Harworth Group (LSE:HWG) reported headline sales of £110.2 million for FY2025, supported by 25 completed transactions covering £58.2 million of industrial and logistics disposals and £52.0 million of residential plot sales. Activity took place against a challenging macroeconomic backdrop, with a delayed UK Budget pushing a number of transactions toward the latter part of the financial year.
During the period, the group sold five core industrial and logistics investment assets with a combined area of 0.8 million square feet for £47.7 million. These disposals were completed at a blended net initial yield of 7.6% and at prices above mid-2025 book values. As a result, the proportion of the investment portfolio classified as Grade A assets increased to 75% by value, reflecting Harworth’s ongoing focus on upgrading portfolio quality.
In the residential segment, Harworth disposed of 1,837 plots, broadly in line with historic sales volumes. However, these transactions were completed at a discount to book value, highlighting the impact of current market conditions. Management reiterated its disciplined capital recycling approach, with a continued focus on keeping leverage below 20% and increasing the weighting of industrial and logistics assets to around 85% of the portfolio over time. The group also indicated that reinvestment into higher-quality development opportunities remains central to driving future growth and further portfolio enhancement.
From a financial standpoint, Harworth’s performance benefited from solid revenue growth and improved profitability, underpinning a positive investment case. Valuation metrics remain supportive, with a reasonable earnings multiple and an attractive dividend yield, while recent corporate activity has reinforced confidence in the company’s strategic direction.
That said, technical indicators point to broadly neutral share price momentum, and cash flow dynamics continue to represent an area for improvement as the group executes its long-term strategy.
More about Harworth
Harworth Group plc is a UK-based regeneration specialist, strategic landowner and developer focused on the industrial & logistics and residential sectors. The company owns, develops and manages more than 15,000 acres across over 100 sites across the North of England and the Midlands, transforming large, complex sites into modern industrial and logistics developments and serviced land for residential use, with a long-term focus on creating sustainable places, jobs and communities.
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