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Harworth Group PLC on Tuesday said it had positive operational momentum in the first half despite softer residential markets, as it warned of ‘valuation headwinds and cost increases’. Lynda Shillaw, chief executive of the Rotherham, South Yorkshire-based regenerator of land for sustainable development said in an update ahead of its half year results that the land bank ‘remains excellent’ with an ‘encouraging pipeline of potential deals’. ‘Notwithstanding, the length of time to conclude transactions remains elongated, pushing out the timing of value gains. These deals are more likely to materialise from 2026 onwards, in line with the timing of our strategic growth plan being back-end weighted from 2026 and 2027,’ Shillaw said. Harworth said it submitted planning applications for 4.9 million square feet of Industrial & Logistics in the first half, and 1,200 Residential plots. In July, applications for a further 1.5 million square feet of I&L space and 2,800 Residential plots were submitted. ‘The macroeconomic challenges and volatility that I have highlighted previously have not abated, which when combined with domestic fiscal and policy agendas, contribute to weak UK economic growth,’ Shillaw warned. The company said gains in its I&L porfolio during the first half ‘will be dampened by valuation headwinds and cost increases across some of our residential sites’. As a result, it said EPRA net disposal value growth will be between flat and ‘marginally up’ in the first half. Shares in Harworth Group were flat at 187.00p in London on Tuesday around midday. Harworth will report its results for the first half of 2025 on September 16. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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