Harworth's solid momentum continues into second half of trading year

8th Jan 2019 10:58

(Sharecast News) - Land and property developer Harworth turned in a strong operational performance for the second half of its trading year on Tuesday.Harworth now expects its financial performance for the year ended 31 December 2018 to "be ahead of expectations".The London-listed real estate outfit also said its group EPRA NNNAV, net asset value plus the mark-to-market value of development properties less notional deferred tax, was anticipated to be "moderately ahead" of its 10% long-run average target at 12%.Harworth's value gains and profits were also expected to be ahead of market expectations, with a one-off net "promote profit" of £6.7m from the 20-year letting of M&G Real Estate's last remaining forward-funded unit and an increased recurring income from the acquisitions of commercial space at Nufarm, Bradford and Flaxby, North Yorkshire.Chief executive Owen Michaelson said: "The momentum generated from the group's strong first half results continued into the second half, meaning that we anticipate full year results to exceed our expectations."We remain confident in the long-term fundamentals of the residential and commercial markets in our focus regions in the North of England and the Midlands, notwithstanding any short-term political or economic uncertainty resulting from Brexit negotiations."As of 1120 GMT, Harworth shares had picked up 2.69% to 120.15p.