Harworth leans into industrial and data-led growth as 2025 returns outpace UK property market

Harworth ( (GB:HWG) ) has provided an update.

Harworth Group reported full-year 2025 results showing modest growth in net asset measures and portfolio value, while continuing to pivot its portfolio towards industrial and logistics assets, which now represent 70% of portfolio value. The group delivered a total property return of 8.4%, outperforming the broader UK property benchmark, but saw a sharp fall in operating profit and value losses in residential developments amid market weakness.

Management highlighted strong performance in its I&L investment portfolio, where vacancy dropped to 1% and Grade A assets increased to 76% by value, supported by robust lettings, disposals and like-for-like rental growth. Harworth accelerated residential plot and freehold sales, recycling capital and significantly reducing its consented residential land bank to improve capital efficiency.

The company is pushing into power-enabled and data centre-related opportunities, with 0.8GW of power connections conditionally secured or in the network pipeline and sites positioned near hyperscale data centre projects, which could unlock higher-value transactions. Enabling works on land capable of delivering 4m sq ft of I&L space, together with a 35m sq ft I&L land bank of which three-quarters is consented or in planning, underpin a substantial development pipeline.

Harworth has also strengthened its financial capacity by refinancing and enlarging its revolving credit facility to £275m with improved margins, ending the year with liquidity of £127.1m and a relatively low loan-to-value ratio of 15.6%. This balance sheet position, coupled with strong occupier and investor interest in 1.6m sq ft of potential I&L deals, leaves the group well placed to exploit secular trends in data, reindustrialisation and clean growth while targeting attractive medium-term returns for shareholders.

The most recent analyst rating on (GB:HWG) stock is a Hold with a £178.00 price target. To see the full list of analyst forecasts on Harworth stock, see the GB:HWG Stock Forecast page.

Spark’s Take on HWG Stock

According to Spark, TipRanks’ AI Analyst, HWG is a Neutral.

Harworth’s strong financial performance, particularly in revenue growth and profitability, is a key strength. The company’s valuation is attractive, supported by a reasonable P/E ratio and dividend yield. Positive corporate events further bolster confidence in its strategic direction. However, technical indicators suggest neutral momentum, and cash flow challenges present areas for improvement.

To see Spark’s full report on HWG stock, click here.

More about Harworth

Harworth Group plc is a UK-listed regeneration, strategic land and development company focused on the industrial and logistics (I&L) and residential sectors across the North of England and the Midlands. It owns, develops and manages more than 15,000 acres over 100 sites, specialising in transforming large, complex sites into new I&L schemes and serviced, remediated land for sale to industrial, logistics and housebuilding markets.

Average Trading Volume: 230,035

Technical Sentiment Signal: Buy

Current Market Cap: £557.7M

Learn more about HWG stock on TipRanks’ Stock Analysis page.