aHarworth Group owns swathes of former colliery and industrial sites across the Midlands and North of England, which it is steadily transforming for commercial and residential development. The flagship site at Waverley, near Sheffield, is a shining example of what can be achieved. There, one of the largest coalfields in Europe is being remodelled as an attractive residential community and centre of excellence in advanced manufacturing. Management has an excellent track record of unlocking value from the portfolio. A stated target of double digit post-tax returns on net assets looks highly achievable. We initiate coverage at BUY ahead of FY15 prelims on 24th February. Our Target Price of 13p equates to <1.1x FY17 NAV.
