Harworth Group plc (HWG.L) Bundle
A Brief History of Harworth Group plc
Harworth Group plc, a property and regeneration company, specializes in brownfield land development and management. The company was established in 2015 as a spin-off from UK Coal, focusing on transforming former industrial sites into sustainable residential and commercial properties.
In the fiscal year 2022, Harworth Group reported a total revenue of £62.1 million, with a net profit of £9.5 million. The company demonstrated considerable growth in its net asset value, which increased by 18% year-on-year, reaching £248 million by December 2022.
By 2023, Harworth Group owned and managed approximately 12,500 acres of land, primarily in the North of England and the Midlands. The portfolio consists of properties with significant redevelopment potential, primarily focused on residential and logistics projects.
In 2021, Harworth secured planning permissions for over 6,000 residential units, which further underlines its strategic focus on meeting the UK's housing demand. These developments are projected to contribute an estimated £1.2 billion in gross development value (GDV) over the next several years.
The company has made strides in sustainability, aiming to achieve net-zero carbon emissions across its portfolio by 2030. In 2022, it reported that 40% of its developments were in line with its sustainability goals, focusing on energy efficiency and ecological restoration.
Harworth's share price was valued at £1.45 as of October 2023, reflecting an increase of 15% from the previous year's assessment. The market capitalization stands at approximately £454 million, indicating robust investor confidence.
| Financial Metrics | 2021 | 2022 | 2023 (YTD) |
|---|---|---|---|
| Total Revenue (£ million) | 56.2 | 62.1 | 40.2 |
| Net Profit (£ million) | 8.0 | 9.5 | 5.2 |
| Net Asset Value (£ million) | 210 | 248 | 268 |
| Acres Managed | 10,500 | 12,500 | 12,500 |
| Residential Units Secured (units) | 4,500 | 6,000 | N/A |
| Market Capitalization (£ million) | 395 | 454 | N/A |
On the operational front, Harworth Group has made significant investments in logistics and warehousing, aligning with rising e-commerce demand. In 2022, the logistics sector accounted for approximately 40% of its development projects, with significant sites in strategic locations near major transport links.
Harworth has also engaged in various joint ventures to broaden its development scope, collaborating with local authorities and private sector partners. These partnerships have fostered community-focused projects, ensuring that developments are tailored to local needs and contributing positively to regional economies.
As of September 2023, Harworth Group's projects were responsible for creating over 1,200 jobs during the construction phase, showcasing the company's commitment to economic development and community engagement.
A Who Owns Harworth Group plc
Harworth Group plc, based in the UK, operates within the property and regeneration sector, focusing on the development of brownfield sites. Understanding the ownership structure of this company provides insight into its governance and strategic direction. As of the latest reports, Harworth Group plc is publicly traded on the London Stock Exchange under the ticker symbol "HWG." The company's ownership is a mix of institutional, retail, and individual shareholders.
As of October 2023, the shareholders of Harworth Group plc include a significant proportion of institutional investors, which often reflects a level of confidence in the company’s management and strategy. Below is a detailed breakdown of the major institutional shareholders:
| Shareholder Name | Stake (%) | Type of Investor | As of Date |
|---|---|---|---|
| Hargreave Hale Ltd. | 8.43 | Institutional | October 2023 |
| Aviva Investors | 6.25 | Institutional | October 2023 |
| Dimensional Fund Advisors | 5.80 | Institutional | October 2023 |
| Royal London Asset Management | 5.00 | Institutional | October 2023 |
| Others | 74.52 | Retail/Individual | October 2023 |
The total shares outstanding for Harworth Group plc are approximately 250 million. The market capitalization, as of the latest stock data, is around £515 million, indicating a stable valuation in the property sector. The company has shown a resilient performance, with the share price hovering around £2.06 per share as of the latest trading session.
Given the substantial percentage of shares held by the institutional investors listed, it suggests a strong foundation of support for the company's strategic decisions and growth plans. This level of institutional ownership can often lead to more accountability and a focus on long-term value creation.
In addition to the major shareholders, Harworth Group plc also has several notable directors and executives who hold shares in the company. These insiders often hold shares as a sign of confidence in the company's future prospects and align their interests with those of the shareholders. Recent filings reveal that cumulative insider holdings stand at approximately 1.5% of the total shares outstanding.
| Director/Executive | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| John Thompson | CEO | 1,000,000 | 0.40 |
| Emily Baker | CFO | 500,000 | 0.20 |
| Mark Roberts | COO | 250,000 | 0.10 |
The stability of ownership at Harworth Group plc, characterized by significant institutional stakes and insider ownership, reflects a well-managed company poised for continued growth in the competitive property and regeneration sector. Investors often view such ownership structures favorably, seeing it as a sign of confidence in management and strategic direction.
Harworth Group plc Mission Statement
Harworth Group plc is a leading property regeneration and development company based in the United Kingdom. Its mission statement reflects a commitment to sustainability, creating inclusive communities, and driving long-term value for shareholders. The company aims to recycle land and assets into productive use, focusing on the development of residential, commercial, and industrial properties.
As of 2022, Harworth Group aims to achieve net zero carbon by 2030, highlighting its commitment to environmental sustainability. The company's strategic approach encompasses the regeneration of brownfield sites, thus contributing to urban renewal and reducing the need for greenfield development.
In its 2022 annual report, Harworth reported a total asset value of approximately £1.4 billion, with a portfolio of around 8,500 acres of land. Their approach emphasizes collaboration with local authorities and community stakeholders, reinforcing their mission to deliver sustainable developments that meet local needs.
Key financial highlights from the latest fiscal year include:
| Financial Metric | 2022 Value | 2021 Value | Change (%) |
|---|---|---|---|
| Revenue | £48 million | £40 million | 20% |
| Net Profit | £15 million | £12 million | 25% |
| Earnings per Share (EPS) | £0.12 | £0.10 | 20% |
| Total Assets | £1.4 billion | £1.1 billion | 27.3% |
The company emphasizes community engagement, ensuring that developments are aligned with local needs. Harworth's integrated approach to property development focuses on sustainability by reducing carbon footprints through innovative building practices. They aim to enhance long-term community value, with projects designed to foster economic growth and improve quality of life.
Harworth's mission is further enriched by its emphasis on transparency and responsible governance. Their commitment to best practices in sustainability and community involvement aligns with broader trends in the real estate sector, where stakeholder engagement is increasingly seen as vital to successful project outcomes.
How Harworth Group plc Works
Harworth Group plc is a leading property and regeneration company in the United Kingdom, focusing on the development and management of land and property assets. The company primarily operates in the real estate sector, taking on projects in the industrial, logistics, residential, and commercial markets.
As of the latest fiscal year, Harworth reported total revenues of £57.6 million, which reflects an increase of 15% compared to the previous year. The company attributes this growth to several key projects within its portfolio, including the ongoing development of strategic sites across the North of England and the Midlands.
In 2023, Harworth successfully completed the sale of a significant logistics scheme at their Penrith site, yielding a gross development value of £17 million. This sale highlights the company's strategic focus on high-demand sectors. The total value of development completions for the year reached £81 million.
| Financial Metric | 2022 | 2023 |
|---|---|---|
| Total Revenue | £50.1 million | £57.6 million |
| Gross Development Value | £75 million | £81 million |
| Net Asset Value (NAV) | £213 million | £227 million |
| Profit Before Tax | £10 million | £12.5 million | Land Bank (acres) | 12,000 acres | 12,500 acres |
Harworth's strategic land bank is a critical asset, currently amounting to 12,500 acres. This land is strategically located in areas with high demand for residential and commercial development, allowing the company to capitalize on emerging market trends.
The company operates through two main segments: the Property Development segment and the Property Investment segment. The Property Development segment focuses on the active regeneration of brownfield sites and the development of new properties, while the Property Investment segment is responsible for managing income-generating assets.
As of October 2023, Harworth Group's portfolio included over 600,000 square feet of completed industrial and logistics space across various sites. The occupancy rate for these properties is approximately 95%, demonstrating robust demand in key markets.
In terms of sustainability, Harworth is committed to achieving a net-zero carbon target by 2030. The company aims to integrate sustainability into all aspects of its operations, including energy efficiency measures in its developments.
Harworth's funding strategy has also evolved. The company reported net debt of £33 million, with a loan-to-value ratio of 24% as of September 2023. This conservative approach to leverage enables the company to manage risks effectively while pursuing growth opportunities.
In terms of stock performance, Harworth Group plc shares are listed on the London Stock Exchange under the ticker symbol "HWG." The stock has shown resilience, with a year-to-date return of approximately 10% as of October 2023, reflecting investor confidence in the company's growth prospects and operational strategy.
Overall, Harworth Group plc continues to adapt to market conditions while focusing on its core competencies in land regeneration and property development, positioning itself for sustained growth in the evolving UK property market.
How Harworth Group plc Makes Money
Harworth Group plc operates primarily in the real estate sector, focusing on the regeneration of former industrial and commercial sites across the UK. The company generates revenue through a combination of property development, asset management, and investment. Below are detailed insights into the revenue streams of Harworth Group plc.
Revenue Streams
Harworth’s income is derived from several key areas:
- Property Development: The company identifies, acquires, and develops sites with a focus on residential, commercial, and industrial uses. In the financial year ended December 2022, Harworth achieved revenue of £38.7 million from development sales.
- Asset Management: Harworth actively manages its portfolio of properties to optimize returns. In the first half of 2023, the company reported £17.5 million in income from asset management, a notable increase from £15 million during the same period in 2022.
- Investment Properties: Harworth holds a portfolio of income-generating properties. As of June 2023, the value of investment properties increased to £346 million, driven by strong demand for logistics and industrial facilities.
Financial Performance
In the last reporting financial period, Harworth Group plc reported the following key financial metrics:
| Metric | 2023 H1 | 2022 H1 | 2022 Full Year |
|---|---|---|---|
| Total Revenue | £57.5 million | £54 million | £97.5 million |
| Operating Profit | £20 million | £18 million | £30 million |
| Net Assets | £370 million | £352 million | £360 million |
| EPS (Earnings Per Share) | £0.08 | £0.07 | £0.12 |
Market Trends
Harworth is well-positioned within several growing market trends:
- Sustainable Development: The company emphasizes sustainability in its projects, aligning with the UK government's goals for greener infrastructure.
- Urban Regeneration: As cities evolve, there is a significant demand for redevelopment of brownfield sites, an area where Harworth excels.
- Logistics and Warehousing: Increased demand for logistics spaces, particularly post-COVID-19, has driven rental growth and occupancy rates in Harworth's portfolio.
Future Growth Initiatives
Harworth has outlined several initiatives that are expected to contribute to its revenue growth:
- Expansion of Development Pipeline: The company aims to increase its development activities, targeting an additional 1,200 acres of land for various projects by 2025.
- Partnerships: Collaborations with local authorities and private-sector partners are expected to enhance project delivery and reduce costs.
- Investment in Logistics: Harworth plans to increase its focus on logistics facilities, anticipating continued strong demand for distribution centers.
In conclusion, Harworth Group plc's diversified approach to revenue generation through property development, asset management, and investment, combined with strong market positioning, suggests a robust financial outlook in the coming years.
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