Harworth Group plc

('Harworth' or the 'Group')

Half Year Results for the six months ended 30 June 2026

 

Acceleration of key initiatives to create a simpler, lower-cost and higher-returning platform

Strong industrial & logistics pipeline momentum alongside progress on multiple hyperscale data centre opportunities

 

Harworth Group plc, a leading regeneration, strategic land and development business, today announces its results for the six months ended 30 June 2026. Harworth has also separately published today its response document relating to the unrecommended offer for Harworth Group plc by Peel Pepper (UK) limited, a company indirectly wholly-owned by Peel Holdings Group Limited.

 

Performance measures^1,2

	H1 2026	H1 2025	FY 2025		H1 2026	H1 2025	FY 2025
Total accounting return (%)	(3.7)	1.1	1.7	Total portfolio value movement (£m)4	(14.9)	15.5	44.5
EPRA NDV per share (p)3	214.8	223.7	224.4	Ind. & logistics value movement (£m)5	(6.3)	28.3	73.6
EPRA NDV (£m)3	697.7	725.0	727.3	Residential value movement (£m)	(16.9)	(14.7)	(26.8)
Net loan to portfolio value (%)	20.3	19.0	15.6	Total Property sales (£m)	13.2	18.9	115
Liquidity (£m)	99.5	59.8	127.1	Investment Portfolio value (£m)	301.4	319.3	305.0

 

Statutory measures

	H1 2026	H1 2025	FY 2025		H1 2026	H1 2025	FY 2025
Total dividend per share (p)6	0.592	0.538	1.775	Operating (loss)/profit (£m)	(24.9)	7.1	21.6
Net debt (£m)	190.0	179.4	145.9	Statutory portfolio value (£m)7	900.7	908.6	899.4
Net assets per share (p)	206.5	215.5	215.6	Net asset value (£m)	670.8	698.3	699.0

 

Lynda Shillaw, Chief Executive of Harworth, commented: "Harworth has made good operational and strategic progress during the first half of 2026 and into the second, against a challenging macroeconomic backdrop that has weighed on valuations, particularly in residential. Since 2021 we have successfully repositioned our land and development portfolio, shifting the weighting to 71% industrial & logistics and developing a significant powered land bank, in turn positioning the business to deliver strong returns to shareholders into the medium term.

"Our 34.8m sq ft land and development pipeline, which includes 0.8GW of powered land, would be difficult to replicate today given its scale, together with the advanced planning and power supply status, and strategic locations, of many of its sites. Within this pipeline, we are seeing strong occupier demand across our industrial & logistics products, driven by structural growth trends. This includes the first pre-let at our 1.1m sq ft Chatterley Park site in Staffordshire, to an advanced manufacturing occupier. Our largest-ever substantially construction-ready land bank of 3.8m sq ft positions us to further capture this momentum through a combination of pre-lets, land sales and small to mid-box speculative builds.

"Today we are providing more details on our acceleration of key initiatives, which builds on our successful track record over the past five years and, supported by our in-house skillset and extensive land bank, means we are well positioned to take full advantage of the compelling opportunities that lie ahead. The Board believes that its execution will create a simpler, lower-cost and higher-returning platform to deliver future growth for Harworth shareholders."

 

Acceleration towards a simpler, lower-cost and higher-returning platform:

·      Becoming a pure play powered land and industrial & logistics specialist, exiting the residential sector

·      Refocusing on strategic land, enabling works and selective development to maximise returns

·      Sizing the Investment Portfolio to support funding, while recycling to optimise returns

·      Aligning our operating model and cost base with a pure play powered land and industrial & logistics approach

·     If Group identifies that it holds surplus capital, including following sales of material assets and having assessed future   accretive capital deployment opportunities, the Harworth Board will consider returning some or all of such surplus   capital to Harworth Shareholders so that they benefit directly from value creation initiatives as they are executed

 

Progressing a substantial data centre site pipeline, with accepted power offers of 0.8GW

·      Final plot sale to Microsoft at Skelton Grange progressing towards completion, concluding first powered land sale

·      Entered exclusivity agreement with a leading data centre provider on second powered land sale for a hyperscale DC

·      A further four hyperscale data centre opportunities identified; delivery progressing into the near to medium-term

·     Potential future profits from the sale of existing powered land portfolio as serviced powered land for data centres,   assuming full ownership, planning achieved and power secured are estimated to be £293 million⁸. Value has the    potential to be realised as we continue to advance our data centre strategy

 

Strong occupier demand across full range of industrial & logistics products, and progress on residential plot sales

·     Completed or in legals on three pre-lets, adding £3.7m of annualised rent at a 17% premium to combined ERV⁹

·     In negotiations regarding a further 1.5m sq ft of space across industrial & logistics and powered land

·    Investment Portfolio now 77% Grade A by value; post period-end lettings and a secondary asset sale ahead of book value will drive further progress towards 100% Grade A target

·    Completed, in negotiation to conclude definitive contracts or subject to agreed terms on 58% of budgeted full year sales, including 952 residential plots

 

Harworth's largest-ever substantially construction ready land bank, with strong potential for near-term value creation

·      34.8m sq ft and 0.8GW industrial & logistics and powered land bank, with 73% consented or in the planning system

·      3.8m sq ft substantially construction-ready land, offering c.£600m of GDV potential in the next 3-5 years

·      Retaining flexibility on delivery options, including pre-lets, land sales and small to mid-box speculative development

 

Reduced valuations driven principally by residential market headwinds

·   EPRA NDV reduction principally driven by residential market headwinds, namely softer demand and increased costs in housebuilder end markets, resulting in a Total Accounting Return of (3.7)% (H1 2025: 1.1%)

·     Industrial & logistics valuations remained broadly stable, as management actions to drive value across pipeline, including on data centre sites, largely offset macroeconomic-driven cost increases in labour and materials

·   Natural Resources portfolio and agricultural land valuations increased, reflecting value uplifts for newly created Biodiversity Net Gain schemes and an improved outlook for income from wind turbines

 

Robust financial position, with low LTV

·      Available liquidity of £99.5m as at 30 June 2026 (30 June 2025: £59.8m) providing flexibility and optionality

·      Statutory net assets decreased by 4.0% to £670.8m (31 December 2025: £699.0m)

·      Low LTV of 20.3% as at 30 June 2026, reduced to 17.1% as of 31 August 2026¹⁰ (30 June 2025: 19.0%)

·      Increase of 10% in the interim dividend to 0.592p per share, in line with Group's dividend policy

 

Notes:

1.      All values are Harworth's share 2.      Comprise 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.      Comprises industrial & logistics land and developments, Investment Portfolio, residential land and developments, Natural Resources portfolio and agricultural land 5.      Comprises industrial & logistics land and developments and the Investment Portfolio 6.      The Ex-dividend date, Record date and Payment date for the 2026 interim dividend can be found in the Shareholder Information section of this announcement 7.      Statutory portfolio value includes investment properties, development properties, AHFS, occupied properties and investment in joint-ventures: refer to Note 2 to the financial statements 8.      JLL analysis separate to the independent Red Book valuation at 30 June 2026. More details can be found in Harworth's Response Document issued today 9.      Estimated Rental Values 10.   Using 30 June 2026 valuations

 

Enquiries:

 

Harworth Group plc
Lynda Shillaw (Chief Executive) Kitty Patmore (Chief Financial Officer) Tom Loughran (Head of Investor Relations & Communications)	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

A webcast will be held today at 10.00am for investors and analysts. This can be accessed at the following link: https://brrmedia.news/HWG_HY_26. A playback will be made available at the same link shortly after broadcast. 

 

About Harworth

Harworth Group plc (LSE: HWG) is a leading regeneration, strategic land and development business focused principally on the industrial & logistics sector. We own, develop, and manage a portfolio of over 15,000 acres across 100 sites located throughout the North of England and the Midlands. We specialise in delivering long-term value for all stakeholders by regenerating large, complex sites into industrial & logistics developments or serviced remediated land for sale. Our long-term through-the-cycle business model aims to create sustainable places and support new jobs, homes and opportunities across the regions. Visit www.harworthgroup.com for further information. 

 

LEI: 213800R8JSSGK2KPFG21

 

Chief Executive's review

For the six months ended 30 June 2026

 

Harworth has made good operational and strategic progress during the first half of 2026 and into the second, against a continued challenging macroeconomic backdrop, that has weighed on our valuations, particularly in residential. We are seeing strong momentum driven by demand a broad range of industrial and logistics uses and data centre sites across our 34.8m sq ft  land and development pipeline.

 

Accelerating key initiatives to create a simpler, lower-cost and higher-returning platform

 

Harworth has a strong record of delivering growth and returns. Since the inception of our current strategic plan in 2021, we have:

·  secured planning on 9.2 million square feet of industrial & logistics space with a GDV of c.£1.3 billion with a consistently high success rate on planning applications;

·    concluded headline sales totalling c.£700.0 million across both its industrial & logistics and residential portfolios at an average 24% profit on historic cost

·    acquired a total of 15.4 million square feet of industrial & logistics land with an estimated GDV of £2.3 billion; and

·   over the five years to 31 December 2025, delivered an average Total Accounting Return of 8.1%, representing upper quartile performance amongst its peers in the listed sector.

 

Having executed our current strategic plan consistently since 2021 and successfully positioned the business to drive future medium to long-term returns from our industrial & logistics landbank, we are today announcing an acceleration of key initiatives to align capital allocation and organisation design to the structural shifts in our primary markets.

 

Capital will be directed towards high-performing industrial & logistics opportunities as we exit the residential sector and reduce our exposure to other lower returning assets. These actions will create a simpler, lower-cost and higher-returning platform. The key elements comprise:

 

i)     Accelerating reallocation of capital to become a pure play powered land and industrial & logistics specialist

 

In 2024, Harworth announced its intention to position its portfolio to 85% industrial & logistics, and thereby reduce residential exposure to below 15%, by 2029. Due to the scale and strength of opportunities across its industrial & logistics and powered land pipeline, the Group is announcing today its intention to exit the residential sector entirely and accelerate the reallocation of capital to higher returning opportunities aligned to industrial & logistics and powered land, as well as data-led and infrastructure-enabled opportunities.

 

Industrial & logistics land and developments (including data centres) have delivered an average annual ROCE representing the unlevered total property level return, of 24.5% over the last five financial years, and focusing our expertise on unlocking value from these sectors will improve future returns.

 

At the same time, we will continue to exit secondary assets and fully optimised industrial & logistics sites, where the future returns profile is generally lower.

ii)     Refocusing on strategic land, enabling works and selective development to maximise returns

To maximise capital returns and velocity, we will allocate capital towards strategic land promotion, enabling infrastructure works and, on a selective basis, development activity where risk-adjusted returns meet attractive thresholds.

 

As we bring our pipeline forward, we will retain the flexibility to sell serviced land to occupiers and investors, build out (on balance sheet or in partnership) and sell or retain built assets. Harworth has an established track record in all these areas, and this flexible approach helps to actively manage the risk profile of the business and recycle capital more efficiently.

 

iii)   Sizing the Investment Portfolio to support funding, while recycling to optimise returns

 

When development assets are transferred to our Investment Portfolio, they provide a recurring source of income, supporting cash generation and facilitating debt financing and asset management-driven value creation. The Investment Portfolio creates opportunities to recycle capital through selective disposals once asset management initiatives have been completed and/or to capitalise on favourable market conditions, helping to finance future value-enhancing developments whilst maintaining balance sheet strength.

 

Over the last three financial years, the Investment Portfolio has delivered an average unlevered return on capital employed of 9.3% per annum, in excess of the cost of debt, and has the wider benefit of enabling leverage to be introduced into the strategic land portfolio. The portfolio was valued at £301.4 million (as at 30 June 2026) and is 77% Grade A by value.

 

Going forward, the Investment Portfolio will be more actively managed to crystallise asset management and valuation gains, with the principal aim of supporting the Group's debt funding while also optimising returns. As a result, the portfolio will no longer be managed to a target size, but is expected to reach a medium-term, stabilised value in the order of £500 million to £600 million. This approach will also release capital for higher returning strategic land and development opportunities.

 

iv)   Aligning our operating model and cost base with a pure play powered land and industrial & logistics approach

 

The creation of a simpler business model as described above creates operational efficiencies complemented by the programme of digital and wider operational transformation which has been implemented over the last two years and is reaching maturity. Taken together, these will support material reductions in our cost base.

 

We intend to quantify these cost savings in a Quantified Financial Benefits Statement, which requires reports from Harworth's reporting accountants and financial advisers. The preparation of these reports is underway so that we can publish details of our targeted cost savings as soon as practicable.

 

A path to value creation

 

We are firmly focused on pursuing the optimal way to preserve and deliver the full embedded value of Harworth to our shareholders. We believe that the acceleration of key initiatives to alter the capital allocation and organisation design of the Group appropriately reflects the changed external environment and provides a path to long-term value creation, allowing future investment requirements to be substantially funded through internally generated capital.

 

If we identify that we hold surplus capital, including following sales of material assets and having assessed future accretive capital deployment opportunities, the Board will consider returning some or all of such surplus capital to shareholders so that they benefit directly from value creation initiatives as they are executed. In addition, and consistent with its fiduciary duties, the Harworth Board will continue to consider other strategic opportunities available to it that will enhance shareholder value.

 

Having been agreed in principle by the Harworth Board earlier this year, the implementation of this platform is already underway and, once completed, the Harworth Board believes that it can deliver higher and more sustainable returns for Harworth Shareholders, targeting low double-digit total accounting return in the longer-term

 

Our markets

 

Although the UK economy experienced a relatively resilient start to 2026, heightened macroeconomic and geopolitical volatility weighed on markets from the end of February onwards, with the consequent impact on inflation, interest rate expectations and business and consumer confidence.

 

As a regeneration, strategic land, and development business, Harworth's primary focus is on the industrial & logistics sector and powered land suitable for uses such as hyperscale data centres and advanced manufacturing. Despite the macroeconomic backdrop, these sectors remain characterised by highly attractive market fundamentals, supported by structural drivers such as cloud computing, AI, online retail, on-shoring, near-shoring, and defence.

 

Industrial & logistics market

 

During the first six months of 2026, JLL reported that take-up of big-box assets (over 100,000 sq ft) reached 12.9m sq ft, up 3% year on year. Take-up momentum was particularly strong in Q2, totalling 7.9m sq ft, which is 19% higher than the five-year quarterly average (Q3 2021 to Q2 2026). This occupier demand came from a diverse range of sectors, including manufacturing (such as defence), omni-channel retailers, and third-party logistics providers.

 

Approximately 63% of all big-box space acquired in the first half of the year was new, while the remaining 37% was high-quality, second-hand space. This represents the highest half-yearly level of second-hand take-up in the last five years, highlighting occupiers' increased focus on immediately available space. Regionally, the Midlands was the most active area in H1 2026, accounting for 70% of transacted floorspace, as logistics firms and retailers focused on expanding their footprint within the critical Golden Triangle, where Harworth has several sites at varying stages in the planning process.

 

Healthy occupier demand and stabilising construction rates drove the market-wide vacancy rate down to 9.2% at the end of Q2 2026, from 10.1% in Q2 2025. This vacancy rate is projected to fall further during H2 2026, driven by 10m sq ft of stock already under offer at the end of H1 2026, which will be removed from available inventory as transactions finalise. Harworth has seen strong demand from a wide range of occupiers across its product range, recently completing two pre-lets and entering legals on a further one, totalling 319,400 sq ft.

 

JLL recorded an unweighted average increase of 1.4% in prime headline rents across the UK over H1 2026, which compares to a 2.7% increase in ERVs across Grade A space in Harworth's Investment Portfolio. In the 12 months to Q2 2026, market-wide rents grew on average by 4.1%. Regionally, in the 12 months to Q2 2026, the North West and the East Midlands significantly outperformed the national average, with prime headline big box rents growing on average by 9.7% and 9.2%, respectively.

 

Data centres market

 

As the UK's demand for cloud services, AI computing, and data storage continues to accelerate, so does demand for data centres and the land that can accommodate them. In H1 2026, the data centre market continued to experience exceptional property fundamentals, underpinned by an unprecedented demand-supply imbalance. The significant wave of capital expenditure by hyperscalers and the explosion of AI workloads have increased absorption rates. However, structural bottlenecks continue to limit the delivery of new physical facilities.

 

CBRE notes that, as with industrial & logistics operators, data centre operators and AI hyperscalers will pay a premium for the right location, with the relevant power infrastructure, good transportation access and speed to market. While London continues to dominate market share, attention to campuses and regional locations is rising amid power constraints in the South East and supportive Government policy for other regions.

 

Residential market

 

According to Nationwide, the UK housing market experienced modest growth in H1 2026. Nationally, annual growth in house prices to June 2026 was 2.2%, up from 1.7% in May. On a regional basis, Harworth's focus geographies of the North West (+3.9%), West Midlands (+3.2%), Yorkshire and Humber (+2.9%) and the East Midlands (+1.8%) all outperformed London (+1.6%) and the South East (+0.1%).

 

Higher mortgage rates and broader political and economic uncertainty have kept house buyers cautious. In the absence of any market stimulus, most analysts expect house prices to come under further downward pressure over the next 12 months, particularly in London and the South East.

 

UK residential development land prices also softened further in H1 2026, driven by increasing viability pressures. Northern England & Scotland outperformed the rest of the UK, showing marginal positive value growth (+0.3% year-on-year in Q2 2026) supported by local market resilience and constrained site availability. House builders continue to experience significant structural and economic headwinds from rising construction costs, additional policy costs, higher taxes, and a growing array of levies that have collectively eroded the viability of many new developments. Overall, these headwinds have resulted in lower valuations for our residential sites at 30 June 2026.

 

Operational performance

 

Operational momentum was resilient during the first half, underpinned by progress across our powered land and industrial & logistics pipeline. Across our powered land pipeline, we entered exclusivity on a second hyperscale data centre site, progressed the final Microsoft land sale at Skelton Grange towards completion, and identified four further potential data centre sites in our land bank, capable of being delivered in the short to medium term.

 

Across our industrial & logistics pipeline, occupier demand remained robust, with three pre-lets completed or in legals post period-end, negotiations ongoing across a further 1.5m sq ft of space, and our largest-ever substantially construction-ready land bank providing flexibility to capture demand through pre-lets, land sales and selective speculative development.

 

Against a challenging backdrop, we progressed our residential portfolio in order to recycle capital into higher-returning opportunities, with the securing of a planning consent for 660 homes at our Crewe West site and 952 plots completed or in legals in the year to date.

 

Financial performance

 

Harworth's financial performance in the first half reflected continued operational progress across the powered land and industrial & logistics portfolio, however, this was more than offset by valuation pressure in residential markets. Total Accounting Return was (3.7)%, compared with 1.1% in H1 2025, principally due to a valuation-driven reduction in EPRA NDV per share to 214.8p from 224.4p as at 31 December 2025. With £18.6m of development spend in the period, which we intentionally curtailed to manage market risk, the overall portfolio valuation remained broadly stable at £936.5m, a robust performance given the challenging macroeconomic backdrop.

 

The Group maintains a strong balance sheet, with net debt of £190.0m and net loan to portfolio value of 20.3% at 30 June 2026, alongside available liquidity of £99.5m. The value of the Investment Portfolio remained stable at £301.4m, as we continued to increase its weighting towards Grade A industrial & logistics assets, and the portfolio continues to offer strong reversionary potential.

 

Reflecting the Board's confidence in Harworth prospects and in line with our dividend policy, the interim dividend was increased by 10% to 0.592p per share.

 

Outlook

 

The actions we have taken in the first half, including accelerating key initiatives to focus on industrial & logistics and powered land and exiting residential, advancing our strategic land sites and lining up and completing sales and letting transactions, have positioned us well to extract further value from our difficult to replicate powered land and industrial & logistics pipeline over the remainder of the year and beyond.

 

Having consistently executed on our current strategic plan since 2021 and successfully positioned the business to drive future medium to long-term returns, we are accelerating key initiatives to align capital allocation and organisation design to the structural shifts in our primary markets. The output of this acceleration is more targeted investment into identified high growth sectors and a plan to deliver more sustainable and higher returns for shareholders through a lower-cost and higher-returning platform.

 

Lynda Shillaw

Chief Executive

8 September 2026

Operational review

 

Harworth's land and property portfolio value totalled £936.5m at 30 June 2026 (31 Dec 2025: £937.2m) and was weighted 71% (31 Dec 2025 : 70%) to industrial & logistics.

 

Land & property portfolio value (£m)

	30 Jun 2026	31 Dec 2025
Industrial & logistics
Strategic Land	141.2	149.3
Major Developments	221.3	198.2
Investment Portfolio	301.4	305.0
	663.9	652.5
Residential
Strategic Land	61.9	61.5
Major Developments	171.9	192.3
	233.8	253.7
Total NRS & other	38.7	31.0
Total portfolio value	936.5	937.2

 

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

 

Portfolio value movements (£m)

31 Dec 2025	937.2
Development spend	18.6
Acquisitions	1.1
Revaluations	(13.4)
Disposals	(10.5)
Net JV acquisitions / disposals	3.4
30 Jun 2026	936.5

 

Industrial & logistics portfolio

 

At 30 June 2026, the Group's industrial & logistics and powered land portfolio totalled 34.8 m sq. ft, with accepted power offers of 0.8GW (31 Dec 2025: 35.0m sq ft and accepted power offers of 0.8GW) and a consented pipeline of 8.3m sq ft (31 Dec 2025: 8.4m sq ft). The pipeline was 45% owned freehold, with the remaining 55% controlled through JV arrangements (11%), options (41%) or PPAs (3%).

 

Acquisitions and land assembly

 

During the period, the Group signed a new option agreement for a 94-acre strategic land parcel adjacent to the A1 in Nottinghamshire. This option forms part of land assembly works at the site, where the Group first acquired a smaller freehold land parcel in 2023. The combined area now owned by Harworth, either freehold or through option agreements, is 123 acres, with the potential to deliver 1.5 million sq ft of industrial & logistics space. The site is currently unallocated in the relevant authority's local plan, and the Group continues to work with stakeholders to promote it for development.

 

Planning

 

The table below breaks down the industrial & logistics pipeline by planning status.

Industrial & logistics pipeline & planning progress¹

(m sq ft)	30 June 2026	31 Dec 2025
Pre-planning	9.5	8.8
Draft allocation in local plan	1.1	1.1
Allocation in local plan	2.9	2.9
Awaiting planning determination	12.9	13.7
Consented	8.3	8.5
Total pipeline	34.8	35.0
Consented or in the planning system2	73%	75%

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

As at 30 June 2026, over 70% of Harworth's 34.8m sq ft total pipeline (31 Dec 2025: 35.0m sq ft) was consented or in the planning system. The increase in space at the pre-planning stage was mostly related to the acquisition referenced above, partially offset by small masterplan revisions across several sites. Movements in other planning categories also related to small masterplan revisions across sites.

 

Following the significant number of applications submitted for industrial & logistics space in 2025, applications totalling 12.9m sq ft across 10 sites remain in the planning system awaiting determination, of which sites totalling 4.7m sq ft have confirmed target planning committee dates in the second half of 2026. Sites currently in planning include Rothwell (Kettering), Northern Gateway (Greater Manchester), where the Group's JV benefits from an allocation in Greater Manchester's Places for Everyone (PfE) joint development plan, and Junction 15 (Northampton), which benefits from a draft allocation in the local plan for strategic warehousing.

 

Direct development and land sales

 

Infrastructure and enabling works across Harworth's industrial & logistics sites provide the pipeline for selective de-risked direct development and land sales. Capital allocated to infrastructure and enabling works during 2025 and into 2026 has generated Harworth's largest-ever portfolio of substantially complete serviced land, with the capacity to deliver 3.8m sq ft, providing optionality for development and value realisation.

Occupier demand remains strong across Harworth's product range. So far this year, the Group has completed or entered legal negotiations on three pre-let agreements, under which Harworth will construct the unit and let it to the occupier under leases ranging from 15 to 20 years. The three pre-let agreements total 319,300 sq ft and will generate £3.7m of annualised rental income, at an average 17% premium ERV:

·    a 30,700 sq ft last-mile parcel and postal facility for a logistics operator at Gateway 36, Barnsley, with a straight 20-year lease

·    a 108,600 sq ft advanced manufacturing facility for a global automotive parts designer on Plot D3 at Chatterley Park, Staffordshire, with an 18-year lease

·    a 180,000 sq ft advanced manufacturing facility for an existing occupier at the Advanced Manufacturing Park, Rotherham, with a straight 15-year lease

In addition, the Group intends to develop speculatively a small 58,000 sq ft unit at Plot D2 at Chatterley Park, in response to strong occupier demand for industrial & logistics space in the local area.

 

As at 31 August 2026, the Group was in leasing and land sale negotiations with occupiers for 1.5m sq ft of space across the Group's industrial, logistics, and powered land portfolio, representing the next phase of opportunities.

Key industrial & logistics development sites

Site	Ownership1	Sold / developed / pre-let (sq ft)	Space remaining (sq ft)	Estimated GDV remaining (£)	Development stage2 (of 5)	Forecast completion year
Advanced Manufacturing Park (AMP) (Rotherham)	FH	1.9m	0.2m	£30m - £40m	5	2028
Gateway 36 (Barnsley)	FH	0.4m	1.1m	£130m -£150m	5	2033
Chatterley Park (Staffordshire)	FH	0.0m	1.1m	£180m - £190m	5	2028
Wingates (Bolton)	FH & O	0.0m	2.9m	£520m - £580m	4	2033
Skelton Grange (Leeds)	FH	0.6m	0.7m	Confidential	4	2027
Gateway 45 (Leeds)	FH	0.0m	0.8m	£150m-£160m	3	2029
Cinderhill (Derby)	FH & PPA	0.0m	1.5m	£180m - £190m	3	2030
Gascoigne Wood (Selby)	FH	0.0m	2.0m	£270m - £290m	3	2028
Junction 15 (Northampton)	O	0.0m	1.5m	£260m - £280m	3	2031
Rothwell (Kettering)	FH	0.0m	1.8m	£300m - £330m	3	2031
Northern Gateway3 (Manchester)	FH & O	0.0m	3.3m	Confidential	3	2029-2038
N. Yorkshire site	O	0.0m	3.3m	Confidential	2	2040

1. Ownership key: FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint Venture, O: Option

2. Development stage key: 1. Acquisitions and land assembly, 2. Masterplanning, 3. Planning system, 4. Land remediation and infrastructure development, 5. Direct development / plot sale / placemaking

3. Harworth's share of a 50:50 joint venture

 

Data centres

Following Harworth's first hyperscale data centre transaction in 2024, a £106.6m serviced land sale to Microsoft, the Group continued throughout the first half to unlock the embedded value in its power-enabled land portfolio, which benefits from accepted power offers of 0.8GW. This includes a 0.2GW power offer relating to one site that was accepted during the year.

 

Following period end, Harworth entered into an exclusivity agreement with a leading data centre provider for a powered land sale. The site benefits from strong planning prospects and an accepted power connection offer, with the potential to deliver significant value gains.

 

Beyond this, the Group has identified a further four sites with the potential to deliver hyperscale data centres, which already benefit from 0.4GW of accepted power offers. All but one are already progressing through the planning system, with stakeholder engagement underway on the final one. The sites also benefit from a supportive central Government policy environment, including through national infrastructure policy, due to the strong contribution of digital infrastructure development to economic growth.

 

In addition to these opportunities, the Group has identified the potential for further smaller-scale digital infrastructure projects across its portfolio, such as for co-locator and edge providers.

 

 

Investment portfolio 

At 30 June 2026, the Investment Portfolio comprised 10 sites covering 2.3m sq ft and was 77% Grade A by value. Headline rental income stood at £17.2m, and annual passing rental income was £15.5m, up from £14.7m at year-end. This equates to a net initial yield of 4.6%, itself reflective of the quality of the portfolio, and a reversionary yield of 6.4% (31 Dec 2025: 6.2%), demonstrating strong reversionary potential.

Investment Portfolio key metrics

	30 June 2026	31 Dec 2025
Portfolio value (£m)	301.4	305.0
Number of sites	10	10
Area (m sq ft)	2.3	2.3
Grade A space - by area (%)	64	64
Grade A space - by value (%)	77	76
Annual headline rental income (£m)	17.2	18.3
Weighted average passing rent1 (£ psf)	7.94	6.38
Grade A ERV2 (£ psf)	10.11	9.84
WAULT3 to first break (years)	9.9	9.6
WAULT3 to expiry (years)	11.6	11.2
EPRA vacancy (%)	8.84	0.9
Net initial yield (%)	4.6	4.6
Reversionary yield (%)	6.4	6.2

1. Calculated on occupied space

2. Estimated rental values

3. Weighted average unexpired lease term

4. Increase largely due to planned vacancy at one asset (see paragraph below)

 

While seeking to protect and maintain occupancy levels, the Group's strategic plan for certain assets includes agreeing to lease surrenders at a premium, to access rental reversion or undertake refurbishments before reletting or selling the asset. This action was undertaken at our Knowsley site during the period, which caused the EPRA vacancy rate to temporarily rise to 8.8% as at 30 June 2026 (31 December 2025: 0.9%). Excluding this site, EPRA vacancy would be 2.5% as at 30 June 2026.

 

Investment Portfolio sites

 

Site	Location	Ownership	Area (sq ft)1
Advanced Manufacturing Park (AMP)	Rotherham	Freehold	368,000
Bardon Hill	Leicester	Freehold	339,000
Catalyst	Rotherham	Freehold	285,000
Wyke Lane	Bradford	Freehold	252,000
Knowsley	Merseyside	Freehold	422,000
Logistics North	Bolton	Freehold	104,000
Multiply Logistics North	Bolton	20% JV	87,000
Gateway 36	South Yorkshire	Freehold	110,000
Droitwich	Worcestershire	Freehold	169,000
Etherow, Glossop	Derbyshire	Freehold	166,000
			2,302,000

1. Harworth's share

 

Disposals

 

As part of Harworth's strategy to transition the core Investment Portfolio to 100% Grade A, the Group continues to selectively dispose of secondary assets and older Grade A assets where asset management plans have been delivered and where the viability of transforming or upgrading is limited.

 

Post period end, in August 2026, the Group sold Etherow Industrial Estate in Glossop, North Derbyshire, for £8.1m, a 3% premium to book value. The Group acquired this multi-let industrial estate, comprising 148,000 sq ft of multi-let warehouse and office space on a long leasehold, for £6.9m in 2019. Before sale, Harworth carried out an extensive asset management programme, which included the acquisition of the freehold, demolition of an office building to increase open storage availability, a refurbishment and lease renewal and lease re-gears for all other occupiers.

 

Residential portfolio

At 30 June 2026, the residential pipeline totalled 28,584 plots (31 Dec 2025: 29,386 plots), including 3,598 consented plots (31 Dec 2025: 3,065 plots). The pipeline either consented or in the planning system was 47% (31 Dec 2025: 45%). The pipeline was 38% owned freehold, with the remaining 62% controlled through JV arrangements (16%), options (10%) or PPAs (42%), reflecting the Group favouring more capital-light ownership structures to maximise returns.

 

Planning

 

The table below breaks down the residential pipeline by planning status.

Residential pipeline & planning progress¹

(plots)	30 June 2026	31 Dec 2025
Pre-planning	15,146	16,116
Draft allocations in local plan	510	84
Allocations in local plan	940	1,036
Awaiting planning determination	8,390	9,085
Consented	3,598	3,065
Total pipeline	28,584	29,386
Consented or in the planning system2	47%	45%

1.     Harworth's share

2.     'In the planning system' comprises draft allocations, allocations and sites awaiting planning determination

 

As at 30 June 2026, just under half of the Group's total pipeline of 28,584 plots (31 Dec 2025: 29,386 plots) benefitted from planning consent or were progressing through the planning system.

During the period, the Group secured a resolution to grant at its Crewe West (Cheshire) site for up to 660 new homes. The proposed 108-acre development, located two kilometres west of Crewe town centre, will be a mixed-use neighbourhood, providing a range of high-quality family and affordable homes alongside green spaces, community facilities and new active travel routes.

Following this transaction, a total of 8,390 plots across 11 sites were in the planning system awaiting determination, down from 9,085 plots at the year-end. Throughout the remainder of 2026, an additional 1,925 plots across four sites are expected to be submitted for planning.

Key residential development sites

 

Site	Ownership1	Sold (plots)	Remaining (plots)	Development stage (of 5)2
Waverley (Rotherham)	FH	2,727	244	5
Coalville (Leicester)	FH	1,738	511	5
Rossington (Doncaster)	FH	927	479	5
Ironbridge (Shropshire)	FH	467	1033	5
Stewartby (Bedford)	FH	-	1,000	3
Rufford (Newark)	FH	-	550	3
Staveley (Chesterfield)	FH	-	950	3
Diseworth (East Midlands)	FH & PPA	-	2,125	3
Cinderhill (Derby)	FH & PPA	-	1,350	3
Grimsby West (Grimsby)	JV	-	3,044	3

1.     Ownership key: FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint venture

2.     Development stage key: 1. Acquisitions and land assembly, 2. Masterplanning, 3. Planning system, 4. Land remediation and infrastructure development, 5. Plot sale / mixed-tenure delivery / placemaking

 

Serviced plot sales

 

The Group operates a diversified serviced residential land sales model, including freehold serviced land and mixed-tenure products such as social housing, build-to-rent, and senior living. These sales can be sales of freehold land or land controlled through PPAs; the latter generate fees.

 

During the half, 155 residential plots were sold at Ironbridge (Shropshire) to a national housebuilder, generating headline sales of £14.5m at a small discount to 31 December 2025 book values. After period end, the Group completed a small sale of a further 14 plots at its Prince of Wales (Pontefract) site. A further 783 residential plots were exchanged or in legals, which it expects to complete by the end of the year.

 

Natural Resources portfolio

The Natural Resources portfolio comprises sites dedicated to clean energy production, including wind and solar energy, battery storage, habitat banks and woodland planting schemes. As of 30 June 2026, the portfolio was valued at £23.7m (31 Dec 2025: £19.9m) and generated headline rental income of £1.7m (31 Dec 2025: £1.8m) across 14 sites. The portfolio is managed in line with the Group's Energy & Natural Capital strategy and will be retained as part of the Harworth development platform under the acceleration of key initiatives announced today.

 

Where appropriate, Harworth works alongside strategic partners to leverage its extensive land bank, with schemes focused on nature recovery, renewable generation and low-carbon initiatives such as EV charging and multi-fuel hubs. More broadly, this Energy & Natural Capital strategy also focuses on embedding future-proofing principles across all the Group's sites to maximise energy resilience, reduce occupier costs, generate economic value, and fulfil Harworth's Net Zero Carbon (NZC) ambitions. 

 

As a responsible developer, Harworth has taken a sector-leading position by launching and managing two registered Biodiversity Net Gain (BNG) habitat banks, transforming 153 acres of former coal mining land into areas of nature recovery. The first is at the Group's residential site in Killamarsh, Derbyshire, and the second is located on the former spoil tips of the historic Allerton Bywater Colliery in Leeds. These BNG habitat banks allow Harworth to issue BNG units to meet our own legislative obligations, and as part of our superior serviced land product, we also sell surplus BNG units to third-party developers who cannot meet their own BNG requirements from their portfolios. We are currently working to create further habitat banks across the portfolio.

 

 

Financial review

 

Overview

Total Accounting Return and Balance sheet

 

Our primary metric, Total Accounting Return ('TAR'), was negative 3.7% for the first half of 2026, compared to a TAR of 1.1% in H1 2025. TAR comprises the movement in EPRA NDV, a net asset measure reflecting valuation movements in the period, plus dividends per share paid in the year.

 

Despite good operational progress across our sites, delivering value gains from management actions, first half performance was impacted by value losses on residential assets of £16.9m, reflecting continuing challenging residential housebuilder market conditions and market development cost pressures on our residential Major Developments portfolio. Increasing development costs also impacted industrial & logistics site valuations although this was limited to a loss of £2.1m as management actions continued to drive progress on sites through planning, securing power and advancing the strong consumer interest in data centres and industrial & logistics space across the industrial & logistics Major Developments portfolio.

 

Jones Lang LaSalle, Savills, Carter Jonas and BNP Paribas, our independent valuers, completed a desktop valuation of our portfolio as at 30 June 2026, resulting in overall revaluation losses of £13.3m (H1 2025: gains of £21.7m), including the movement in the market value of development properties. Outside the valuation movements, losses on sales were £1.5m (H1 2025: £6.3m). 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 losses of £14.9m (H1 2025: £15.5m gains).

 

The overall performance across industrial & logistics and residential, when combined with asset management initiatives across our Investment Portfolio, resulted in EPRA NDV per share decreasing by 4.3% to 214.8p (31 December 2025: 224.4p). Excluding the impact of EPRA adjustments which uplift Development Property values to fair value, the statutory net asset value of the Group fell by 4.0% to £670.8m (31 December 2025: £699.0m).

 

Income Statement

 

The Group's income comprises sales of serviced land and completed properties alongside rental income from our Investment Portfolio and royalties, development income and other fees from the wider portfolio. Combined, these resulted in Group revenue of £41.3m (H1 2025: £47.5m).

 

Revenue from the sale of serviced land was £13.2m (H1 2025: £10.9m), reflecting sales of our de-risked residential land product within a challenging residential market. Development revenues of £15.5m (H1 2025: £18.4m) were as a result of activity delivering our Affordable Housing residential product, reflecting our continued focus on accelerating through our residential sites to recycle capital, as well as development on behalf of Microsoft at Skelton Grange.

 

Revenue from Income Generation decreased to £11.4m (H1 2025: £13.6m) following disposals made from the Investment Portfolio during 2025 as part of our programme of capital recycling from mature assets and progressing towards the Group's target of holding a core Investment Portfolio of 100% grade A assets by the end of 2027. Like-for-like annualised headline rental income fell by 6.2%, primarily driven by a planned vacancy on one site to enable it to be repositioned; excluding this site, like-for-like annualised headline rental income decreased by 0.5%.

 

Total property sales, an APM which incorporates proceeds from the sales of investment properties, assets held for sale ('AHFS'), and overages, amounted to £13.2m (H1 2025: £18.9m).

 

Administrative costs increased by £0.8m compared to the same period in 2025 and include £0.7m of restructuring costs, as part of headcount and cost reduction measures, as well as £0.9m IT project costs primarily related to the Group's digital transformation project (H1 2025: £0.9m).

 

These results, when combined with the £3.0m reduction in the fair value of investment properties (H1 2025: £17.4m increase), resulted in an operating loss of £24.9m (H1 2025: £7.1m profit) and loss after tax of £25.4m (H1 2025: £9.7m profit). The gross loss for the period reflects increases in net realisable value provisions on development properties and the impairment of options where the initial cost is anticipated to be lower than the day one market value of the related land.

 

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 profile of cash inflows each year is generally second-half weighted with net debt increasing as capital is deployed in preparing sites in the first half for sale before reducing as increased sales complete in the second half.

 

Consistent with previous years, as a result of the spend and sales profile, net debt increased during the first half, to £190.0m (30 Jun 2025: £179.4m; 31 Dec 2025: £145.9m) resulting in a net LTV at 30 Jun 2026 of 20.3% (30 Jun 2025: 19.0%; 31 Dec 2025: 15.6%), which remains well within our self-imposed maximum target of 25% during the year. At 30 June 2026, the Group had available liquidity of £99.5m (30 Jun 2025: £59.8m; 31 Dec 2025: £127.1m). The Group's LTV on a pro-forma basis using 30 June valuations reduced to 17.1% at 31 August with Group available liquidity of £128.7m, as a result of ongoing management of development spend and working capital.

 

The Group has a £275m Revolving Credit Facility (RCF) with NatWest, Santander and HSBC being joined by Barclays as a fourth lender during the period. The RCF has 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 26% of our net debt position at 30 June 2026 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 half year of 2026, the Group had £16.4m drawn down on a £26.2m development loan provided by the North West Evergreen Fund in support of development at our Wingates industrial & logistics Major Development 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 2026 and reported annually. ·    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 interim condensed 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 annually, 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 

 

	H1 2026				H1 2025
	Capital  Growth £m	Income Generation £m	Central Overheads £m	Total  £m	Capital  Growth  £m	Income Generation £m	Central Overheads £m	Total  £m
Revenue	29.9	11.4	-	41.3	33.9	13.6	-	47.5
Cost of sales	(43.6)	(1.8)	-	(45.4)	(38.6)	(3.4)	-	(42.1)
Gross (loss)/profit	(13.7)	9.6	-	(4.1)	(4.8)	10.2	-	5.4
Administrative expenses	(3.8)	(1.0)	(13.0)	(17.9)	(3.3)	(0.9)	(12.9)	(17.1)
Other (losses)/gains	(6.8)	3.8	0.1	(2.9)	13.0	5.8	-	18.8
Other operating income	-	-	0.1	0.1	-	-	-	-
Operating (loss)/profit	(24.3)	12.3	(12.9)	(24.9)	4.9	15.1	(12.9)	7.1
Share of (loss)/profit of JVs	(0.8)	0.2	-	(0.6)	3.6	0.7	-	4.4
Net interest (expense)/ income	0.7	-	(6.6)	(5.9)	2.4	0.1	(6.5)	(4.0)
Profit/(loss) before tax	(24.4)	12.5	(19.5)	(31.4)	10.9	15.9	(19.4)	7.4
Tax credit	-	-	6.0	6.0	-	-	2.3	2.3
(Loss)/profit after tax	(24.4)	12.5	(13.5)	(25.4)	10.9	15.9	(17.1)	9.7

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

 

Revenue in the period was £41.3m (H1 2025: £47.5m), of which Capital Growth contributed £29.9m (H1 2025: £33.9m) and Income Generation £11.4m (H1 2025: £13.6m).

 

Capital Growth revenue of £29.9m comprised revenue from the sale of development properties, development revenue, and fee income. The sale of development properties of £13.2m (H1 2025: £10.9m) was higher reflecting a higher average price per plot driven by sale location. Development revenue of £15.5m (H1 2025: £18.4m) relates to the delivery of the Group's Affordable Housing residential product as well as development work on behalf of Microsoft at Skelton Grange, with the movement in revenue driven by the phasing of projects. Capital Growth revenue also included fees from PPAs of £0.7m (H1 2025: £4.0m); the level of fees from PPAs can vary and is driven by the timing of receipt of planning permission and subsequent land sales.

 

Revenue from Income Generation mainly comprised property rental and royalty income from the Investment Portfolio, Natural Resources and Agricultural Land. Revenue of £11.4m (H1 2025: £13.6m) reflected a £1.1m reduction in rent, service charge and royalties revenue following the sale of Investment Portfolio assets during 2025 and an increase in vacancy at one site in line with plans to re-position the site. Biodiversity Net Gain ('BNG') credit sales in the prior year of £1.3m also contributed to the prior period Income Generation revenue (H1 2026: 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 Housing delivery and development work for Microsoft at Skelton Grange; and the direct and recoverable service charge costs of the Income Generation business. Cost of sales increased to £45.4m (H1 2025: £42.1m), of which £14.7m (H1 2025: £15.6m) related to the inventory cost of development property sales and £13.3m (H1 2025: £4.9m) to impairments resulting from increased site-wide infrastructure costs on residential sites and an increase in provisions set against the cost of options where the day one realisable value is anticipated to be lower than the costs incurred. The increases in net realisable value provisions were driven primarily by challenging residential market conditions and higher costs impacting developments.  The impact of these impairments resulted in an overall gross loss for the period.

 

Administrative expenses increased in the year by £0.8m to £17.9m (H1 2025: £17.1m). These include £0.7m of restructuring costs, as part of headcount and cost reduction measures, as well as an increase of £0.3m in IT costs to £1.6m (H1 2025: £1.3) of which £0.9m primarily related to the Group's digital transformation project. Restructuring and digital transformation form an important initial enabler of the Group transitioning to a simpler and therefore lower-cost and higher-returning platform.

 

Other gains and losses comprised a £3.0m net decrease (H1 2025: £17.3m net increase) in the fair value of investment properties, land and buildings and AHFS, offset by the profit on sale of investment properties, AHFS and overages of £0.1m (H1 2025: £1.5m).

 

The share of loss on joint ventures of £0.6m (H1 2025: £4.4m share of profit) reflected a valuation loss at Northern Gateway, which offset a positive result from the Multiply Logistics North joint venture. 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 interim condensed consolidated financial statements.

  

			H1 2026			H1 2025		30 June 26	31 Dec 25
	Category	(Loss)/ profit on sale	Reval. (losses)/gains	Total	(Loss)/ profit on sale	Reval. (losses)/ gains	Total	Total valuation	Total valuation
Capital Growth
Residential Major Developments	Development	(1.6)	(14.2)	(15.8)	(6.1)	(8.4)	(14.5)	172.0	192.3
Industrial & Logistics Major Developments	Mixed	-	12.7	12.7	(0.9)	14.1	13.2	221.3	198.2
Residential Strategic Land	Investment	-	(1.2)	(1.2)	(0.1)	(0.1)	(0.2)	61.9	61.5
Industrial & Logistics Strategic Land	Investment	0.1	(14.8)	(14.7)	(0.2)	10.4	10.2	141.2	149.3
Income Generation
Investment Portfolio	Investment	(0.1)	(4.2)	(4.3)	0.1	4.8	4.9	301.4	305.0
Natural Resources	Investment	-	3.6	3.6	0.9	0.6	1.5	23.7	19.9
Agricultural Land & other	Investment	-	4.8	4.8	-	0.3	0.3	15.1	11.0
Total		(1.5)	(13.3)	(14.9)	(6.3)	21.7	15.5	936.6	937.2

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 H1 2026 were £13.2m which, alongside increases in costs for the completion of site-wide works relating to prior period sales, generated a loss on sale of £1.5m (H1 2025: loss of £6.3m). The loss was primarily driven by residential sales in a challenging market.  Headline sales pricing was marginally ahead of book value before transaction costs, discounting of deferred consideration to present value, and retentions not recognised on completion. The loss on sale included £0.4m increases (H1 2025: £6.1m 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.

 

 

Revaluation losses were £13.3m (H1 2025: £21.7m gains) and are outlined in the table below.

 

		H1 2026  £m	H1 2025  £m
(Decrease)/increase in fair value of investment properties		(3.0)	17.4
(Decrease) in value of assets held for sale and owner-occupied property		-	(0.1)
Movement in net realisable value provision on development properties		(7.9)	(1.6)
Contribution to statutory operating profit		(10.9)	15.7
Share of (losses)/profit of joint ventures		(0.6)	4.4
Unrealised (losses)/gains on development properties and overages		(1.8)	1.6
Total non-statutory revaluation (losses)/gains		(13.3)	21.7

 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 across industrial & logistics Major Developments reflected progress on site towards the sale of plot 2 to Microsoft at Skelton Grange as well as progress furthering data centre and powered land strategies, which offset the impact of market cost inflation on industrial & logistics sites running ahead of ERV growth. o  Across industrial & logistics Strategic Land valuation losses of £14.8m reflected market cost inflation, especially on sites that are closer to planning permission and delivery, with increases noted particularly across vertical build costs. o  Revaluation losses on the Investment Portfolio were driven by increased vacancy at one site as part of a repositioning strategy, excluding the impact of this site the remaining portfolio increased in value by £0.8m reflecting ERV growth, letting progress and improvement in market rents.
-     Residential:
	o  The residential housebuilder market continues to be impacted by subdued demand, slower new build sales rates, and a levelling of house price growth which is running at a slower rate than cost inflation.  This challenging market environment led to revaluation losses across residential sites of £15.4m  o  Savills reported pressures in the residential development land market, noting that greenfield land values fell by an average of 3.3% over the 12 months to 30 June 2026. o  Despite this, sales were completed achieving headline pricing marginally above book values before including the further impact of transaction costs, discounting of deferred consideration to present value, and retentions not recognised on completion.
-     Natural Resources, Agricultural Land and Other: experienced revaluation increases during the period reflecting value increases for newly created BNG schemes and an improved outlook for future income from wind turbines.

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 £13.2m (H1 2025: £18.9m). As noted above, sales tend to be second-half weighted in the year. Total property sales comprised:

 

	H1 2026  £m	H1 2025 £m
Residential land sales	13.2	10.9
Industrial & Logistics land sales	-	1.9
Sales of Investment Portfolio properties	-	3.0
Natural resources asset sales	-	2.1
Overages & PPAs	-	1.0
Total property sales	13.2	18.9

 

Cash proceeds from sales in the year were £10.6m (H1 2025: £12.7m; FY 2025: £124.2m) as shown in the table below:

 

	H1 2026  £m	H1 2025 £m
Total property sales	13.2	18.9
Less deferred consideration on sales in the year	(8.7)	(10.9)
Add receipt of deferred consideration from sales in prior years	6.1	4.7
Total cash proceeds	10.6	12.7

 

Tax 

 

The income statement credit for taxation for the period was £6.0m (H1 2025: £2.3m charge), which comprised a current tax charge of £nil (H1 2025: £nil) and a deferred tax credit of £6.0m (H1 2025: £2.3m).

 

The current tax is determined by 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. Losses on sale of development property coupled with the impact of overhead and interest costs resulted in a nil current tax charge for the period (H1 2024: £nil) with the deferred tax credit generated by valuation losses offsetting the deferred tax charge arising from valuation gains, leading to an overall tax credit for the period.

 

At 30 June 2026, the Group had deferred tax liabilities of £56.1m (31 December 2025: £55.2m) and deferred tax assets of £16.8m (31 December 2025: £10.2m). The net deferred tax liability was £39.3m (31 December 2025: £45.0m).

 

Basic earnings per share and dividends 

 

Basic earnings per share for the year decreased to (7.8)p (H1 2025: 3.0p) reflecting increases in net realisable provisions, net losses from sales in the year and higher interest costs partly offset by rental income. The Board has determined to pay an interim dividend of 0.592p (H1 2025: 0.538p) per share, an increase of 10% in line with the Group's policy. 

 

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 56% of the total portfolio, split according to their categorisation, including currently consented residential plots and industrial & logistics space.

Top 10 sites by value

Site	Use	Site type	BS category	Progress to date
Ironbridge (Telford)	R   R	MD SL	Dev. prop Inv. prop	1,000 residential plots consented, land sold representing 467 plots, further enabling works underway Preparing planning application for additional residential plots
Advanced Manufacturing Park (AMP) (Rotherham)	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 space held in Investment Portfolio
Gateway 45 (West Yorkshire)	I&L	IP	Inv. prop	0.8m sq ft of industrial & logistics space consented
Skelton Grange (Leeds)	I&L     I&L	MD     SL	Dev. prop     Inv. prop	0.3m sq ft of industrial & logistics space remaining on the retained land   Enabling works are ongoing to program progressing toward sale of second plot to Microsoft for data centre use
Bardon Hill (Leicester)	I&L	IP	Inv. prop	0.3m sq ft of Grade A space held in Investment Portfolio
Catalyst (Rotherham)	I&L	IP	Inv. prop	0.3m sq ft Grade A held in Investment Portfolio
Logistics North (Bolton)	I&L I&L	IP IP	Inv. prop JV	0.1m sq ft owned freehold retained in Investment Portfolio 0.1m sq ft controlled through joint venture retained in Investment Portfolio
Wyke Lane (Bradford)	I&L	IP	Inv. prop	0.3m sq ft fully-let industrial & logistics space
Stewartby (Bedford)	R	IP	Inv. prop	1,000 residential plots consented
Wingates (Bolton)	I&L   R/IL	MD   SL	Inv. Prop   Inv. Prop	1.1m sq ft of industrial & logistics space consented preparing a planning application for a further 1.9m sq ft

 

As at 30 June 2026, the balance sheet value of our development properties was £183.8m (31 Dec 2025: £195.2m) and their independent valuation was £214.0m, reflecting a £30.2m 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 

		30 June 2026   £m	30 June 2025   £m	31 Dec 2025   £m
Properties(1)		900.8	908.6	899.4
Cash		9.5	9.8	27.1
Trade and other receivables		90.0	118.5	12.7
Other assets		22.4	20.1	103.0
Total assets		1,022.7	1,057.0	1,042.2
Gross borrowings		(199.4)	(189.2)	(173.0)
Deferred tax liability		(39.3)	(33.3)	(44.9)
Other liabilities		(113.2)	(136.2)	(125.3)
Statutory net assets		670.8	698.3	699.0
Mark to market value adjustment on development properties and overages less notional deferred tax		26.9	26.7	28.3
EPRA NDV		697.7	725.0	727.3
Number of shares in issue less Employee Benefit Trust & Equiniti Share Plan Trustees Limited-held shares		324,779,508	324,104,549	324,141,060
EPRA NDV per share		214.8p	223.7p	224.4p

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

 

EPRA NDV at 30 June 2026 was £697.7m (FY 2025: £727.3m), which includes the mark-to-market adjustment on the value of the development properties and overages. The total Portfolio Value as at 30 June 2026 was £936.6m, a decrease of £0.6m from 31 December 2025 (£937.2m).

 

The Group's share of losses from joint ventures of £0.6m (H1 2025: £4.4m profits), primarily reflects the revaluation of strategic land within the Northern Gateway joint venture offsetting the net positive performance of Multiply Logistics North LLP where the profit from net rental income during the first half of 2026 was reduced by a small valuation loss recognised

 

Trade and other receivables include deferred consideration on sales. At 30 June 2026, deferred consideration of £63.0m was outstanding (31 December 2025: £60.4m): where deferred payment terms are agreed, the Group maintains security in order to mitigate credit risk.

 

Financing strategy 

 

Harworth's financing strategy remains to maintain a prudent loan-to-value against the land and property portfolio. 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 

 

The Group has a £275m RCF provided by NatWest, Santander, HSBC and Barclays, with Barclays having entered the facility syndicate during the period.  The RCF is for an initial four-year term, with no re-financing requirements until November 2029, and may be extended by a further year at Harworth's request.  The RCF includes an uncommitted accordion option which if exercised would take the RCF to £325m. The 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 industrial & logistics units.

 

The Group had net debt of £190.0m at 30 June 2026 (H1 2025: £179.4m; FY 2025: £145.9m). The increase in net debt during the period reflects the significant investment in, and operational progress on, sites, partly offset by proceeds from sales. The movements in net debt during the period are shown below:

			H1 2026  £m	H1 2025  £m
Opening net debt as at 1 January			(145.9)	(46.7)
Cash inflow/(outflow) from operations			(16.3)	(59.5)
Property expenditure and acquisitions			(13.0)	(52.4)
Disposal of investment property, AHFS and overages			0.4	4.5
Net investments in joint ventures			(3.4)	(0.8)
Interest and loan arrangement fees			(6.2)	(5.2)
Dividends paid			(4.0)	(3.7)
Tax paid			(0.8)	(11.6)
Fixed assets expenditure			(0.6)	(3.0)
Other cash and non-cash movements			(0.2)	(1.0)
Closing net debt as at 30 June			(190.0)	(179.4)

  

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 30 June 2026, £50m of the Group's drawn debt was subject to interest rate hedging; through an interest rate cap to mitigate the risk of interest rates increasing above 4.5%. We continue to monitor projected drawn debt, and hedging requirements with a view to mitigating interest rate risk in line with the Group's strategic objectives.

 

As at 30 June 2026, the Group's net LTV was 20.3% (30 June 2025: 19.0%; 31 December 2025: 15.6%) within our self-imposed target to be below 25% during the year and 20% at year-ends reflecting the seasonal profile of the Group's cashflows. 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 63.1% (30 June 2025: 58.2%; 31 December 2025: 48.5%). Under the RCF, the Group could withstand a material fall in portfolio value, property sales or rental income before reaching covenant levels.

 

At 30 June 2026, Group liquidity of £99.5m (31 December 2025: £127.1m) included undrawn capacity under the RCF of £90.0m (31 December 2025: £100.0m) in addition to the period-end cash balance of £9.5m (31 December 2025: £27.1m). The Group's LTV on a pro-forma basis using 30 June valuations was 17.1% at 31 August with Group available liquidity of £128.7m. Going forward, the RCF, alongside selected use of development and infrastructure loans where appropriate, is expected to continue to provide the Group with sufficient liquidity to execute our growth strategy.

 

Kitty Patmore

Chief Financial Officer 

8 September 2026 

 

 

 

Key performance indicators

 

2.1 Financial track record

 

KPI	H1 2026 result	H1 2025 result	FY 2025 result	H1 2026 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.	(3.7)%	1.1%	1.7%	Our Total Accounting Return ('TAR') of (3.7)% was the result of a 4.3% decrease in EPRA Net Disposal Value per share during the period, offset by the payment of 1.2p in dividends. Since 2021, we have delivered cumulative TAR of 39.3%.
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.	214.8p	223.7p	224.4p	EPRA Net Disposal Value per share ('EPRA NDV') reduced by 4.3%, driven primarily by valuation losses across Residential Major Development sites, impacted by inflationary pressures 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.	N/A	N/A	8.4%	Total Property Return ('TPR'), calculated by MSCI, is reported annually.
Net LTV Net debt as a proportion of the aggregate value of properties and investments.	20.3%	19.0%	15.6%	Our Net Loan to Portfolio Value ('LTV') increased as investment in progressing activity on sites more than offset receipts from sales and deferred consideration payments. LTV remained well within our self-imposed target of less than 25% within the year.

 

 

2.2 Strategic track record

 

KPI	H1 2026 result	H1 2025 result	FY 2025 result	H1 2026 performance commentary
Industrial & logistics 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.	-	0.1	0.3	The focus of the first half has been on progressing site enabling works, resulting in our largest-ever pipeline of substantially construction-ready industrial & logistics land.
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.	73%	71%	75%	12.9m sq ft across 10 sites remain in the planning system awaiting determination. This includes sites such as Rothwell (Kettering), Northern Gateway (Greater Manchester), where the Group's JV benefits from an allocation in Greater Manchester's Places for Everyone (PfE) joint development plan of 11m sq ft, and Junction 15 (Northampton), which benefits from a draft allocation in the local plan for strategic warehousing.
Proportion of Investment Portfolio that is Grade A by value (V) & area (A) 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: 77% A: 64%	V: 66% A: 48%	V: 76% A: 64%	The proportion of our Investment Portfolio that is Grade A marginally increased during the period. The Group completed or was in legals on pre-lets totalling 319,400 sq ft post period-end, which will transfer to the Investment Portfolio on completion. These transfers, alongside an ongoing programme of disposing of secondary assets or those where we have maximised value through asset management, will increase the Grade A % further.
Number of plots sold The number of plots equivalent to land parcel sales to housebuilders or registered providers during the year.	155	649	1,837	We completed the sale of 155 Residential plots generating headline sales of £14.5m and completed a further 14 plot sales after period end. The Group has exchanged or is currently in legal on an additional 783 residential plots which it expects to complete by the end of the year.

 

 

Principal risks & uncertainties

 

A detailed explanation of the Group's risk management framework, the principal risks and uncertainties affecting the Group and the steps it takes to mitigate these risks, can be found on pages 58 to 70 of the Annual Report and Financial Statements for the year ended 31 December 2025, available within the "Investors" section of our website.

 

During H1 of 2026, and in line with our Principal Risk Governance and Review programme, the Board undertook a comprehensive review of the principal risks to ensure they remain aligned with our strategic objectives and are reflective of the evolving external landscape. This review was informed by consideration of:

·    Current, and continuously changing, macroeconomic and geopolitical environment.

·    Recent domestic political uncertainty following the appointment of the new Prime Minister.

·    The shift in corporate strategy towards more Industrial & Logistics development.

·    Outputs from the enhancement and standardisation of our 'bottom-up' operational risk management framework.

·    The identification, monitoring and assurance of our material controls.

 

The review did not result in a fundamental revision of the risk profile of the Group, but led to a refinement of the existing risk set. Following the unrecommended firm offer by Peel Pepper (UK) Limited, a company indirectly wholly owned by Peel Holdings Group Limited, for Harworth at a price of 172.5p per Harworth share in cash (the "Unrecommended Offer"), the Board undertook a further review of the Company's principal risks, concluding that the Offer resulted in a temporary increase in the People risk.  A summary of the outcome of both reviews is included in the table below:

 

Risk Ref	Risk Title	Risk Description	Residual Risk Rating	Movement (since 31 Dec 25)	Trending (next 6 months)	Description of Change
1	Power Infrastructure Capacity	Challenges in securing power infrastructure for Schemes at a viable cost and timescale.	Medium	No Movement	Stable	No material movement.
2	Planning System	Challenges in obtaining planning permission for schemes impacting financial returns.	Medium	No Movement	Stable	No material movement.
3	Construction Supply Chain	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.	High	Increased	Downwards	Continued uncertainty surrounding supply chain costs and availability, due to ongoing geopolitical tensions in the Middle East and the potential wider macroeconomic impacts, has increased this risk to High. The situation remains volatile and with continued uncertainty the risk of disruption has not been fully removed. The implementation of a new supply chain management system has improved oversight and resilience across the supply chain. Combined with anecdotal evidence of strong market capacity and competitive supplier conditions we anticipate a downward trend going forward.
4	Physical Climate Events	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.	Medium	No movement	Stable	No material movement.
5	Real Estate End Markets	Deterioration of end markets, driven by macroeconomic factors and investor sentiment, impacting valuations, financial returns and recycling of capital.	High	Increased	Stable	Challenges in the residential housing market continue to persist increasing this risk. The resilience in the industrial & logistics sector and our decision to focus on this market has helped mitigate the impact. However, given this is a medium-term transition, risk profile remains High at reporting date and over next 6-month horizon. Stamp duty cuts and other potential Government initiatives could create favourable housing market stimulus in the short-term mitigating this risk slightly.
6	Capital	Inability to source adequate capital to meet our strategic growth aspirations.	High	Increased	Stable	Risk level has increased since 2025 and remains High at the reporting date. This is expected to persist for the next six months as we await completion of FY26 sales, which remain weighted towards year end. We anticipate a downward trend as we move into FY27 due to our continued focus on disciplined cashflow management giving us increased headroom at the start of the year and strong availability of public sector funding aligned to Harworth's needs.
7	People	Inadequate employee value proposition impacting the ability to attract, retain, and develop quality talent, while also impacting succession planning efforts.	High	Increased	Stable	Risk level has increased following the Peel Pepper takeover offer, which creates unavoidable uncertainty and anxiety amongst the workforce, requiring active management in the short term. Absent that corporate activity, in the ordinary course of business, people related workstreams stemming from the acceleration of key initiatives will, in any event, give rise to an elevated risk profile in the short-term (next six months), albeit once any changes are embedded the risk profile should revert back and remain stable.
8	Health & Safety	Serious injury/death to employees, subcontractors, visitors, and/or occupiers resulting in operational impacts, liabilities, penalties and/or reputational damage.	Low	No movement	Stable	No material movement.
9	Liquidity	Inability to maintain optimum levels of working capital to meet business as usual obligations.	Low	No movement	Stable	No material movement.
10	Climate Transition & Reporting	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.	Medium	No movement	Stable	No material movement.
11	Digital Transformation Project	Failure to implement a scalable and integrated digital architecture that enables operational efficiency, business growth, continuous innovation and effective AI adoption.	Medium	No movement	Downwards	No material movement.
12	Digital Resilience	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.	Medium	No movement	Stable	No material movement.
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 that we (investors and businesses) are operating in.	Medium	No movement	Stable	No material movement. The new Prime Minister (PM) is now in office and his government formed which reduces an element of recent uncertainty. Early indications suggest that the PM supports maximum devolution which is likely to be positive for Harworth in the medium term being a regional business. However, funding and infrastructure changes could be slow in the short term whilst the new framework is embedded.

 

The Group continues to monitor its Principal Risks closely and remains confident that its risk management framework is robust and responsive to change. A full description of the Group's Principal Risks will be reflected in the year-end disclosures for 31 December 2026.

 

In preparation to meet the updated requirements of Provision 29 of the 2024 Corporate Governance Code, which will apply for Harworth's year-end 31 December 2026, the business and its Board have identified its Material Controls and have implemented an assurance programme with quarterly updates provided. The specific effectiveness of these controls will form part of the Board's declaration in the 2026 Annual Report.

 

Directors' Responsibilities statement

For the six months ended 30 June 2026

 

The Directors who held office at the date of approval of these Financial Statements confirm that to the best of their knowledge:

1.    the Condensed Consolidated Interim Financial Statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority and in accordance with IAS 34 'Interim Financial Reporting' as contained in UK-adopted international accounting standards; and

2.     the Interim Management Report includes a fair review of the information required by:

a)   Rule 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the six months ended 30 June 2026 and their impact on the Condensed Consolidated Interim Financial Statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

b)    Rule 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the six months ended 30 June 2026 and that have materially affected the financial position or performance of the Group during that period, and any changes in the related party transactions described in the last Annual Report and Financial Statements that could do so.

 

The Directors who served during the six months ended 30 June 2026 were as follows:

·      Alastair Lyons, Chair

·      Lynda Shillaw, Chief Executive                        

·      Katerina Patmore, Chief Financial Officer

·      Angela Bromfield, Senior Independent Director

·      Lisa Scenna, Independent Non-Executive Director

·      Patrick O'Donnell Bourke, Independent Non-Executive Director

·      Marzia Zafar, Independent Non-Executive Director

·      Phil Redding, Independent Non-Executive Director

·      Tony Quinlan, Independent Non-Executive Director

·      Martyn Bowes, Non-Executive Director

 

Tony Quinlan, an independent Non-Executive Director, was appointed to the Board on 1 June 2026.

By order of the Board

Chris Birch
General Counsel and Company Secretary
8 September 2026

 

Cautionary statement

This report for the six months ended 30 June 2026 contains certain forward-looking statements with respect to the Company's financial condition, results, operations and business. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this report should be construed as a profit forecast.

Directors' liability

Neither the Company nor the Directors accept any liability to any person in relation to this report for the six months ended 30 June 2026 except to the extent that such liability could arise under English law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A of the Financial Services and Markets Act 2000.

Shareholder information

Financial calendar

 

Interim results for the six months ended 30 June 2026	Published	9 September 2026
Interim dividend for the year ended 31 December 2026	Ex-dividend date  Record date  Payable	24 September 2026 25 September 2026 03 November 2026
Results for the year ended 31 December 2026	Scheduled	March 2027
Annual report and financial statements for the year ended 31 December 2026	Scheduled	April 2027
2027 Annual General Meeting	Scheduled	May 2027
Final dividend for the year ended 31 December 2026	Ex-dividend date  Record date  Payable	April 2027 April 2027 May 2027

 

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 Highdown House, Yeoman Way, Worthing, 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.

 

 

 

Consolidated income statement

	Note	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited Year ended 31 December 2025 £'000
Revenue	3	41,271	47,471	129,749
Cost of sales	3	(45,370)	(42,070)	(117,197)
Gross (loss)/profit	3	(4,099)	5,401	12,552
Administrative expenses	3	(17,914)	(17,071)	(36,342)
Other (losses)/gains	3	(2,937)	18,810	45,543
Other operating income/(expenses)	3	66	(57)	(121)
Operating (loss)/profit	3	(24,884)	7,083	21,632
Finance costs	4	(6,670)	(6,499)	(15,203)
Finance income	4	738	2,479	4,573
Share of (loss)/profit of joint ventures (including impairment)	9	(568)	4,356	6,366
(Loss)/profit before tax		(31,384)	7,419	17,368
Tax credit/(charge)	5	5,988	2,273	(7,896)
(Loss)/profit for the period/year		(25,396)	9,692	9,472
Earnings per share from operations		pence	pence	pence
Basic	7	(7.8)	3.0	2.9
Diluted	7	(7.5)	2.9	2.8

The Notes 1 to 15 are an integral part of these condensed consolidated interim financial statements.

All activities are derived from continuing operations.

 

Consolidated statement of comprehensive income

	Unaudited 6 months ended 30 June 2026 £'000	Unaudited 6 months ended 30 June 2025 £'000	Audited Year ended 31 December 2025 £'000
(Loss)/profit for the period/year	(25,396)	9,692	9,472
Other comprehensive (expense)/income - items that will not be reclassified to profit or loss:
Net actuarial (loss)/gain in Blenkinsopp Pension scheme	(54)	(34)	29
Deferred tax on other comprehensive (expense)/income items	(420)	-	93
Other comprehensive (expense)/income - items that may be reclassified subsequently to profit or loss:
Fair value of financial instruments	(171)	-	-
Total other comprehensive (expense)/income	(645)	(34)	122
Total comprehensive (expense)/income for the period/year	(26,041)	9,658	9,594