Full Year Results for year ended 31 Dec 2025

HARWORTH GROUP PLC

('Harworth' or the 'Group' or the 'Company')

Full Year Results for the year ended 31 December 2025

Sustained Industrial & Logistics momentum & strategically positioned to unlock high value opportunities

Harworth Group plc, a leading regeneration, strategic land and development business, today announces its results for the year ended 31 December 2025. See page 2 for summary of business and abbreviations1.

pp = percentage point change

Lynda Shillaw, Chief Executive of Harworth, commented: "I am pleased with the performance of our teams and our operational execution throughout 2025, positioning the portfolio to realise future upside potential and delivering a total property return of 8.4%, outperforming the MSCI UK Annual Property Index of 5.6%. As we continue to execute our strategy and reposition the portfolio towards I&L, our long-term through-the-cycle model, management actions and disciplined approach to capital deployment remain essential to creating value for shareholders, including our £1bn of EPRA NDV ambition and high-single, low double-digit total accounting return target. Over the last five years to 2025, the sustained delivery of our strategy has delivered cumulative Total Accounting Returns of 44.5%.

"Harworth is at the intersection of some of the UK's most powerful trends, including data, advanced technologies, reindustrialisation and clean growth. Our land bank provides both strategic levers and optionality to generate attractive risk-adjusted returns, and the Harworth Platform underpinned by our specialist skills and ability to deliver successful serviced land and developments for world-leading businesses is central to stimulating and supporting economic growth in our regions.

"Land at scale, suitably zoned and power-enabled, is key to accessing emerging market opportunities such as data centres. For a subset of sites, we have been actively pursuing upside opportunities with 0.8GW of power connections either conditionally secured or in the pipeline with Network Operators. Together with further applications currently advancing, these represent significant progress towards both near and longer-term transactions that have the potential to deliver enhanced value gains and superior returns. 

"While we are monitoring the conflict in the Middle East and its potential impact on the UK economy and our markets, we remain encouraged by a continued pipeline of strong interest across our I&L land and property portfolio of 1.6m sq ft. We are in a strong position to capitalise on market trends and unlock value to crystallise attractive medium-term opportunities, giving the Board confidence in Harworth's potential to deliver exciting projects and achieve attractive shareholder returns."

2025 PERFORMANCE

Strong I&L performance supporting future growth

Accelerated Residential sales drive capital recycling

EPRA NDV driven by I&L value gains

DRIVERS OF FUTURE GROWTH

Data centre and power-enabled land platform gaining momentum

I&L land & property portfolio positioned to realise value

Enhanced financial capacity to scale I&L

About Harworth

We aim to create long-term, through-the-cycle value by focusing on:

Our land bank stands at 35.0m sq ft of I&L of which 75% is consented or in the planning system13 (Dec 2024: 33.6m sq ft; 63%) and 29,386 Residential plots of which 45% are consented or in the planning system (Dec 2024: 31,264; 46%).

Since 2021, we have achieved planning on 9.2m sq ft of I&L space with an estimated Gross Development Value ('GDV') of £1.3bn, we have concluded on cumulative sales of c. £700m, including 9,000 Residential plots and we have bought or taken options over I&L land totalling 14.3m sq ft, with an estimated GDV of £2.1bn.

Harworth Group plc (LSE: HWG), is a leading regeneration, strategic land and development business focused on the I&L and Residential sectors. We own, develop, and manage a portfolio of over 15,000 acres of Strategic Land over 100 sites located throughout the North of England and Midlands. We specialise in delivering long-term value for all stakeholders by regenerating large, complex sites, into new I&L developments and serviced remediated land for sale into the I&L and Residential land markets. Our long-term through-the-cycle business model is to create sustainable places, support new homes, jobs and communities where people want to live and work. Visit www.harworthgroup.com for further information. LEI: 213800R8JSSGK2KPFG21

Notes:

For further information

Results presentation

Harworth will host a presentation for analysts and investors at 10.30 am today. A live webcast and playback of this can be accessed at the following link: https://brrmedia.news/HWG_FY_25

Engage Investor presentation

A presentation relating to these results will also be hosted via the Engage Investor platform on 23 March 2026 at 3.30pm. Harworth welcomes all current and interested shareholders and encourages investors to pre-submit questions. Investors can also submit questions at any time during the live presentation.

Investors can sign up to Engage Investor at no cost and follow Harworth Group plc from their personalised investor hub. Please register for the event here: https://engageinvestor.news/HWG_IP26

Chair's statement

Introduction:

During 2025, we have executed against our strategy to deliver for our shareholders and wider stakeholders in a challenging environment and further position our business for long term success and value creation.

This has been a year of sustained operational progress following our strategic pivot to accelerate our Industrial & Logistics ('I&L') land bank, allocate capital to site investment for future delivery, and retain more prime Grade A assets in our Investment Portfolio.

The UK macroeconomic backdrop has been challenging throughout 2025 with its impact particularly apparent across the residential sector, where weakening residential fundamentals have been exacerbated by supply side regulatory and cost hurdles and lack of demand-side stimulus. Our future pipeline remains focused on I&L where 2025 saw greater stability of market fundamentals. Prudent investment in site assembly and enabling works has meant we are well placed to deliver Grade A assets when momentum builds in the market.

With interest rates staying higher for longer than anticipated and with occupier and investor caution regarding UK fiscal policy, a broad-based uplift in demand has yet to come through. Most market commentators are reporting further weak growth in Q4 2025, impacting demand and asset valuations, particularly across the residential market. Overall, timeframes to conclude deals remain elongated, and whilst there was a short respite post the autumn UK Budget, we are mindful of the potential impact on this year of recent geopolitical uncertainty and the resulting wider macroeconomic effects. This has been, and remains, a challenging environment for our teams at Harworth, as they have worked diligently to successfully complete sales and lettings transactions.

Against this backdrop, the business has successfully evolved the quality of the Investment Portfolio by transferring in new Grade A developments and reducing vacancy through strong letting activity. Total Property Sales of £115.0m completed, including 1,837 of Residential plot sales. These transactions are testament to the capability of our people, their specialist skillset and deep market network. The continued outperformance relative to the market of the I&L land and property portfolio supports our decision to allocate capital to the next generation of sites in anticipation of improved market demand and thereby deliver value creating management actions.

Our people:

The long-term sustained growth of Harworth is best delivered by creating an environment that cultivates a high-performance culture. Our high talent retention and strong employee engagement and happiness scores have culminated in the award of the Investor People Gold accreditation. This a relatively rare achievement for a first-time assessment and reflects the growing effectiveness of our people strategies and our drive for continuous improvement, supporting our people to achieve their full potential for the benefit of all our stakeholders.

The speed with which we can progress as a business directly depends on our success in bringing together the necessary skills, experience and relationships. It is therefore critical that we attract and retain the leadership talent we need to achieve our strategic ambitions. This was the driver behind the Remuneration Policy that was strongly supported by shareholders at the May 2025 AGM to cover the 2025-2027 three-year period. We consulted widely prior to putting this policy to the vote and have subsequently further explained our rationale to those of our shareholders who disagreed with our approach.

In 2025, Harworth's leadership successfully delivered an internal restructure to better support the business's future growth. Operations moved from a regional to national structure to improve delivery capabilities, support scale and accelerate existing successes. As we continue to pursue our strategic ambitions by growing the next generation of sites, the associated development pipeline and our I&L Investment Portfolio, we recognise the need to ensure that our people have the resources and capabilities to add maximum value working alongside our Harworth partners.

The Harworth Way:

As a leading regeneration specialist and strategic land owner, our unique oversight of the full development lifecycle - from land assembly and planning, through to multi-phased infrastructure, building and placemaking - enables us to align commercial outcomes with the creation of long-term benefit for our communities, people and the planet. By supporting the delivery of new jobs and homes we aim to ensure a positive lasting impact.

Sustainable outcomes, including our Net Zero Carbon ('NZC') ambitions, are well embedded into our delivery operating model and form a fundamental element of our overall growth strategy. The Harworth Way continues to serve as our framework for integrating sustainability and social value from idea and design concept to final occupation, guiding our decisions as to how to invest in, develop, and manage our sites.

We continue to make good progress against our 2030 NZC target for our business operations. Collaboration with our supply chain is central to our progress towards achieving our 2040 NZC target for all emissions. Our upstream Scope 3 emissions reporting via our contractors and suppliers and downstream emissions from tenants in our I&L Investment Portfolio are key to identifying our largest elements of emissions and guiding us as to where to focus to meet our targets. We have a strong track record of working in partnership with suppliers, occupiers, and local and combined authorities and are well placed to deliver whole life carbon and detailed energy assessments as part of our approach to developments.

Since 2022, our developments have met specified embodied carbon and operational energy targets, with rooftop solar included as standard. More recently, our work on nature and Biodiversity Net Gain ('BNG') has matured, delivering our first two habitat banks, to support the development of our sites. This is a model that we will look to replicate across our portfolio with more sites in the planning pipeline as we integrate BNG into our serviced land offering, ensuring our focus on nature and on our environmental impact is central to the products that we deliver and demonstrating the Harworth Way Planet Pillar in action.

Last year, recognising that sustainability reporting is mainstream for our business, we took the decision to move oversight to the main Board, rather than having it focused on by only a subset of our directors through the ESG Committee. Aligning development-level reporting through emerging industry standards and corporate-level reporting via the IFRS' International Sustainability Standards Board ('ISSB') should improve governance in this area, this being achieved at Harworth by making oversight of sustainability reporting the responsibility of the Audit Committee.

Board updates:

At the 2025 Annual General Meeting, Ruth Cooke, retired from the Board as an independent Non-Executive Director, having joined in March 2019. My grateful thanks go to her for her contribution over the years, particularly as we developed our mixed tenure Residential offering, bringing her very valuable perspectives as Chief Executive of one of the largest regional housing associations.

Last September, we appointed Phil Redding as a new independent Non-Executive Director, bringing significant experience and capability within the industrial and logistics sector, having served in C-suite positions at both SEGRO and most recently Tritax. As we pursue opportunities to transform our high-quality land bank, Phil's track record in scaling UK industrial and logistics platforms will be of great value to the Board.

On behalf of the Board, my thanks to everyone both within Harworth, and to our shareholders, partners, advisers, suppliers and contractors, who have made possible the significant progress we have achieved over the past year, both bringing sites to fruition and in particular in advancing the developments that will enable us to deliver growth and meet our strategic targets, whilst delivering attractive returns over the coming years.

Alastair Lyons

Chair

16 March 2026

Chief Executive's review

The operational progress in 2025 reinforces our core strengths: a high-quality land bank, a disciplined balance sheet, and a proven delivery platform capable of generating sector leading returns.

During the year, we progressed actions to improve the quality of our business and drive long term growth. These actions focussed investment on enabling works at key I&L sites, including Chatterley Valley (Staffordshire), Wingates (Greater Manchester), Gascoigne Wood (North Yorkshire) and Skelton Grange (South Yorkshire). We now have our largest ever portfolio of substantially complete serviced land with the capacity to deliver c. 4.0m sq ft, opening up optionality for delivery of development and value realisation.

We progressed the works at Skelton Grange (West Yorkshire) to deliver serviced land for a hyperscale data centre for Microsoft, where we expect a further £53.2m payment, for the second phase of the sale in the next 12 months. On the back of this significant transaction, we have been scaling our power-enabled land portfolio, building on our track record in developing industrial sites. We have been actively pursuing a portfolio totalling 0.8GW of power connections, either conditionally secured or in pipeline with Network Operators, capable of supplying data centres and power-intensive sectors, over the next five to ten years.

In January, we reconfirmed our ability to grow EPRA NDV to £1bn and announced an extension to the delivery timeline to between end 2028 and end 2029 to reflect the impact of ongoing macroeconomic weakness and resulting investor and business uncertainty, which has lengthened timings to complete deals. Our conviction in our ability to continue to unlock value across our land bank and execute on high value transactions, including power-enabled land, remains unchanged, and we are encouraged by a 1.6m sq ft pipeline of strong interest across our I&L land and property portfolio, ensuring we are well placed to capture the positive momentum observed following the November 2025 UK Budget and emerging improvements in industrial market fundamentals. With geopolitical uncertainty increased in recent weeks, following the escalation of conflict in the Middle East, we are monitoring the impact on interest rates and the potential inflationary impact feeding through to the UK economy which if sustained could impact the timing of our plans. We remain committed to delivering our strategic objectives in the face of challenging market conditions and continue to focus on the areas we can control to drive our land bank forward and accelerate the delivery of our sites whilst achieving our NZC ambitions.

Operational performance

Having launched our strategy in 2021 to grow EPRA NDV to £1bn, we have followed a clear road map and transparent set of growth drivers against which to judge our progress, as set out in the table below.

1. Targets announced 2021. FY20 used as baseline | 2. C = completed and land sold; E: enabling works completed or underway | 3. Annual average 2015 to 2020 | 4. Total enabling works in 2024 included 1.3m sq ft of works completed and 1.8m sq ft underway at year-end | 5. Total enabling works in 2025 included 2.2m sq ft of works completed and 1.8m sq ft underway at year-end | 6. EPRA NDV at 31 December 2020 | 7. Announced in 19 January 2026 trading statement that the timeline has extended out to a range of between the end of 2028 to end of 2029 | 8. Announced H2 2024. FY2023 of £221.4m is used as baseline.

I&L delivery

Our Investment Portfolio stood at £305.0m at 31 December 2025, comprising 33% of the overall portfolio. Repositioning our Investment Portfolio to modern Grade A continues to progress and stood at 76% by value (64% by area), from a starting point of 23 % by value, five years earlier. In the year, we successfully delivered on direct development of new units and made asset sales, which were either of secondary assets or where we had already maximised value through asset management or re-development initiatives. This places us well on our way to achieving our 100% Grade A target.

Our I&L Major Developments ('MD') portfolio value was £198.2m, comprising 21% of the overall portfolio. It is the main driver of direct development, together with our I&L Strategic Land ('SL') portfolio providing the next generation of Harworth sites. The I&L MD portfolio consists of nine sites at various stages of development, ranging from early enabling works, like Wingates (Greater Manchester), to sites ready to develop, like Chatterley Valley (Staffordshire) and Gateway 36 (South Yorkshire). During the year, we completed direct developments at the AMP (South Yorkshire) and Droitwich (Worcestershire) and transferred these Grade A units from MD to the Investment Portfolio. Land with capacity to deliver 4.0m sq ft has had enabling works completed or significantly progressed.

Our target is to enable land with a capacity to deliver an 800,000 sq ft run-rate of I&L space by 2027 and a cumulative total of 4m sq ft. We plan to develop this in part for our Investment Portfolio, with the remainder to be delivered via a number of potential routes:

Regardless of the route, our enabling works create development platforms for vertical construction and are a critical component of creating value, driving portfolio performance and TAR, which remain our priorities. In the year, we leveraged our balance sheet capacity to invest in our sites, creating service land parcels that we believe will drive the greatest value for shareholders.

Accelerating the delivery of our high-quality land bank is a key skillset and fundamental to our business model. Both the quality of the land bank and our ownership structure have a role to play. We are increasingly pursuing more capital light ownership, including strategic partnerships, to ensure we are well placed to deliver product into the market and optimise returns as well as looking to work with external capital sources.

Data centres and power-enabled land

The North and Midlands are well positioned for such development offering a combination of power connection capability, fibre backbones, skills and lower land value, and at this point in the cycle are capable of creating superior risk-adjusted returns. Since early works began on Skelton Grange as a possible data centre site, we have been reviewing our portfolio to identify further opportunities.

Power is the critical component to meeting emerging sector demand, such as data centres, and we have been working on building a power-enabled land bank within our Strategic Land and Major Developments portfolio for a number of years, accelerating value creation potential through accessing power companies and data centre operators, securing power reservations and planning, typically prior to investment in land servicing costs. This means that we now have 0.8GW of land and power positions, over half of which are in the power application system and capable of supplying power-intensive sectors over the next decade.

We have a deep skill set in land assembly, remediation and servicing of large-scale sites, in house technical and power teams who develop and secure solutions for both brownfield - former mining and power station sites - and land that is allocated or can deliver at scale as part of regional growth plans across our portfolio.

Policy support is reasonable to favourable across our regions, and, where we see it as a key enabler to support regional growth we will work with local and Government stakeholders to achieve AI Growth Zone status. Working with all parties to open sites up, and our land and relationships in this sector, both with power companies and data centre operators looking for the best sites, give us meaningful potential to unlock value over the medium-term.

Residential delivery

Our Residential product is an important source of cashflow funding to ensure we can accelerate our land bank and apply capital to higher growth opportunities to deliver value. We completed 1,837 Residential plot sales in the period, in line with our four-year average and off the back of record sales last year. These sales included 725 plots through PPAs, generating fee revenue of £3.1m and 1,112 freehold plots at headline sales of £52.0m. A further 746 Residential plots sales were conditionally exchanged at year-end, with 155 now complete. Headline sales values were stable, but completions were at an overall average discount of 4% against June book values. The impact of macro uncertainty, increased regulatory costs, and a slower sales market resulted in Residential Major Development valuations reducing at the end of the year. Looking ahead, there remains a short supply of high quality consented serviced land and the potential for demand-side stimulus to have a positive impact on the housing market.

Since 2020, we have sold over 9,000 plots to housebuilders or affordable housing providers and at year-end, our land bank had 3,065 consented plots remaining, reduced from 9,355 plots in 2020, now comprising 10% of the residential land bank of 29,386 plots. Our residential strategy has been to work through this mature consented land bank more quickly as this part of the portfolio has a higher carrying value with value gains created through planning and early-stage place-making.

Going forwards, we remain focussed on securing planning approval for the 9,085 plots that are currently in the planning pipeline, realising value through planning and using capital light and partnership structures for delivery. We are committed to pursuing the highest risk-adjusted returns by continuing to recycle capital from our residential sites to reinvest into our development pipeline, targeting increasing our I&L portfolio weighting to 85% by 2029.

Our markets

Our high quality strategic landbank gives us the ability to focus on growth sectors through the cycle and our current strategic focus is to shift the weighting of the portfolio into the industrial & logistics market, with 70% of our portfolio currently in I&L and the remaining predominantly in Residential. These markets remain critical to the UK's economic growth continuing to face structural undersupply. Our focus and ambition to grow the portfolio I&L weighting to 85% underpins our growth though this phase of the cycle, especially in light of the impact on the Residential market of global macro and increased geopolitical uncertainties witnessed in 2025, combined with regulatory pressures.

Macro uncertainty weighed heavily on investor and occupier sentiment throughout 2025, from trade tariffs impacting confidence in large international businesses in the first half, to UK businesses waiting for the late Budget to be issued in the autumn. This resulted in delays in our sales transactions which were almost entirely second half weighted with a high proportion completing in the final quarter.

Industrial & Logistics

Industrial and logistics assets remain amongst the favoured real estate sub-sectors with continued rent growth and stable yields for prime industrial assets in all regions.

Occupier demand for I&L assets in 2025 was dominated by supply chain reshoring and manufacturing alongside logistics requirements which continued to push rents forwards. We see both advanced manufacturing and defence as growing trends in the industrial market and we anticipate these sectors will drive more manufacturing take-up in the medium term, a trend that aligns well with our portfolio.

According to JLL, Grade A big box logistics take-up was up 9% year-on-year and up 27% over the pre-COVID average, reaching 24.5m sq ft. Speculative take-up was 8.7m sq ft with Grade A supply down 9% on H1-2025 and 4% on 2024. Aligned with our own strategy of reducing speculative build, floorspace speculatively under construction fell to 5.6m sq ft, down 54% year-on-year. We let 379,000 sq ft space in 2025, with demand picking up at the end of the year post Budget, although transaction timelines were prolonged throughout the year.

All these factors combined meant that our regions saw healthy rental growth with the North and Midlands amongst the UK's most active logistics corridors, supported by food retail expansion, manufacturing onshoring and relative affordability in comparison to the South East. Prime headline rents grew by 4.7% nationally, supported by constrained Grade A supply. The North West benefitted from more attractive rental growth, with prime rents for Manchester up 9.5% year-on-year. We expect our attractive North West portfolio to benefit from this growth on sites such as Chatterley Valley, Wingates and our Northern Gateway JV, where a 6.5m sq ft planning application was submitted in 2025.

Our Investment Portfolio saw like-for-like headline rental growth for lettings on existing space, renewals and rent reviews completed of 10.4%. This validates our conviction for high quality Grade A I&L space in strong locations.

Data centre sites

The UK is Europe's largest and most mature data centre market with strong connectivity and foreign investment. The Government's recognition of data centres as 'Critical National Infrastructure' will help to drive sites through planning and shorten delivery timelines. The UK market is forecast to more than double by 2030 driven by unprecedented demand for cloud services, AI computing, advanced manufacturing and public sector digitalisation and data storage and our regional markets are set to benefit. The North is increasingly recognised as a strategically important regional data centre market, driven by London capacity constraints, improving power availability and targeted government support. Greater Manchester and Yorkshire are emerging as key secondary growth markets, supported by grid reinforcement and an increasing share of new capacity and access to renewable energy. Combined with lower land costs and strong local authority alignment, investors are increasingly looking to invest in these markets.

The regional market is anchored by three clusters of which two are in our portfolio, Manchester, where our Northern Gateway JV sits, and Yorkshire (Leeds - Sheffield), where our Skelton Grange site for Microsoft sits. These sites are a catalyst for economic growth in our regions, with our Skelton Grange site estimated to deliver c. £4bn of inward investment when the development completes. This is further supported by a Public First study quantifying that for the whole of the UK, doubling data centre access increases Gross Value Added by £36.5bn.

Residential

Macro-economic uncertainty, sticky inflation and relatively high mortgage borrowing costs slowed down the housing market from the summer, with 2025 UK house price growth at +0.6%, according to Savills, albeit our regions of the North West and Yorkshire outpaced the South, at +3.5% and +2.2%, respectively. Despite Government's positive policy intent, the market has not witnessed a recovery in planning application consents, with the House Builders Federation confirming that planning permissions are at their lowest level since 2013 and expecting many local authorities to fail their Housing Delivery Targets, suggesting a further squeeze on delivery for the next two years and little to no change in either Local Plans or Planning Promotion Strategy.

Alongside low house price growth, increased build costs and the regulatory cost burden of the Future Homes Standard and Building Safety Levy, support some views that the Government's 1.5m homes target in this Parliament term, may not be achievable, with Savills predicting between 0.8-0.9m homes built over the period. Only the North saw a small positive bump in residential Greenfield land values with Urban down along with the rest of the UK. We see an increased opportunity to bring land forward as land supply is shrinking in many key locations with almost 60% of Local Authorities lacking a five-year housing supply.

The Bank of England eased interest rates four times by a total of 100bps across 2025, ending the year at 3.75%. However, February's Monetary Policy Committee (MPC) saw no change, with a delay to further cuts subject to the MPC satisfying itself that inflation is falling and will hit the BoE's target of 2.0%.

Although medium-term commentators continue to expect house price growth, this will be underpinned by lower mortgage rates and an easing of how mortgage regulation is applied. So far, weak sentiment and an increased tax burden with no demand-side stimulus currently in sight, alongside the potential for interest rate rises with recent macro events, are expected to limit new build capacity and house price growth in early 2026. Forecasts suggest subdued 2026 house price inflation of between flat to 4%.

Outlook

We have a clear desire to increase our I&L weighting to 85% by 2029, having grown from a baseline 57% (end of 2020) to 70% at the end of 2025. This portfolio sits at an inflection point, benefitting from structural drivers and emerging sectors which are aligned to our pipeline, underpinned by robust local and national policy support. We have a strong conviction in the core market themes driving demand for industrial and logistics and emerging demand for data centres and advanced manufacturing clusters in our regions.

Positioned at the intersection of reindustrialisation, advanced technologies, data and clean growth, Harworth is leveraging its strategically located land bank, power and engineering expertise and proven track record in delivering advanced manufacturing ecosystems to create value. Our flagship Advanced Manufacturing Park (South Yorkshire) provides a blueprint for globally competitive manufacturing hubs, and our pipeline of nationally significant sites, combined with the Harworth Platform, enables the repeatable delivery of product to world-leading businesses, as we unlock sites such as Wingates and Northern Gateway in Greater Manchester.

Our conviction in the potential of our portfolio to deliver attractive through-the-cycle returns remains strong, underpinned by significant progress made in establishing a long-term data centre and power-enabled land pipeline, enabling us to bring product into emerging high-value sectors. Our in-house power and engineering expertise, and resources deployed to accelerate site delivery in strong strategic locations with policy support, are essential ingredients for success. We have been actively pursuing upside opportunities with c.0.8 GW of power connections, either conditionally secured or in the pipeline with Network Operators. Together with future applications currently advancing, these represent significant progress towards near and longer-term transactions that have the potential to deliver enhanced value gains and superior returns for investors.

We are in a period of market volatility triggered by global events outside the control of management teams which, if prolonged, could impact the UK economy and our ability to deliver our plans within our expected timescales. We are focussed on what we can do, the strength and quality of our landbank, and the optionality it gives us to lean into emerging themes.

Harworth is well positioned to deliver attractive returns for shareholders. Supported by targeted capital investment that enhances liquidity and funding flexibility across our key sites, we have a clear, deliverable pathway ahead of us. These foundations give us confidence in achieving our £1 billion EPRA NDV target and reaching this milestone between the end of 2028 and 2029.

Lynda Shillaw

Chief Executive

16 March 2026

Operational review

The land & property portfolio value totalled £937.2m at 31 December 2025 (2024: £858.8m, 2020: £618.2m) and is weighted 70% to I&L (2024: 63%, 2020: 57%). The Income Generation portfolio makes up 36% of the portfolio value (2024: 38%, 2020: 44%) and comprises the I&L Investment Portfolio and Natural Resources & Agriculture, with the remaining 64% being the Capital Growth portfolio of SL and MD across I&L and Residential. The portfolio split is set out in the table below alongside movements in the portfolio value since 2024. The largest contributors to the movements in the year were development spend in opening sites up and acquisitions net of disposals, followed by revaluation movements.

INDUSTRIAL & LOGISTICS (I&L)

Land portfolio 

At 31 December 2025, the I&L pipeline totalled 35.0 m sq ft (2024: 33.6m sq ft) comprising a consented pipeline of 8.5m sq ft (2024: 8.4m sq ft). The I&L pipeline & planning progress table to the right sets out the stage our pipeline had reached at year-end 2025 in comparison to year-end 2024.

More of our pipeline is either consented or in the planning system, at 75% (2024: 63%). The pipeline was 45% owned freehold, with the remaining 55% controlled through JV arrangements 12%, options 38% or PPAs 5% (2024: 50% freehold).

Planning

I&L pipeline & planning progress1

1. Harworth's share2. In the planning system includes draft allocations, allocations and awaiting determination

1. Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint-venture and O: Option

Land assembly

Direct development

Key I&L development sites

1. Site type includes SL: Strategic Land, and MD: Major Developments,Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint Venture and O: Option

2. Harworth's share of a joint-venture, adjacent to the M62 and close to the M66, Northern Gateway is the core site of the Atom Valley Mayoral Development Zone, comprising a mix of freehold and optioned land.

I&L INVESTMENT PORTFOLIO (IP)

The Investment Portfolio has undergone a significant level of activity this year, particularly in making progress towards becoming 100% Grade A. This sat at 76% Grade A by value at year-end (2024: 63%, 2020: 20%). A significant level of lettings, direct development and disposals have contributed.

The ambition to grow the portfolio to £0.9bn by the end of 2029 is being delivered through our direct development programme where we plan to retain sites that we develop in the medium term, alongside selective acquisitions and disposals. The portfolio generates recurring rental income, with the potential for capital value growth via active asset management delivered in the year. As a result, the return on capital deployed from the IP was 8.7% for the year (2024: 12.1%, incorporating an income return of 5.6% and capital value growth of 3.1%.

At 31 December 2025, the I&L IP was valued at £305.0m, up 3% on the 2024 year-end (2024: £297.2m), reflecting the completion of the Technicut unit at the AMP (South Yorkshire) and Droitwich (Worcestershire) developments and subsequent transfers to the Investment Portfolio, as well as valuation gains reflecting asset management and profit on sales. After a number of disposals in the year, the portfolio comprised 10 sites covering 2.3m sq ft. Headline rental income stood at £18.3m (2024: £17.5m) and annual passing rental income was £14.7m (2024: £15.8m) due to new leases with rent free periods. The net initial yield stood at 4.6% (2024: 4.8%) and a reversionary yield of 6.2% (2024: 6.5%) demonstrating reversionary potential.

I&L Investment Portfolio

1. Percentage points

2. Calculated on occupied space

3. Estimated rental values

4. Weighted average unexpired lease term

5. European Public Real Estate Association vacancy

Asset management

During the year, 1.4m sq ft of total lease activity was completed (2024: 146,000 sq ft), including 379,000 sq ft of new leases (2024: 146,000 sq ft) at a headline rent of £3.7m. The largest contributors were two new leases at Droitwich (Worcestershire) to Uniserve for 169,000 sq ft and at AMP (South Yorkshire) to Technicut for 80,000 sq ft. Like-for-like headline rental growth for lettings on existing space, renewals and reviews were completed 10.4% ahead of previous annualised headline rents. Significant letting activity alongside disposals made in the year resulted in EPRA vacancy reducing to 1.0% (2024: 5.6%).

Disposals

As part of our strategy to transition the core Investment Portfolio to 100% Grade A, we will continue to selectively dispose of secondary assets where the viability to transform or upgrade is limited, and older Grade A assets where we have delivered our asset management plans. During the period, we sold five core Investment Portfolio assets for £47.7m, at headline pricing ahead of book values. We sold four secondary assets, including 761,000 sq ft of income producing industrial assets and six acres of open storage at Saturn Business Park, Knowsley (Merseyside). In addition, we sold the McLaren unit at AMP, a Grade A unit we built in 2018. The sale was part of our completing our asset management plans and diversifying our exposure at the AMP (South Yorkshire) as the Technicut unit (80,000 sq ft) was transferred in during the period.

Investment Portfolio disposals

1. Saturn Business Park, Knowsley sold six acres of open storage. Continue to hold remaining 29 acres and income producing industrial unit

Investment Portfolio sites

RESIDENTIAL PORTFOLIO 

At 31 December 2025, the Residential pipeline totalled 29,386 plots (2024: 31,264 plots) including 3,065 consented plots (2024: 4,568 plots). The Residential pipeline & planning progress table below shows the stage our pipeline had reached in comparison to year-end 2024. The pipeline that is either consented or in the planning system sits at 45%, consistent with last year-end. The pipeline was 37% owned freehold, with the remaining 63% controlled through JV arrangements 14%, options 10% or PPAs 39% (2024: 41% freehold), continuing our strategy of increasingly favouring more capital light ownership structures to facilitate growth and maximise returns.

Planning

Residential pipeline & planning progress1

1. Harworth's share2. In the planning system includes draft allocations, allocations and awaiting determination

At 31 December 2025, 9,085 plots across 10 sites were awaiting determination in the planning system, a significant increase over the previous year (2,136 plots over five sites). The increase reflects planning applications submitted in 2025 across seven sites:

1. Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint-venture and O: Option.

2. Insert description of Grimsby West ownership via JV and option

Key Residential development sites

1. Ownership includes FH: Freehold, PPA: Planning Promotion Agreement, JV: Joint-venture and O: Option. Site type includes SL: Strategic Land and MD: Major Developments.

Residential plot sales in-line with four-year average

We operate a diversified serviced land sales model including freehold serviced land, mixed-tenure products such as social housing, build-to-rent and senior living. These sales can be freehold as well as through PPAs, which generate fees.

Off the back of record sales volumes in 2024, we completed 1,837 Residential plot sales in 2025, comprising 725 plots through PPAs generating fee revenue of £3.1m, and 1,112 freehold plot sales at headline sales totalling £52.0m. At year-end, a further 746 Residential plots had conditionally exchanged, of which 155 have since completed, demonstrating that despite market headwinds, our de-risked residential serviced land product continues to progress, generating important cashflows for the business.

NATURAL RESOURCES PORTFOLIO

At 31 December 2025, the Natural Resources portfolio had a value of £19.9m (2024: £21.5m) and headline rental income of £1.8m (2024: £2.1m). The portfolio comprises sites used for a wide range of energy production, including wind and solar energy, battery storage, and reforestation schemes, delivered as part of our Energy & Natural Capital strategy. The aim is to leverage our land and property to grow this portfolio, alongside strategic partners where appropriate, through developing renewable energy generation solutions and other sustainability initiatives such as battery storage, solar, EV charging, multi-fuel hubs and reforestation/rewilding. The strategy has a wider focus on embedding these energy concepts and future-proofing principles across all Harworth sites to maximise energy availability and resilience, create economic value, and help fulfil the Group's NZC ambitions.

As part of our strategy to deliver our serviced land product as a responsible developer, alongside addressing developers' challenge to meet Biodiversity Net Gain legislation, we have taken a sector leadership position, launching and managing our first registered Biodiversity Gain Habitat Bank at our residential site at Killamarsh in Derbyshire. On this site, as part of the sale of a parcel of serviced land to a housebuilder, we were able to sell BNG units on the wider land at the same time. We retain some BNG units on this site and see the potential to drive growth in future years as this market continues to develop, issuing biodiversity units to meet our own obligations and allocating any surplus units to our other projects alongside selling units to other developers. During 2025 we established Harworth's second Habitat Bank, a regional first. Located on the former spoil tips of the historic Allerton Bywater Colliery, this 112-acre site has been secured through a Section 106 agreement with Leeds City Council - the first of its kind within this local authority area.

Financial review

Overview

Total Accounting Return and Balance sheet

Our primary metric, Total Accounting Return, was 1.7% for 2025, representing a decrease from 9.1% in 2024. This reflected strong performance across Industrial & Logistics Strategic Land and Major Developments as well as our Investment Portfolio, driving value gains of £71.3m, materially offset by value losses of £26.8m across residential major development reflecting the impact of residential market weakness and cost pressures within some of our residential major developments.

The strong I&L performance reflected the impact of management actions progressing sites through the planning system and investing in infrastructure as well as completing and letting of direct development. The Group gained full control of the Gateway 45 site adjacent to our existing Skelton Grange site, acquiring the remaining ownership of the Aire Valley Land joint venture for £20.0m leading to its de-recognition as a joint venture and full incorporation into the Group balance sheet during the year. Cadence in moving through Residential Major Development sites was maintained despite challenges resulting from the timing of the UK budget and market conditions: however, the impact of lower pricing and cost pressures negatively impacted valuations with sales achieving less than prior book values. Residential sales continue to provide an important source of capital which is redeployed in line with our strategy to increase the weighting of our portfolio to 85% I&L by 2029. Combined with asset management initiatives across our Investment Portfolio, this performance resulted in EPRA NDV per share increasing by 0.9% to 224.4p (2024: 222.3p). Excluding the impact of EPRA adjustments which uplift Development Property values to fair value, the statutory net asset value of the Group grew by 1.1% to £699.0m (31 December 2024: £691.7m). 

Jones Lang LaSalle, Savills and BNP Paribas, our independent valuers, completed a full valuation of our portfolio as at 31 December 2025, resulting in revaluation gains of £53.6m (2024: gains of £86.0m), including the movement in the market value of development properties. These external independent valuations have regard to conditions in the Residential and I&L markets as well as the positive impact of management actions at our sites. Outside the valuation movements, losses on sales were £9.0m (2024: profit of £11.2m). These losses included the allocation of increased site wide infrastructure costs to sales completed in prior periods on a small number of mature residential sites. Overall, this led to net value gains of £44.5m (2024: £97.2m gains).

Income Statement

Sales of serviced land and property, in addition to income from rent, royalties, development and other fees, resulted in Group revenue of £129.8m (2024: £181.6m).

Revenue from the sale of Residential serviced land was £58.7m (2024: £92.2m) reflecting continued demand for the Group's de-risked land products but within a weaker residential market. Development revenues of £42.0m (2024: £18.7m) were driven by higher activity delivering our Affordable Housing residential product, reflecting our continued focus on accelerating through our sites, as well as development on behalf of Microsoft at Skelton Grange. In addition, residential Planning Promotion Agreement (PPA) revenue contributed £4.7m (2024: £0.6m) reflecting fees from sales under PPAs.

Revenue from Income Generation increased to £25.0m (2024: £21.5m) as a result of higher rental income within the Investment Portfolio from the completion and letting of direct development, full year revenue from the Catalyst portfolio acquired during 2024, and asset management activity: like-for-like annualised headline rental income grew by 10.4% (2024: 4.9%). The Natural Resources portfolio included revenue from the sale of BNG units totalling £1.3m (2024: £nil).

Total property sales, an APM, which incorporate proceeds from the sales of investment properties, assets held for sale ('AHFS'), and overages, amounted to £115.0m (2024: £215.8m) with the drop primarily reflecting the sales at Skelton (£47.9m) and Ansty (£53.5m) during 2024. These large sales can take several years to put together with Ansty completing ahead of the original budgeted timeframe of 2025.

The Investment Portfolio value increased to £305.0m at the end of 2025 (2024: £297.2m)reflecting the completion and letting of direct development at Droitwich and at the Advanced Manufacturing Park, Rotherham, as well as the impact of revaluation gains driven by new lettings, asset management and market rental growth, offset by the £47.7m disposals described above. The Group is targeting an Investment Portfolio of approximately £0.9bn by the end of 2029 through a combination of retained developments and selective acquisitions, with the additional target of this portfolio becoming 100% Grade A by the end of 2027.

The fair value of investment properties increased by £47.2m (2024: £60.8m increase), which resulted in an operating profit of £21.6m (2024: £74.6m) and profit after tax of £9.5m (2024: £57.2m).

Capital allocation and Financing

We have a model that is predominantly self-funded with sales of serviced land and property each year, providing the funding for our on-balance sheet spend for the following year, alongside which we put into place partnerships and third-party funding structures. The cash proceeds from sales completed in 2024 were reinvested this year into site delivery across I&L through enabling and infrastructure works and completing direct development, as well as acquiring the remaining 50% interest in our Aire Valley Land joint venture. Over 2025, we generated proceeds through sales of serviced residential land and secondary I&L Investment Portfolio properties, improving the quality of the portfolio and recycling capital for investment into higher returning parts of the portfolio.

As a result of our spend alongside lower net sales proceeds, net debt increased to £145.9m (31 December 2024: £46.7m) resulting in a Net LTV at 31 December 2025 of 15.6% (31 December 2024: 5.4%). Whilst we have deployed more leverage than in previous years, this is well within our self-imposed maximum target of 20% at the end of the year and at 31 December 2025, the Group had available liquidity of £127.1m (31 December 2024: £192.4m).

During the year, the Group entered into a new four year £275m Revolving Credit Facility (RCF) with NatWest, Santander and HSBC, replacing the previous RCF with an increased facility limit and improved terms including pricing. The new RCF was agreed with a £50m uncommitted accordion facility and Harworth has the option to extend the term to five years. Since year-end, we have put in place interest rate hedging on borrowings of £50m, representing around a third of our year-end debt position and further hedging continues to remain under review. Alongside the new RCF, we continue to use infrastructure and direct development loans to fund activity on our sites. At the year-end the Group had an undrawn development loan provided by the North West Evergreen Fund, this will provide up to £26.2m in debt funding in support of development at our Wingates Major Development I&L site.

Presentation of financial information and alternative performance measures  

As our property portfolio includes development properties and joint venture arrangements, Alternative Performance Measures ('APMs') can provide valuable insight into our business alongside statutory measures. In particular, revaluation gains on development properties are not recognised in the Consolidated Income Statement and the Balance Sheet. The APMs outlined below measure movements in development property revaluations, overages and joint ventures. We believe that these APMs assist in providing stakeholders with additional useful disclosure on the underlying trends, performance and position of the Group.

Our key APMs are:

A full description of all non-statutory measures is set out in the appendix to the financial statements and reconciliations between all statutory and non-statutory measures are provided in the same appendix. From December 2025, the Group is reporting an additional APM, Total Property Return, calculated in line with the MSCI Property Index Methodology. This provides increased information to shareholders on the Group's relative performance and supports the implementation of relative operational performance measures for the short-term and long-term incentive schemes under the Remuneration Policy. Our financial reporting is aligned to our business units of Capital Growth and Income Generation, with any items that are not directly allocated to specific business activities held centrally and presented separately.

Income Statement 

 Note: There are minor differences on some totals due to roundings

Revenue in the year was £129.8m (2024: £181.6m), of which Capital Growth contributed £104.8m (2024: £160.1m) and Income Generation £25.0m (2024: £21.5m).

Capital Growth revenue of £104.8m comprised revenue from the sale of development properties, development revenue, and fee income. The sale of development properties of £56.9m (2024: £140.3m) was lower in 2025 reflecting completion of the Plot 1 transaction at Skelton Grange in 2024. In 2025, the sale of development properties largely related to the sale of residential serviced land. Completed residential land sales were lower due to market conditions, which impacted pricing achieved, as well as including a higher proportion of PPA sales this year. Development revenue of £42.0m (2024: £18.7m) substantially relates to the delivery of the Group's Affordable Housing residential product and development work on behalf of Microsoft at Skelton Grange. Capital Growth revenue also included fees from Planning Promotion

Agreements of £4.7m (2024: £0.6m).

Revenue from Income Generation mainly comprised property rental and royalty income from the Investment Portfolio, Natural Resources and Agricultural Land. Revenue of £25.0m (2024: £21.5m) was £3.5m higher in 2025, due to a full year of revenue from the Catalyst portfolio acquired in Q4 2024, and the completion of an 80,000 sq. ft. pre-let development at the AMP, alongside asset management initiatives. Like-for-like headline rent (excluding the impact of acquisitions, completed development and disposals) from the Investment Portfolio increased by 10.4% (2024: 4.9%) during the year, following letting of previously vacant assets, lease regears and rent reviews on existing assets. The total headline annualised rental income for the Investment Portfolio, including the impact of disposals, increased by 4.6%% to £18.3m in 2025 (2024: £17.5m). Revenue also included the sale of BNG credits of £1.3m (2024: £nil).

Cost of sales comprises the inventory cost of development property sales, site wide infrastructure costs, costs incurred in undertaking development on behalf of others including affordable residential delivery and development work for Microsoft at Skelton Grange as well as the direct and recoverable service charge costs of the Income Generation business. Cost of sales decreased to £117.2m (2024: £150.5m), of which £65.0m (2024: £126.3m) related to the inventory cost of development property sales and impairments resulting from increased site wide infrastructure costs on residential sites. The challenging residential market impacted pricing on sales of development property which, coupled with some limited site-specific cost increases primarily in the first half of the year, resulted in an overall gross loss for the year within Capital Growth. In the year, there was an increase in the net realisable value provision on development properties of £4.9m (2024: £5.7m decrease) following the valuation process as at 31 December 2025.

Administrative expenses increased in the year by £3.1m to £36.3m (2024: £5.8m increase). This was due to higher salary expenses, reflecting increased employee numbers and inflationary increases, alongside increased technology spend as part of our digital transformation programme (£1.8m vs £0.5m in 2024), offset by lower legal and professional costs. Central administrative expenses include the cost of central teams that support the operational business. Administrative expenses are a focus for 2026 as we seek to ensure they are proportionate to value creation and appropriate for the business model.

Other gains comprised a £47.1m net increase (2024: £60.4m net increase) in the fair value of investment properties and assets held for sale ('AHFS') combined with the profit on sale of investment properties, AHFS and overages of £2.3m (2024: £17.7m profit).

Joint venture profits of £6.4m (2024: £1.5m profits) included valuation gains at the Aire Valley Land Joint Venture prior to de-recognition as part of the acquisition of the remaining interest during the year, as well as at Multiply Logistics North. Value gains/(losses) on a non-statutory basis are outlined below.

Non-statutory value gains/(losses) 

Value gains/(losses) are made up of profit on sale, revaluation gains/(losses) on investment properties (including joint ventures), and revaluation gains/ (losses) on development properties, AHFS and overages. A full description of, and reconciliation between, statutory and non-statutory value gains can be found in Note 2 and the appendix to the consolidated financial statements can be found in Note 2 and the appendix to the consolidated financial statements.

Notes: There are some minor differences on some totals due to roundings. Profit/(loss) on sale is stated net of the impact of transaction fees incurred.

Total Property Sales in 2025 were £115.0m generating a loss on sale of £9.0m (2024: £11.2m profit). The loss was concentrated in Residential Major Developments where the market was impacted by the late UK budget and lack of buyer stimulus. As a result, headline sales pricing was marginally below book value before trans-action costs and when discounting of deferred consideration to present value, and retentions not recognised on completion were taken into account this generated a loss on sale of around 8%. The £9.0m loss on sale incurred included £8.3m increases in estimated costs for the completion of site wide works at a small number of mature residential sites, impacting the proportional share of site wide costs allocated to prior period sales at the point-of-sale completion. The loss on sale was partially offset by profit on completion of retention works £4.1m (2024: £2.2m) relating to prior period sales.

Revaluation gains were £53.6m (2024: £86.0m) and are outlined in the table below.

 Note: There are minor differences on some totals due to roundings

The principal revaluation gains and losses across the divisions reflected the following:

Cash and sales 

Total property sales, encompassing proceeds from the sale of investment property, AHFS, overages and PPAs as well as revenue from the sale of development property totalled £115.0m (2024: £215.8m).  Total property sales comprised:

Cash proceeds from sales in the year were £124.2m (2024: £172.3m) as shown in the table below:

Residential headline sales values reduced to £52.0m (2024: £104.1m) resulting in lower levels of deferred consideration. Where deferred payment terms are agreed to, security is maintained to mitigate credit risk.

Tax 

The income statement charge for taxation for the year was £7.9m (2024: £12.2m charge), which comprised a current tax credit of £1.4m (2024: £6.0m charge) and a deferred tax charge of £9.3m (2024: £6.1m charge).

The current tax is results from profits from the sale of development properties, investment property, AHFS, profit on the rental of investment property, royalties and other fees after taking into account overheads and interest costs. The deferred tax balance is calculated based on the rate expected to apply on the date the liability is crystallised.

At 31 December 2025, the Group had deferred tax liabilities of £55.2m (31 December 2024: £37.4m) and deferred tax assets of £10.2m (31 December 2024: £1.5m). The net deferred tax liability was £45.0m (31 December 2024: £35.9m).

Basic earnings per share and dividends 

Basic earnings per share for the year decreased to 2.9p (2024: 17.7p) reflecting lower increases in valuation of investment properties in 2025, net losses from sales in the year and higher interest costs partly offset by higher rental income.

In addition to the interim dividend of 0.538p, the Board has declared a final dividend of 1.237p (2024: 1.125p) per share, bringing the total dividend for the year to 1.775p (2024: 1.614p) per share. The recommended 2025 final dividend and 2025 total dividend represent a 10% increase in line with our dividend policy for the year to 1.775p (2024: 1.614p) per share.

Property categorisation 

Until sites have received planning permission and a specific future use has been established, the land is held for an undetermined future use and is classified as investment property. Once planning permission has been obtained and active development with a view to sale has commenced, the land and associated properties are reclassified as development properties. Where land is being developed to hold our Investment Portfolio it remains classified as investment property.

The table below sets out the top 10 sites by value, which represent 54% of the total portfolio, split according to their categorisation, including currently consented Residential plots and commercial space.

Top 10 sites by value

As at 31 December 2025, the balance sheet value of our development properties was £195.2m (31 December 2024: £190.9m) and their independent valuation was £227.5m, reflecting a £32.3m cumulative uplift in value since they were classified as development properties. In order to highlight the market value of development properties, and overages, and to be consistent with how we state our investment properties, we use EPRA NDV, which includes the market value of development properties and overages less notional deferred tax, as our primary net assets metric.

Net asset value 

(1) Properties include investment properties, development properties, AHFS, occupied properties and investment in joint ventures.  

EPRA NDV at 31 December 2025 was £727.3m (31 December 2024: £719.5m), which includes the mark to market adjustment on the value of the development properties and overages. The total Portfolio Value as at 31 December 2025 was £937.2m, an increase of £78.4m from 31 December 2024 (£858.8m).

The Group's share of gains from joint ventures of £6.4m (2024: £1.5m), primarily reflects the revaluation gains on The Aire Valley Land LLP joint venture in the period prior to the acquisition described below, and the performance of Multiply Logistics North LLP during 2025.

A total of £20.0m, before costs and stamp duty, was paid in March 2025 to acquire the remaining 50% of the Aire Valley Land LLP joint venture. As a result of the acquisition, the carrying amount of the investment totalling £16.1m was derecognised from the Investments in Joint Venture on the balance sheet and is now shown as a 100% wholly owned Subsidiary. Excluding the gain on the revaluation of The Aire Valley Land LLP joint venture and its derecognition, there was a £2.8m increase in the like-for-like value of joint ventures during 2025.

Trade and other receivables include deferred consideration on sales. At 31 December 2025, deferred consideration of £60.4m was outstanding (31 December 2024: £72.9m), of which 92% is due within one year, the current level being the result of the lower level of residential land sales completed during 2025: where deferred payment terms are agreed, the Group maintains security in order to mitigate credit risk.

Financing strategy 

Harworth's financing strategy remains to be prudently geared. The Income Generation portfolio provides a recurring income source to service debt facilities and this is supplemented by proceeds from sales.

As part of its strategic plan, the Group maintains a self-imposed target LTV of below 20% at year ends, with a maximum of 25% in-year, reflecting the cyclical nature of the Group's cashflows. As a principle, the Group seeks to maintain its cash flows in balance by funding the majority of infrastructure expenditure through disposal proceeds, while allowing for growth in the portfolio.

Debt facilities 

A £240m RCF (the Original RCF) had been in place since 2022 with NatWest, Santander and HSBC and was due to expire in 2027. During November 2025 the Group entered into a new £275m Revolving Credit Facility ('New RCF') with NatWest, Santander and HSBC, replacing the Original RCF. The New RCF is for an initial four-year term, which may be extended to five years at Harworth's request and includes an uncommitted accordion option which if exercised would take the RCF to £325m. The new RCF provides significant liquidity and flexibility to enable the Group to pursue its strategic objectives. The interest rate on the RCF is based on an LTV ratchet mechanism with a margin payable above SONIA in the range of 1.95% to 2.25%.

As part of its funding structure, the Group also uses infrastructure financing provided by public bodies and site-specific direct development loans to promote the development of major sites and bring forward the development of I&L units.

The Group had net debt of £145.9m at 31 December 2025 (31 December 2024: £46.7m). The increase in net debt during the year reflects the significant investment in, and operational progress on, sites alongside the acquisition of the remaining interest in Aire Valley Land LLP, partly offset by proceeds from sales. The movements in net debt during the year are shown below:

The Group's strategy to manage its exposure to interest rate risk is to hedge the lower of around half its average debt during the year or its net debt balance at year end. As at 31 December 2025, none of the Group's drawn debt was subject to interest rate hedging; following the year end, we put £50m of hedging in place through an interest rate cap to mitigate the risk of interest rates increasing above 4.5%. We shall continue to monitor projected drawn debt, and hedging requirements following the refinancing of the Group's RCF in 2025.

As at 31 December 2025, the Group's net LTV was 15.6% (31 December 2024: 5.4%) within our self-imposed target to be below 20% at year-end. If gearing is assessed against the value of the income generation portfolio (the Investment Portfolio and Natural Resources portfolio) only, this equates to a net loan to income generation portfolio value of 48.5% (31 December 2024: 15.7%). Under the RCF, the Group could withstand a material fall in portfolio value, property sales or rental income before reaching covenant levels.

At 31 December 2025, Group liquidity of £127.1m (31 December 2024: £192.4m) included undrawn capacity under the RCF of £100m (31 December 2024: £75.0m) in addition to the year-end cash balance of £27.1m (31 December 2024: £117.4m). Going forward, the RCF, alongside selected use of development and infrastructure loans where appropriate, will continue to provide the Group with sufficient liquidity to execute our growth strategy.

Kitty Patmore

Chief Financial Officer 

16 March 2026 

Key performance indicators

2.1 Financial track record

2.2 Strategic track record

2.3 Sustainability track record

Principal risks & uncertainties

The Board is responsible for identifying and evaluating the Group's principal and emerging risks that could potentially impact the execution of our strategy, business model, future performance, solvency, liquidity or reputation. The Board conducts a comprehensive review of the Principal Risks at least twice annually, and additionally whenever there is a material change in strategy or a significant event that alters the organisation's risk profile. Any adjustments to the Principal Risks are approved to ensure they remain consistently aligned with the strategy and with internal and external factors.

During H1 2025 the Board undertook a comprehensive review and refresh of the Principal Risks to ensure they remain aligned with our strategic objectives and are reflective of the evolving external landscape This review adopted a "first-principles" approach, focusing on strategic objectives and the risks to achieving them, rather than building on existing Principal Risks, and was informed by consideration of: 

During H2 2025, further in-depth Principal Risk workshops were conducted with business risk champions, in alignment with our 'top-down/bottom-up' review process.

The extensive review process for the Principal Risks over 2025 did not result in a fundamental revision of the risk profile of the Group. Instead, notwithstanding the "first-principles" approach, it led to a refinement of the existing set of Principal Risks.

Below are the material changes made to our Principal Risks.

The Group Principal Risk Register

The register incorporates the Principal Risks the Board has identified, including any emerging risks that could potentially become a Principal Risk to the Group strategy. Each risk is subject to a consistent risk assessment methodology, the outputs of which are reflected in a Principal Risk dashboard which details:

Assurance over the key controls in place to mitigate Principal Risks to an acceptable level is obtained via various sources covering all three lines of defence. The Head of Audit and Assurance manages an assurance map which identifies what assurance is taken over the effectiveness of material controls. These controls are in place to mitigate to an acceptable level not only Principal Risks but also other key financial, operational, compliance, and reporting risks. Any gaps in assurance identified are used to inform the 36-month rolling internal audit programme. The internal audit programme will also incorporate selective testing of controls which, whilst not meeting the threshold for classification as a "material control", are nonetheless important mitigants of Principal Risks. 

Emerging Risks

As the business landscape evolves, emerging risks, such as geopolitical instability, climate-related disruptions, technological advancements, and regulatory changes pose significant challenges to long-term resilience. Effective management of these risks requires proactive identification, continuous monitoring, and agile response strategies. We are embedding horizon-scanning techniques and scenario analysis into our risk framework to anticipate potential threats and opportunities via regular risk workshops undertaken with the Board. This approach ensures that emerging risks are escalated promptly, enabling informed decision-making and safeguarding stakeholder value. Collaboration across functions and leveraging data-driven insights remain central to strengthening our preparedness for an increasingly complex risk environment. 

One new emerging risk was identified in 2025: Investment Partner Selection and Management: Flaws in governance and management of stakeholder relationships impacting operations, availability of capital and costs.

Strategic priorities

1 Repositioning our core Investment Portfolio to modern Grade A

2 Increasing direct development of Industrial & Logistics space.

3 Accelerating sales and broadening the range of our Residential products.

4 Scaling up through land acquisitions and promotion activities

£ Group targets

H The Harworth Way

Risk Appetite:

Directors' Responsibilities statement

The Directors' Responsibilities Statement below has been prepared in connection with the full Annual Report and Financial Statements for the year ended 31 December 2025.

The directors are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable United Kingdom law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Group and Company Financial Statements in accordance with UK-adopted international accounting standards (IFRSs). Under company law the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group and the Company for that period.

In preparing these Financial Statements the Directors are required to:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable them to ensure that the Company and the Group Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a strategic report, directors' report, directors' remuneration report and corporate governance statement that comply with that law and those regulations. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website.

Responsibility statements

The Directors (see the list of names and roles in the Annual Report) confirm, to the best of their knowledge:

Disclosure of information to the auditor

Each of the Directors who were in office at the date of approval of this Report also confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of section 418 Companies Act.

This Statement of Directors' Responsibilities was approved by the Board and signed by order of the Board:

Chris Birch General Counsel and Company Secretary16 March 2026

Cautionary statement

This announcement and the 2025 Annual Report and Financial Statements contain certain forward-looking statements which, by their nature, involve risk, uncertainties and assumptions because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward looking statements. Any forward-looking statements made by or on behalf of the Group are made in good faith based on current expectations and beliefs and on the information available at the time the statement is made. No representation or warranty is given in relation to these forward-looking statements, including as to their completeness or accuracy or the basis on which they were prepared, and undue reliance should not be placed on them. The Group does not undertake to revise or update any forward-looking statement contained in this announcement or the 2025 Annual Report and Financial Statements to reflect any changes in its expectations with regard thereto or any new information or changes in events, conditions or circumstances on which any such statement is based, save as required by law and regulations. Nothing in this announcement or the 2025 Annual Report and Financial Statements should be construed as a profit forecast.

Directors' liability

This announcement and the 2025 Annual Report and Financial Statements have been prepared for, and only for, the shareholders of the Company, as a body, and no other persons. Neither the Company nor the Directors accept or assume any liability to any person to whom this announcement or the 2025 Annual Report and Financial Statements is shown or into whose hands they may come except to the extent that such liability arises and may not be excluded under English law.

Shareholder information

Financial calendar

Registrars

All administrative enquiries relating to shareholdings should, in the first instance, be directed to Equiniti. Help can be found at www.shareview.co.uk. Alternatively, you can contact Equiniti at Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA (telephone: +44 (0)371 384 2301). You should state clearly the registered shareholder's name and address. 

Dividend mandate

Any shareholder wishing dividends to be paid directly into a bank or building society should instruct this via the Shareview service or contact the Registrars for a dividend mandate form. Dividends paid in this way will be paid through the Bankers' Automated Clearing System ('BACS').

Shareview service

The Shareview service from Equiniti allows shareholders to manage their shareholding online. It gives shareholders direct access to their data held on the share register, including recent share movements and dividend details and the ability to change their address or dividend payment instructions online. To visit the Shareview website, go to www.shareview.co.uk. There is no charge to register but the 'shareholder reference number' printed on proxy forms or dividend stationery will be required. 

Website

The Group's website (harworthgroup.com) provides further information. Detailed information for shareholders can be found at harworthgroup.com/investors.

Consolidated income statement

Notes 1 to 16 are an integral part of these condensed consolidated financial statements.

All activities are derived from continuing operations.

Consolidated statement of comprehensive income