MIDAS SHARE TIPS UPDATE: Our Harworth tip bounces back
The recent closure of Britain’s last coal-fired power station marked the end of an era. But we’ve been retreating from coal for decades.
Gascoigne Wood was once part of the thriving Selby coalfield in North Yorkshire and at its peak produced 12 million tonnes of coal per year. However, in 2004 the area was shut down after a long period of losses.
Now Gascoigne Wood will flourish again, under the leadership of Harworth Groupa real estate company that specializes
in regeneration. After years of considering the best way to redevelop Gascoigne, Harworth has been granted planning permission to turn the site into a major industrial and logistics hub between Leeds and Hull.
The project is expected to create hundreds of jobs, stimulate local economic growth and strengthen Harworth’s bottom line.
New beginnings: Harworth’s flagship Advanced Manufacturing Park on the former Orgreave mine site is home to Rolls-Royce and McLaren (pictured)
Harworth has come a long way since it was formed from the remains of UK Coal in 2015. Founded to convert disused and neglected land into areas for homes and businesses, the company has become known for moving sites through complex planning systems and creating major new developments. en route. Waverley is an example of this.
Built on the former Orgreave coal mine, this area near Sheffield is being transformed into a community of almost 3,000 homes, as well as shops, a school, restaurants and a health centre, next to the flagship Advanced Manufacturing Park, home to Rolls-Royce and McLaren are located. based.
Harworth chief executive Lynda Shillaw is determined to keep up the good work. After joining in 2020, she planned to double the value of assets to £1 billion, accelerate development and create more industrial and logistics properties in addition to residential.
The half-year results show that she is well on her way. Asset values have risen to almost £690m, profits have soared and the group’s land bank could deliver more than 26,000 new homes and 39m sq ft of industrial and logistics space.
Shillaw has made significant progress on both fronts this year, completing Harworth’s biggest deal in June – the sale of a 100-acre site at Skelton Grange, Leeds, to Microsoft for £107m. Once home to two coal-fired power stations, the area will now be home to a super-large data center.
Shillaw also plans to purchase more industrial sites so Harworth can secure stable rental income. Last week the group spent £43 million on a major logistics estate next to the Advanced Manufacturing Park, boosting annual rental income. That will support continued dividend growth, with a payout of 1.6p this year, rising to 1.8p in 2025 and 2p the following year.
Midas judgment: Midas recommended Harworth in 2020, when shares were at £1.54. Three years later they had fallen to £1.20, but we advised investors to be patient. That patience paid off as the stock has since risen to £1.85. It is also reassuring that Shillaw and its chief financial officer bought almost £30,000 worth of their own shares shortly after the half-year results. A strong investment for the long term.
Traded on: Main market ticker: H.W.G Contact: harworthgroup.com
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