Harworth Group saw its operating profit fall significantly for the 12 months to the end of December 2022, but the company’s net asset value (NAV) increased.
In its full year results, the company reported its operating profit had slumped from £121.9m in 2021 to £44.5m last year, with its NAV increasing from £578m in 2021 to £602.7m in 2022.
Lynda Shallow (pictured), chief executive of Harworth, said: “We continued to make significant operational progress during the year, delivering increased levels of direct development, accelerated land sales and targeted acquisitions in line with our strategy to become a £1bn business by 2027. We ended the year in a strong financial position, with a low LTV and significant available liquidity.
“Following a significant increase in valuations during the first half, we saw market-driven outward yield shifts across our investment portfolio and more mature industrial and logistics development sites during the second half. Over the course of the year, our management actions have largely offset market movements, and resulted in our valuations, and therefore EPRA NDV, remaining broadly flat year-on-year.”
Shillaw added that the company remained cautious about the economic backdrop for 2023. “While there have been some recent positive indicators, uncertainty is likely to remain in our markets until interest rates reach their peak, and inflation falls back to manageable levels, creating the conditions for growth and improved investor confidence,” she said.
“Against this backdrop, our focus markets of residential and industrial and logistics continue to be drivers of economic growth and have robust fundamentals, while there remains an acute shortage of high-quality consented land.”
