HWG

Harworth Group PLC

Real Estate First-pass screen £435m

430/1000 Overall fit

AI beneficiary 35% 55

Operating leverage 25% 42

Valuation 25% 30

Downside protection 15% 38

First-pass take

Harworth targets data-centre-enabled land (0.8GW pipeline, Microsoft deal £53.2m), but this remains nascent and the core cyclical business weakened with residential sales down 46.7% and operating margin halving (41% to 17%). Net debt surged 212% to £145.9m, limiting downside protection.

Flags

no-valuation-dataleverage-increaseresidential-weaknesscyclicaldata-centre-emergingweak-returns