MIDAS SHARE TIPS UPDATE: Developer Harworth, a real estate company with a difference, has a wealth of prime locations
Mining heritage: Lynda Shillaw builds houses on the old sites of UK Coal
Lynda Shillaw’s father was a coal miner, as was her grandfather and great-grandfather before that. So when Shillaw was asked to manage Rotherham-based Harworth, the role had particular resonance.
Harworth is a real estate company with a difference. Spun from UK Coal, it specializes in the regeneration of former mining and industrial sites in the North of England and the Midlands.
The group owns and manages 13,000 hectares of land, including Orgreave, once the site of violent clashes between miners and police when Margaret Thatcher was Prime Minister.
Today, this former battlefield has been renamed Waverley, a peaceful development with nearly 3,000 homes and acres of space for business and research.
Rolls Royce and McLaren are based in Waverley, next door to Sheffield University and the UK Atomic Energy Authority, which aims to make Britain a leading force in nuclear energy.
Waverley is Harworth’s largest development, but the company owns around 100 sites, in various stages of renewal and reconstruction. Some are already being converted into places for people to live and work, others are in the planning stages and some are still being remediated so that dirty, contaminated land can be used productively.
Ultimately, approximately 30,000 homes will be built on Harworth land, as well as offices, warehouses, parks and all amenities related to everyday life.
Shillaw joined Harworth in 2020, when the company’s assets were valued at £500 million. She plans to double that figure by 2027 and confirmed at an annual meeting last week that she is well on her way.
The group has a huge land bank and is involved in various areas of the real estate industry – from affordable housing to advanced manufacturing to Amazon-style depots. These have all proven resilient so far and Shillaw is taking active steps to move the business forward, expanding into different parts of the housing market and developing sites rather than reselling them once planning permission has been granted.
Harworth is also responding to the government’s leveling agenda by providing homes and jobs for thousands of people in neglected parts of the country.
Midas verdict: Midas recommended Harworth in January 2020, just before Shillaw joined, when shares were £1.54. Today the stock is at £1.20, even though Harworth’s assets are valued at more than £1.90 per share.
This discrepancy reflects concerns about the broader real estate market, but should reverse as Shillaw continues to execute on its strategy. Many employees also have a mining background, so they are very involved in the business.
Existing shareholders must comply. New investors could get a bargain at current levels.
Traded on: Main market Ticker: HWG Contact: harworthgroup.com or 0114 349 3131