Harworth Group (LSE: HWG) reported a negative 3.7% accounting return for the six months ended June 30, 2026, as residential valuation losses were offset by gains in its industrial and logistics portfolio. The company's EPRA net disposal value per share decreased to 214.8 pence, down 4.3% from 224.4 pence at year-end 2025.
The residential segment recorded a £15.8 million valuation loss, with a £1.2 million loss from residential strategic land. Industrial and logistics developments generated a £12.7 million gain, while industrial and logistics strategic land suffered a £14.7 million loss. The investment portfolio component contributed 9.3% average annual return on capital employed, bringing the combined industrial and logistics total to 15.1% average annual return on capital employed.
Harworth Group's total portfolio value losses amounted to £14.9 million for H1 2026, compared to gains of £15.5 million in H1 2025. Property sales totaled £13.2 million, down from £18.9 million in H1 2025. The company's net debt increased to £190.0 million, with a loan-to-value ratio of 20.3% at June 30, 2026, which improved to 17.1% by August 31, 2026.
Despite the challenges, Harworth Group's powered land portfolio shows promise. The company has secured 0.8 gigawatts of accepted power offers and has a total land bank of 34.8 million square feet. The investment portfolio value stood at £301.4 million at June 30, 2026, with a target stabilized value of £500–600 million. The company's Chief Executive, Lynda Shillaw, described the strategic transformation's objective as creating a simpler, lower-cost, and higher-returning platform.
Harworth Group's data centre investments are significant. The company has a construction-ready scale of 3.8 million square feet, offering approximately £600 million of gross development value potential over the next 3–5 years. The company's existing powered land portfolio could generate £293 million in potential future profits from serviced powered land sales for data centre use. The UK government's AI Growth Zones initiative could unlock £100 billion in private investment, and the company has four further potential hyperscale sites in the pipeline.
