Peel Group has launched a £582 million cash bid to acquire Harworth Group, offering shareholders 172.5p per share in a move that could reshape the future of one of the UK’s leading brownfield regeneration and strategic land developers. The offer values the listed developer at approximately £582 million and comes as Peel, already Harworth’s largest shareholder through subsidiary Goodweather Holdings, looks to take full control of the business. Goodweather currently owns around 29.96% of Harworth’s issued share capital. Harworth has established itself as a major player in the UK’s regeneration sector, with a portfolio comprising modern industrial and logistics assets alongside extensive strategic land holdings across the North of England and the Midlands. The business has played a significant role in transforming former industrial sites into employment, residential and mixed-use developments, including securing planning approval last year for its £190 million Gascoigne Interchange scheme. However, Peel believes the company’s current financial model is becoming increasingly difficult to sustain, citing rising administrative and financing costs alongside weakening recurring rental income. For the year ending 31 December 2025, Harworth reported administrative expenses of £36.34 million and net interest costs of £10.6 million, representing increases of 9.5% and 58.2% respectively compared with the previous year. During the same period, rental income from its investment portfolio fell by 7% to £14.7 million. Peel argues these figures demonstrate growing pressure on Harworth’s cash flow, with operating and financing costs significantly exceeding the income generated from its investment portfolio. The proposed acquisition also reflects Peel’s view that Harworth’s stock market listing no longer provides meaningful strategic benefits. The investor points to the company’s concentrated shareholder base, with the three largest shareholders controlling approximately 75.7% of the business, limiting trading liquidity and reducing the advantages typically associated with being publicly listed. Peel further noted that Harworth has not raised new equity for almost a decade and believes current market conditions, combined with what it describes as a persistent discount to the company’s underlying value, make future equity fundraising unlikely to deliver attractive returns. The cash offer represents a substantial premium for shareholders, equating to 36.9% above Harworth’s one-month volume-weighted average share price and 36.0% above the three-month average. For the construction, development and property sectors, the proposed acquisition could have significant implications. Harworth has become one of the UK’s foremost brownfield regeneration specialists, delivering large-scale industrial, logistics, residential and mixed-use developments that support regional economic growth while unlocking previously underutilised land. Should the transaction proceed, Peel would gain full ownership of a substantial regeneration pipeline and strategic land portfolio, further strengthening its position within the UK’s development and regeneration market. The proposed takeover also highlights the continuing attractiveness of long-term regeneration assets, as investors seek to secure development opportunities capable of delivering future residential, commercial and industrial growth across key regional markets. Building, Design & Construction Magazine | The Choice of Industry Professionals

Mears has strengthened its position as one of the UK’s leading housing maintenance providers after securing more than £1.4 billion of new work during the first half of the year, driving its order book to a record £4.2 billion. The public sector housing specialist continues to expand its long-term maintenance portfolio after a series of major contract awards and renewals, reinforcing confidence in the company’s strategy despite a temporary dip in profits linked to the mobilisation of new contracts. Revenue reached £560 million during the period, while adjusted pre-tax profit stood at £29 million. Although margins eased slightly to 5.2% from 5.6%, the company attributed this to the costs associated with mobilising several significant long-term contracts. Among the largest awards was a landmark 10-year, £450 million contract with Birmingham City Council. Under the agreement, Mears will deliver a comprehensive range of housing services, including responsive repairs, void property works, gas servicing, heating installations and planned maintenance across the authority’s housing stock. The company also secured a further 10-year contract with Rooftop Housing Group worth £150 million, providing repairs and maintenance services to approximately 7,000 homes across South Worcestershire and North Gloucestershire. Alongside these new appointments, Mears successfully retained several key long-standing partnerships, including contracts with Cross Keys Homes, Livin, Leeds City Council, Moat Homes and Thurrock Council. Together, these renewals contributed more than £1 billion of additional work to the company’s expanding pipeline. For the construction and housing sectors, the results underline the continued demand for long-term asset management, planned maintenance and compliance services as housing providers invest in improving existing homes, enhancing building safety and maintaining regulatory standards. Mears also completed the integration of consultancy Pennington Choices during the period, strengthening its expertise across compliance, asset management and building safety services. The acquisition enhances the group’s ability to provide integrated solutions to local authorities and registered housing providers. In line with its strategic focus on housing, the company also completed the sale of its non-core facilities management business for £18 million, allowing it to concentrate resources on its core maintenance and housing services operations. Chief Executive Lucas Critchley said: “Mears has continued to make strong progress against its key strategic objectives.” The company also noted that an intensive two-year programme of rebidding existing contracts has now largely concluded. As a result, its bidding teams are increasingly able to focus on pursuing new opportunities rather than defending existing work, providing further potential for future growth. Looking ahead, Mears has reaffirmed its full-year guidance, forecasting revenue of around £1.04 billion and adjusted pre-tax profit of approximately £51 million. With a record order book, strengthened building safety capabilities and a growing portfolio of long-term maintenance partnerships, Mears appears well positioned to play an increasingly significant role in supporting the management, maintenance and improvement of the UK’s public housing stock. Building, Design & Construction Magazine | The Choice of Industry Professionals