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The recent closure of Britain’s last coal-fired power station marked the end of an era. But we have been moving away from coal for decades.
Gascoigne Wood was once part of the thriving Selby coalfield in North Yorkshire, producing 12 million tonnes of coal a year at its peak. In 2004, however, the zone was suspended, after a long period of losses.
Now Gascoigne Wood is ready to flourish again, under the guidance of Harworth Groupa real estate firm that specializes
in regeneration. After spending years looking for the best way to redevelop Gascoigne, Harworth obtained 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, boost local economic growth and bolster Harworth’s bottom line.
New beginning: Harworth’s iconic advanced manufacturing park at the former Orgreave mine is where Rolls-Royce and McLaren are based (pictured)
Harworth has come a long way since it was formed from the remains of UK Coal in 2015. Established to convert disused and derelict land into areas for housing and businesses, the company has become known for moving sites through complex systems planning and creating new and important developments. along the way. Waverley is a good example.
Built on the site of the former Orgreave coal mine, this area near Sheffield is being transformed into a community of almost 3,000 homes, plus shops, a school, restaurants and a health centre, along with its iconic advanced manufacturing park, where Rolls-Royce and McLaren are found. based.
Harworth CEO Lynda Shillaw is determined to keep up the good work. After joining in 2020, it planned to double the value of its assets to £1bn, accelerate development and create more industrial and logistics properties as well as housing.
The half-year results show that it is on the right track. Asset values have risen to almost £690m, profits have risen 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 great progress on both fronts this year and, in June, completed Harworth’s biggest deal – selling a 48-acre site in Skelton Grange, Leeds, to Microsoft for £107m. The area, which once housed two coal-fired power plants, will now house a large data center.
Shillaw also intends to purchase more industrial sites so that Harworth can secure stable rental income. Last week the group spent £43m on a large logistics property next to the Advanced Manufacturing Park, bolstering annual rent. This will support continued dividend growth with a payout of 1.6p expected this year, rising to 1.8p in 2025 and 2p the following year.
Midas Verdict: Midas recommended Harworth in 2020, when the shares cost £1.54. Three years later, they had fallen to £1.20, but we advised investors to be patient. That patience has been rewarded as the shares have since risen to £1.85. It is also reassuring that Shillaw and his finance director splashed out almost £30,000 of their own cash buying shares just after the half-year figures. A strong, long-term investment.
Traded in: Main market Heart: HWG Contact: harworthgroup.com
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