Half Year Trading Update
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Harworth Group plc
('Harworth' or the 'Group')
Half Year Trading Update
Advanced negotiations underway on second data centre site
Pipeline momentum underpinned by growth in occupier demand
Harworth Group plc, a leading regeneration, strategic land and development business, today provides a trading update for the six months ended 30 June 2026, ahead of its Half Year Results announcement, which is scheduled for 15 September 2026.
Data centre pipeline update
Following on from Harworth's first hyperscale data centre transaction, a £106.6m land sale to Microsoft in 2024, the Group is confirming today that it has identified a second site in its current portfolio of powered land that can deliver a hyperscale data centre. Harworth has entered advanced negotiations with several counterparties for the sale of the site, which benefits from planning consent and power connections, and has the potential to deliver total value gains which would be ahead of the Group's first hyperscale data centre transaction.
This opportunity underscores the embedded value in Harworth's 0.8GW power-enabled land bank that is still to be realised or reflected in the Group's current EPRA NDV. Beyond this transaction, there are further potential hyperscale data centre opportunities within the Group's current portfolio, as well as smaller-scale digital infrastructure projects across its sites, including colocation facilities and edge providers.
Harworth has previously announced its intention to position its portfolio to 85% industrial & logistics - and thereby reduce its residential exposure to below 15% - by 2029, and has made good progress towards this goal, achieving a 70% weighting at the end of 2025. Due to the scale and strength of opportunities across its industrial & logistics and powered land pipeline, with growing occupier interest, Harworth is now accelerating its reallocation of capital to higher returning opportunities aligned to powered land and industrial growth sectors.
Highlights for the six months ended 30 June 2026
· Completed or in legals on three pre-lets for units to be built by Harworth and held in its Investment Portfolio, which will generate £3.7m of annualised rental income, at an average 17% premium to combined ERV:
o a 30,700 sq ft unit for a logistics operator at Gateway 36, Barnsley, for use as a last-mile parcel and postal distribution facility
o a 108,600 sq ft advanced manufacturing facility for an automative parts designer at Chatterley Park, Staffordshire: unit will be the first at the development, which is construction-ready to deliver a total of 1.1m sq ft of power-enabled space
o a 180,000 sq ft unit at the Advanced Manufacturing Park, Rotherham, for an existing occupier
· In addition, progressing a total of 1.5m sq ft of letting and land sale negotiations across the portfolio, with increasing momentum across the full spectrum of Harworth's built products, from mid to big box
· Completed, exchanged or in legals on 60% of budgeted full year sales, including 952 residential plots, demonstrating strong demand, with the remainder of the sales pipeline progressing well
· Total industrial & logistics land bank stands at 34.8m sq ft, with 73% consented or in the planning system, and 4.0m sq ft substantially construction-ready, offering up to c.£600m of GDV potential in the next 3-5 years
· Well positioned balance sheet with a low pro-forma LTV of 20.4% as at 30 June 2026, reduced to 15.6% as of today, both based on 31 December 2025 valuations (30 June 2025 actual: 19.0%), and available liquidity of £99.5m as at 30 June 2026 (30 June 2025: £59.8m)
· EPRA NDV as at 30 June 2026 expected to be modestly below 31 December 2025 levels, principally due to residential market headwinds:
o Industrial & logistics land valuations expected to be broadly in line with 31 December 2025 levels, as management actions to drive value across industrial & logistics and data centre sites largely offset cost increases in labour and materials
o Residential land valuations expected to be below 31 December 2025 due to softer demand and increased costs in housebuilder end markets
Lynda Shillaw, Chief Executive of Harworth, commented: "Harworth specialises in unlocking land at scale, with planning and power secured, and this is key to capturing high-returning development opportunities across the data centre and advanced manufacturing sectors. Our second data centre opportunity that we are highlighting today underlines Harworth's position as one of the most significant regional players in the rollout of the UK's digital infrastructure, working with some of the largest operators in the industry.
"In addition to these opportunities, we have seen strong momentum across our sales and lettings pipeline during the first half and into the second, including the first letting at our 1.1m sq ft Chatterley Park site, to an advanced manufacturer, and a further letting to a national logistics operator at our well-established Gateway 36 development.
"With our unique skillset, extensive land bank and 0.8GW of power connections across our portfolio either conditionally secured or in the pipeline, we are well positioned to accelerate our reallocation of capital to powered land and industrial growth sectors. This in turn will create a simpler, higher-returning platform to deliver sustainable future growth."
For further information
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Harworth Group plc |
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Lynda Shillaw (Chief Executive) Kitty Patmore (Chief Financial Officer) |
T: +44 (0)114 349 3131 |
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FTI Consulting |
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Dido Laurimore Richard Gotla Eve Kirmatzis |
T: +44 (0)20 3727 1000 |
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
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