Harworth reports interim loss as weaker property values hit first half

Harworth Group PLC on Wednesday reported lower interim revenue and swung to a pretax loss, but hailed "good operational and strategic progress", as a challenging macroeconomic backdrop continued to weigh on valuations.

The Rotherham, England-based land regeneration company said its total accounting return for the six months to June 30 was negative 3.7%, compared with positive 1.1% a year prior. Revenue fell 13% to £41.3 million from £47.5 million.

Capital growth, including sales of development properties, development revenue and fee income, contributed £29.9 million. Property rental and royalty income contributed £11.4 million.

Harworth reported a pretax loss of £25.4 million, swinging from a £9.7 million profit a year prior. The result included a negative 15% movement in total portfolio value, compared with positive 16% a year ago.

Harworth recorded a £3.0 million net decrease in the fair value of investment properties, land and buildings, and non-current assets held for sale. A year earlier, it recorded a £18.8 million increase in the fair value of investment properties.

Net asset value per share was 206.5 pence at June 30, down from 215.5 pence a year earlier and 215.6 pence at December 31.

Despite the backdrop and lower earnings per share, the company raised its interim dividend 10% to 0.592 pence per share.

Chief Executive Lynda Shillaw said the company had 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."

She noted strong occupier demand across the company's pipeline, including the first pre-let at its 1.1 million-square-foot Chatterley Park site in Staffordshire and its largest-ever substantially construction-ready land bank.

"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," Shillaw added.

Separately, Harworth reaffirmed its "unanimous and unequivocal" rejection of Peel Pepper Ltd's hostile takeover attempt made on August 7. The offer valued Harworth at 172.5 pence per share, or £582.9 million.

Harworth said the offer "fundamentally undervalues Harworth and its near- and longer-term prospects". The offer price is 20% below Harworth's European Public Real Estate Association net disposal value of £697.7 million, or 214.8 pence per share, at June 30.

Shares in Harworth were marginally higher at 176.63 pence at midday on Wednesday in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.