HARWORTH GROUP PLC

('Harworth' or the 'Group' or the 'Company')

Full Year Results for the year ended 31 December 2025

 

Sustained Industrial & Logistics momentum & strategically positioned to unlock high value opportunities

 

Harworth Group plc, a leading regeneration, strategic land and development business, today announces its results for the year ended 31 December 2025. See page 2 for summary of business and abbreviations¹.

 

Summary highlights2	2025	2024	% change		2025	2024	% change
Total accounting return (%)	1.7	9.1	-7.4pp	Value gains (£m)	44.5	97.2	-54.2
EPRA NDV per share (p)3	224.4	222.3	+0.9	Total Property Return (%)4	8.4	12.0	-3.6pp
EPRA NDV (£m)3	727.3	719.5	+1.1	Total property sales (£m)5	115.0	215.8	-46.7
Net loan to portfolio value (%)	15.6	5.4	+10.2pp	Residential plot sales6	1,837	2,385	-23.0
Portfolio value (PV) (£m)	937.2	858.8	+9.1	Inv. Portfolio value (£m)7	305.0	297.2	+2.6
I&L weighting of PV (%)	70	63	+7pp	Inv. Portfolio Grade A (%)8	76	63	+13pp

 

Financial highlights9	2025	2024	% change		2025	2024	% change
Total dividend per share (p)10	1.775	1.614	+10.0	Operating profit (£m)	21.6	74.6	-71.0
Net debt (£m)	145.9	46.7	+212.0	Stat. portfolio value (£m)11	899.4	821.6	+9.5
Net assets per share (p)	215.6	213.7	+0.9	Net asset value (£m)	699.0	691.7	+1.1

     pp = percentage point change

 

Lynda Shillaw, Chief Executive of Harworth, commented: "I am pleased with the performance of our teams and our operational execution throughout 2025, positioning the portfolio to realise future upside potential and delivering a total property return of 8.4%, outperforming the MSCI UK Annual Property Index of 5.6%.  As we continue to execute our strategy and reposition the portfolio towards I&L, our long-term through-the-cycle model, management actions and disciplined approach to capital deployment remain essential to creating value for shareholders, including our £1bn of EPRA NDV ambition and high-single, low double-digit total accounting return target. Over the last five years to 2025, the sustained delivery of our strategy has delivered cumulative Total Accounting Returns of 44.5%.

"Harworth is at the intersection of some of the UK's most powerful trends, including data, advanced technologies, reindustrialisation and clean growth. Our land bank provides both strategic levers and optionality to generate attractive risk-adjusted returns, and the Harworth Platform underpinned by our specialist skills and ability to deliver successful serviced land and developments for world-leading businesses is central to stimulating and supporting economic growth in our regions.

"Land at scale, suitably zoned and power-enabled, is key to accessing emerging market opportunities such as data centres. For a subset of sites, we have been actively pursuing upside opportunities with 0.8GW of power connections either conditionally secured or in the pipeline with Network Operators. Together with further applications currently advancing, these represent significant progress towards both near and longer-term transactions that have the potential to deliver enhanced value gains and superior returns. 

"While we are monitoring the conflict in the Middle East and its potential impact on the UK economy and our markets, we remain encouraged by a continued pipeline of strong interest across our I&L land and property portfolio of 1.6m sq ft. We are in a strong position to capitalise on market trends and unlock value to crystallise attractive medium-term opportunities, giving the Board confidence in Harworth's potential to deliver exciting projects and achieve attractive shareholder returns."

2025 PERFORMANCE

 

Strong I&L performance supporting future growth

·     I&L land and property portfolio now at 70% of portfolio value (2024: 63%) delivering return on capital deployed across I&L Major Developments and Strategic Land of 22.9% and 8.7% on the I&L Investment Portfolio. ·     I&L Investment Portfolio valued at £305.0m, with EPRA vacancy12 reduced to 1.0% (2024: 5.6%) following strong lettings and disposals. ·    Completed £47.7m of IP headline sales and 1.4m sq ft of leasing, including 379,000 sq ft of new leases, adding £3.7m of rent, like-for-like rent up 10.4%. ·      IP Grade A quality increased to 76% by value and 64% by area (2024: 63% by value, 45% by area).

 

Accelerated Residential sales drive capital recycling

·    Completed 1,837 plots sales (including 725 plots under Planning PPAs, generating £3.1m of fees) and delivered £52.0m of freehold headline sales at a marginal discount to June book values. ·    Residential sales since 2020 crystalised £343m of capital, reducing consented plots by 67% to improve capital efficiency.

 

EPRA NDV driven by I&L value gains

·      EPRA NDV per share of 224.4p (2024: 222.3p) delivering a total accounting return ('TAR') of 1.7%. ·     Net value gains of £44.5m, reflecting £73.6m in I&L value gains, partially offset by £28.7m of value losses across Residential Major Developments, reflecting prevailing residential market weakness.

                                                                               
DRIVERS OF FUTURE GROWTH

 

Data centre and power-enabled land platform gaining momentum

·      Significant progress identifying data centre and power-enabled land portfolio within our land bank. ·      0.8GW of power connections conditionally secured, or advancing through Network Operators' pipelines. ·      Near-term opportunities in active discussion.

I&L land & property portfolio positioned to realise value

·    Enabling works completed or significantly progressed on land with capacity to deliver 4.0m sq ft into I&L and emerging growth sectors, positioning the portfolio to accelerate value realisation. ·     Acquired remaining 50% interest from JV partner at Gateway 45 adjacent to Microsoft's proposed hyperscale data centre at Skelton Grange, £53.2m of cash and associated value gains expected over the next year ·      Strong interest in 1.6m sq ft of potential deals across a broad range of I&L transactions. ·      22.2m sq ft of I&L land with consent or awaiting determination of planning, driving pipeline for next generation of sites, including Northern Gateway JV. ·      I&L land bank capacity to deliver up to 35.0m sq ft, 75% consented or in the planning system.13

 

Enhanced financial capacity to scale I&L

·     Refinanced and enlarged RCF to £275m (from £240m) with accordion to £325m, 25bps to 35bps improvement in margin ratchet. ·     Year-end liquidity of £127.1m; LTV at 15.6%, below <20% year-end target, supports value enhancing investments.

 

 

About Harworth

We aim to create long-term, through-the-cycle value by focusing on:

Two structurally undersupplied sectors: 1. Industrial & Logistics ('I&L') growing to 85% weighting 2. Residential ('R')	Two core products: 1. Serviced remediated land for sale 2. Development land to hold and for sale
Three portfolios: 1. I&L Investment Portfolio ('IP'), 2. Strategic Land ('SL') 3. Major Developments ('MD')	Three regions: 1. Yorkshire & Central ('YAC'), 2. Midlands ('MID') 3. North West ('NOW')

 

Our land bank stands at 35.0m sq ft of I&L of which 75% is consented or in the planning system¹³ (Dec 2024: 33.6m sq ft; 63%) and 29,386 Residential plots of which 45% are consented or in the planning system (Dec 2024: 31,264; 46%).

 

Since 2021, we have achieved planning on 9.2m sq ft of I&L space with an estimated Gross Development Value ('GDV') of £1.3bn, we have concluded on cumulative sales of c. £700m, including 9,000 Residential plots and we have bought or taken options over I&L land totalling 14.3m sq ft, with an estimated GDV of £2.1bn.

 

Harworth Group plc (LSE: HWG), is a leading regeneration, strategic land and development business focused on the I&L and Residential sectors. We own, develop, and manage a portfolio of over 15,000 acres of Strategic Land over 100 sites located throughout the North of England and Midlands. We specialise in delivering long-term value for all stakeholders by regenerating large, complex sites, into new I&L developments and serviced remediated land for sale into the I&L and Residential land markets. Our long-term through-the-cycle business model is to create sustainable places, support new homes, jobs and communities where people want to live and work. Visit www.harworthgroup.com for further information. LEI: 213800R8JSSGK2KPFG21

 

Notes:

1. All values are Harworth's share, unless noted otherwise 2. Represent our Alternative Performance Measures (APMs). A full description of these is set out in Note 2 to the financial statements with a reconciliation between statutory measures and APMs set out in the Appendix to the financial statements 3. European Public Real Estate Association Net Disposal Value 4. Total Property Return (TPR) is the ungeared return of the portfolio as a percentage of capital employed. TPR figures calculated by MSCI. 5. A reconciliation of Total property sales is set out in the Appendix 6. Residential plot sales for 2025 includes 1,112 freehold plot sales and 725 plot sales through Planning Promotion Agreements (PPAs) 7. The Investment Portfolio represents our primary income generating I&L portfolio.  It excludes Strategic Land, Major Developments, Natural Resources, and Agricultural land 8. Measured by value. Grade A by area is 64% 9. The financial highlights represent our statutory measures 10. The Ex-dividend date, Record date and Payment date for the 2025 final dividend can be found in the Shareholder Information section of this announcement 11. Statutory portfolio value includes investment properties, development properties, Assets Held for Sale (AHFS), occupied properties and investment in joint-ventures, refer to Note 2 to the financial statements 12. European Public Real Estate Association vacancy rate 13. In the planning system includes draft allocations, allocations and awaiting determination

 

 

For further information

 

Harworth Group plc
Lynda Shillaw (Chief Executive) Kitty Patmore (Chief Financial Officer) Juliana Weiss Dalton (Investor Relations)	T: +44 (0)114 349 3131 E: [email protected]
FTI Consulting
Dido Laurimore Richard Gotla Eve Kirmatzis	T: +44 (0)20 3727 1000 E: [email protected]

 

Results presentation

Harworth will host a presentation for analysts and investors at 10.30 am today. A live webcast and playback of this can be accessed at the following link: https://brrmedia.news/HWG_FY_25

 

Engage Investor presentation

A presentation relating to these results will also be hosted via the Engage Investor platform on 23 March 2026 at 3.30pm. Harworth welcomes all current and interested shareholders and encourages investors to pre-submit questions. Investors can also submit questions at any time during the live presentation.

Investors can sign up to Engage Investor at no cost and follow Harworth Group plc from their personalised investor hub. Please register for the event here: https://engageinvestor.news/HWG_IP26

 

  

Chair's statement

Introduction:

During 2025, we have executed against our strategy to deliver for our shareholders and wider stakeholders in a challenging environment and further position our business for long term success and value creation.

 

This has been a year of sustained operational progress following our strategic pivot to accelerate our Industrial & Logistics ('I&L') land bank, allocate capital to site investment for future delivery, and retain more prime Grade A assets in our Investment Portfolio.

 

The UK macroeconomic backdrop has been challenging throughout 2025 with its impact particularly apparent across the residential sector, where weakening residential fundamentals have been exacerbated by supply side regulatory and cost hurdles and lack of demand-side stimulus. Our future pipeline remains focused on I&L where 2025 saw greater stability of market fundamentals. Prudent investment in site assembly and enabling works has meant we are well placed to deliver Grade A assets when momentum builds in the market.

 

With interest rates staying higher for longer than anticipated and with occupier and investor caution regarding UK fiscal policy, a broad-based uplift in demand has yet to come through. Most market commentators are reporting further weak growth in Q4 2025, impacting demand and asset valuations, particularly across the residential market. Overall, timeframes to conclude deals remain elongated, and whilst there was a short respite post the autumn UK Budget, we are mindful of the potential impact on this year of recent geopolitical uncertainty and the resulting wider macroeconomic effects. This has been, and remains, a challenging environment for our teams at Harworth, as they have worked diligently to successfully complete sales and lettings transactions.

 

Against this backdrop, the business has successfully evolved the quality of the Investment Portfolio by transferring in new Grade A developments and reducing vacancy through strong letting activity. Total Property Sales of £115.0m completed, including 1,837 of Residential plot sales. These transactions are testament to the capability of our people, their specialist skillset and deep market network. The continued outperformance relative to the market of the I&L land and property portfolio supports our decision to allocate capital to the next generation of sites in anticipation of improved market demand and thereby deliver value creating management actions.

 

Our people:

The long-term sustained growth of Harworth is best delivered by creating an environment that cultivates a high-performance culture. Our high talent retention and strong employee engagement and happiness scores have culminated in the award of the Investor People Gold accreditation. This a relatively rare achievement for a first-time assessment and reflects the growing effectiveness of our people strategies and our drive for continuous improvement, supporting our people to achieve their full potential for the benefit of all our stakeholders.

 

The speed with which we can progress as a business directly depends on our success in bringing together the necessary skills, experience and relationships. It is therefore critical that we attract and retain the leadership talent we need to achieve our strategic ambitions. This was the driver behind the Remuneration Policy that was strongly supported by shareholders at the May 2025 AGM to cover the 2025-2027 three-year period. We consulted widely prior to putting this policy to the vote and have subsequently further explained our rationale to those of our shareholders who disagreed with our approach.

 

In 2025, Harworth's leadership successfully delivered an internal restructure to better support the business's future growth. Operations moved from a regional to national structure to improve delivery capabilities, support scale and accelerate existing successes. As we continue to pursue our strategic ambitions by growing the next generation of sites, the associated development pipeline and our I&L Investment Portfolio, we recognise the need to ensure that our people have the resources and capabilities to add maximum value working alongside our Harworth partners.

 

The Harworth Way:

As a leading regeneration specialist and strategic land owner, our unique oversight of the full development lifecycle - from land assembly and planning, through to multi-phased infrastructure, building and placemaking - enables us to align commercial outcomes with the creation of long-term benefit for our communities, people and the planet. By supporting the delivery of new jobs and homes we aim to ensure a positive lasting impact.

 

Sustainable outcomes, including our Net Zero Carbon ('NZC') ambitions, are well embedded into our delivery operating model and form a fundamental element of our overall growth strategy. The Harworth Way continues to serve as our framework for integrating sustainability and social value from idea and design concept to final occupation, guiding our decisions as to how to invest in, develop, and manage our sites.

 

We continue to make good progress against our 2030 NZC target for our business operations. Collaboration with our supply chain is central to our progress towards achieving our 2040 NZC target for all emissions. Our upstream Scope 3 emissions reporting via our contractors and suppliers and downstream emissions from tenants in our I&L Investment Portfolio are key to identifying our largest elements of emissions and guiding us as to where to focus to meet our targets. We have a strong track record of working in partnership with suppliers, occupiers, and local and combined authorities and are well placed to deliver whole life carbon and detailed energy assessments as part of our approach to developments.

 

Since 2022, our developments have met specified embodied carbon and operational energy targets, with rooftop solar included as standard. More recently, our work on nature and Biodiversity Net Gain ('BNG') has matured, delivering our first two habitat banks, to support the development of our sites. This is a model that we will look to replicate across our portfolio with more sites in the planning pipeline as we integrate BNG into our serviced land offering, ensuring our focus on nature and on our environmental impact is central to the products that we deliver and demonstrating the Harworth Way Planet Pillar in action.

 

Last year, recognising that sustainability reporting is mainstream for our business, we took the decision to move oversight to the main Board, rather than having it focused on by only a subset of our directors through the ESG Committee. Aligning development-level reporting through emerging industry standards and corporate-level reporting via the IFRS' International Sustainability Standards Board ('ISSB') should improve governance in this area, this being achieved at Harworth by making oversight of sustainability reporting the responsibility of the Audit Committee.

 

Board updates:

At the 2025 Annual General Meeting, Ruth Cooke, retired from the Board as an independent Non-Executive Director, having joined in March 2019. My grateful thanks go to her for her contribution over the years, particularly as we developed our mixed tenure Residential offering, bringing her very valuable perspectives as Chief Executive of one of the largest regional housing associations.

 

Last September, we appointed Phil Redding as a new independent Non-Executive Director, bringing significant experience and capability within the industrial and logistics sector, having served in C-suite positions at both SEGRO and most recently Tritax. As we pursue opportunities to transform our high-quality land bank, Phil's track record in scaling UK industrial and logistics platforms will be of great value to the Board.

 

On behalf of the Board, my thanks to everyone both within Harworth, and to our shareholders, partners, advisers, suppliers and contractors, who have made possible the significant progress we have achieved over the past year, both bringing sites to fruition and in particular in advancing the developments that will enable us to deliver growth and meet our strategic targets, whilst delivering attractive returns over the coming years.

 

Alastair Lyons

Chair

16 March 2026

 

 

Chief Executive's review

 

The operational progress in 2025 reinforces our core strengths: a high-quality land bank, a disciplined balance sheet, and a proven delivery platform capable of generating sector leading returns.

 

During the year, we progressed actions to improve the quality of our business and drive long term growth. These actions focussed investment on enabling works at key I&L sites, including Chatterley Valley (Staffordshire), Wingates (Greater Manchester), Gascoigne Wood (North Yorkshire) and Skelton Grange (South Yorkshire). We now have our largest ever portfolio of substantially complete serviced land with the capacity to deliver c. 4.0m sq ft, opening up optionality for delivery of development and value realisation.

 

We progressed the works at Skelton Grange (West Yorkshire) to deliver serviced land for a hyperscale data centre for Microsoft, where we expect a further £53.2m payment, for the second phase of the sale in the next 12 months. On the back of this significant transaction, we have been scaling our power-enabled land portfolio, building on our track record in developing industrial sites. We have been actively pursuing a portfolio totalling 0.8GW of power connections, either conditionally secured or in pipeline with Network Operators, capable of supplying data centres and power-intensive sectors, over the next five to ten years.

 

In January, we reconfirmed our ability to grow EPRA NDV to £1bn and announced an extension to the delivery timeline to between end 2028 and end 2029 to reflect the impact of ongoing macroeconomic weakness and resulting investor and business uncertainty, which has lengthened timings to complete deals. Our conviction in our ability to continue to unlock value across our land bank and execute on high value transactions, including power-enabled land, remains unchanged, and we are encouraged by a 1.6m sq ft pipeline of strong interest across our I&L land and property portfolio, ensuring we are well placed to capture the positive momentum observed following the November 2025 UK Budget and emerging improvements in industrial market fundamentals. With geopolitical uncertainty increased in recent weeks, following the escalation of conflict in the Middle East, we are monitoring the impact on interest rates and the potential inflationary impact feeding through to the UK economy which if sustained could impact the timing of our plans. We remain committed to delivering our strategic objectives in the face of challenging market conditions and continue to focus on the areas we can control to drive our land bank forward and accelerate the delivery of our sites whilst achieving our NZC ambitions.

 

Operational performance

 

Having launched our strategy in 2021 to grow EPRA NDV to £1bn, we have followed a clear road map and transparent set of growth drivers against which to judge our progress, as set out in the table below.

 

Growth drivers	Metric	20201	2024	2025	Ambitions by end of 2027
Reposition core Investment Portfolio	Grade A as % of portfolio value	20	63	76	100% Grade A
Increase capacity for I&L developments	Sq ft of I&L built/ land sold (m sq ft)	C: 0.23 E: 0.4	C: 0.1 E: 3.14	C: 0.3 E: 4.05	0.8m sq ft run-rate (average per annum)
Accelerating Residential sales & broadening range	Residential plot sales	8623	2,385	1,837	2,000 plots (average per annum)
Scaling up through land acquisition and promotion	Years of land supply remaining	12-15 years	12-15 years	12-15 years	Maintain land supply of 12-15 years
					Ambitions beyond 2027
Grow EPRA NDV	EPRA NDV (£m)	515.96	719.5	728	£1bn by end 2028 to end 20297
Grow Investment Portfolio	IP (£m)	221.48	297.2	305.0	£0.9bn by end of 2029

1. Targets announced 2021. FY20 used as baseline | 2. C = completed and land sold; E: enabling works completed or underway | 3. Annual average 2015 to 2020 | 4. Total enabling works in 2024 included 1.3m sq ft of works completed and 1.8m sq ft underway at year-end | 5. Total enabling works in 2025 included 2.2m sq ft of works completed and 1.8m sq ft underway at year-end | 6. EPRA NDV at 31 December 2020 | 7. Announced in 19 January 2026 trading statement that the timeline has extended out to a range of between the end of 2028 to end of 2029 | 8. Announced H2 2024. FY2023 of £221.4m is used as baseline.

I&L delivery

Our Investment Portfolio stood at £305.0m at 31 December 2025, comprising 33% of the overall portfolio. Repositioning our Investment Portfolio to modern Grade A continues to progress and stood at 76% by value (64% by area), from a starting point of 23 % by value, five years earlier. In the year, we successfully delivered on direct development of new units and made asset sales, which were either of secondary assets or where we had already maximised value through asset management or re-development initiatives. This places us well on our way to achieving our 100% Grade A target.

 

Our I&L Major Developments ('MD') portfolio value was £198.2m, comprising 21% of the overall portfolio. It is the main driver of direct development, together with our I&L Strategic Land ('SL') portfolio providing the next generation of Harworth sites. The I&L MD portfolio consists of nine sites at various stages of development, ranging from early enabling works, like Wingates (Greater Manchester), to sites ready to develop, like Chatterley Valley (Staffordshire) and Gateway 36 (South Yorkshire). During the year, we completed direct developments at the AMP (South Yorkshire) and Droitwich (Worcestershire) and transferred these Grade A units from MD to the Investment Portfolio. Land with capacity to deliver 4.0m sq ft has had enabling works completed or significantly progressed.

 

Our target is to enable land with a capacity to deliver an 800,000 sq ft run-rate of I&L space by 2027 and a cumulative total of 4m sq ft. We plan to develop this in part for our Investment Portfolio, with the remainder to be delivered via a number of potential routes:

·      Traditional serviced land sales ·      Built-to-suit (serviced land sale with a development management fee), or ·      Forward funding (serviced land sale with a development management and asset management fee)

 

Regardless of the route, our enabling works create development platforms for vertical construction and are a critical component of creating value, driving portfolio performance and TAR, which remain our priorities. In the year, we leveraged our balance sheet capacity to invest in our sites, creating service land parcels that we believe will drive the greatest value for shareholders.

 

Accelerating the delivery of our high-quality land bank is a key skillset and fundamental to our business model. Both the quality of the land bank and our ownership structure have a role to play. We are increasingly pursuing more capital light ownership, including strategic partnerships, to ensure we are well placed to deliver product into the market and optimise returns as well as looking to work with external capital sources.

 

Data centres and power-enabled land

 

The North and Midlands are well positioned for such development offering a combination of power connection capability, fibre backbones, skills and lower land value, and at this point in the cycle are capable of creating superior risk-adjusted returns. Since early works began on Skelton Grange as a possible data centre site, we have been reviewing our portfolio to identify further opportunities.

 

Power is the critical component to meeting emerging sector demand, such as data centres, and we have been working on building a power-enabled land bank within our Strategic Land and Major Developments portfolio for a number of years, accelerating value creation potential through accessing power companies and data centre operators, securing power reservations and planning, typically prior to investment in land servicing costs. This means that we now have 0.8GW of land and power positions, over half of which are in the power application system and capable of supplying power-intensive sectors over the next decade.

 

We have a deep skill set in land assembly, remediation and servicing of large-scale sites, in house technical and power teams who develop and secure solutions for both brownfield - former mining and power station sites - and land that is allocated or can deliver at scale as part of regional growth plans across our portfolio.

 

Policy support is reasonable to favourable across our regions, and, where we see it as a key enabler to support regional growth we will work with local and Government stakeholders to achieve AI Growth Zone status. Working with all parties to open sites up, and our land and relationships in this sector, both with power companies and data centre operators looking for the best sites, give us meaningful potential to unlock value over the medium-term.

 

Residential delivery

Our Residential product is an important source of cashflow funding to ensure we can accelerate our land bank and apply capital to higher growth opportunities to deliver value. We completed 1,837 Residential plot sales in the period, in line with our four-year average and off the back of record sales last year. These sales included 725 plots through PPAs, generating fee revenue of £3.1m and 1,112 freehold plots at headline sales of £52.0m. A further 746 Residential plots sales were conditionally exchanged at year-end, with 155 now complete. Headline sales values were stable, but completions were at an overall average discount of 4% against June book values. The impact of macro uncertainty, increased regulatory costs, and a slower sales market resulted in Residential Major Development valuations reducing at the end of the year. Looking ahead, there remains a short supply of high quality consented serviced land and the potential for demand-side stimulus to have a positive impact on the housing market.

 

Since 2020, we have sold over 9,000 plots to housebuilders or affordable housing providers and at year-end, our land bank had 3,065 consented plots remaining, reduced from 9,355 plots in 2020, now comprising 10% of the residential land bank of 29,386 plots. Our residential strategy has been to work through this mature consented land bank more quickly as this part of the portfolio has a higher carrying value with value gains created through planning and early-stage place-making.

 

Going forwards, we remain focussed on securing planning approval for the 9,085 plots that are currently in the planning pipeline, realising value through planning and using capital light and partnership structures for delivery. We are committed to pursuing the highest risk-adjusted returns by continuing to recycle capital from our residential sites to reinvest into our development pipeline, targeting increasing our I&L portfolio weighting to 85% by 2029.

 

Our markets

Our high quality strategic landbank gives us the ability to focus on growth sectors through the cycle and our current strategic focus is to shift the weighting of the portfolio into the industrial & logistics market, with 70% of our portfolio currently in I&L and the remaining predominantly in Residential. These markets remain critical to the UK's economic growth continuing to face structural undersupply. Our focus and ambition to grow the portfolio I&L weighting to 85% underpins our growth though this phase of the cycle, especially in light of the impact on the Residential market of global macro and increased geopolitical uncertainties witnessed in 2025, combined with regulatory pressures.

 

Macro uncertainty weighed heavily on investor and occupier sentiment throughout 2025, from trade tariffs impacting confidence in large international businesses in the first half, to UK businesses waiting for the late Budget to be issued in the autumn. This resulted in delays in our sales transactions which were almost entirely second half weighted with a high proportion completing in the final quarter.

 

Industrial & Logistics

Industrial and logistics assets remain amongst the favoured real estate sub-sectors with continued rent growth and stable yields for prime industrial assets in all regions.

 

Occupier demand for I&L assets in 2025 was dominated by supply chain reshoring and manufacturing alongside logistics requirements which continued to push rents forwards. We see both advanced manufacturing and defence as growing trends in the industrial market and we anticipate these sectors will drive more manufacturing take-up in the medium term, a trend that aligns well with our portfolio.

 

According to JLL, Grade A big box logistics take-up was up 9% year-on-year and up 27% over the pre-COVID average, reaching 24.5m sq ft. Speculative take-up was 8.7m sq ft with Grade A supply down 9% on H1-2025 and 4% on 2024. Aligned with our own strategy of reducing speculative build, floorspace speculatively under construction fell to 5.6m sq ft, down 54% year-on-year. We let 379,000 sq ft space in 2025, with demand picking up at the end of the year post Budget, although transaction timelines were prolonged throughout the year.

 

All these factors combined meant that our regions saw healthy rental growth with the North and Midlands amongst the UK's most active logistics corridors, supported by food retail expansion, manufacturing onshoring and relative affordability in comparison to the South East. Prime headline rents grew by 4.7% nationally, supported by constrained Grade A supply. The North West benefitted from more attractive rental growth, with prime rents for Manchester up 9.5% year-on-year. We expect our attractive North West portfolio to benefit from this growth on sites such as Chatterley Valley, Wingates and our Northern Gateway JV, where a 6.5m sq ft planning application was submitted in 2025.

 

Our Investment Portfolio saw like-for-like headline rental growth for lettings on existing space, renewals and rent reviews completed of 10.4%. This validates our conviction for high quality Grade A I&L space in strong locations.

Data centre sites

The UK is Europe's largest and most mature data centre market with strong connectivity and foreign investment. The Government's recognition of data centres as 'Critical National Infrastructure' will help to drive sites through planning and shorten delivery timelines. The UK market is forecast to more than double by 2030 driven by unprecedented demand for cloud services, AI computing, advanced manufacturing and public sector digitalisation and data storage and our regional markets are set to benefit. The North is increasingly recognised as a strategically important regional data centre market, driven by London capacity constraints, improving power availability and targeted government support. Greater Manchester and Yorkshire are emerging as key secondary growth markets, supported by grid reinforcement and an increasing share of new capacity and access to renewable energy. Combined with lower land costs and strong local authority alignment, investors are increasingly looking to invest in these markets.

 

The regional market is anchored by three clusters of which two are in our portfolio, Manchester, where our Northern Gateway JV sits, and Yorkshire (Leeds - Sheffield), where our Skelton Grange site for Microsoft sits. These sites are a catalyst for economic growth in our regions, with our Skelton Grange site estimated to deliver c. £4bn of inward investment when the development completes. This is further supported by a Public First study quantifying that for the whole of the UK, doubling data centre access increases Gross Value Added by £36.5bn.

 

Residential

Macro-economic uncertainty, sticky inflation and relatively high mortgage borrowing costs slowed down the housing market from the summer, with 2025 UK house price growth at +0.6%, according to Savills, albeit our regions of the North West and Yorkshire outpaced the South, at +3.5% and +2.2%, respectively. Despite Government's positive policy intent, the market has not witnessed a recovery in planning application consents, with the House Builders Federation confirming that planning permissions are at their lowest level since 2013 and expecting many local authorities to fail their Housing Delivery Targets, suggesting a further squeeze on delivery for the next two years and little to no change in either Local Plans or Planning Promotion Strategy.

 

Alongside low house price growth, increased build costs and the regulatory cost burden of the Future Homes Standard and Building Safety Levy, support some views that the Government's 1.5m homes target in this Parliament term, may not be achievable, with Savills predicting between 0.8-0.9m homes built over the period. Only the North saw a small positive bump in residential Greenfield land values with Urban down along with the rest of the UK. We see an increased opportunity to bring land forward as land supply is shrinking in many key locations with almost 60% of Local Authorities lacking a five-year housing supply.

 

The Bank of England eased interest rates four times by a total of 100bps across 2025, ending the year at 3.75%. However, February's Monetary Policy Committee (MPC) saw no change, with a delay to further cuts subject to the MPC satisfying itself that inflation is falling and will hit the BoE's target of 2.0%.

 

Although medium-term commentators continue to expect house price growth, this will be underpinned by lower mortgage rates and an easing of how mortgage regulation is applied. So far, weak sentiment and an increased tax burden with no demand-side stimulus currently in sight, alongside the potential for interest rate rises with recent macro events, are expected to limit new build capacity and house price growth in early 2026. Forecasts suggest subdued 2026 house price inflation of between flat to 4%.

 

Outlook

We have a clear desire to increase our I&L weighting to 85% by 2029, having grown from a baseline 57% (end of 2020) to 70% at the end of 2025. This portfolio 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. We have a strong conviction in the core market themes driving demand for industrial and logistics and emerging demand for data centres and advanced manufacturing clusters in our regions.

 

Positioned at the intersection of reindustrialisation, advanced technologies, data and clean growth, Harworth is leveraging its strategically located land bank, power and engineering expertise and proven track record in delivering advanced manufacturing ecosystems to create value. Our flagship Advanced Manufacturing Park (South Yorkshire) provides a blueprint for globally competitive manufacturing hubs, and our pipeline of nationally significant sites, combined with the Harworth Platform, enables the repeatable delivery of product to world-leading businesses, as we unlock sites such as Wingates and Northern Gateway in Greater Manchester.

 

Our conviction in the potential of our portfolio to deliver attractive through-the-cycle returns remains strong, underpinned by significant progress made in establishing a long-term data centre and power-enabled land pipeline, enabling us to bring product into emerging high-value sectors. Our in-house power and engineering expertise, and resources deployed to accelerate site delivery in strong strategic locations with policy support, are essential ingredients for success. We have been actively pursuing upside opportunities with c.0.8 GW of power connections, either conditionally secured or in the pipeline with Network Operators. Together with future applications currently advancing, these represent significant progress towards near and longer-term transactions that have the potential to deliver enhanced value gains and superior returns for investors.

 

We are 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. We are focussed on what we can do, the strength and quality of our landbank, and the optionality it gives us to lean into emerging themes.

 

Harworth is well positioned to deliver attractive returns for shareholders. Supported by targeted capital investment that enhances liquidity and funding flexibility across our key sites, we have a clear, deliverable pathway ahead of us. These foundations give us confidence in achieving our £1 billion EPRA NDV target and reaching this milestone between the end of 2028 and 2029.

 

Lynda Shillaw

Chief Executive

16 March 2026

 

 

Operational review

 

The land & property portfolio value totalled £937.2m at 31 December 2025 (2024: £858.8m, 2020: £618.2m) and is weighted 70% to I&L (2024: 63%, 2020: 57%). The Income Generation portfolio makes up 36% of the portfolio value (2024: 38%, 2020: 44%) and comprises the I&L Investment Portfolio and Natural Resources & Agriculture, with the remaining 64% being the Capital Growth portfolio of SL and MD across I&L and Residential. The portfolio split is set out in the table below alongside movements in the portfolio value since 2024. The largest contributors to the movements in the year were development spend in opening sites up and acquisitions net of disposals, followed by revaluation movements.

 

Land & property portfolio value (£m) 2025 2024 I&L Strategic Land 149.3 109.7 Major Developments 198.2 138.1 Investment Portfolio 305.0 297.2 Subtotal I&L 652.5 545.0 Residential Strategic Land 61.5 61.0 Major Developments 192.3 223.8 Subtotal Residential 253.7 284.8 Total NRS & other 31.0 29.0 Total portfolio value 937.2 858.8

Portfolio value movements (£m)   31-Dec-2024 858.8 Development spend 97.7 Acquisitions 40.0 Disposals (98.1) Value gains 53.6 Transfers (16.1) Net JV investment 1.3 31-Dec-2025 937.2

 

INDUSTRIAL & LOGISTICS (I&L)

 

Land portfolio 

 

At 31 December 2025, the I&L pipeline totalled 35.0 m sq ft (2024: 33.6m sq ft) comprising a consented pipeline of 8.5m sq ft (2024: 8.4m sq ft). The I&L pipeline & planning progress table to the right sets out the stage our pipeline had reached at year-end 2025 in comparison to year-end 2024.

 

More of our pipeline is either consented or in the planning system, at 75% (2024: 63%). The pipeline was 45% owned freehold, with the remaining 55% controlled through JV arrangements 12%, options 38% or PPAs 5% (2024: 50% freehold).

 

Planning

I&L pipeline & planning progress¹

(m sq ft)	2025	2024
Pre-planning	8.8	12.5
Draft allocations	1.1	2.9
Allocations	2.9	4.9
Awaiting determination	13.7	4.9
Consented	8.5	8.4
Total pipeline	35.0	33.6
Consented or in the planning system2	75%	63%

1. Harworth's share
2. In the planning system includes draft allocations, allocations and awaiting determination

·     In the period, draft allocations were received for 1.1m sq ft (total draft allocations now 5.8m sq ft).  Sites awaiting determination include Northern Gateway (Greater Manchester), Rothwell (Kettering) and Junction 15 (Northampton). ·     As at 31 December 2025, applications totalling 13.7m sq ft across 10 sites were in the planning system awaiting determination. This is up significantly from year-end 2024: 4.9m sq ft, mainly due to new planning applications submitted in 2025 for 8.2m sq ft across six sites:

 

2025 I&L planning submissions	Sq ft ('000s)	Ownership1
1. Northern Gateway (Greater Manchester) NOW | I&L | SL	500	JV
Northern Gateway (Greater Manchester) NOW | I&L | SL	2,750	JV / O
2. Junction 15 (Northamptonshire) MID | I&L | SL / O	1,540	O
3. Diseworth West (East Midlands) MID | I&L | SL | FH	213	FH
Diseworth West (East Midlands) MID | I&L | SL | PPA	437	PPA
4. Rufford (Nottinghamshire) YAC | I&L| SL	283	FH
5. Gonerby (Lincolnshire) YAC | I&L | SL	1,289	O
6. Bennerley (Nottinghamshire) YAC | I&L | SL	1,200	FH
Total	8,212

1. Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint-venture and O: Option

Land assembly

·     At Gateway 45 (West Yorkshire) YAC | I&L | MD, we acquired our JV partner's 50% holding in what was previously called the Aire Valley Land LLP JV. Adjacent to our Skelton Grange (West Yorkshire) site, where we are undertaking enabling works on behalf of Microsoft for its proposed hyperscale data centre, this tactical acquisition underpins the future growth of the broader site as the land was recently released from HS2 safeguarding and has the capacity to deliver up to 0.8m sq ft of I&L space.

Direct development

·     At the Advanced Manufacturing Park (AMP) (Rotherham) YAC | I&L | IP, we completed an 80,000 sq ft unit pre-let to Sheffield-based Technicut, a global leader in the design and manufacture of high-performance components for the aerospace industry. This advanced manufacturing facility included the incorporation of renewable energy through an innovative green lease structure and transferred into our Investment Portfolio during the period. ·     At Droitwich (Worcester) MID | I&L | MD, our largest development in the year, a 169,300 sq ft of Grade A I&L space, practical completion was achieved in H2 with a subsequent letting to Uniserve for the entire space on a 10.25-year term-certain lease with an annualised rent of £1.6m. ·   We invested significantly in our sites to create serviced land parcels and deliver developments, with enabling works now complete or significantly progressed on sites which have capacity to deliver 5.8m sq ft of I&L space. ·   At year-end, a further 1.8m sq ft of enabling works were underway primarily at Phase 1, Wingates (Greater Manchester) and at Gascoigne Wood (North Yorkshire) | YAC | I&L | SL, alongside continuing progress on Plot 2 at Skelton Grange, in support of the £53.2m second phase of the sale to Microsoft for its proposed hyperscale data centre, targeted for completion in 2027.

 

Key I&L development sites  

Site	Site type / Ownership1	Sold or developed (sq ft)	Consented / planned (sq ft)	Estimated GDV remaining to develop (£)	Stage	Forecast site completion
Advanced Manufacturing Park (AMP) (Rotherham)	MD / FH	1.9m	0.2m / 0.0m	£30m - £40m	Direct development or plot sale	2027
Gateway 36 (Barnsley)	MD / FH	0.4m	0.6m / 0.5m	£130m - £150m	Direct development or plot sale	2033
Chatterley Valley (Stoke-on-Trent)	MD / FH	0.0m	1.2m / 0.0m	£170m - £190m	Land remediation and infrastructure development	2028
Wingates (Bolton)	MD & SL / FH & O	0.0m	1.0m / 1.9m	£520m - £580m	Land remediation and infrastructure development	2033
Skelton Grange (Leeds)	SL / FH	0.6m	0.5m / 0.3m	Confidential	Land remediation and infrastructure development	2030
Gateway 45 (Leeds)	MD / FH	0.0m	0.8m / 0.0m	£150m-£160m	Planning approval	2029
Cinderhill (Derby)	SL / FH & PPA	0.0m	1.5m / 0.0m	£180m - £190m	Planning approval	2030
Gascoigne Wood (Selby)	SL / FH	0.0m	1.5m / 0.5m	£270m - £290m	Planning approval	2028
Northern Gateway2 (Greater Manchester)	SL / JV & O	0.0m	0.0m / 3.3m	Confidential	Masterplanning	2029-2038
N. Yorkshire site	SL / O	0.0m	0.0m / 3.3m	Confidential	Masterplanning	2040
Rothwell (Kettering)	SL / FH	0.0m	0.0m / 1.8m	£300m - £330m	Masterplanning	2029
Junction 15 (Northampton)	SL / O	0.0m	0.0m / 1.5m	£260m - £280m	Masterplanning	2031

1. Site type includes SL: Strategic Land, and MD: Major Developments,
Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint Venture and O: Option

2. Harworth's share of a joint-venture, adjacent to the M62 and close to the M66, Northern Gateway is the core site of the Atom Valley Mayoral Development Zone, comprising a mix of freehold and optioned land.

 

I&L INVESTMENT PORTFOLIO (IP)

The Investment Portfolio has undergone a significant level of activity this year, particularly in making progress towards becoming 100% Grade A. This sat at 76% Grade A by value at year-end (2024: 63%, 2020: 20%). A significant level of lettings, direct development and disposals have contributed.

 

The ambition to grow the portfolio to £0.9bn by the end of 2029 is being delivered through our direct development programme where we plan to retain sites that we develop in the medium term, alongside selective acquisitions and disposals. The portfolio generates recurring rental income, with the potential for capital value growth via active asset management delivered in the year. As a result, the return on capital deployed from the IP was 8.7% for the year (2024: 12.1%, incorporating an income return of 5.6% and capital value growth of 3.1%.

 

At 31 December 2025, the I&L IP was valued at £305.0m, up 3% on the 2024 year-end (2024: £297.2m), reflecting the completion of the Technicut unit at the AMP (South Yorkshire) and Droitwich (Worcestershire) developments and subsequent transfers to the Investment Portfolio, as well as valuation gains reflecting asset management and profit on sales. After a number of disposals in the year, the portfolio comprised 10 sites covering 2.3m sq ft. Headline rental income stood at £18.3m (2024: £17.5m) and annual passing rental income was £14.7m (2024: £15.8m) due to new leases with rent free periods. The net initial yield stood at 4.6% (2024: 4.8%) and a reversionary yield of 6.2% (2024: 6.5%) demonstrating reversionary potential.

I&L Investment Portfolio

	2025	2024	% change
Portfolio value (£m)	305.0	297.2	+3
Number of sites	10	12	-17
Area (m sq ft)	2.3	2.8	-17
Grade A space - by value (%)	76	63	13pp1
Grade A space - by area (%)	64	45	19pp1
Annual Headline rental income (£m)	18.3	17.5	+5
Weighted average passing rent2 (£ psf)	6.38	5.90	+8
Grade A ERV3 (£ psf)	9.84	9.10	+8
WAULT4 to first break (years)	9.6	10.1	-5
WAULT4 to expiry (years)	11.2	11.4	-1
EPRA vacancy5 (%)	1.0	5.6	-4.6pp1
Net initial yield (%)	4.6	4.8	-0.3pp1
Reversionary yield (%)	6.2	6.5	-0.3pp1

1. Percentage points

2. Calculated on occupied space

3. Estimated rental values

4. Weighted average unexpired lease term

5. European Public Real Estate Association vacancy

 

Asset management

During the year, 1.4m sq ft of total lease activity was completed (2024: 146,000 sq ft), including 379,000 sq ft of new leases (2024: 146,000 sq ft) at a headline rent of £3.7m. The largest contributors were two new leases at Droitwich (Worcestershire) to Uniserve for 169,000 sq ft and at AMP (South Yorkshire) to Technicut for 80,000 sq ft. Like-for-like headline rental growth for lettings on existing space, renewals and reviews were completed 10.4% ahead of previous annualised headline rents. Significant letting activity alongside disposals made in the year resulted in EPRA vacancy reducing to 1.0% (2024: 5.6%).

 

Disposals

As part of our strategy to transition the core Investment Portfolio to 100% Grade A, we will continue to selectively dispose of secondary assets where the viability to transform or upgrade is limited, and older Grade A assets where we have delivered our asset management plans. During the period, we sold five core Investment Portfolio assets for £47.7m, at headline pricing ahead of book values. We sold four secondary assets, including 761,000 sq ft of income producing industrial assets and six acres of open storage at Saturn Business Park, Knowsley (Merseyside). In addition, we sold the McLaren unit at AMP, a Grade A unit we built in 2018. The sale was part of our completing our asset management plans and diversifying our exposure at the AMP (South Yorkshire) as the Technicut unit (80,000 sq ft) was transferred in during the period.

 

Investment Portfolio disposals

Site	Location	Region	Ownership	Area (sq ft)
A19 Business Park	North Yorkshire	YAC	FH	61,000
Brierley Hill	West Midlands	MID	FH	373,000
Sherburn in Elmet	West Yorkshire	YAC	FH	252,000
Knowsley1	Merseyside	NOW	FH	6 acres
AMP - McLaren unit	South Yorkshire	YAC	FH	75,000

1. Saturn Business Park, Knowsley sold six acres of open storage. Continue to hold remaining 29 acres and income producing industrial unit

 

Investment Portfolio sites

Site	Location	Region	Ownership	Area (sq ft)
Adv. Manufacturing Park (AMP)	South Yorkshire	YAC	FH	368,000
Bardon Hill	Leicestershire	MID	FH	339,000
Catalyst	South Yorkshire	YAC	FH	285,000
Bradford	West Yorkshire	YAC	FH	252,000
Knowsley	Merseyside	NOW	FH	422,000
Logistics North	Greater Manchester	NOW	FH	104,000
Multiply Logistics North	Greater Manchester	NOW	20% JV	87,000
Gateway 36	South Yorkshire	YAC	FH	110,000
Droitwich	Worcestershire	MID	FH	169,000
Glossop	Derbyshire	NOW	FH	166,000
10 sites				2,302,000

 

RESIDENTIAL PORTFOLIO 

 

At 31 December 2025, the Residential pipeline totalled 29,386 plots (2024: 31,264 plots) including 3,065 consented plots (2024: 4,568 plots). The Residential pipeline & planning progress table below shows the stage our pipeline had reached in comparison to year-end 2024. The pipeline that is either consented or in the planning system sits at 45%, consistent with last year-end. The pipeline was 37% owned freehold, with the remaining 63% controlled through JV arrangements 14%, options 10% or PPAs 39% (2024: 41% freehold), continuing our strategy of increasingly favouring more capital light ownership structures to facilitate growth and maximise returns.

 

Planning

 

Residential pipeline & planning progress¹

(m sq ft)	2025	2024
Pre-planning	16,116	17,035
Draft allocations	84	2,275
Allocations	1,036	5,250
Awaiting determination	9,085	2,136
Consented	3,065	4,568
Total pipeline	29,386	31,264
Consented or in the planning system2	45%	46%

1. Harworth's share
2. In the planning system includes draft allocations, allocations and awaiting determination

 

At 31 December 2025, 9,085 plots across 10 sites were awaiting determination in the planning system, a significant increase over the previous year (2,136 plots over five sites). The increase reflects planning applications submitted in 2025 across seven sites:

 

2025 Residential planning submissions	Plots	Ownership1
1. Coalville (Leicestershire) MID | R | MD	290	FH
2. Cefn Park (Clwyd) NOW | R | PPA	900	PPA
3. Diseworth West (East Midlands) MID | R | SL | FH	744	FH
Diseworth West (East Midlands) MID | R | SL | PPA	1,531	PPA
4. Crewe West (Cheshire) NOW | R| SL | O	660	O
5. Rufford (Nottinghamshire) YAC | R | FH	400	FH
6. Crimea Farm (Nottinghamshire) YAC | R | PPA	165	PPA
7. Grimsby West2 (Lincolnshire) YAC | JV | SL	508	JV
Grimsby West2 (Lincolnshire) YAC | JV | SL / O	2,170	JV / O
Total	7,368

1. Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint-venture and O: Option.

2. Insert description of Grimsby West ownership via JV and option

 

Key Residential development sites

Site	Site type / Ownership1	Sold (plots)	Consented / planned (plots)	Stage	Forecast site completion
Waverley (Rotherham)	MD / FH	2,727	244 / -	Mixed tenure delivery or plot sale	2025
Staveley (Chesterfield)	SL / FH	-	- / 950	Masterplanning	2032
Rossington (Doncaster)	MD / FH	927	273 / 206	Mixed tenure delivery or plot sale	2027
Stewartby (Bedford)	MD / FH	-	1,000 / -	Planning approval	2029
Ironbridge (Telford)	MD / FH	312	688 / 350	Mixed tenure delivery or plot sale	2030
Coalville (Leicester)	MD / FH	1,738	278 / 290	Mixed tenure delivery or plot sale	2027
Diseworth (East Midlands)	SL / FH & PPA	-	- / 2,275	Masterplanning	2035
Cinderhill (Derby)	SL / FH & PPA	-	150 / 1,200	Planning approval	2039
Grimsby West (Grimsby)	SL / JV	-	- / 3,044	Acquisitions and land assembly	2044

1. Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint-venture and O: Option. Site type includes SL: Strategic Land and MD: Major Developments.

 

Residential plot sales in-line with four-year average

We operate a diversified serviced land sales model including freehold serviced land, mixed-tenure products such as social housing, build-to-rent and senior living. These sales can be freehold as well as through PPAs, which generate fees.

 

Off the back of record sales volumes in 2024, we completed 1,837 Residential plot sales in 2025, comprising 725 plots through PPAs generating fee revenue of £3.1m, and 1,112 freehold plot sales at headline sales totalling £52.0m. At year-end, a further 746 Residential plots had conditionally exchanged, of which 155 have since completed, demonstrating that despite market headwinds, our de-risked residential serviced land product continues to progress, generating important cashflows for the business.

 

NATURAL RESOURCES PORTFOLIO

 

At 31 December 2025, the Natural Resources portfolio had a value of £19.9m (2024: £21.5m) and headline rental income of £1.8m (2024: £2.1m). The portfolio comprises sites used for a wide range of energy production, including wind and solar energy, battery storage, and reforestation schemes, delivered as part of our Energy & Natural Capital strategy. The aim is to leverage our land and property to grow this portfolio, alongside strategic partners where appropriate, through developing renewable energy generation solutions and other sustainability initiatives such as battery storage, solar, EV charging, multi-fuel hubs and reforestation/rewilding. The strategy has a wider focus on embedding these energy concepts and future-proofing principles across all Harworth sites to maximise energy availability and resilience, create economic value, and help fulfil the Group's NZC ambitions.

 

As part of our strategy to deliver our serviced land product as a responsible developer, alongside addressing developers' challenge to meet Biodiversity Net Gain legislation, we have taken a sector leadership position, launching and managing our first registered Biodiversity Gain Habitat Bank at our residential site at Killamarsh in Derbyshire. On this site, as part of the sale of a parcel of serviced land to a housebuilder, we were able to sell BNG units on the wider land at the same time. We retain some BNG units on this site and see the potential to drive growth in future years as this market continues to develop, issuing biodiversity units to meet our own obligations and allocating any surplus units to our other projects alongside selling units to other developers. During 2025 we established Harworth's second Habitat Bank, a regional first. Located on the former spoil tips of the historic Allerton Bywater Colliery, this 112-acre site has been secured through a Section 106 agreement with Leeds City Council - the first of its kind within this local authority area.

Financial review

 

Overview

Total Accounting Return and Balance sheet

 

Our primary metric, Total Accounting Return, was 1.7% for 2025, representing a decrease from 9.1% in 2024. This reflected strong performance across Industrial & Logistics Strategic Land and Major Developments as well as our Investment Portfolio, driving value gains of £71.3m, materially offset by value losses of £26.8m across residential major development reflecting the impact of residential market weakness and cost pressures within some of our residential major developments.

 

The strong I&L performance reflected the impact of management actions progressing sites through the planning system and investing in infrastructure as well as completing and letting of direct development. The Group gained full control of the Gateway 45 site adjacent to our existing Skelton Grange site, acquiring the remaining ownership of the Aire Valley Land joint venture for £20.0m leading to its de-recognition as a joint venture and full incorporation into the Group balance sheet during the year. Cadence in moving through Residential Major Development sites was maintained despite challenges resulting from the timing of the UK budget and market conditions: however, the impact of lower pricing and cost pressures negatively impacted valuations with sales achieving less than prior book values. Residential sales continue to provide an important source of capital which is redeployed in line with our strategy to increase the weighting of our portfolio to 85% I&L by 2029. Combined with asset management initiatives across our Investment Portfolio, this performance resulted in EPRA NDV per share increasing by 0.9% to 224.4p (2024: 222.3p). Excluding the impact of EPRA adjustments which uplift Development Property values to fair value, the statutory net asset value of the Group grew by 1.1% to £699.0m (31 December 2024: £691.7m). 

 

Jones Lang LaSalle, Savills and BNP Paribas, our independent valuers, completed a full valuation of our portfolio as at 31 December 2025, resulting in revaluation gains of £53.6m (2024: gains of £86.0m), including the movement in the market value of development properties. These external independent valuations have regard to conditions in the Residential and I&L markets as well as the positive impact of management actions at our sites. Outside the valuation movements, losses on sales were £9.0m (2024: profit of £11.2m). These losses included the allocation of increased site wide infrastructure costs to sales completed in prior periods on a small number of mature residential sites. Overall, this led to net value gains of £44.5m (2024: £97.2m gains).

 

Income Statement

 

Sales of serviced land and property, in addition to income from rent, royalties, development and other fees, resulted in Group revenue of £129.8m (2024: £181.6m).

 

Revenue from the sale of Residential serviced land was £58.7m (2024: £92.2m) reflecting continued demand for the Group's de-risked land products but within a weaker residential market. Development revenues of £42.0m (2024: £18.7m) were driven by higher activity delivering our Affordable Housing residential product, reflecting our continued focus on accelerating through our sites, as well as  development on behalf of Microsoft at Skelton Grange. In addition, residential Planning Promotion Agreement (PPA) revenue contributed £4.7m (2024: £0.6m) reflecting fees from sales under PPAs.

 

Revenue from Income Generation increased to £25.0m (2024: £21.5m) as a result of higher rental income within the Investment Portfolio from the completion and letting of direct development, full year revenue from the Catalyst portfolio acquired during 2024, and asset management activity: like-for-like annualised headline rental income grew by 10.4% (2024: 4.9%). The Natural Resources portfolio included revenue from the sale of BNG units totalling £1.3m (2024: £nil).

 

Total property sales, an APM, which incorporate proceeds from the sales of investment properties, assets held for sale ('AHFS'), and overages, amounted to £115.0m (2024: £215.8m) with the drop primarily reflecting the sales at Skelton (£47.9m) and Ansty (£53.5m) during 2024. These large sales can take several years to put together with Ansty completing ahead of the original budgeted timeframe of 2025.

 

The Investment Portfolio value increased to £305.0m at the end of 2025 (2024: £297.2m)reflecting the completion and letting of direct development at Droitwich and at the Advanced Manufacturing Park, Rotherham, as well as the impact of revaluation gains driven by new lettings, asset management and market rental growth, offset by the £47.7m disposals described above. The Group is targeting an Investment Portfolio of approximately £0.9bn by the end of 2029 through a combination of retained developments and selective acquisitions, with the additional target of this portfolio becoming 100% Grade A by the end of 2027.

 

The fair value of investment properties increased by £47.2m (2024: £60.8m increase), which resulted in an operating profit of £21.6m (2024: £74.6m) and profit after tax of £9.5m (2024: £57.2m).

 

Capital allocation and Financing

 

We have a model that is predominantly self-funded with sales of serviced land and property each year, providing the funding for our on-balance sheet spend for the following year, alongside which we put into place partnerships and third-party funding structures. The cash proceeds from sales completed in 2024 were reinvested this year into site delivery across I&L through enabling and infrastructure works and completing direct development, as well as acquiring the remaining 50% interest in our Aire Valley Land joint venture. Over 2025, we generated proceeds through sales of serviced residential land and secondary I&L Investment Portfolio properties, improving the quality of the portfolio and recycling capital for investment into higher returning parts of the portfolio.

 

As a result of our spend alongside lower net sales proceeds, net debt increased to £145.9m (31 December 2024: £46.7m) resulting in a Net LTV at 31 December 2025 of 15.6% (31 December 2024: 5.4%). Whilst we have deployed more leverage than in previous years, this is well within our self-imposed maximum target of 20% at the end of the year and at 31 December 2025, the Group had available liquidity of £127.1m (31 December 2024: £192.4m).

 

During the year, the Group entered into a new four year £275m Revolving Credit Facility (RCF) with NatWest, Santander and HSBC, replacing the previous RCF with an increased facility limit and improved terms including pricing. The new RCF was agreed with a £50m uncommitted accordion facility and Harworth has the option to extend the term to five years. Since year-end, we have put in place interest rate hedging on borrowings of £50m, representing around a third of our year-end debt position and further hedging continues to remain under review. Alongside the new RCF, we continue to use infrastructure and direct development loans to fund activity on our sites. At the year-end the Group had an undrawn development loan provided by the North West Evergreen Fund, this will provide up to £26.2m in debt funding in support of development at our Wingates Major Development I&L site.

  

Presentation of financial information and alternative performance measures  

 

As our property portfolio includes development properties and joint venture arrangements, Alternative Performance Measures ('APMs') can provide valuable insight into our business alongside statutory measures. In particular, revaluation gains on development properties are not recognised in the Consolidated Income Statement and the Balance Sheet. The APMs outlined below measure movements in development property revaluations, overages and joint ventures. We believe that these APMs assist in providing stakeholders with additional useful disclosure on the underlying trends, performance and position of the Group.

 

Our key APMs are:

·   Total Accounting Return: a measure of the Group's return, calculated as the movement in EPRA NDV plus dividends per share paid in the year expressed as a percentage of opening EPRA NDV per share. ·    Total Property Return: a measure of the ungeared return for the property portfolio calculated as the change in capital value, less any capex incurred, plus net income, expressed as a percentage of capital employed over the period concerned, calculated in line with the MSCI Property Index Methodology from 2025. ·    EPRA NDV per share: EPRA NDV is an EPRA metric that represents a net asset valuation where development property is included at fair value rather than cost and deferred tax, financial instruments and certain other adjustments are calculated to the full extent of their liability net of any resulting tax. EPRA NDV per share is EPRA NDV divided by the number of shares in issue at the end of the year (less shares held by the Employee Benefit Trust or Equiniti Share Plan Trustees Limited to satisfy Restricted Share Plan, Share Incentive Plan and Deferred Share Bonus awards). ·   Value gains: the realised profits from the sale of properties and unrealised profits from property valuation movements including joint ventures, and the mark-to-market movement on development properties and overages. ·      Net LTV: Group debt net of cash held expressed as a percentage of portfolio value.

 

A full description of all non-statutory measures is set out in the appendix to the financial statements and reconciliations between all statutory and non-statutory measures are provided in the same appendix. From December 2025, the Group is reporting an additional APM, Total Property Return, calculated in line with the MSCI Property Index Methodology. This provides increased information to shareholders on the Group's relative performance and supports the implementation of relative operational performance measures for the short-term and long-term incentive schemes under the Remuneration Policy. Our financial reporting is aligned to our business units of Capital Growth and Income Generation, with any items that are not directly allocated to specific business activities held centrally and presented separately.

 

Income Statement 

 

	2025				2024
	Capital  Growth £m	Income Generation £m	Central Overheads £m	Total  £m	Capital  Growth  £m	Income Generation £m	Central Overheads £m	Total  £m
Revenue	104.8	25.0	-	129.8	160.1	21.5	-	181.6
Cost of sales	(111.8)	(5.4)	-	(117.2)	(145.8)	(4.7)	-	(150.5)
Gross profit	(7.0)	19.5	-	12.6	14.2	16.8	-	31.1
Administrative expenses	(6.8)	(2.1)	(27.4)	(36.3)	(6.4)	(1.1)	(25.7)	(33.2)
Other gains/(losses)	41.5	8.0	(3.9)	45.5	59.7	18.4	-	78.1
Other operating expenses	-	-	(0.1)	(0.1)	-	-	(1.4)	(1.4)
Operating profit/(loss)	27.7	25.4	(31.5)	21.6	67.5	34.1	(27.1)	74.6
Share of profit/(loss) of JVs	3.6	2.8	-	6.4	(0.7)	2.2	-	1.5
Net interest income/(expense)	4.4	0.2	(15.2)	(10.6)	2.9	0.1	(9.7)	(6.7)
Profit/(loss) before tax	35.7	28.3	(46.6)	17.4	69.7	36.5	(36.8)	69.4
Tax charge	-	-	(7.9)	(7.9)	-	-	(12.1)	(12.1)
Profit/(loss) after tax	35.7	28.3	(54.5)	9.5	69.7	36.5	(48.9)	57.2

 Note: There are minor differences on some totals due to roundings

 

Revenue in the year was £129.8m (2024: £181.6m), of which Capital Growth contributed £104.8m (2024: £160.1m) and Income Generation £25.0m (2024: £21.5m).

 

Capital Growth revenue of £104.8m comprised revenue from the sale of development properties, development revenue, and fee income. The sale of development properties of £56.9m (2024: £140.3m) was lower in 2025 reflecting completion of the Plot 1 transaction at Skelton Grange in 2024. In 2025, the sale of development properties largely related to the sale of residential serviced land. Completed residential land sales were lower due to market conditions, which impacted pricing achieved, as well as including a higher proportion of PPA sales this year. Development revenue of £42.0m (2024: £18.7m) substantially relates to the delivery of the Group's Affordable Housing residential product and development work on behalf of Microsoft at Skelton Grange. Capital Growth revenue also included fees from Planning Promotion

Agreements of £4.7m (2024: £0.6m).

 

Revenue from Income Generation mainly comprised property rental and royalty income from the Investment Portfolio, Natural Resources and Agricultural Land. Revenue of £25.0m (2024: £21.5m) was £3.5m higher in 2025, due to a full year of revenue from the Catalyst portfolio acquired in Q4 2024, and the completion of an 80,000 sq. ft. pre-let development at the AMP, alongside asset management initiatives. Like-for-like headline rent (excluding the impact of acquisitions, completed development and disposals) from the Investment Portfolio increased by 10.4% (2024: 4.9%) during the year, following letting of previously vacant assets, lease regears and rent reviews on existing assets. The total headline annualised rental income for the Investment Portfolio, including the impact of disposals, increased by 4.6%% to £18.3m in 2025 (2024: £17.5m). Revenue also included the sale of BNG credits of £1.3m (2024: £nil).

 

Cost of sales comprises the inventory cost of development property sales, site wide infrastructure costs, costs incurred in undertaking development on behalf of others including affordable residential delivery and development work for Microsoft at Skelton Grange as well as the direct and recoverable service charge costs of the Income Generation business. Cost of sales decreased to £117.2m (2024: £150.5m), of which £65.0m (2024: £126.3m) related to the inventory cost of development property sales and impairments resulting from increased site wide infrastructure costs on residential sites. The challenging residential market impacted pricing on sales of development property which, coupled with some limited site-specific cost increases primarily in the first half of the year, resulted in an overall gross loss for the year within Capital Growth. In the year, there was an increase in the net realisable value provision on development properties of £4.9m (2024: £5.7m decrease) following the valuation process as at 31 December 2025.

 

Administrative expenses increased in the year by £3.1m to £36.3m (2024: £5.8m increase). This was due to higher salary expenses, reflecting increased employee numbers and inflationary increases, alongside increased technology spend as part of our digital transformation programme (£1.8m vs £0.5m in 2024), offset by lower legal and professional costs. Central administrative expenses include the cost of central teams that support the operational business. Administrative expenses are a focus for 2026 as we seek to ensure they are proportionate to value creation and appropriate for the business model.

 

Other gains comprised a £47.1m net increase (2024: £60.4m net increase) in the fair value of investment properties and assets held for sale ('AHFS') combined with the profit on sale of investment properties, AHFS and overages of £2.3m (2024: £17.7m profit).

 

Joint venture profits of £6.4m (2024: £1.5m profits) included valuation gains at the Aire Valley Land Joint Venture prior to de-recognition as part of the acquisition of the remaining interest during the year, as well as at Multiply Logistics North. Value gains/(losses) on a non-statutory basis are outlined below.

 

Non-statutory value gains/(losses) 

 

Value gains/(losses) are made up of profit on sale, revaluation gains/(losses) on investment properties (including joint ventures), and revaluation gains/ (losses) on development properties, AHFS and overages. A full description of, and reconciliation between, statutory and non-statutory value gains can be found in Note 2 and the appendix to the consolidated financial statements can be found in Note 2 and the appendix to the consolidated financial statements.

  

			2025			2024		31 Dec 25	31 Dec 24
	Category	Profit /(loss) on sale	Reval. gains/ (losses)	Total	Profit /(loss) on sale	Reval. gains/ (losses)	Total	Total valuation	Total valuation
Capital Growth
Residential Major Developments	Development	(10.1)	(18.6)	(28.7)	(2.9)	20.3	17.4	192.3	223.8
Industrial & Logistics Major Developments	Mixed	(0.3)	36.4	36.0	0.7	5.8	6.5	198.2	138.1
Residential Strategic Land	Investment	(0.1)	2.0	1.9	-	8.6	8.6	61.5	61.0
Industrial & Logistics Strategic Land	Investment	(0.4)	29.0	28.5	12.6	31.4	44.0	149.3	109.7
Income Generation
Investment Portfolio	Investment	1.0	8.2	9.1	0.8	19.6	20.4	305.0	297.2
Natural Resources	Investment	1.0	0.2	1.1	-	0.5	0.5	19.9	21.5
Agricultural Land & other	Investment	-	(3.5)	(3.5)	(0.1)	(0.3)	(0.4)	11.0	7.5
Total		(9.0)	53.6	44.5	11.2	86.0	97.2	937.2	858.8

Notes: There are some minor differences on some totals due to roundings. Profit/(loss) on sale is stated net of the impact of transaction fees incurred.

  

Total Property Sales in 2025 were £115.0m generating a loss on sale of £9.0m (2024: £11.2m profit). The loss was concentrated in Residential Major Developments where the market was impacted by the late UK budget and lack of buyer stimulus. As a result, headline sales pricing was marginally below book value before trans-action costs and when discounting of deferred consideration to present value, and retentions not recognised on completion were taken into account this generated a loss on sale of around 8%. The £9.0m loss on sale incurred included £8.3m increases in estimated costs for the completion of site wide works at a small number of mature residential sites, impacting the proportional share of site wide costs allocated to prior period sales at the point-of-sale completion. The loss on sale was partially offset by profit on completion of retention works £4.1m (2024: £2.2m) relating to prior period sales.

 

Revaluation gains were £53.6m (2024: £86.0m) and are outlined in the table below.

 

		2025  £m	2024  £m
Increase in fair value of investment properties		47.2	60.8
Decrease in value of assets held for sale and owner-occupied property		(4.0)	(0.4)
Movement in net realisable value provision on development properties		(5.8)	1.3
Contribution to statutory operating profit		37.5	61.7
Share of profit of joint ventures		6.4	1.5
Unrealised gains on development properties and overages		9.7	22.7
Total non-statutory revaluation gains		53.6	86.0

 Note: There are minor differences on some totals due to roundings

 

The principal revaluation gains and losses across the divisions reflected the following:  

 

-     Industrial & Logistics:

o  Valuation gains totalling £65.3m across Major Developments and Strategic Land driven by planning progress, continued progression on developments, completion of direct development, occupier and investor demand and improvement in market rents. o  Revaluation gains on the Investment Portfolio from letting progress and improvement in market rents. o  While investment yields remained stable during the year, the industrial & logistics market continued to benefit from rental growth supporting our I&L Major Development sites, Strategic Land sites and the Investment Portfolio, alongside the impact of management actions.

 

-     Residential:

o  The widely reported challenges in the residential market impacted both the pricing achieved on sales in year as well as the outcome of the year end valuations, which coupled with cost pressures, led to total valuation losses of £16.6m across Major Developments and Strategic Land. o  Despite the challenging environment, including the impact of market delays driven by the timing of the UK budget, sales were completed achieving headline pricing marginally below book values with recognised losses on sales including the further impact of transaction costs, discounting of deferred consideration to present value, and retentions not recognised on completion. These sales supported cashflow within 2025 with deferred consideration, alongside exchanged sales, providing greater certainty over 2026 cashflows. o  Cost increases experienced on Residential major development sites, particularly during the first half of the year in relation to limited site specific costs, included increases across infrastructure works and professional fees as well as increases in the expected costs of meeting CIL and s106 planning obligations. o  Government policy remains focused on significantly increasing the level of housing delivery but limited focus on the demand side coupled with wider economic uncertainty has impacted overall pricing. o  Savills reported pressures in the residential development land market, noting that greenfield values fell by an average of -1.4% in 2025, with the most significant softening occurring towards the end of the year, as values fell by -1.2% in Q4.

 

-   Natural Resources: valuations remained stable during the year, with profit on sale generated through sale of legacy assets with limited future asset management potential.

 

-    Agricultural Land and Other: experienced a small valuation loss in relation to owner occupied property during the year. During the year the Group invested in the construction of a new head office building at our flagship Advanced Manufacturing Park ('AMP') in Waverley, completing work early in 2026. Alongside creating a fit for purpose sustainable workspace, this enables the future development or sale of our previous head office site and provides an anchor to open up the development of Highfield as one of the final phases of the Waverley site.

 

Cash and sales 

 

Total property sales, encompassing proceeds from the sale of investment property, AHFS, overages and PPAs as well as revenue from the sale of development property totalled £115.0m (2024: £215.8m).  Total property sales comprised:

 

	2025  £m	2024 £m
Residential land sales	58.7	97.2
Industrial & Logistics land sales	1.9	101.0
Sales of Investment Portfolio properties	47.7	13.3
Natural resources asset sales	5.7	-
Overages & PPAs	1.0	4.3
Total property sales	115.0	215.8

 

Cash proceeds from sales in the year were £124.2m (2024: £172.3m) as shown in the table below:

 

	2025  £m	2024 £m
Total property sales	115.0	215.8
Less deferred consideration on sales in the year	(32.4)	(57.8)
Add receipt of deferred consideration from sales in prior years	41.6	14.3
Total cash proceeds	124.2	172.3

 

Residential headline sales values reduced to £52.0m (2024: £104.1m) resulting in lower levels of deferred consideration. Where deferred payment terms are agreed to, security is maintained to mitigate credit risk.

 

Tax 

 

The income statement charge for taxation for the year was £7.9m (2024: £12.2m charge), which comprised a current tax credit of £1.4m (2024: £6.0m charge) and a deferred tax charge of £9.3m (2024: £6.1m charge).

 

The current tax is results from profits from the sale of development properties, investment property, AHFS, profit on the rental of investment property, royalties and other fees after taking into account overheads and interest costs. The deferred tax balance is calculated based on the rate expected to apply on the date the liability is crystallised.

 

At 31 December 2025, the Group had deferred tax liabilities of £55.2m (31 December 2024: £37.4m) and deferred tax assets of £10.2m (31 December 2024: £1.5m). The net deferred tax liability was £45.0m (31 December 2024: £35.9m).

 

Basic earnings per share and dividends 

 

Basic earnings per share for the year decreased to 2.9p (2024: 17.7p) reflecting lower increases in valuation of investment properties in 2025, net losses from sales in the year and higher interest costs partly offset by higher rental income.

 

In addition to the interim dividend of 0.538p, the Board has declared a final dividend of 1.237p (2024: 1.125p) per share, bringing the total dividend for the year to 1.775p (2024: 1.614p) per share. The recommended 2025 final dividend and 2025 total dividend represent a 10% increase in line with our dividend policy for the year to 1.775p (2024: 1.614p) per share.

 

 

 

Property categorisation 

 

Until sites have received planning permission and a specific future use has been established, the land is held for an undetermined future use and is classified as investment property. Once planning permission has been obtained and active development with a view to sale has commenced, the land and associated properties are reclassified as development properties. Where land is being developed to hold our Investment Portfolio it remains classified as investment property.

 

The table below sets out the top 10 sites by value, which represent 54% of the total portfolio, split according to their categorisation, including currently consented Residential plots and commercial space.

Top 10 sites by value

Site	Region	Use	Site type	BS category	Progress to date
Ironbridge (Telford)	MID	R     R	MD   SL	Dev. prop   Inv. prop	1,000 Residential units consented, land sold representing 312 units, further enabling works underway Continue to progress master planning for the scheme in collaboration with the Local Authority
Advanced Manufacturing Park (AMP) (Rotherham)	YAC	I&L   I&L	MD   IP	Inv. prop   Inv. prop	2.1m sq. ft of Industrial & Logistics space consented, 1.9m sq. ft built or sold. 0.4m sq. ft of Grade A held in Investment Portfolio
Wingates (Bolton)	NOW	I&L       R/I&L	MD       SL	Inv. prop         Inv. prop	Up to 1m sq .ft of Industrial and Logistics space consented with buildings up to 0.3m sq. ft achievable in Phase 1. Enabling and site infrastructure works ongoing with completion due Q4 2026. Work to submit a planning application for a further 1.9m sq. ft  is ongoing
Bardon Hill (Leicester)	MID	I&L	IP	Inv. prop	0.3m sq. ft of fully-let Grade A held in Investment Portfolio
Catalyst (Rotherham)	YAC	I&L	IP	Inv. prop	0.3m sq. ft fully-let
Skelton Grange (Leeds)	YAC	I&L   I&L	MD   SL	Dev. prop   Inv. prop	0.3m sq. ft of I&L space remaining on the retained land.   Enabling works are ongoing to program
Chatterley Valley (Stoke)	NOW	I&L     I&L	MD     MD	Dev. prop     Inv. prop	1.17m sq. ft of Industrial and Logistics space consented with single buildings of up to 0.5m sq. ft achievable. Enabling and infrastructure site works are substantially complete
Gascoigne Wood (North Yorkshire)	YAC	I&L	IP	Inv. prop	1.5m sq. ft of Industrial & Logistics space consented, Infrastructure works have commenced
Wyke Lane (Bradford)	YAC	I&L	IP	Inv. prop	0.3m sq. ft fully-let
Logistics North (Bolton)	NOW	I&L I&L	IP IP	Inv. prop JV	104k sq. ft owned freehold retained in Investment Portfolio. 87k sq. ft controlled through joint venture retained in Investment Portfolio

 

As at 31 December 2025, the balance sheet value of our development properties was £195.2m (31 December 2024: £190.9m) and their independent valuation was £227.5m, reflecting a £32.3m cumulative uplift in value since they were classified as development properties. In order to highlight the market value of development properties, and overages, and to be consistent with how we state our investment properties, we use EPRA NDV, which includes the market value of development properties and overages less notional deferred tax, as our primary net assets metric.

 

 

 

Net asset value 

		31 Dec 2025   £m	31 Dec 2024   £m
Properties(1)		899.4	821.6
Cash		27.1	117.4
Trade and other receivables		12.7	98.2
Other assets		103.0	15.3
Total assets		1,042.2	1,052.5
Gross borrowings		(173.0)	(164.1)
Deferred tax liability		(44.9)	(35.9)
Other liabilities		(125.3)	(160.9)
Statutory net assets		699.0	691.7
Mark to market value adjustment on development properties and overages less notional deferred tax		28.3	27.8
EPRA NDV		727.3	719.5
Number of shares in issue less Employee Benefit Trust & Equiniti Share Plan Trustees Limited-held shares		324,141,060	323,640,852
EPRA NDV per share		224.4p	222.3p

(1) Properties include investment properties, development properties, AHFS, occupied properties and investment in joint ventures.  

 

EPRA NDV at 31 December 2025 was £727.3m (31 December 2024: £719.5m), which includes the mark to market adjustment on the value of the development properties and overages. The total Portfolio Value as at 31 December 2025 was £937.2m, an increase of £78.4m from 31 December 2024 (£858.8m).

 

The Group's share of gains from joint ventures of £6.4m (2024: £1.5m), primarily reflects the revaluation gains on The Aire Valley Land LLP joint venture in the period prior to the acquisition described below, and the performance of Multiply Logistics North LLP during 2025.

 

A total of £20.0m, before costs and stamp duty, was paid in March 2025 to acquire the remaining 50% of the Aire Valley Land LLP joint venture. As a result of the acquisition, the carrying amount of the investment totalling £16.1m was derecognised from the Investments in Joint Venture on the balance sheet and is now shown as a 100% wholly owned Subsidiary. Excluding the gain on the revaluation of The Aire Valley Land LLP joint venture and its derecognition, there was a £2.8m increase in the like-for-like value of joint ventures during 2025.

 

Trade and other receivables include deferred consideration on sales. At 31 December 2025, deferred consideration of £60.4m was outstanding (31 December 2024: £72.9m), of which 92% is due within one year, the current level being the result of the lower level of residential land sales completed during 2025: where deferred payment terms are agreed, the Group maintains security in order to mitigate credit risk.

 

Financing strategy 

 

Harworth's financing strategy remains to be prudently geared. The Income Generation portfolio provides a recurring income source to service debt facilities and this is supplemented by proceeds from sales.

 

As part of its strategic plan, the Group maintains a self-imposed target LTV of below 20% at year ends, with a maximum of 25% in-year, reflecting the cyclical nature of the Group's cashflows. As a principle, the Group seeks to maintain its cash flows in balance by funding the majority of infrastructure expenditure through disposal proceeds, while allowing for growth in the portfolio.

 

Debt facilities 

 

A £240m RCF (the Original RCF) had been in place since 2022 with NatWest, Santander and HSBC and was due to expire in 2027. During November 2025 the Group entered into a new £275m Revolving Credit Facility ('New RCF') with NatWest, Santander and HSBC, replacing the Original RCF. The New RCF is for an initial four-year term, which may be extended to five years at Harworth's request and includes an uncommitted accordion option which if exercised would take the RCF to £325m. The new RCF provides significant liquidity and flexibility to enable the Group to pursue its strategic objectives. The interest rate on the RCF is based on an LTV ratchet mechanism with a margin payable above SONIA in the range of 1.95% to 2.25%.

 

As part of its funding structure, the Group also uses infrastructure financing provided by public bodies and site-specific direct development loans to promote the development of major sites and bring forward the development of I&L units.

The Group had net debt of £145.9m at 31 December 2025 (31 December 2024: £46.7m). The increase in net debt during the year reflects the significant investment in, and operational progress on, sites alongside the acquisition of the remaining interest in Aire Valley Land LLP, partly offset by proceeds from sales. The movements in net debt during the year are shown below:

			2025  £m	2024  £m
Opening net debt as at 1 January			(46.7)	(36.4)
Cash inflow/(outflow) from operations			(30.5)	42.6
Property expenditure and acquisitions			(82.5)	(116.5)
Disposal of investment property, AHFS and overages			53.6	80.0
Net investments in joint ventures			(1.3)	(1.3)
Interest and loan arrangement fees			(14.2)	(7.7)
Dividends paid			(5.3)	(4.9)
Tax paid			(9.7)	(0.5)
Fixed assets expenditure			(10.5)	-
Other cash and non-cash movements			1.2	(2.0)
Closing net debt as at 31 December			145.9	(46.7)

  

The Group's strategy to manage its exposure to interest rate risk is to hedge the lower of around half its average debt during the year or its net debt balance at year end. As at 31 December 2025, none of the Group's drawn debt was subject to interest rate hedging; following the year end, we put £50m of hedging in place through an interest rate cap to mitigate the risk of interest rates increasing above 4.5%. We shall continue to monitor projected drawn debt, and hedging requirements following the refinancing of the Group's RCF in 2025.

 

As at 31 December 2025, the Group's net LTV was 15.6% (31 December 2024: 5.4%) within our self-imposed target to be below 20% at year-end. If gearing is assessed against the value of the income generation portfolio (the Investment Portfolio and Natural Resources portfolio) only, this equates to a net loan to income generation portfolio value of 48.5% (31 December 2024: 15.7%). Under the RCF, the Group could withstand a material fall in portfolio value, property sales or rental income before reaching covenant levels.

 

At 31 December 2025, Group liquidity of £127.1m (31 December 2024: £192.4m) included undrawn capacity under the RCF of £100m (31 December 2024: £75.0m) in addition to the year-end cash balance of £27.1m (31 December 2024: £117.4m). Going forward, the RCF, alongside selected use of development and infrastructure loans where appropriate, will continue to provide the Group with sufficient liquidity to execute our growth strategy.

 

Kitty Patmore

Chief Financial Officer 

16 March 2026 

 

 

 

Key performance indicators

 

2.1 Financial track record

 

KPI	FY2025 result	FY2024 result	FY2025 performance commentary
Total Accounting Return (%) Growth in EPRA NDV during the period in addition to dividends paid, as a proportion of EPRA NDV at the beginning of the year.	1.7%	9.1%	Our Total Accounting Return ('TAR') 'of 1.7% was the result of a 0.9% increase in EPRA Net Disposal Value per share during the year, as well as payment of 1.663p in dividends. Since 2021, we have delivered cumulative Total Accounting Returns of 44.5%.
EPRA Net Disposal Value ('NDV') per share A European Public Real Estate Association ('EPRA') metric that represents a net asset valuation where development property is included at fair value rather than cost and deferred tax, financial instruments and other adjustments as set out in Note 2 and the appendix to the financial statements, are calculated to the full extent of their liability.	224.4p	222.3p	EPRA Net Disposal Value per share ('EPRA NDV') grew 0.9% due to higher valuations within our I&L portfolio, with positive management actions driving value as sites progressed through planning and development, partially offset by valuation losses on Residential Major Development sites, impacted by inflationary pressures, some limited site-specific cost increases and challenging market conditions.
Total Property Return A measure of the ungeared return for the portfolio calculated as the change in capital value, less any capex incurred, plus net income, expressed as a percentage of capital employed over the period concerned, calculated by MSCI.	8.4%	12%	Total Property Return ('TAR'), calculated by MSCI of 8.4% compares to the MSCI UK Annual Property Index of 5.6%. Our return reflects a strong performance across our I&L portfolio, including Strategic Land, Major Developments and Investment Portfolio, reduced by returns on Residential land.
Net LTV Net debt as a proportion of the aggregate value of properties and investments.	15.6%	5.4%	Our Net Loan to Portfolio Value ('LTV') increased as we drove significant investment and operational progress on sites as well as from the acquisition of the remaining 50% interest in Aire Valley Land LLP, with LTV remaining well within our self-imposed target within year of less than 25% as we completed sales to provide headroom for reinvestment.

 

2.2 Strategic track record

 

KPI	FY2025 result	FY2024 result	FY2025 performance commentary
I&L space developed (m sq ft) The amount of Industrial & Logistics space developed by Harworth, either speculatively or on a build-to-suit basis for an end occupier or investor, achieving practical completion during the year.	0.3	0.1	In the year we completed 0.3m sq. ft which was transferred to our Investment Portfolio and now contributes £2.7m to headline annual rent.
Total Industrial & Logistics pipeline consented or in the planning system (sq ft) Land in the planning system with an allocation or awaiting determination carries a lower risk to approval, an important step in value creation, as well as alongside consented land, this forms our pipeline for future development.	75%	63%	The increase reflects the record-level of planning applications submitted in the year, with 13.7m sq ft now awaiting determination, compared to 4.9m sq ft in 2024.
Proportion of Investment Portfolio that is Grade A by value & area The proportion of our Investment Portfolio by area that could be classified as modern Grade A Industrial & Logistics space. Grade A is a widely used industry term that is understood to mean 'best in class', space which is new or relatively new, high-specification and in a desirable location, allowing the unit to attract a rent that is above the market average.	V: 76% A: 64%	V: 63% A: 45%	The proportion of our Investment Portfolio that is Grade A significantly increased due to the completion of 80,000 sq. ft of pre-let and 169,000 sq. ft of speculative Grade A direct development during the year, coupled with sales of secondary assets.
Number of plots sold The number of plots equivalent to land parcel sales to housebuilders or registered providers during the year.	1,837	2,385	We completed the sale of 1,837 Residential plots, 725 plot sales under Planning Promotion Agreements ('PPAs'), generating fees of £3.1m as revenue, together with 1,112 freehold plot sales generating headline sales of £52.0m, demonstrating continued demand for the Group's residential land products.

 

2.3 Sustainability track record

 

KPI	FY2025 result	FY2024 result	FY2025 performance commentary
Location based Scope 1, Scope 2 and Scope 3 business travel (tCO2e) Emissions that are captured by our target to be operationally Net Zero Carbon (NZC) by 2030.	612	690	Location-based emissions reduced from 690 tCO2e in 2024 to 612 tCO2e in 2025. This 11% year-on-year reduction was achieved through our continued transition to a Grade A portfolio, benefiting from energy efficiency measures and the targeted use of alternative fuels in our site operations, thereby lowering overall energy usage.
Proportion of I&L building space developed in year incorporating renewable energy provision As part of our NZC Pathway, published in 2023, we committed that all new commercial buildings would incorporate renewable energy provision.	100%	100%	All new commercial buildings in 2025 included renewable energy sources through rooftop solar installations. Over 15,400 sq m of panels have been installed since 2023, totalling 3,223 kWp with an additional 1,610 kWp installed in 2025.

 

Principal risks & uncertainties

 

The Board is responsible for identifying and evaluating the Group's principal and emerging risks that could potentially impact the execution of our strategy, business model, future performance, solvency, liquidity or reputation. The Board conducts a comprehensive review of the Principal Risks at least twice annually, and additionally whenever there is a material change in strategy or a significant event that alters the organisation's risk profile. Any adjustments to the Principal Risks are approved to ensure they remain consistently aligned with the strategy and with internal and external factors.

 

During H1 2025 the Board undertook a comprehensive review and refresh of the Principal Risks to ensure they remain aligned with our strategic objectives and are reflective of the evolving external landscape This review adopted a "first-principles" approach, focusing on strategic objectives and the risks to achieving them, rather than building on existing Principal Risks, and was informed by consideration of: 

·      The "pivot" in our strategy, announced at the 2024 half year, towards 85% I&L through vertical development delivery and growth in the Investment Portfolio. ·      Early outputs from the enhancement and standardisation of our 'bottom-up' operational risk management framework.  ·      The current macroeconomic and geopolitical environment.

 

During H2 2025, further in-depth Principal Risk workshops were conducted with business risk champions, in alignment with our 'top-down/bottom-up' review process.

 

The extensive review process for the Principal Risks over 2025 did not result in a fundamental revision of the risk profile of the Group. Instead, notwithstanding the "first-principles" approach, it led to a refinement of the existing set of Principal Risks.

Below are the material changes made to our Principal Risks.

 

Changes From Prior Year	Risk	Commentary
NEW PRINCIPAL RISK	Risk 4 - Physical Climate Events	Extreme weather events and long-term climate shifts (e.g. storms, floods, wildfires, temperature extremes) disrupt construction supply chains, impacts development operations, increases costs, and damages assets.
NEW PRINCIPAL RISK	Risk 11 - Digital Transformation Project (DTP)	Failure to implement a scalable and integrated digital architecture that enables operational efficiency, business growth, continuous innovation, and effective AI adoption.
NEW PRINCIPAL RISK	Risk 13 - Government Policy Implementation	Challenges in slow and/or inconsistent implementation of Government policy across our regions alongside devolution and local government reform changing the landscape in which we (investors and businesses) operate.
NEW PRINCIPAL RISKS	Risk 6 - Capital Risk 9 - Liquidity	Until recently, these risks were consolidated in a single Capital & Liquidity risk. We have now separated them to distinguish clearly between: Capital risk, being an inability to source adequate capital to meet our strategic growth aspirations; and Liquidity risk, being an inability to maintain optimal levels of working capital to meet business as usual obligations.
REVISED PRINCIPAL RISK	Risk 10 - Climate Transition and Reporting risk	Failure to successfully transition to NZC, leading to non‑compliance with regulatory and reporting requirements, inability to meet the NZC targets we set ourselves, and associated reputational damage.
REMOVED PRINCIPAL RISK	Availability of and competition for strategic sites	Harworth's extensive land bank, development pipeline and investment strategy mean this is not considered a Principal Risk to achievement of Harworth's strategic objectives at this stage.
REMOVED PRINCIPAL RISK	Counterparties: Investment partners and service providers	This risk was consolidated into other principal and emerging risks.
REMOVED PRINCIPAL RISK	Statutory costs of development	This risk was consolidated into other Principal Risks.

 

The Group Principal Risk Register

The register incorporates the Principal Risks the Board has identified, including any emerging risks that could potentially become a Principal Risk to the Group strategy. Each risk is subject to a consistent risk assessment methodology, the outputs of which are reflected in a Principal Risk dashboard which details:

 

·      The scope of, and commentary on, the status of each risk; ·      Inherent risk, residual risk, and risk appetite scores to evaluate the changing status of each risk and monitor the alignment (or misalignment) of risk appetite and risk profile; ·      Mitigation measures that have either been implemented, are in progress, or are planned. These include "material controls" whose effectiveness will be reported on in our 2026 Annual Report as per the updated Corporate Governance Code Provision 29 requirements; ·      Key Risk Indicators ('KRIs') used to measure the profile of each risk: whilst this aspect remains under development, Harworth's ERM function aims to improve the quantity and quality of KRIs, and to develop a KRI dashboard for continuous real time monitoring of KRIs where possible.

Assurance over the key controls in place to mitigate Principal Risks to an acceptable level is obtained via various sources covering all three lines of defence. The Head of Audit and Assurance manages an assurance map which identifies what assurance is taken over the effectiveness of material controls. These controls are in place to mitigate to an acceptable level not only Principal Risks but also other key financial, operational, compliance, and reporting risks. Any gaps in assurance identified are used to inform the 36-month rolling internal audit programme. The internal audit programme will also incorporate selective testing of controls which, whilst not meeting the threshold for classification as a "material control", are nonetheless important mitigants of Principal Risks. 

Emerging Risks

As the business landscape evolves, emerging risks, such as geopolitical instability, climate-related disruptions, technological advancements, and regulatory changes pose significant challenges to long-term resilience. Effective management of these risks requires proactive identification, continuous monitoring, and agile response strategies. We are embedding horizon-scanning techniques and scenario analysis into our risk framework to anticipate potential threats and opportunities via regular risk workshops undertaken with the Board. This approach ensures that emerging risks are escalated promptly, enabling informed decision-making and safeguarding stakeholder value. Collaboration across functions and leveraging data-driven insights remain central to strengthening our preparedness for an increasingly complex risk environment. 

One new emerging risk was identified in 2025: Investment Partner Selection and Management: Flaws in governance and management of stakeholder relationships impacting operations, availability of capital and costs.

 

 

 

Risk 1	Commentary
Power Infrastructure Capacity	Securing power for development sites in the UK has become increasingly challenging, leading to uncertainties, potential cost increases and project delays. The rising demand for renewable energy has strained grid infrastructure, resulting in longer connection timelines. In response, National Energy System Operator ('NESO') is undertaking the Great Grid Upgrade comprising 17 major infrastructure projects to upgrade existing networks. NESO's reforms to the grid connection application process are underway. Whilst these changes aim to streamline connections, they also introduce new challenges. The "first ready, first connected" approach to transmission and generation applications is now in place. The next phase of reform is a pause in connection applications, which began in January 2025 to allow NESO to implement the new application process.
Description	Mitigation	RISK PROFILE
Challenges in securing power infrastructure for Schemes at a viable cost and timescale.	·      Comprehensive due diligence performed at the acquisition stage. ·      Comprehensive power strategy approved by Board as part of the underwrite proposal. ·      Stakeholder Engagement with NESO, Distribution Network Operators (DNOs), and Independent Distribution Network Operators (IDNOs) is maintained through ongoing discussions and reviews of infrastructure forecasts. Insights gained are used to inform development strategy. ·      Via Scheme Gateway Reviews each scheme's power strategy is subject to ongoing monitoring and, where appropriate, adaptation.	Current residual risk rating MEDIUM (unchanged from prior year)
		Risk appetite BALANCED
		Target residual risk MEDIUM (aligned to current risk rating)
		Link to strategic priorities 2 3 4 £

 

Risk 2	Commentary
Planning System	The UK planning challenges include delays from an inefficient system, resource constraints within local authority planning departments, and frequent changes to government policy. Proposed reforms are, on the whole, but not exclusively, positive for Harworth: they aim to streamline processes, bolster local authority resources, restore housing targets, and boost sustainable development, with goals including the delivery of 1.5m new homes over the next five years and critical infrastructure projects. However, significant positive impacts are unlikely until later in the parliamentary term. Industry engagement and stability are essential for progress. Added complexities come in the form of land value capture, Net Zero Carbon policies such as in Greater Manchester, greenbelt and BNG policies, with uncertainties around how these will be implemented in practice.
Description	Mitigation	RISK PROFILE
Challenges in obtaining planning permission for schemes impacting financial returns.	·      Comprehensive planning strategy approved by the Board as part of the underwrite proposal. This ensures that there is a clearly defined strategy for the site promotion through to securing a planning permission. Ongoing monitoring and (where appropriate) evolution of the strategy is undertaken via playbooks and monthly Development Board meetings. ·      Ongoing Stakeholder Engagement allows for the strategy to be informed by evidence including a local authority's housing and employment land supply, status of current plan, stakeholder mapping and existing strengths and weaknesses in relationships with key stakeholders in that area. Along with ongoing stakeholder engagement to ensure confidence in our commitment to comply with all sustainability obligations including BNG legislation and regional Net Zero Carbon policy requirements.   ·      A pre application process is undertaken for high-risk schemes to allow for areas which need further investigation / analysis to be flagged ahead of submitting the formal application to ensure a smooth, efficient process and reducing the risk of delays. ·      Planning Performance Agreements are entered into with certain local planning authorities (where appropriate) which set an agreed framework for engagement during the planning process to secure a timely determination of the application.	Current residual risk rating MEDIUM (reduced since prior year)
		Risk appetite OPEN
		Target residual risk MEDIUM (aligned to current risk rating)
		Link to strategic priorities 2 4 £

 

Risk 3	Commentary
Construction Supply Chain	Following a sustained period of materials cost inflation and constrained capacity across the construction sector, the cost of materials had stabilised with pricing further benefiting from increased competition between contractors.  However, conflict in the Middle East has caused a marked increase in oil and gas prices, and constrained shipping in that region, at least in the short-term, which will likely manifest in higher fuel prices and could cause wider supply chain disruption both in terms of pricing and availability. That being so, there is a reasonable prospect that the profile of this Principal Risk will trend higher over coming months, and we continue to monitor the risk closely.
Description	Mitigation	Risk profile
Exposure to construction supply chain may lead to increased pricing pressures, labour constraints, and risk of disputes, default and/or insolvency of supply chain partners.	·      Policy and Governance - A new Supply Chain Management and Procurement Policy, has recently been launched which will improve the rigour and consistency of supplier onboarding, relationship management and project procurement. For example, the Policy: ·      prescribes that Onboarding of new construction contractors and consultants must be approved by Senior Management. ·      imposes processes and controls for the procurement of construction projects. Procurement of all construction related contracts and appointments must be approved by Senior Management. ·      mandates that all construction contractors and consultants must undergo a detailed annual performance and relationship review. ·      increases the regularity with which financial due diligence is undertaken on construction contractors. ·      Contract Management - contract precedents are prescribed for construction contracts and consultancy appointments.	Current residual risk rating MEDIUM (unchanged from prior year)
		Risk appetite BALANCED
		Target residual risk MEDIUM (aligned to current risk rating)
		Link to strategic priorities 1 2 £

 

Risk 4	Commentary
Physical Climate Events	UK weather patterns are increasingly volatile. Real estate development and investment are vulnerable to extreme weather events, particularly rainfall, whether short-term or prolonged. The former typically gives rise to a risk of flood damage to property and/or buildings. The latter can hinder and/or delay land remediation and infrastructure development works, resulting in higher costs or deferred returns.
Description	Mitigation	Risk profile
Extreme weather events and long-term climate shifts (e.g. storms, floods, wildfires, temperature extremes) disrupt construction supply chains, impact development operations, increase costs, and damage assets.	·      As part of the planning application process for all new developments, a comprehensive suite of environmental assessments is undertaken to identify and mitigate site-specific risks. This includes a formal Environmental Impact Assessment (EIA) and flood mapping analysis. ·      Detailed plans are maintained for all existing development and investment assets within our portfolio, capturing key environmental and infrastructure data including flood risk exposure. These plans are reviewed annually and updated following material events or changes in site conditions. ·      Comprehensive construction scheduling as part of the procurement and project planning process, development schedules are collaboratively developed with the Principal Contractor to incorporate seasonal and weather-related considerations. This ensures that construction activities are timed to minimise disruption from adverse weather conditions. Scheduling updated as needed in response to forecasted climate events.	Current residual risk rating MEDIUM (NEW Principal Risk)
		Risk appetite BALANCED
		Target residual risk MEDIUM (aligned to current risk rating)
		Link to strategic priorities 2 £ H

 

 

 

Risk 5	Commentary
Real Estate End Markets	The residential land market remains subdued by both sell-side and demand-side headwinds, which continue to offset positive momentum in the I&L sector, resulting in lower overall returns at a portfolio level. The lack of demand-side stimulus suggests that recovery is likely to be muted and/or slow, as sell-side reforms take time to materialise, economic growth stagnates and interest rates remain higher for longer. Our decision to pivot towards the I&L sector over the medium term helps to mitigate the impact of these prevailing residential market conditions. The acute volatility of the current global backdrop, emanating from the Middle East conflict, carries the potential to place downward pressure on markets in a wide ranging manner: energy price shocks and supply chain turbulence could adversely affect commercial occupier markets and lead to tenant financial distress; persistent inflation could result in rising (or at least static) interest rates and increasing borrowing costs for businesses and homeowners of housing, and rising gilt rates, which result in a softening of real estate yields. In light of this it is possible that the profile of this Principal Risk will trend higher over coming months, and we continue to monitor the risk closely.
Description	Mitigation	RISK PROFILE
Deterioration of end markets, driven by macroeconomic factors and investor sentiment, impacting valuations, financial returns and recycling of capital.	·      Portfolio Strategy which is re-assessed when required by the Executive and reviewed bi-annually by the Board. ·      Investment Portfolio Strategy in place, which is re-assessed when required by the CIO and reviewed annually by the Board. ·      Quarterly meetings to cover national and regional market intelligence, which informs investment, divestment, and development strategies. Reviews and approve the vertical development pipeline bi-annually. ·      Continuous monitoring of sales performance against forecast via Management Information reporting to the Development Board, Executive and Board. ·      Group portfolio strategy work  helps manage portfolio risk to ensure Harworth is not over exposed to a particular area of the markets/and or development lifecycle.	Current residual risk rating MEDIUM (unchanged from prior year)
		Risk appetite BALANCED
		Target residual risk MEDIUM (aligned to current risk rating)
		Link to strategic priorities 1 2 3 £

 

Risk 6	Commentary
Capital	The increase in pace and scale of development activity across more sites under our strategy inevitably requires more capital. This will come from a surplus of internally generated capital, supplemented by RCF and project specific debt, as well as new third party equity and entry into "off balance sheet" partnerships which share the requirement for capital deployment. Competitively priced capital remains available in the form of development debt and partnership capital, albeit the cost of capital is at risk of rising if the Middle East conflict persists, causing higher inflation and interest rates. The prospect of raising balance-sheet equity remains somewhat challenging unless the Company's share price discount to NDV narrows, which could be compounded if global volatility hastens "risk-off" sentiment amongst investors. If the Middle East conflict persists, therefore, the profile of this risk will trend higher.
Description	Mitigation	RISK PROFILE
Inability to source adequate capital to meet our strategic growth aspirations.	·      Group funding strategy, which identifies, at a high level, the planned sources and composition of funding for the business, most recently reviewed and approved by the Board in Q1 2026. ·      Forecast capital requirement is calculated for each Scheme and  a Scheme funding strategy is developed which identifies the planned sources for that capital, drawing on the Group funding strategy. ·      Capital requirements and funding are monitored via monthly Development Board meetings and by the Executive via bi-annual Scheme Gateway Reviews. Identifying capital requirements for each Scheme to inform formulation of the annual Budget and Strategic Plan. ·	Current residual risk rating MEDIUM (unchanged from prior year)
		Risk appetite CAUTIOUS
		Target residual risk LOW (below current risk rating)   Additional measures planned for 2026 to reduce risk in line with target: We have identified the Projects for which partnership funding is our preferred source of capital and are initiating engagement with prospective funding partners.
		Link to strategic priorities 1 2 3 4 £

 

Risk 7	Commentary
People	As the size and shape of the workforce continues to adapt to the evolution of our strategy, the Board recognises the importance of, and continues to monitor closely, talent management, succession planning and, where appropriate, structured organisational change management. This approach encompasses culture and values, organisational design, recognition and reward, talent development and succession planning.
Description	Mitigation	RISK PROFILE
Inadequate employee value proposition impacting the ability to attract, retain, and develop quality talent, while also impacting succession planning efforts.	·      Comprehensive Pay and Benefits Package which is regularly benchmarked. ·      Career Development Opportunities including training programs and support for CPD/further education, our investment per capita to date has been above sector norm. ·      We promote a healthy work-life balance by offering flexible working hours, hybrid work options, and support for employee wellbeing and mental health. ·      Measurement and Benchmarking - We have developed a series of metrics to benchmark ourselves externally including the Employee Net Promoter Score (+49) and Investors In People (Gold).  The introduction of a new HRIS will also enable more focussed tracking of employee trends and patterns including performance against Objectives & Key Results (OKRs) and wellbeing. ·      Employee Engagement - Employee Forum takes place once a quarter which is an opportunity for representative employees from each area of the business to feedback / discuss concerns.	Current residual risk rating MEDIUM (unchanged from prior year)
		Risk appetite CAUTIOUS
		Target residual risk LOW (below current risk rating)   Additional measures planned for 2026 to reduce risk in line with target:   In 2026, we intend to refine our Talent Management and Succession Planning approach.
		Link to strategic priorities 1 2 3 4 £ H

 

Risk 8	Commentary
Health and Safety	We prioritise the health, safety and wellbeing of everyone involved in or impacted by our activities, including site visitors and workers. Above all else, we want everyone undertaking activity on our sites to be safe. This commitment extends across all our sites and operations, from horizontal and vertical development projects to our Investment Portfolio and our office environments. The risks which we proactively manage can be organised into three types: those which arise by virtue of our land and property ownership, those which arise as a result of our development activity, albeit typically via third-party contractors and consultants; and those which arise in our office environments.
Description	Mitigation	RISK PROFILE
Serious injury / death to employees, subcontractors, visitors, and/or occupiers resulting in operational impacts, liabilities, penalties and/or reputational damage.	·      Health and Safety Management System approved by Board and designed in line with recognised standards HSG65, ISO45001 and ISO14001 to ensure the effectiveness of risk management. Supported by a cloud based digital incident reporting / investigation software. ·      Assurance & Performance Monitoring which provides assurance that the EHS management system is operating effectively. This comprises: ·    site based inspection regime ("first line"). ·    quarterly site based and desktop compliance audits ("second line"). ·    performance monitoring through key channels such as the EHS Committee (management committee). ·      Mandatory EHS training provided to the business. Attendance at these is linked through to bonus gateways to ensure participation.	Current residual risk rating LOW (unchanged from prior year)
		Risk appetite CAUTIOUS
		Target residual risk LOW (aligned to current risk rating)
		Link to strategic priorities £ H

 

Risk 9	Commentary
Liquidity	Our investment in our land and development is funded from internal generation of capital from sales alongside our debt funding facilities, such as the RCF. We retain a high degree of control on spend, with budgets for the following year shaped by cash generation in the preceding year. Internal generation of capital from land and Investment Portfolio sales was a more challenging exercise in the second half of 2025, principally due to prevailing residential land market conditions which resulted in longer deferred payment profiles on sales to house builders and a prolonged period leading up to the Budget which deferred investment decisions by counterparties. That said, we successfully completed another high volume of land and asset sales towards the end of 2025, increased the RCF to £275m and secured an infrastructure loan for enabling works to open up our Wingates Scheme. This means that we retain headroom in working capital for business as usual obligations and we continue to regard this risk as low.
Description	Mitigation	RISK PROFILE
Inability to maintain optimal levels of working capital to meet business as usual obligations.	·      Treasury policy is approved by Board and reviewed annually in line with overall business needs, operational activities and maintenance of debt facilities. ·      Group funding strategy, which identifies, at a high level, the planned sources and composition of funding for the business, was most recently reviewed and approved by the Board in Q1 2026.  ·      Sales are tracked and cashflow forecasts are refreshed on a weekly basis and monitored closely by the CFO and wider Executive team.	Current residual risk rating LOW (NEW Principal Risk)
		Risk appetite   CAUTIOUS
		Target residual risk LOW (aligned to current residual risk rating)
		Link to strategic priorities   1 2 3 4 £

 

 

Risk 10	Commentary
Climate Transition and Reporting	Transitioning to NZC poses a significant challenge to the business, driven by the complexity of decarbonising large, long‑term brownfield regeneration projects and the significant embodied carbon associated with remediation, construction and infrastructure delivery. The business is highly dependent on suppliers, contractors and future occupiers adopting low‑carbon approaches, creating alignment and timing risks across the value chain. Increased regulatory expectations and evolving corporate reporting standards have potential to add compliance and cost pressures, in particular for our 2040 NZC commitments and the associated 2030 NZC Commitment 3, specifically for commercial development. Our NZC Pathway is an approach to mitigating these risks, it sets out our corporate and development-based approach to NZC. It has a wide-ranging impact on the Group, from our investment case to shareholders through to operational activity, including the need to embed NZC principles into all projects while remaining profitable. Our approach to development continues to evolve to reflect external factors including industry and stakeholder metrics, as well as the varied/emerging approaches taken by Local and Combined Authorities to NZC, emissions targets and restrictions through the planning process. The commitments within the NZC Pathway, combined with the ongoing evolution of standards/regulation at a national, regional, local and industry level, mean this risk remains an important area for the business to understand and manage.
Description	Mitigation	RISK PROFILE
Failure to successfully transition to NZC, leading to non‑compliance with regulatory and reporting requirements, inability to meet the NZC targets we set ourselves, and associated reputational damage.	·      The Harworth Way is the Group's formal framework for embedding sustainability and social value principles into all aspects of the business and its developments. This control ensures that our NZC targets are integrated into corporate culture, strategic planning, and the full development lifecycle, from concept design through to completion. The framework is reviewed annually by the Board to align with evolving regulatory requirements and stakeholder expectations. ·      Governance Structure: The Group maintains a formal governance structure comprising the Board (oversight of sustainability risks, opportunities, targets and performance) and Audit Committee (oversight of regulatory and reporting requirements). ·      ESG Reporting Assurance: year-on year enhancements to reporting assurance, which readies us for implementation of the new ISSB reporting regime.	Current residual risk rating MEDIUM (unchanged from prior year)
		Risk appetite CAUTIOUS
		Target residual risk LOW (below current risk rating)   Additional measures planned for 2026 to reduce risk in line with target: ·       We plan to establish a structured compliance management framework to identify, assess, manage, and report on compliance obligations across all business functions. ·       Increased data capability via the Group's Digital Transformation Project to help identify, assess, manage, and report on compliance obligations across all business functions. ·       Introduce a strategy for integration to business process as part of our approach to align with the new ISSB reporting standards. ·       Introduction of a Sustainability Committee (management committee) as part of our formal governance structure, giving operational oversight of ESG initiatives which implement the Harworth Way and contribute to meeting our NZC targets and support reporting. ·       Comprehensive review of the five NZC Commitments as part of the evolution of the NZC Pathway. ·       Increased levels of third party assurance to support compliance with regulatory and reporting requirements.
		Link to strategic priorities 1 £ H

 

Risk 11	Commentary
Digital Transformation Project (DTP)	Like all organisations, Harworth operates in an environment defined by rapid technological change, including the emergence and mounting prominence of Artificial Intelligence. Whilst evolution of the technologies we use is and will remain progressive, we recognise the need for a step-change in our digital maturity and are addressing this via our Digital Transformation Project. This carries a host of opportunities to drive operational efficiencies and enhance decision-making.
Description	Mitigation	RISK PROFILE
Failure to implement a scalable and integrated digital architecture that enables operational efficiency, business growth, continuous innovation, and effective AI adoption.	·      We have selected a strategic delivery partner which has extensive expertise in digital transformation, project / system delivery and software development. ·      KPIs have been defined and are tracked / monitored on a monthly basis. ·      Project and Programme Governance is in place for the project which includes regular meetings of Senior Management to ensure risks are effectively managed and the project is on track to meet its objectives within budget and timeframe. ·      Business Engagement - regular communication to the Business with training taking place at key points throughout the DTP lifecycle as well as involvement of key user groups to ensure successful adoption of new systems.	Current residual risk rating MEDIUM (NEW Principal Risk)
		Risk appetite CAUTIOUS
		Target residual risk LOW (below current risk rating)   Additional measures planned for 2026 to reduce risk in line with target: ·       DTP initiatives will continue to progress and mature in 2026, delivering on key milestones within the roadmap. ·       Technology Target Operating Model is being developed to ensure new technology systems, services and process can be maintained and benefits sustained once the Digital Transformation Project has been delivered.
		Link to strategic priorities £ H

 

Risk 12	Commentary
Digital Resilience	Cyber threats pose an ever-evolving risk to all businesses. Those operating in the real estate sector, which are often engaged in high-value transactions and project-based activities and rely on valuable information relating to land, property and projects, are particularly vulnerable to ransomware attacks, intellectual property theft, business email compromise and invoice fraud. The materialisation of any one of these threats, or self-harm via careless handling of commercially sensitive information, could prejudice business continuity and/or give rise to significant financial losses and/or serious reputational harm. As Harworth's portfolio, activities and profile grow, so will its vulnerability to cyber threats. It is also important that digital resilience security keeps pace with the changes we are implementing as part of our digital transformation project.
Description	Mitigation	RISK PROFILE
Failure to maintain digital resilience, resulting in compromised business continuity, loss of intellectual property or data, ineffective cyber incident response, and failure to support strategic enablement.	·      We have an Information Security Management System ('ISMS') that is aligned with ISO 27001 and industry best practice. ·      Revised data backup strategy implemented a ransomware resilient backup plan to safeguard critical business data. ·      We are utilising network monitoring and defence systems to detect and prevent security threats. ·      Systems deploying malware defence mechanisms to protect against malicious software. ·      Cyber risk insurance maintained to mitigate the financial impact of potential security breaches. ·      We conduct annual penetration testing, regular phishing simulations, and continuous IT system vulnerability scanning to identify and address weaknesses proactively. ·      We have a robust (and recently updated) Cyber Incident Recovery Plan to ensure operational resilience during a cyber-attack or system failure.	Current residual risk rating MEDIUM (unchanged from prior year)
		Risk appetite CAUTIOUS
		Target residual risk LOW (below current risk rating)   Additional measures planned for 2026 to reduce risk in line with target: ·    Publish revised policies to business, making clear standards and processes expected to employees. ·    Update and roll out new training platform to Harworth on cyber security risks. ·    Transition to a new Document Management Access and Storage system which will support improved information classification and access controls. ·    Deliver Cyber Simulation & Operational Exercise testing of Cyber Incident Response Plan
		Link to strategic priorities £ H

 

 

Risk 13	Commentary
Government Policy Implementation	Harworth, like its peers in the real estate sector, operates within a regulatory and economic framework that is heavily influenced by government policy. Political changes, whether through central Government or local authority elections, leadership transitions, or shifts in political priorities often carry uncertainty and/or delay, and some adversely impact our strategy and/or business model and, therefore, the returns we can make for shareholders and/or the positive outcome we can deliver for wider stakeholders.
Description	Mitigation	RISK PROFILE
Challenges in slow and/or inconsistent implementation of Government policy across our regions alongside devolution and local government reform changing the landscape that we (investors and businesses) are operating in.	·      Continuous horizon scanning is undertaken to identify and assess emerging policy risks and opportunities. ·      Modelling - Where a policy is deemed to potentially have an impact on Harworth (positive or negative) the Business will engage with the relevant business stakeholders to undertake an impact assessment (supported by financial modelling where it is reasonable to do so), scenario planning and development of mitigation plans. ·      A stakeholder engagement programme is in place that outlines communication and engagement strategies for key stakeholders including local and central government, community groups, trade bodies and investors. ·      Site-specific engagement: where individual schemes are negatively impacted by implementation of government policy (inconsistent or otherwise), we develop comprehensive stakeholder plans and leverage key relationships to unblock challenges and minimise the impact.	Current residual risk rating MEDIUM (NEW Principal Risk)
		Risk appetite BALANCED
		Target residual risk MEDIUM (aligned to current risk rating)
		Link to strategic priorities 1 2 3 4 £

 

Strategic priorities

1              Repositioning our core Investment Portfolio to modern Grade A

2              Increasing direct development of Industrial & Logistics space.

3              Accelerating sales and broadening the range of our Residential products.

4              Scaling up through land acquisitions and promotion activities

£              Group targets

H             The Harworth Way

 

 

 

 

 

Risk Appetite:

Averse	We avoid risk and uncertainty. Avoidance of risk and uncertainty is the overriding objective, and activities should only be undertaken when they carry no or very low inherent risk.
Cautious	We prefer options which carry low risk. Preference for activities and delivery options which carry a low degree of inherent risk or are deemed to carry a low degree of residual risk after mitigation.
Balanced	We are willing to consider a range of options and tolerate a degree of risk. Willing to undertake activities and consider delivery options which carry a medium degree of residual risk. This may mean that activities carry a high degree of inherent risk but are deemed to carry medium residual risk after mitigation.
Open	We are focused on maximizing opportunities and returns. Prepared to undertake activities and consider delivery options which carry (or may carry) a medium to high residual risk, with the objective of maximising opportunities and returns. Typically, such activities will be core to Harworth's business model and corresponding risk/reward profile.

 

Directors' Responsibilities statement

 

The Directors' Responsibilities Statement below has been prepared in connection with the full Annual Report and Financial Statements for the year ended 31 December 2025.

The directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable United Kingdom law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Group and Company Financial Statements in accordance with UK-adopted international accounting standards (IFRSs). Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group and the Company for that period.

In preparing these Financial Statements the Directors are required to:

·      select suitable accounting policies in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently; ·      make judgements and accounting estimates that are reasonable and prudent; ·      present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; ·     provide additional disclosures when compliance with the specific requirements in IFRSs is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Group and Company financial position and financial performance; ·     in respect of the Group Financial Statements, state whether UK-adopted international accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; ·    in respect of the Company Financial Statements, state whether UK-adopted international accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements; and ·   prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company and/or the Group will continue in business.

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the Company and the Group Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a strategic report, directors' report, directors' remuneration report and corporate governance statement that comply with that law and those regulations. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website.

Responsibility statements

The Directors (see the list of names and roles in the Annual Report) confirm, to the best of their knowledge:

·   that the consolidated Financial Statements, prepared in accordance with UK-adopted international accounting standards give a true and fair view of the assets, liabilities, financial position and profit of the Company and undertakings included in the consolidation taken as a whole; ·    that the Annual Report, including the strategic report, includes a fair review of the development and performance of the business and the position of the Company and undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and ·    that they consider the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position, performance, business model and strategy.

 

Disclosure of information to the auditor

Each of the Directors who were in office at the date of approval of this Report also confirms that:

·      so far as they are aware, there is no relevant audit information of which the auditor is unaware; and ·     each Director has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant information and to establish that the Group's and Company's auditor is aware of that information.

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 Companies Act.

This Statement of Directors' Responsibilities was approved by the Board and signed by order of the Board:

 

Chris Birch
General Counsel and Company Secretary
16 March 2026

 

Cautionary statement

This announcement and the 2025 Annual Report and Financial Statements contain certain forward-looking statements which, by their nature, involve risk, uncertainties and assumptions because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward looking statements. Any forward-looking statements made by or on behalf of the Group are made in good faith based on current expectations and beliefs and on the information available at the time the statement is made. No representation or warranty is given in relation to these forward-looking statements, including as to their completeness or accuracy or the basis on which they were prepared, and undue reliance should not be placed on them. The Group does not undertake to revise or update any forward-looking statement contained in this announcement or the 2025 Annual Report and Financial Statements to reflect any changes in its expectations with regard thereto or any new information or changes in events, conditions or circumstances on which any such statement is based, save as required by law and regulations. Nothing in this announcement or the 2025 Annual Report and Financial Statements should be construed as a profit forecast.

Directors' liability

This announcement and the 2025 Annual Report and Financial Statements have been prepared for, and only for, the shareholders of the Company, as a body, and no other persons. Neither the Company nor the Directors accept or assume any liability to any person to whom this announcement or the 2025 Annual Report and Financial Statements is shown or into whose hands they may come except to the extent that such liability arises and may not be excluded under English law.

 

 

 

Shareholder information

Financial calendar

 

Results for the year ended 31 December 2025	Published	17 March 2026
Annual report and financial statements for the year ended 31 December 2025	Scheduled	April 2026
2026 Annual General Meeting	Scheduled	18 May 2026
Final dividend for the year ended 31 December 2025	Ex-dividend date  Record date  Payable	23 April 2026 24 April 2026 22 May 2026
Half year results for the six months ending 30 June 2026	Scheduled	September 2026

 

Registrars

 

All administrative enquiries relating to shareholdings should, in the first instance, be directed to Equiniti. Help can be found at www.shareview.co.uk. Alternatively, you can contact Equiniti at Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA  (telephone: +44 (0)371 384 2301). You should state clearly the registered shareholder's name and address. 

 

Dividend mandate

 

Any shareholder wishing dividends to be paid directly into a bank or building society should instruct this via the Shareview service or contact the Registrars for a dividend mandate form. Dividends paid in this way will be paid through the Bankers' Automated Clearing System ('BACS').

 

Shareview service

 

The Shareview service from Equiniti allows shareholders to manage their shareholding online. It gives shareholders direct access to their data held on the share register, including recent share movements and dividend details and the ability to change their address or dividend payment instructions online. To visit the Shareview website, go to www.shareview.co.uk. There is no charge to register but the 'shareholder reference number' printed on proxy forms or dividend stationery will be required. 

 

Website

 

The Group's website (harworthgroup.com) provides further information. Detailed information for shareholders can be found at harworthgroup.com/investors.