Harworth Group (HWG) released a confident set of results in its first full year as a pure-play land developer. Net assets at the year-end were £298m, up from £59m a year before, reflecting a large contribution from recently reacquired Harworth Estates. But even stripping out this effect, the like-for-like increase in net assets would have been £47.4m as the company continued to build value by securing more than 2,000 residential planning permission consents over the period. Both of these boosted the income statement, with a £24m increase in the value of the company's investment companies, and a £44.2m gain on purchase for Harworth Estates.
The company operates in the coalfields of northern England, a reflection of its heritage (the group's complicated back-story has its origins in UK Coal) and it reports strong demand for houses in the area. During the period it managed to achieve land sale prices above book value at all sites. The group’s focus has shifted to targeting a smaller number of brownfield sites with bigger development potential.