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Harworth
(LSE:HWG)
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Rating:59Neutral
Price Target:
184.00 p
▲(4.07% Upside)
Action:Reiterated
Date:09/12/26
The score is held back primarily by weaker and less predictable financial performance, especially the sharp deterioration in 2025 cash flow and operating profitability. Technicals are supportive with a clear uptrend and positive momentum indicators, and the earnings call tone was constructive around the industrial/logistics and powered land strategy, but valuation is a notable headwind given the high P/E and modest yield.
Positive Factors
Construction-Ready Pipeline
A record construction-ready land bank gives Harworth a visible route to monetise planning, remediation and infrastructure work over the next several years. The associated development value supports recurring land-sale opportunities and provides scale for disciplined capital deployment.
Negative Factors
Weak Cash Generation
Deeply negative operating and free cash flow reduces financial flexibility and means reported earnings are not currently translating into internally generated funds. If this pattern persists, Harworth may need to rely more heavily on debt capacity or asset disposals to finance ongoing development.
Read all positive and negative factors
Positive Factors
Negative Factors
Construction-Ready Pipeline
A record construction-ready land bank gives Harworth a visible route to monetise planning, remediation and infrastructure work over the next several years. The associated development value supports recurring land-sale opportunities and provides scale for disciplined capital deployment.
Read all positive factors
Harworth (HWG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£573.70M
Dividend Yield1.01%
Average Volume (3M)475.30K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-34.57%
EPS Growth-148.98%
CountryUK
Employees146
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)-0.08
Shares Outstanding326,956,360
10 Day Avg. Volume405,286
30 Day Avg. Volume475,302
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)0.77
Price to Sales (P/S)4.14
P/FCF Ratio-8.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£190.00Price Target Upside7.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.08
Revenue Forecast (FY)£161.00M
Harworth Business Overview & Revenue Model
Company Description
Harworth Group plc specializes in land and property revitalization, with its operations concentrated across the North of England and the Midlands. The company's business model is structured around two main divisions: Income Generation and Capital ...
How the Company Makes Money
Harworth makes money primarily by creating value in land and property assets and monetising that value through disposals and development-led transactions. Its core revenue streams typically include: (1) Land sales and plot disposals: Harworth acqu...
Harworth Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 23, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, with strong operational momentum, record construction-ready land capacity, progress on pre-lets and powered land transactions, robust liquidity, a 10% interim dividend increase and a strategic shift toward higher-returning industrial, logistics and powered land opportunities. These positives were partly offset by a -3.7% total accounting return, a GBP 14.9 million portfolio value loss, residential market weakness, development-cost inflation, lower first-half property sales and higher net debt during the investment phase.Positive Updates
Strong Operational Momentum
Management described the first half as a period of strong operational momentum and disciplined delivery despite a challenging market backdrop, with continued progress across the industrial and logistics and powered land pipelines.
Negative Updates
Negative Total Accounting Return
Total accounting return was -3.7%, driven primarily by a reduction in EPRA NDV per share from GBP 224.4 pence at December 31, 2025 to GBP 214.8 pence.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Operational Momentum
Management described the first half as a period of strong operational momentum and disciplined delivery despite a challenging market backdrop, with continued progress across the industrial and logistics and powered land pipelines.
Read all positive updates
Company Guidance
Harworth said its substantially construction-ready land bank has the potential for gross development value estimated at GBP 600 million over the next three to five years, with 3.8 million sq ft substantially construction-ready and a further 9.6 million sq ft in the medium-term pipeline. The company intends to exit the residential sector entirely, reallocate capital to industrial and logistics and powered land, increase its 0.8 gigawatt U.K. powered land pipeline to 1.9 gigawatts, and manage its investment portfolio toward a medium-term stabilized value in the order of GBP 500 million to GBP 600 million, alongside a 100% Grade A target. It is targeting low double digit total accounting returns in the long term and low double-digit total accounting returns in the longer term, while targeted cost savings will be published as soon as possible; if surplus capital is identified after material asset sales and assessment of future accretive capital deployment opportunities, the board will consider returning some or all of this surplus capital to shareholders.Harworth Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
76
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 124.57M | 130.72M | 181.59M | 72.43M | 166.69M | 109.88M |
| Gross Profit | 2.26M | 12.31M | 31.08M | 12.35M | 85.31M | 48.47M |
| EBITDA | 20.18M | 33.18M | 77.73M | 54.31M | 61.30M | 30.75M |
| Net Income | -25.62M | 9.47M | 57.24M | 37.96M | 27.84M | 93.99M |
Balance Sheet | ||||||
| Total Assets | 1.04B | 1.04B | 1.05B | 824.44M | 781.32M | 766.51M |
| Cash, Cash Equivalents and Short-Term Investments | 9.46M | 27.14M | 117.38M | 27.18M | 11.58M | 12.04M |
| Total Debt | 200.43M | 174.22M | 165.59M | 64.13M | 60.23M | 37.88M |
| Total Liabilities | 368.69M | 343.26M | 360.84M | 186.72M | 178.66M | 188.53M |
| Stockholders Equity | 670.81M | 698.98M | 691.66M | 637.72M | 602.66M | 577.98M |
Cash Flow | ||||||
| Free Cash Flow | -4.37M | -61.14M | -13.07M | 2.46M | 37.28M | 50.01M |
| Operating Cash Flow | 2.87M | -51.09M | 34.54M | 2.85M | 37.39M | 50.04M |
| Investing Cash Flow | -6.30M | -41.27M | -37.59M | 15.42M | -53.61M | 1.89M |
| Financing Cash Flow | 3.09M | 2.12M | 93.26M | -2.68M | 15.77M | -52.61M |
Harworth Technical Analysis
Positive
176.80
Price Trends
154.27
Positive
141.12
Positive
150.75
Positive
Market Momentum
5.18
Positive
63.63
Neutral
36.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HWG, the sentiment is Positive. The current price of 176.8 is below the 20-day moving average (MA) of 177.58, above the 50-day MA of 154.27, and above the 200-day MA of 150.75, indicating a neutral trend. The MACD of 5.18 indicates Positive momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 36.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HWG.
Harworth Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £339.21M | 16.67 | 5.05% | 6.03% | -0.42% | -13.35% | |
69 Neutral | £4.34B | 13.66 | 6.29% | 7.05% | 17.12% | -23.84% | |
69 Neutral | £12.63B | 43.29 | 2.46% | 3.38% | 6.58% | -52.02% | |
67 Neutral | £4.09B | 8.67 | 7.73% | 5.79% | 15.13% | 29.40% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | £189.40M | 8.94 | 5.16% | 5.57% | -23.40% | -7.92% | |
59 Neutral | £573.70M | -22.33 | -3.74% | 1.01% | -34.57% | -148.98% |
* Real Estate Sector Average
GB:HWG
Harworth
176.40
8.40
5.00%
GB:BOOT
Henry Boot
141.00
-63.15
-30.93%
GB:BLND
British Land Company plc
399.00
78.94
24.66%
GB:LMP
LondonMetric Property
178.00
9.50
5.64%
GB:MTVW
Mountview Estates
8,700.00
-537.46
-5.82%
GB:SGRO
Segro plc (REIT)
933.40
328.98
54.43%
Harworth Corporate Events
Business Operations and StrategyM&A Transactions
Harworth Rejects Peel Bid as Deeply Undervaluing Data Centre and Logistics Pipeline
Positive
Sep 9, 2026
Harworth Group has formally rejected a 172.5p-per-share cash offer from Peel Pepper (UK) Limited, publishing a detailed response that labels the bid as fundamentally undervaluing the business. The board highlights that the offer represents a 19.7%...
Business Operations and StrategyDividendsFinancial Disclosures
Harworth pivots to powered land and logistics amid residential valuation hit
Neutral
Sep 9, 2026
Harworth has reported half-year results to 30 June 2026 showing a 3.7% negative total accounting return and a fall in EPRA NDV, as residential market headwinds weighed on valuations despite broadly stable industrial and logistics values. Statutory...
M&A TransactionsRegulatory Filings and Compliance
Harworth Rejects Peel’s Cash Bid as Undervaluing Regeneration Group
Neutral
Aug 26, 2026
Harworth Group has rejected an unrecommended cash offer from Peel Pepper (UK) Limited, which valued the company at 172.5p per share, insisting the bid fundamentally undervalues its near and long-term prospects. The board is reviewing Peel’s ...
Business Operations and Strategy
Harworth Expands Hyperscale Data Centre Land Pipeline with New Exclusivity Deal
Positive
Aug 20, 2026
Harworth Group has entered into an exclusivity agreement with a leading data centre provider for the sale of a powered land site capable of hosting a hyperscale data centre, following its earlier deal at Skelton Grange with Microsoft. The site has...
Business Operations and Strategy
Harworth expands hyperscale data centre pipeline with new powered land deal
Positive
Aug 19, 2026
Harworth has entered into an exclusivity agreement with a leading data centre provider for the sale of a second powered land site capable of hosting a hyperscale facility, building on its £106m Skelton Grange powered land transaction with Mic...
Business Operations and StrategyExecutive/Board Changes
Harworth Executives Receive Shares Under 2019 Incentive Plan
Positive
Aug 18, 2026
Harworth Group has reported that senior executives, including its chief executive and chief financial officer, have acquired partnership shares and received matching shares under the company’s 2019 Share Incentive Plan. The ordinary shares, ...
Business Operations and StrategyExecutive/Board Changes
Harworth Senior Executives Receive Shares Under 2019 Incentive Plan
Neutral
Aug 18, 2026
Harworth Group has reported transactions under its 2019 Share Incentive Plan, disclosing that eligible employees, including the chief executive, chief financial officer and other senior managers, acquired Partnership Shares funded from gross salar...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Harworth Board Rejects Peel Pepper’s Unsolicited Takeover Bid
Neutral
Aug 7, 2026
Harworth Group plc has firmly rejected an unsolicited cash offer of 172.5p per share from Peel Pepper (UK) Limited, stating that the bid significantly undervalues the business and its near- and long-term prospects. The board criticised the timing ...
M&A TransactionsRegulatory Filings and Compliance
Harworth Board Reviews Unsolicited Takeover Offer from Peel-Owned Bidder
Neutral
Aug 6, 2026
Harworth Group plc has confirmed that it received an unsolicited firm offer from Peel Pepper (UK) Limited, an entity indirectly owned by Peel Holdings Group. The board stated it had no prior substantive engagement with Peel Pepper or Peel regardin...
Business Operations and StrategyFinancial Disclosures
Harworth Advances Second Hyperscale Data Centre Deal as It Accelerates Pivot to Powered Land
Positive
Aug 5, 2026
Harworth Group has identified a second hyperscale data centre site in its powered land portfolio and is in advanced negotiations with multiple parties for a sale, with potential value gains exceeding its £106.6m 2024 transaction with Microsof...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Harworth issues new shares to fund employee incentive awards
Neutral
Jul 16, 2026
Harworth Group plc has issued 10,290 new ordinary shares at a nominal value of 10 pence each under its 2019 Share Incentive Plan, providing matching shares to eligible employees. The new shares, admitted to trading on 15 July 2026, form part of th...
Business Operations and StrategyExecutive/Board Changes
Harworth Grants Share Incentive Awards to Senior Executives and Staff
Positive
Jul 16, 2026
Harworth Group has awarded Partnership and Matching Shares under its 2019 Share Incentive Plan to eligible employees, including senior executives such as the chief executive, chief financial officer, and other PDMRs. The awards involve the acquisi...
Business Operations and StrategyRegulatory Filings and Compliance
Harworth Issues New Shares to Satisfy Employee Incentive Awards
Neutral
Jun 17, 2026
Harworth Group has issued 13,518 new ordinary shares of 10 pence each under its block listing facility to satisfy awards of matching shares granted to eligible employees through the Harworth 2019 Share Incentive Plan. The new shares, admitted to t...
Business Operations and StrategyExecutive/Board Changes
Harworth Executives Acquire Shares Under 2019 Incentive Plan
Positive
Jun 17, 2026
Harworth Group has reported routine dealings in its 2019 Share Incentive Plan, with senior executives including the chief executive, chief financial officer and other PDMRs acquiring partnership shares on 15 June at £1.3016 per share on the L...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.