Harworth reports FY2025 headline sales of £110.2m
During FY2025, the developer completed 25 transactions, comprising £58.2m of industrial and logistics sales and £52.0m from residential plot disposals.
Interestingly, £92.5m of transactions completed in the second half of the year – a direct effect, the company believes, of uncertainty caused by the Budget being so late in the year.
Within the I&L portfolio, Harworth sold five core investment assets totalling approximately 0.8m sq ft for headline proceeds of £47.7m.
Reflecting an overall industry trend, taking into account these disposals, announced sales, and around 250,000 sq ft of new development delivered during the year, grade A assets now account for around 75% of its investment portfolio by value, compared with 63% in 2024.
Residential activity, meanwhile, included the sale of 1,837 plots during the year, broadly in line with the group’s four-year average and internal planning assumptions, following record volumes in 2024.
A further 746 plots have been conditionally exchanged, with 155 expected to complete in the near term.
Harworth said it expects to announce a trading update for the year ended 31 December 2025 later this month, with preliminary results and an investor and analyst presentation scheduled for 17 March.
Lynda Shillaw, chief executive of Harworth, commented: “I am encouraged by the level of sales achieved against a challenging macroeconomic backdrop.
“The delayed Budget weighed on investor sentiment in H2, pushing many transactions into the final weeks of the year.
“Our disciplined disposal and recycling programme in conjunction with our self-imposed target LTV of below 20% at year-end remains fundamental to our capital allocation plan to unlock value for our sites.
“In line with our ambition for the total portfolio to be 85% weighted to I&L, we are reinvesting proceeds primarily into I&L opportunities and expanding our development pipeline as a key driver of growth.
“A core component of our Investment Portfolio strategy is to improve the quality to Grade A through development, active asset management, and selling assets where we have completed asset management plans.
“Since the strategy was launched in 2021, the team have transformed the portfolio, improving Grade A to 75%, by value, up from 23%.
“The quality of our serviced land product, the expertise of our team and our deep market relationships underpin our confidence in bringing forward an attractive development pipeline to expand our Investment Portfolio and generate development profits and cash.”
