legal restrictions or regulatory requirements. Any failure to comply with applicable legal or regulatory requirements of any jurisdiction may constitute a violation of securities laws in that jurisdiction. To the fullest extent permitted by applicable law, Harworth, its affiliates and each of their respective directors, officers, employees and agents disclaim any responsibility or liability for the violation of such restrictions by any person.

This document (including information incorporated by reference in this document) may contain statements which are, or may be deemed to be, "forward-looking statements". Forward-looking statements are prospective in nature and are not based on historical facts, but rather on assumptions, current expectations, valuations, targets, estimates, forecasts and projections of Harworth about future events, and are therefore subject to risks and uncertainties which could cause actual results, performance or events to differ materially from those expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "plans", "expects", "or does not expect", "budget", "targets", "aims", "scheduled", "estimates", "forecast", "intends", "anticipates", "seeks", "prospects", "potential", "possible", "assume" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Harworth gives no assurance that such expectations will prove to be correct. By their nature, forward-looking statements involve risks (known and unknown) and uncertainties (and other factors that are in many cases beyond the control of Harworth) because they relate to events and depend on circumstances that will occur in the future.

There are a number of factors that could affect the future operations of the Harworth group and that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include: changes in the global, political, economic, social, legal, business and competitive environments, in global trade policies, and in market and regulatory forces; the loss of or damage to one or more key customer relationships; changes to customer ordering patterns; the failure of one or more key suppliers; the renegotiation of contracts or licences; changes in future inflation, deflation, exchange and interest rates and fluctuations in component prices; changes in tax and national insurance rates; future business combinations, capital expenditures, acquisitions or dispositions; changes in general and economic business conditions; fluctuations in demand and pricing in the real estate industry; changes in the behaviour of other market participants; labour disputes and shortages; outcome of pending or future litigation proceedings; the failure to maintain effective internal control over financial reporting or effective disclosure controls and procedures, the inability to remediate one or more material weaknesses, or the discovery of additional material weaknesses, in the internal control over financial reporting; other business, technical and/or operational risks and challenges; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary notices, concessions, permits and approvals; weak, volatile or illiquid capital and/or credit markets; any public health crises, pandemics or epidemics and repercussions thereof; changes to the board of directors of Harworth and/or the composition of its workforce; safety and technology risks; exposures to IT system failures, cyber-crime, fraud and pension scheme liabilities; risks relating to environmental matters such as climate change; changes to law and/or the policies and practices of regulatory and governmental bodies; heightening of geopolitical tensions and any repercussions thereof; and any cost of living crisis or recession. Other unknown or unpredictable factors could affect future operations and/or cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors.

Each forward-looking statement speaks only as of the date of this document. No member of the Harworth group nor any of their respective associates or directors, officers or advisers provides any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. Forward-looking statements involve inherent risks and uncertainties. All forward-looking statements contained in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this disclaimer. Readers are cautioned not to place undue reliance on these forward-looking statements. Other than in accordance with their legal or regulatory obligations (including under the Takeover Code, the UK Market Abuse Regulation and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority of the United Kingdom), Harworth is neither under nor undertakes any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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