Harworth Group PLC Trading Update (7235T)
10 January 2017 - 6:00PM
UK Regulatory
TIDMHWG
RNS Number : 7235T
Harworth Group PLC
10 January 2017
Harworth Group plc
Trading Update
Harworth Group plc ("Harworth" or the "Group"), the brownfield
regeneration and property investment specialist, today updates the
market on trading for its financial year ended 31 December
2016.
The Group has delivered further strong operational performance
in the second half of the year. Coupled with the indicative outcome
of the independent annual valuation of the property portfolio, the
Group anticipates that its financial performance for the year ended
31 December 2016 will be ahead of the Board's expectations:
-- Value gains (revaluation gains and profit on disposal) are
anticipated to be significantly ahead of expectations;
-- As a result, Group Net Asset Value (NAV) as at 31 December
2016 is anticipated to be moderately ahead of expectations; and
-- Profit from operations is anticipated to be in line with expectations.
Further strategic delivery has contributed to the strong second
half operational performance and value gains achieved, notably:
-- Site disposals above book value for both residential and
commercial uses, including the sale of 43.7 acres at Logistics
North to Lidl for GBP22.5 million in December 2016 and the sale of
land for 284 residential plots in aggregate to Taylor Wimpey,
Harron Homes and Arch, the Northumberland economic development
company;
-- In addition, disposals of over GBP9 million of agricultural
land have been made to improve the Group's focus on sites with
greater value enhancement potential; and
-- Good progress has also been made in securing beneficial
planning positions and improving lettings across the portfolio,
helping to drive revaluation gains.
The Group also continues to ensure that it is well positioned
for the future:
-- In the final quarter of the year, the Group acquired Four
Oaks Business Park in Preston and Moorland Gate Business Park in
Chorley for a combined total of GBP17.9 million as part of the
Group's objective to replenish its strategic landbank and improve
the quality of its income. These purchases, alongside improved
lettings, the direct development and retained ownership of three
small industrial warehouses across three flagship sites in
Yorkshire and the North West, offset the previously flagged decline
in coal fines sales;
-- Options and planning promotional agreements have also been
signed on a total of nearly 1,500 potential residential plots. This
increases our long term landbank to over 17,000 plots, of which
over 9,500 plots already have planning permission; and
-- Harworth is seeing, and actively targeting, further
opportunities to build its strategic landbank.
Owen Michaelson, Harworth Chief Executive, commented:
"The Group had a positive first half of the year as highlighted
at the time of our interim results in September 2016. This momentum
has continued into the remainder of the year and results are now
expected to exceed expectations, with sales above book value and
good progress on planning and lettings driving the improvement to
the valuation of our portfolio. This position reflects the
underlying strength of our business and reinforces the Group's
confidence in the long-term fundamentals of the regional markets in
which we operate."
The Group is holding a Capital Markets Morning at The Tate
Modern on Wednesday 25 January 2017. Please contact Emma Crawshaw
at Cardew Group if you would like to attend.
- ENDS -
The Company considers this announcement to contain inside
information which is disclosed in accordance with the Market Abuse
Regulation.
For further information:
Harworth Group plc Tel: +44 (0)114 349 3131
Owen Michaelson, Chief
Executive
Andrew Kirkman, Finance
Director
Cardew Group Tel: +44 (0)207 930 0777
Emma Crawshaw
Shan Shan Willenbrock
Emma Ruttle
Notes to Editors
Harworth Group plc (LSE: HWG) is a leading brownfield
regeneration and property investment specialist which owns and
manages a portfolio of around 22,000 acres of land across
approximately 150 sites located throughout the Midlands and North
of England. The Company specialises in the regeneration of former
coalfield sites and other brownfield land into employment areas,
new residential developments and low carbon energy projects.
(http://www.harworthgroup.com/)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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