Harworth increases dividend despite 'volatile' 2025 and lower revenue

Harworth Group PLC on Tuesday reported lower full-year revenue and pretax profit, as it warned that ongoing market volatility could weigh on the wider UK economy.

The 2025 results come almost two months after the company delayed its £1 billion net disposal value target by one to two years, now guiding for delivery in 2028 or 2029.

The Rotherham, South Yorkshire-based regenerator of land for sustainable development said its total accounting return was 1.7% for 2025 as it reported revenue of £129.8 million for the year, 29% lower than £181.6 million in 2024.

Of those, £108.4 million came from capital growth, meaning the sale of the development properties, development revenues, and fee income, while income from property rental and royalty accounted for £25.0 million.

Harworth also reported £14.7 million in pretax profit in 2025, 75% lower year-on-year from £69.4 million.

Its land and property portfolio value grew 9.1% to £937.2 million in 2025 from £858.8 million in the previous year, with 70% of it being weighted towards the Industrial & Logistics portfolio.

That portfolio drove the overall EPRA net disposal value growth to £727.3 million, up 1.1% from £719.5 million in 2024 and equal to 224.4 pence per share at the end of 2025.

The comapny said the macroeconomic backdrop in the UK has been challenging throughout 2025, ‘with its impact particularly apparent across the residential sector’, as investors remained cautious due to fiscal policy uncertainties and interest rates remained high for longer than anticipated.

Despite the backdrop and decreasing earnings per share, Harworth increased its final and total dividend for the year. It declared a final dividend of 1.237 pence per share, up 10% from 1.125 pence last year, bringing the final dividend up by the same amount to 1.775 pence from 1.614 pence.

Chief Executive Office Lynda Shillaw said the company wants to increase the Industrial & Logistics weighting of its portfolio to 85% by 2029.

‘It sits...at an inflection point, benefitting from structural drivers and emerging sectors which are aligned to our pipeline, underpinned by robust local and national policy support’, she said.

That is because the company said it is ‘positioned at the intersection of reindustrialisation, advanced technologies, data and clean growth,...leveraging its strategically located land bank, power and engineering expertise’.

Shillaw added that Harworth is ‘in a period of market volatility triggered by global events outside the control of management teams which, if prolonged, could impact the UK economy and our ability to deliver our plans within our expected timescales’.

However, the company is still confident it will achieve its £1 billion EPRA net disposal value target between the end of 2028 and 2029.

Harworth shares were down 2.5% to 167.70 pence each on Tuesday morning in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.