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Microsoft and Frasers Group deals boost Harworth Group - record revenue in full-year results

Microsoft and Frasers Group deals boost Harworth Group - record revenue in full-year results

  • 18.03.2025 16:16
  • insidermedia.com
  • Keywords: Record Revenue, Land Sales

Harworth Group achieved record revenue of £181.6m in its full-year results, driven by deals with Microsoft and Frasers Group. The company sold land for a hyperscale data center to Microsoft and for Frasers' global headquarters, generating £97.4m. Residential plot sales also reached a record high of 2,385 units.

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Estimated market influence

Harworth Group

Positivesentiment_satisfied
Analyst rating: N/A

Generated record revenue and land sales, boosted by deals with Microsoft and Frasers Group.

Microsoft

Microsoft

Positivesentiment_satisfied
Analyst rating: Strong buy

Entered into a deal for hyperscale data centre development.

Frasers Group

Positivesentiment_satisfied
Analyst rating: N/A

Acquired land for global headquarters.

Context

Analysis of Harworth Group's Financial Performance and Market Implications

Overview

  • Revenue: £181.6m (2024) vs. £72.4m (2023)
  • Operating Profit: £74.6m (2024) vs. £54.2m (2023)

Key Transactions and Deals

  • Microsoft Hyperscale Data Centre:
    • Revenue: £47.9m ( recognised in 2024)
  • Frasers Group Global Headquarters:
    • Sale of Ansty site: £53.5m

Residential Plot Sales

  • Units Sold: 2,385
  • Headline Sales Value: £104.1m (record)

Acquisitions

  • Catalyst (Rotherham):
    • Cost: £43.7m
    • Size: 285,000 sq ft
  • Stewartby (Bedfordshire) Site:
    • Cost: £30.6m
    • Planning Consent: 1,000 homes
  • Additional Acquisitions:
    • Total: £11.5m
    • Locations: Wingates (Bolton), Grimsby West

CEO Insights and Strategy

  • Lynda Shillaw:
    • Highlighted record revenue and land sales.
    • Emphasized focus on emerging sectors like data centers.
    • Noted resilience of through-the-cycle business model.
    • Acknowledged macroeconomic caution but expressed confidence in financial flexibility.

Market Positioning and Risks

  • Strategic Focus:
    • Alignment with undersupplied sectors critical to UK growth.
    • Strong capital allocation strategy.
  • Risks:
    • Cautious outlook due to macroeconomic conditions.

This analysis underscores Harworth Group's strategic success in leveraging key transactions and acquisitions, positioning itself as a leader in emerging sectors while maintaining financial prudence.