Operating profit at commercial property developer Harworth has tumbled though its boss has hailed its "superpower" land bank.
First half results for the Yorkshire-based regeneration specialist saw operating profit of £7.1m in the first half of 2025, compared with £21.1m in the same period last year. Value gains were also down in the six months to the end of June at £15.5m, from £47m in the first half of 2024.
Bosses said the focus was on industrial and logistics developments which make up two-thirds of the Harworth portfolio with the ambition to get this to 85% by 2029. Residential - the firm's other key market - saw 649 plot sales in the period and 149 freehold plot sales, generating £10m of sales.
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In its reporting on the London Stock Exchange, Harworth said that despite subdued investment volumes there was cautious optimism for residential performance in the second half of the year - particularly for "high demand regions" including Yorkshire and the North West.
Meanwhile the firm's European Real Estate Association Net Disposal Value (EPRA NDV) - a key measure of assets used by real estate investment trusts - grew to £725m during the first half, up from £687m in the H1 2024. Chief executive Lynda Shillaw reaffirmed the group's target to reach £1bn of EPRA NDV by the end of 2029.
She said: "Our sustained operational momentum is providing a strong platform for future growth and reflects the strength of our execution in progressing our land bank. A key highlight during the period was the timely acquisition of our joint venture partner's shareholding at Gateway 45, which not only grows our I&L pipeline, but also adds attractive near-term opportunities with the release of HS2 land from Government safeguarding.
"We are advancing the planning status and de-risking the delivery of our land bank, with significant investment in enabling works to open up our consented sites and increase our serviced land capacity by year-end. This, coupled with the submission of a number of significant planning applications totalling 8.1m sqft, will add value as they move towards a consent, driving performance into the medium-term.
"Our teams are working hard to convert a strong transaction pipeline, with healthy demand across our I&L land and property portfolio. Whilst transaction timelines remain elongated, as occupier and investor sentiment continues to be impacted by macroeconomic weakness and soft 海角视频 growth, letting activity is beginning to crystallise and our de-risked serviced land products across both I&L and Residential remain appealing, with a solid pipeline in the second half of the year.
"We are seeing sustained demand for our residential serviced land, although costs to deliver increased in some instances impacting valuations and the market seems to be softer, an outlook we consider may continue to 2026, particularly with uncertainty around the 海角视频 Budget and the timing of further rate cuts. Our I&L portfolio continues to perform well with good momentum and the ability to generate material value."