Harworth Group plc (UK6A.SG) Earnings Call Transcript & Summary

Well, good morning, everyone, and a very warm welcome to Rotherham's head office at Havant Advantage House. Thank you so much to everybody who's made the journey to be here today. We've got some exciting sessions and site tours lined up. So I hope you have a really good day and hopefully, also that the Yorkshire weather doesn't disappoint. I have been promised sunshine for today. And also thank you to everyone who's joined online for today's presentation. So I'd like to begin with an overview of what we're aiming to achieve from today. Firstly, I'm going to do a brief update on current trading conditions and our operational and strategic progress. We're then going to take a deep dive into one of the key pillars of our GBP 1 billion strategy, which is to diversify our residential products and then we're going to talk about Harworth's Net-Zero Carbon Pathway and sustainability program. Now this is an area where we've made significant progress as a business over the last year, and we hope to bring that to life, here. Then last but not least, we'll be talking about Harworth Yorkshire and Central region. This is the largest of our 3 regions and it's a home to many of our mature sites, including Waverley, the AMP and Gateway 36, all of which you'll see later today. I'm really delighted to be joined by many members of the Harworth team today. So some of them are familiar faces, some of them will be new to you. And there should be plenty of time at lunch and on the site to speak to them. I'll now introduce you to some of the people you're going to be hearing from alongside me during this presentation. So first up, most of you know Kitty Patmore, CFO, who is sitting right at the back. And Kitty will be joining us at the end for Q&A. We'll also shortly be hearing from James Crow, who joined us early last year as our Director of Mixed Tenure. And after that, we've got Peter Henry, whom some of you may be familiar with as he's been with the business for over a decade, and he's now our Director of Sustainability. And then last but not least, we have Ed Catchpole and Chris Davidson, who head up our Yorkshire and Central region, and we'll also be hosting us on turns later this afternoon. So the slide shows the agenda for today with some approximate timings. After the presentations, we'll hold a Q&A session with the presenters and Kitty and myself. And then we'll break for around 45 minutes for a buffet lunch, where you'll get to meet some members of our group leadership team and then we'll jump back on the coach to do the tour of Waverley, the AMP and onto Gateway 36. I feel like a tour guide now, but just bear with me a minute. After our tour of Gateway 36, the coach will take those of you who want to go to Doncaster Station, and we've booked return taxes for anyone else coming back to Advantage House. So before we dive into the main part of the presentation, I'd just like to spend a few moments reflecting on our operational and strategic performance. At our full year results presentation back in March, I spoke about the uncertainty remaining in our markets for quite some time. And really, this hasn't changed. Inflation is remaining stubbornly high. Interest rates look sectorized further in the near term. And this is continuing to impact on growth and investor confidence in the U.K. However, the fundamentals of our markets haven't changed. They're pretty much sort of as they were last year. Issues around inventory security, supply chain resilience, energy supply and occupier and investor focus on ESG are all continuing to drive demand. The latest data suggests that vacancy rates will peak at around 7% before falling back to below 6%, driven by the end of 2025. And this is driven by both sustained demand but also significantly less speculative building. We're already seeing that as we're going through 2023. And in some of our regions, such as the East Midlands, it's noticeably lower than this, with vacancy rates expected to peak at around 6% and fall back to 4% by 2025. This is below the long-term vacancy average. So against this backdrop, we continue to make operational progress against our strategic targets. Levels of occupier interest across our industrial and development sites remain healthy and in recent weeks, we've seen an uptick in inquiries. In our residential portfolio, we continue to work towards exchange and completion on a number of land parcel sales to both national and regional house builders. And as James will talk more about shortly, we're continuing to progress towards exchange on our single-family build-to-rent portfolio. We've also made strong progress so far this year in transitioning our investment portfolio to modern grade A, where a combination of sales and the completion of direct development has now moved us to over 1/4 of the way towards our 100% grade A target. So to finish, I just want to bring you back to slide that many of you hopefully are now familiar with, and this is our strategy scorecard, and we'll put some numbers around this. So starting with direct development. Last year, we completed a record amount of direct development. And earlier this year, we completed 110,000 square feet at Gateway 36. So you'll see that this afternoon. And this space continues to let well. As we've always said, to manage risk, we will combine small to midsized speculative bills with pre-let and build-to-suit opportunities, and we'll flex this to respond to changing market conditions. This means really that in 2023, our level of speculative building will be lower, and we'll focus on pre-let and build-to-suit. In residential, our focus has been on accelerating sales and broadly in the range of residential products and we continue to see good progress here with 74% of our budgeted resi and industrial and logistics sales now completed, exchanged or/and offer. And this is up slightly from the figure that we reported in the full year results. In terms of scaling up land acquisitions and promotion, we've acquired 1.1 million square feet of industrial and logistics space so far this year and we're continuing to progress over 2,000 plots and 7 million square feet of industrial and logistics space through the planning system. And finally, as I've already mentioned, the transition of the investment portfolio to 100% Grade A is well underway with almost GBP 50 million of disposals so far of older assets, we've maximized value through -- where we've maximized value through asset management initiatives. Importantly, they were completed in line with December 2022 book values, proving the strength of demand across the market. And so for us a period of strong operational and strategic momentum for our long-term, through-the-cycle business is sort of evident. We remain well-positioned as we enter the second half against a challenging market backdrop. I would reiterate that we control our land bank, we control where and when we invest. And we have a highly experienced management team who are focused on execution. We're confident our strategy is the right one and our strong financial position, our differentiated products and the scale and mix of our portfolio position us well to realize the full potential of our sites. And with that, I'd like to hand you over to James Crow, who's going to provide a deeper dive on our residential products. Thanks, James.

Well, thank you very much, Lynda, and good morning, everybody. I'm James Crow, Harworth Director of Mixed Tenure. And I'm really excited to be able to provide a bit more information on our plans to diversify our residential products, which will be where is a key component of our GBP 1 billion strategy. First, I just wanted to start with a bit of background on me and the mixed tenure team here at Harworth. I joined the business at the end of 2021, we have over 20 years' experience in the residential space, having worked as a founder, operator, developer and consultant across multiple tenures. I was most recently Head of Investments and Development Management at ENGIE Regeneration, which I joined after its acquisition of Keepmoat Regeneration. I've been joined in the past 18 months by 2 specialists in residential project management and delivery. At [indiscernible] and Laura Colson, both have joined from partners construction, a subsidiary of United Living and before that, they both held roles with national housebuilders. Our team is responsible for the delivery of mixed tenure products across Harworth, reporting to our Chief Operating Officer, Andrew Blackshaw. Our day-to-day responsibilities involve working closely with Harworth's existing technical and project management teams to explore and analyze mixed tenure opportunities, identify and build potential portfolios and taking them all the way through to fruition through the marketing and planning process and eventually managing funding and construction partners to ensure delivery of a high-quality product. So in conclusion, a very experienced in-house team. And now I'd like to show you some of what we've been working on. This slide provides an overview of 4 live opportunities for our team right now, which I'll provide some more detail on over the next few slides. Many of you will be familiar with our single-family build-to-rent product, which we launched to the market in the middle of last year. This is progressing towards exchange, and I'll provide a bit more on this in a moment. Less well known to you will be our affordable homes product, which we launched to the market just last month with the issuance of an investment memorandum to interested parties. And then to the right, we have 2 opportunities that have not yet been launched, but for which we are working to identify feasibility and potential development sites. So starting with single-family build-to-rent. We launched this portfolio last year, providing an exciting opportunity to acquire single-family build-to-rent portfolio of scale across up to 10 of our development sites in Yorkshire, the Midlands and the Northwest. We've seen significant levels of interest in this portfolio. And although it's fair to say that the challenging market conditions that have taken hold in the interim have slowed our progress down, we are now well-advanced in moving towards exchange with our preferred funding and delivery partners. While the contracts are being finalized, the team have been busy progressing planning applications across our selected sites. We've received our first planning permission at Riverdale Park development in Doncaster, and we expect several others to be made over the next few months, which will allow us to begin construction during the second half of the year. It's important to note that the single-family build-to-rent market continues to grow rapidly with investors attracted to the defensive characteristics and potential to drive lasting positive impact for our communities. The latest data from the BPF and [ Sabo's ] estimates that there are over 24,500 single-family build-to-rent homes either complete, under construction or in planning in the U.K. compared to 18,000 just a year ago, more than 1/3 increase in the space over 12 months. Although with just 9,500 single-family build-to-rent homes completed to date, this remains a fraction of the wider build-to-rent market, which has over 80,000 completed units and a total of 250,000 units, either completed, under construction or in planning as at Q1 2023. So turning now to our affordable homes portfolio. To begin, I just wanted to clarify what is meant by affordable housing in this context. The National Planning Policy Framework defines affordable housing as housing-for-sale or rent for those who needs are not met by the market. This includes social rent, affordable rents as well as a range of intermediate rent and full sale products, including the shared ownership scheme. Last month, we launched an affordable homes portfolio of around 400 homes to be delivered through a forward funding arrangement. The homes will include a mix of shared ownership, affordable rented and social rented homes designed to meet affordable family housing needs, a large and underserved sector. A large part of the portfolio is likely to be eligible for grand funding under the government's Affordable Homes Program, which has pledged GBP 11.5 billion to deliver 180,000 affordable homes between 2021 and 2026 if economic conditions allow. This grant funding equates to approximately GBP 64,000 per home, a substantial increase from funding available under the previous government's programs, underlining the acute shortage of this type of tenure. The program places several obligations on the developer, including the need to have at least 25% of homes delivered through modern methods of construction. Leveraging our strong relationships with delivery partners, our portfolio looks set to far exceed this requirement through a combination of modular and timber framed construction. The right-hand side of this slide shows how the potential benefits to Harworth and our communities of this portfolio as well as allowing us to accelerate the delivery of our development sites. It also helps to fulfill our Section 106 obligations in a more coordinated and integrated way than spreadiness amongst the housebuilders on site. This type of tenure meets the demand for a range of housing needs for local people and local authority and also adds to the demographic mix, allowing for younger and more vibrant communities with a wide range of amenities. This slide provides an overview of the portfolio. You can see from the first donut on the map on the right-hand side that this portfolio has a good geographical spread across Yorkshire and the Midlands. Just over 40% of the total portfolio will be meeting Section 106 requirements, while the remainder is what is termed, additionality. These are the homes that are eligible for grant funding. In terms of tenure, this will ultimately be investor-, operator-led, but it is envisaged that just under 70% of the portfolio will be affordable rent with a further 5% social rent. Again, to clarify terminology here, affordable rent can be set at up to 80% of market rent, while social rent can be significantly lower and is set by government formula based on land values. The remainder will be shared ownership, a scheme under which occupiers compart by the homes and rent remainder. Their equity in the property can be increased over time. The sites highlighted in blue on the right-hand side a part of the initial circa 400 home portfolio across 6 of our sites with the potential for extra development at our Waverley, Ironbridge and South East Coalville sites that could deliver around 300 further homes as part of the next phase. What you can see from all of these sites is that they are well-established existing communities, meaning the new homes will benefit from Harworth's investments and place-making delivering a range of amenities and a well-designed public realm. And to demonstrate this point, here is an example of why we will be delivering the affordable home product at our Thoresby Vale development, set within the Sherwood Forest in Nottinghamshire. The site has an outline planning consent for 800 homes and plots representing 362 homes have been sold so far with developments by David Wilson Homes and Harron Homes at the entrance to the site, which is now well-established and the first homeowners living there. The affordable homes product will be delivered in the orange area shown in the plan and spread alongside our single-family build-to-rent product. The idea is to make the different tenures almost indistinguishable from each other, helping to create a more cohesive community. And you can see from this map that the site will provide all the services and amenities that are desirable for their affordable home development with a new local center, primary school and employment space, all within walking distance, good transport connections and a 350-acre country part on your doorstep, all this set within a highly desirable forest landscape. And it's a similar picture across all of the sites in our portfolio, ensuring the delivery of high-quality, affordable homes that really meet the needs of occupiers. So that's the affordable homes portfolio, and I look forward to being able to update you further on as the year progresses. Turning now to our net-zero carbon homes product. And as I mentioned at the beginning, this is still in the planning stage. Our current proposal is to develop around 100 net-zero carbon homes spread across our Waverley and Prince of Wales developments. Whilst there are an increasing number of net-zero carbon developments being promoted, the industry as a whole is focusing more on net-zero operational carbon emissions to align with the government's future homes housing standards, which are targeted for 2025. Harworth is focusing on whole life carbon with an aim to meet both net-zero operational carbon emissions and net-zero embodied carbon emissions in line with the RIBA 2030 climate challenge goals. This will be achieved through highly efficient homes that generate their own renewable energy supply for the air source heat pumps through PV panels. They'll be constructed using sustainable materials such as timber frame with lower embodied carbon and they will offset the remainder. Unlike with the single-family build-to-rent and affordable homes products, this proposal would mean Harworth selling directly to the market for the first time through a new consumer-facing brand. Delivery risk will be mitigated through extensive research into local markets, the use of a modular housing product and starting with a small-scale pilot project, which will be delivered in phases. The homes will be marketed to people who care not just about where they live, but how they live. Targeted a wide range of consumers from those just starting out on the property ladder, to retirees and families, anyone looking to live sustainably and own a home with a highly efficient design and very low running costs. Like the other portfolios, these net-zero carbon homes can help us to accelerate the delivery of our developments by offering a complementary but differentiated product from the national house builders, which will appeal to a slightly different market. It has the added benefit of allowing us to develop on awkward land parcels, which we might otherwise have to sell at a discounted rate to housebuilders. And by we undertaking this pilot, we aim to understand the infrastructure and technical requirements for delivering net-zero carbon homes as well as the end purchaser market. We think that in the longer term, modular net-zero carbon homes could be part of the mix of what we deliver on our sites, and we could use it to quickly establish a market on new developments. However, in the short term, it is our intention only to deploy this product where there is a clear strategic rationale and at a scale and pace that is appropriate to manage the associated risks. This is a growing market and the statistics on the right-hand side show some of the drivers of this, 2/3 of the U.K. households see investment in energy-efficient homes as an attractive option to address the cost of living crisis. While a survey by Legal & General and New Gov, found the buyers would be willing to pay over a 10% premium for a low-carbon property. This is why there are currently 66 multi-home net-zero carbon developments currently underway in the U.K., and the number is growing rapidly. The red outline on this aerial image shows the proposed location of over 80 net-zero carbon homes of Waverley. This parcel has a steeper gradient than most of the Waverley sites, being located on the Orgreave colliery [indiscernible]. It's a great example of where we may use the net-zero carbon product to realize value, which may not be captured by other land users as the table on the right-hand side shows. The traditional way we would have realized value is through a sale to a house builder. The topography and shape of this parcel is not suited to the mainstream house builders. It may suit some small and niche house builders, but only deliver a marginal profit on sale on net rate when factoring in sight servicing costs. The topography would also be a barrier to senior living due to accessibility issues. Whilst it could be used for build-to-rent, we've already identified a parcel elsewhere at the site and so development would have to be delayed to take into account of local absorption rates. Finally, it could be used for our affordable housing product, but it has a prime aspect overlooking the Waverley lakes, which would not necessarily be reflected in affordable housing land values. So to conclude, a complementary product that can take advantage of all quick but desirable land parcels across Harworth sites as well as providing Harworth with specialist knowledge of this growing sector of the market. It will also provide valuable technical learnings as to how we tackle the net-zero embodied carbon challenge of delivering residential development ahead of the government's 2030 objectives. The final area I wanted to touch on is senior living. We are currently exploring how to integrate senior living products, which includes everything from care homes, assisted living and retirement homes to a longer-term objective of delivering integrated retirement communities or an IRC. Unlike our other products, we do not have a portfolio of sites ready for deployment. Instead, we are undertaking analysis on a site-by-site basis to ascertain the best method of delivery [indiscernible] demographics and existing supply of senior living products as well as factors such as amenities and transport links. As you can see from some of the figures on the right-hand side of this slide, the potential market for this product is huge, supported by activity from institutional funders, demographic changes and government policy. By 2030, it is estimated that 1 in 5 in the U.K. will be aged 65 or over. Currently, only 1% of those aged 65 or over live in integrated retirement communities. This compares to 6.5% in United States and 5.5% in Australia. If we were to get even close to the levels of adoption in these countries, we would need to build 325,000 new IRC units between now and 2030. We commissioned BNP Paribas to undertake analysis across several of our development sites to identify opportunities to our senior living products. This provides a summary of findings across 4 of our sites. In Waverley, they found that there is potential for a care home, assisted living or retirement living scheme to be integrated into a wider master plan alongside existing mixed-use elements, including our Olive lane development, affordable housing and build-to-rent. At our Ironbridge site, where we have an existing outline planning permission for a retirement community as part of our 1,000 home master plan, where you also found the potential for an IRC or a care home. Although the phasing of this would need to be considered given the site is at an early stage of development and therefore, lack some of the necessary amenities that may be required to senior living on day 1. On South East Coalville Leicestershire, we found opportunities for a mixed tenure IRC comprising apartment at compact bungalows as well as potential care home alongside the retail and the neighborhood center and we've already received approaches from a leading care home operator and a well-known retirement home developer for the IRC. Finally, back at Thoresby Vale, Edwinstowe, we found potential for a mixed tenure IRC where senior living apartments are joining the mixed Jewish center to help their identity and some compact bungalows elsewhere on the surrounding area. So we have lots of opportunities to progress from a senior living perspective and our team will be working with the development management teams from across the business to identify how these can be integrated in to master plans. So to conclude, we're making good progress in our strategic objective of diversifying our residential products. Our single-family build-to-rent is progressing towards exchange. Our newly launched affordable homes product has received a strong level of interest so far and our net-zero carbon homes and senior living propositions are at an earlier stage, but they're well-supported by favorable market dynamics, government policy and demographic change. Combining these tenures will significantly accelerate the development of our sites, further strengthen our place making capabilities and allow us to form strong partnerships with funders, delivery partners and local authorities. Central to our strategy success is the ability to call on extensive in-house equities and residential development, allowing us to pursue new opportunities and manage our risk. I look forward to answering any questions you may have at the end of the presentation. But for the time being, I'll hand you over to Peter Henry, who is going to talk you through our sustainability program. Thank you.

Thanks, James. Good morning all. Thanks, Lynda, for reminding me I've been here for a decade, and I probably had a full head of hair when I started. So all good. So my name is Pete Henry, and I'm Harworth's Director of Sustainability. I'm pleased to be able to speak with you today about the great progress that we're making on embedding sustainability and our sustainability program into the Harworth way through our culture, strategy and operations, including through our recently published Net-Zero Carbon Pathway. Also try and touch on a few examples of how our understanding is evolving and being incorporated directly into our development, which is very important for us. Before I go into the detail, I just wanted to spend a few moments talking about our sustainability too and where we fit into Harworth. The Harworth Way has existed for some years now, and I was appointed as our first Director of Sustainability roughly a year ago now. While this is a change of role for me, I think it's fair to say there's really just evolution of the roles I've undertaken both within Harworth since 2012. And prior to that, acting as a consultant on large-scale regeneration projects across the U.K. I joined the business in 2012 and held a number of key roles in the delivery of commercial, residential and energy developments for lately being appointed as a regional director for Yorkshire and Central on that region's creation 2019. And in this role, I was responsible for some of Harworth's largest regeneration projects over the best part of a decade, taking them from acquisition, to delivery, including Waverley, the AMP and Gateway 36, which we'll be seeing later today. And look, in this role, I was responsible for helping to develop some of our key driving principles for sustainable regeneration, some deliberately, some by accident. And so when the opportunity came last year and Lynda and I spoke about taking on a full-time sustainability role, it felt really natural, a good natural fit for me. In this structure, we've created Harworth's Board has overall responsibility for setting the principles of The Harworth Way. And in 2021, we established a Board ESG Committee. Lynda has executive responsibility for the direction of The Harworth Way, creating a rigorous but flexible governance process to manage our approach to ESG. I report to Lynda, and I also attend the Board ESG committee meetings as well as being a member of our investment committee. Bigger part of these committees ensures a cohesive ESG that runs right through all of our business making decisions. Over the past year, we've been building a sustainability team within Harworth, as you can see here on the right-hand side of the slide. Jame Thompson has been with us for a number of years working on our ground funding applications, a role has really naturally evolved alongside the government agendas on net-zero carbon and social value to support our work and link into government at all levels. And then we've appointed Owen Roper, who joined us last year as our Sustainability Analytics Manager. Owen is initially leading on the creation of our carbon accounting system where they will move into elements of the business, and he has extensive experience in data analytics and reporting from previous roles. Now just to recap on The Harworth Way, which is handily appeared on screen behind me. It's our framework for integrating sustainability and social value into our business. And more importantly, the developments we create. It ensures sustainability principles are embedded across our culture, strategy and perhaps most importantly, our approach to development from concept right through to completion. It's a continually evolving framework. It should be responsive to the ever-changing needs of the environment and the communities within which we work and also those which we work alongside. It guides our strategy and how we create the sustainable places where people want to live and work. Our approach recognizes that we cannot deliver our developments in isolation. Working with all our stakeholders at all stages of the process is absolutely fundamental to us achieving our aims. During 2022, we commenced a full review and expansion of the model to reflect both the key drivers outlined in our growth strategy but also our wider sustainability commitments. The high-level outcomes are indicated on this slide. And The Harworth Way has 3 impact pillars: planet, communities and people. Each of these comprise 6 focus impact areas representing the key drivers for us as a business and for delivering each pillar. Each focus impact areas and continue to review throughout the business and divide it further into building blocks. These building blocks really the key work streams to be undertaken within the business to deliver a set of outputs that are then in reality, the tangible outcomes that drive sustainability through our developments. The interaction between these different elements is illustrated by our interlocking model, handily drawn on the left hand side here. And as mentioned, the focus impact here is in building blocks, will evolve over time. What you see in front of you now will not be the same as this is in 5 years' time. And it reflects our progress and priorities through The Harworth Way. And over the next few slides, I'm just going to dig a little bit deeper into each of the pillars and what we're hoping to achieve in 2023 and beyond. So starting with the planet pillar, our planet pillar is focused on understanding and reducing our environmental impact, whilst also promoting climate resilience and biodiversity through our development and regeneration activities. The application of this approach comes from initial concept to our role in long-term stewardship and allows us to integrate sustainability in all phases of development, that's really crucial. We're trying to align our recent Net-Zero Carbon Pathway commitments in the design for our master plans and how we deliver both our infrastructure-led master plans and the individual buildings within them. It's a real relationship between those two things. Driving improvements in building efficiency and increasing integration of renewable energy into our development is crucial. We're going to continue to promote innovation by using circular economy principles in our role as a master developer, something that's close to my heart as a civil engineer. And with an emphasis on maximizing the recycling materials, minimizing the reuse of raw materials and delivering the correct infrastructure of our customers, we've made really good progress on this pillar in 2022 with highlights including devising and issuing our initial Net-Zero Carbon Pathway, which I'll talk a little bit more about in a minute. Developing new commercial building specification to meet EPCA and net-zero carbon and operation-ready status, incorporating the integration of renewable energy via rooftop solar and delivering our first net-zero carbon in construction development at Barton Hill. Alongside this, we're offering green leases to all of our new commercial occupiers and ensuring that all our remediation contracts continue to stipulate the reuse of materials on site and recycling of materials offsite as a priority. Really, it's just in accordance with good waste management practice as well as instigating our first biodiversity net gain scheme at Gateway 36, which you'll see in a couple of hours' time in partnership with the local council. Our commitments for 2023 are shown on the right-hand side of the slide here. I'm not going to go through them in detail, but all of these are allowing us to build towards our overall goals in terms of sustainability. And the focus for us is on further enhancing our data collection and reporting capabilities, particularly around our Scope 3 emissions this year, which many of you will be aware, account for, by far, the largest proportion of our wider emissions, but they're also the most difficult to capture. We're going to require a full understanding of both our upstream and our downstream emissions through our development processes. And also then through our occupiers and the impact we have on those purchasing our service line and buildings and within our report, if you've had a chance to read, you'll see reference to Scope 4. Now turning into the communities pillar, which is all about creating, strengthening and supporting communities through our regeneration development processes, both today and in the future. As a master developer, we create communities through our new developments. And we look to enhance existing local communities in the regions within which we work. Our developments create economic benefit through their regenerative effects at both the local and regional levels, supporting jobs, housing and investment. We also have a long track record of delivering social value through the regeneration we've undertaken in integrating homes, amenities and natures within a single community. And it's long been a driver of our master plans. Our developments also promote healthier lifestyles and look to integrate sustainable transport wherever possible. And we made good progress again in 2022. We developed over 430,000 square foot of employment space to support local jobs, progress plans for new amenities, including schools, cycle infrastructure, hotel, which you can see peeking out of the window over here, a healthcare facility. And we've also got advance plans to bring integrated travel plans to several of our new developments, building on the improvement of connectivity and encouraging greener lifestyles. At year-end, our total portfolio had the potential to support roughly 73,000 jobs, deliver a GVA of about GBP 4.6 billion, generates over GBP 82 million in business rates and roughly GBP 56 million in council tax receipts. We also held an opening ceremony, our 50-acre Coronation Park at Cadley Park Development, Swadlincote. We've worked in really close partnership over a number of years with South Derbyshire Council, The National Forest, the RSPB, Derbyshire Wildlife Trust and a lot of the local communities. All of that really underscores the range of transformation impact that Harworth sites can have on our communities. And as you can see from the right-hand side of the slide, we've got a range of wider commitments we're working through for 2023. It's going to be a busy year. To ensure these economic and social benefits are advanced for our communities and the surrounding communities through the implementation of a social value assessment process that should cover all areas of the communities pillar. It's going to be a complex process, but it's something that we're really pushing through. And the last, but certainly not that means least is our people pillar. We aim to be an employer of choice, create an inclusive, diverse and empowered workplace culture in which our people can develop and realize their full potential. Central to this is the prioritization of employee health and well-being and ensuring our people remain recognized and engaged. We've embedded a one Harworth's culture throughout our business for a number of years and this really underlines our collaborative approach to delivering and managing our sites, and they're succeeding as a team, hopefully. The outputs from the people pillar are largely the work of Harworth resources and transformation team, headed by Kate Morris-Bates, who will be joining us later today as well as our risk and compliance team for areas such as health and safety. The team has had a really active year again, delivering our first company-wide EDI training and taking our first cohort of staff through a leadership development program, including the 2 guys in the sustainability team. We've extended participation in our restricted share plan so that over half of our team were granted an award this year. We've successfully onboarded 30 new colleagues. We've launched a menopause policy and we've ensured that there were no RIDDOR reportable accidents by the Harworth personnel or contractors working on our behalf despite the increased workload. And again, as you can see from the right-hand side, we've got a really good set of ambitious programs this year that we're pursuing from the launch of the Harworth Academy, an umbrella for a range of structured learning and development programs for our people to the refurbishment of the office that you currently set in -- does need it a little bit to make it a more inspiring workplace that is fit for modern ways of working. So look, that was a little whistle-stop tour of The Harworth Way and our plans for 2023. I'd like to just take a little bit of time now to go through what is arguably our biggest DSG project over the past 12 months. It's kept me occupied, which was producing our Net-Zero Carbon Pathway. A bit of background, you'll be aware that the U.K. government has committed to being net-zero carbon by 2050, an ambitious target that they're working through. To help visualize this, these charts on the slide here are extracted from the Climate Change Committee, statutory body that was established to advise the U.K. and its devolved governments on meeting those emissions targets, but also to report to parliament on the progress being made. You don't need to really see the detail of the charts, but the charts indicate the potential pathways for the U.K. to meet its 2050 goal. The middle chart shows the predictive sources of abatement for achieving net-zero carbon for buildings. That's immediately clear. And again, you don't need to see the detail is how much this relies on residential buildings than the use of residential buildings. That's represented by the purple, green and blue on the slide to give you a feel for the scale. On the chart on the right then shows you types of abatements required for the U.K. to reach its 2050 goals. The largest share of this is in the orange element, which is the electrification in its broader sense, for vehicles manufacturing heating. It's really a big move to electrification that we have to consider as a business. The light blue segment is the production of low-carbon energy and the green segment, interestingly, is the government's estimate of the amount of offset emissions and/or carbon capture through sequestration and other means to remove greenhouse gases. So really interesting little thing that affects us as a company. As a Construction & Property -- sorry, excuse me, because construction and property are some of the largest sources of emissions. A significant amount of our effort is being made to develop consistent real estate industry standards and protocols. It really is an emerging market and an emerging set of guidance. The guidance that's coming through is based on overarching principles. This simplification model here covers the full life cycle of a project from funding and planning, construction through to occupation and reuse. This really covers what happens with the building. We're working very strongly on what happens with our overall master plans. All of these elements are being considered as part of our Net-Zero Carbon Pathway work, but they're too numerous to go into today. Happy to have a chat on the bus tour if anybody wants to go into it. But I'm just going to highlight a key couple of areas. And then alongside the government and industry commitments, the rate and scale of regulation and standard changes that we're navigating is pretty significant. These are not just stipulated by government but also coming through industry bodies and increasingly local authorities, particularly in a planning context. You can also see our Net Zero carbon pathway aims to achieve these standards well in advance of the becoming mandatory. This will allow us to look to mitigate our risks and ensure the resilience of [indiscernible] of our assets and also our developments. So turning to Harworth Net Zero carbon model. Across the top of this side, we demonstrated the Net Zero carbon pathway fixing to the Harworth Way model, acting as one of the really key focus impact areas of the planet pillar. And across the bottom is our ethos in relation to approaching the Net Zero carbon pathway. These are our guiding principles for everything we do as a team. It's about accepting that we can't do everything immediately, being flexible and being authentic is really what's needed. And as we've said in the bottom right-hand side of the slide, we always remember that we're here to create places that we'd be proud to return to alongside the next generation. And actually, I guess, maybe I'll be doing that with some of you -- haven't been here for so long now, a little bit later today. Now look, clearly, there's a lot of detail on these slides, but essentially, it shows the 5 core commitments of our Net Zero carbon pathway. Commitment 1, our 2030 target to be Net Zero carbon for our current operational boundary of emissions for Scope 1, 2 and site Scope 3 emissions by 2030. Our 2040 target to be Net Zero carbon for Scope 1, 2 and all of our Scope 3 emissions by 2040. Our commercial development target that all our new developments, commercial developments will be Net Zero carbon and construction operation by 2030, so 6.5 years away roughly. Our master developer target to implement a master develop a whole life carbon assessment process and also to review our targets for our residential developments by 2025. The guys will tell you that that's the one that keeps me awake at night, and I really want to get through. And finally, our commercial building target, which is also one of our 4 growth drivers of our strategy, as Lynda articulated earlier, to create 100% of our investment portfolio to be grade A by 2027. Now moving on, our current operational boundary. This is a sankey diagram in case we don't come across these before. They're very interesting. Our current emissions in 2022 were reduced by 10.6%, roughly from 2021. But we've really recognized the need to both continue our progress and to be really specific in our Net Zero carbon pathway. Now we report our greenhouse gas emissions and energy consumption in compliance with the requirements of the streamlined energy and carbon reporting regulations or SECR, the emissions data in the sankey diagram on this paid opposite reflects our financial year-to-date to the 31st of December 2022. We use the operational control boundary method to calculate our greenhouse gas emissions, and we report on all sorts of environmental impact for areas over which we have control. Now you can see from the diagram that the majority of our Scope 1 emissions come from fuel used in material reuse and recycling, such as our PO operations at Ironbridge and our development sites. And it also comes from natural gas uses in our offices, including this office. The majority of our Scope 2 emissions come from electricity used in our managed assets and that our Scope 3 emission that we are currently measuring largely relate to business travel, waste disposal and the impact of homework. And on the right-hand side of the next slide, you'll see how we're working towards reducing these emissions by 2030 in a tangible fashion. We're looking at a combination of energy efficiency measures, on-site renewable energy generation and the sequestration of any remaining emissions and you can see that the sequestration is only likely to take place in the final years as we hope to maximize reduction through other measures first and happy to talk about that in a bit detail later today. Our business model details the steps to growth across the master development life cycle. To guide our future reporting boundaries who developed a master developer emissions model, which really highlights where our emissions occur against our business model, really important for us to integrate that within what we're doing. Our proposed carbon accounting system will reflect the stages highlighted in the flow chart and will provide us with a real range of data to help manage our progress across each of the development stages. In 2023, we're looking to report on our greenhouse gas emissions and energy consumption beyond that required for SECR compliance. We're looking at providing the basis of comprehensive emissions inventory for our Scope 3 emissions, and we're going to build on that year-on-year. Where we don't fully understand elements for emissions, we're going to be transparent. We're going to use that information that we gather to work with our suppliers and our occupiers at the other end of the scale and the wider industry so that we could all meet the challenges of meeting our Net Zero carbon commitments, both in the short and long term. The sankey diagram on this slide provides the illustration of the scale, relativity and relationship with our mission the business in any given year as we move towards implementing our strategic plan. Whilst in 2022, we didn't set a baseline for our emissions, we're confident that the work we're undertaking on the integration of our emissions pathway with our business model will provide us with a really sound basis on which to report our wider emissions from 2023 onwards, but also to set a detailed associated Net Zero carbon pathway for our Scope 3 emissions in line with annual reports at the end of this year. And then the next figure, illustrates and maps our proposals to decrease and mitigate our emissions to meet our 2040 Net Zero carbon commitment. The indicative measures on the right-hand side here -- are to reduce our emissions and it gives an indication of the timing of the implementation, but also the split between what we need to do with our occupiers, what we need to do with our construction and development projects. We'll continue to develop our understanding of these measures alongside our Scope 3 carbon reporting in 2023 to guide our pathway. And finally, before I hand over to Chris and Ed, I just wanted to bring to life some of pretty stage stuff that I've gone through here in terms of diagrams, photos and what we've done on a few real-life case studies, give you a feel of what's actually going on. And we can start where we stood Advantage House. As you'll see from the -- on the diagram here, this building accounts for a sizable chunk of our overall Scope 1 and 2 emissions. We've taken an integrated approach to reducing our Scope 1 emissions so far at Advantage House. When you go outside, you'll be able to see, hopefully. In early 2022, we installed roughly 400 square meters of rooftop solar PV in a coordinated approach to reducing our electricity usage and also increasing our renewable energy usage. We have [indiscernible] fully electric. And at the end of 2021, we had 4 EV charging points. We've now added a further 6 EV charging points in 2022, and all of them are free to use for our staff. In addition, we've introduced a salary-sacrificed scheme, which is exclusively for electric and low emissions vehicles. And so implementing these measures has provided us with a coordinated approach to our emissions reduction on a very localized basis that meant that we had a 22% year-on-year reduction in our electricity use from the grid. A 32% year-on-year reduction in electricity use related to emissions from Advantage House. The equivalent of roughly 38,000 miles of charge from the EV charging points we've put in, which directly impacts on our employee emissions from their travel. And the next step in the process of reducing our emissions for our head office is a proposed refurbishment of the entire office with a sustainable brief at the heart of the proposals that incorporates flexible working arrangements that will drive further emissions reductions and we'll also be seeking to reduce our Scope 1 through a comprehensive review of the existing gas heating system, it's getting a little warmer here, isn't it. And also to look to create embody sustainable workplace for our employees. The next example again later today, is Gateway 36 in Barnsley. And look, in developing this site, we've worked with our construction partners to create an integrated, sustainable new commercial development. We delivered it in phases. Through innovative earthworks, treatments. Our approach has minimized material use, reduce the need for emissions-intensive foundation solutions, reduced material import and export, and it's also maximized the use of circular economy principles across all of the phases of the site, and we'll talk about that in a little bit of detail this afternoon. The individual buildings incorporate energy efficiency, on-site energy provision and Net Zero carbon measures in line with the work we undertook in our commercial builds back during '22. It includes being EPCA-rated, BREEAM very good and excellent. Roof-mounted solar PV to meet the office energy requirements with the opportunity to increase the provision for specific occupiers on each building. LED lighting, electricity-based heating, so no gas, variable refrigerant flow systems featuring simultaneous heating and cooling as well as heat recovery capabilities. Don't ask me about that one. Rain water harvesting, water leak detection systems, which reduced water usage and also emissions at source. And the whole site is incorporated in a sustainable urban drainage system, which manages the quality and quantity of surface water runoff whilst also reducing embodied carbon emissions through the construction process and during the delivery of infrastructure. At Gateway 36 as well, just slightly off the photo and in coordination with the local council, we've actually committed to delivering a minimum of 10% biodiversity net gain. That's in advance of the requirements being mandated by the Environment Act that's forthcoming. We've been able to deliver this requirement, both on-site and off-site on adjacent land we own, which was the former [indiscernible]. We were able to identify roughly 13 acres of land that will benefit from significant long-term enhancement. The enhancements include new ponds. Wet Woodlands as well as work to enhance existing neutral grasslands and mixed scrub, improving the overall conditions in the area. And bringing in these measures has brought a lot of biodiversity benefits and the site has been subsequently identified as a site of special scientific interest, which is a real boom for us actually in terms of the work we're doing. And then onwards to Pheasant Hill Park, Rossington, as I know it. Brownfield remediation is -- despite it's much wider sustainability benefits in Cambia, an emissions-intensive activity. But using circular economic principles embedded into our design process for the remediation with no materially, no material out starting point. At Present Hill Park, we were creating -- or we are creating a community of up to 1,200 new homes with extensive nature recovery from spoil heap of the former Rossington Colliery. Our circular current approach has minimized emissions at the site by reusing roughly 99% of the material, which equates to about 1.7 million cubic materials within the development. We've used material from the site for the creation of the great Yorkshire way in partnership with Doncaster Council. We've reused roughly 50,000 cubic meters of [indiscernible] as part of the landscaping on the site to capture and store emissions. And we're naturalized in the form of colliery spoil heap by reusing over 3,000 tonnes of sewage cake and other bioadditives for soil making in the country park. As part of the process, we've also removed all of the old concrete structures that were all recycled back into the works. And we've saved on the import of natural aggregate reducing road traffic and the use of natural quarry stone reserves. On top of that, we've reused initially unusable materials on a phased basis. So we've taken materials from the first phase into the second phase of remediation into the third phase, and we've dried and reprocessed them. It sounds a little bit technical, but actually, it's a really useful product in terms of what we're doing. And then the final example is our Ironbridge site, where we've taken some pretty early active decisions actually to reduce whole life carbon emissions, which have influenced both our delivery and our stakeholders and in particular, our housebuilding partners. In 2021, we secured planning for the regeneration of the former Ironbridge Power Station, as maybe you all know, into a 1,000 home mixed-use new development, just a few minutes from the Ironbridge Gorge World Heritage site. The vision of Benthall Grange as sites become known, is to restore landscape back to a green thriving residential community after about 90 years of industrialization. The development looks to create an inclusive and sustainable location that integrates with its diverse historical routes, trying to recognize the rich heritage of the site and also the landscaping surrounding the site. As a wider sort of point, the use of gas heating in homes accounts for roughly 15% to 20% of emissions within the U.K., replacing those gas heating systems is an integral part of the graphs you saw earlier in terms of the U.K.'s net-zero carbon pathway. And the provision of infrastructure to achieve these aims is a kind of what we do as a company in terms of our master developer role. So a key part of our role is the provision of that infrastructure to serve the house builder customers. The decisions we take an early stage of a project have really long-term consequential impacts for both our customers and the future of the communities we create. So Harworth -- well, we took the early decision that energy reducing design and renewable energy would be incorporated from the start to reduce long-term emissions. We also took the decision that by understanding and working with our housebuilder customers seeing what was going on in the market that we could influence the long-term emissions from the site by not providing gas infrastructure for heating. It's quite a big decision for us to take, but that one decision ensures that efficient and entirely electrically powered heating in line with the U.K. government aims will be used for all the buildings across the development. It will enable our housebuilder customers to address their operational emissions from the outset, and it really shows how the master development process works in terms of emissions reduction. And to support this, you can also see from the next slide, a bit of a techy slide, I suspect, or not, that we installed 2 very large new power transformers, as you'll have seen in the news, the connection to the grid has been a bit of an issue. But those power transformers have upgraded the power capacity site to suit the electric heating and to give us a really sound basis on which to do that development. So that kind of concludes my piece on the Harworth Way. I hope you find it a little bit informative. And I'll be on hand to answer any questions you might have at the end of the presentation or indeed on the tour later. And in the meantime, I'll hand you over to Ed and Chris to give you a bit of a chat through the [indiscernible] Central portfolio.

Thank you very much, Pete, and good afternoon, everybody. My name is Ed Catchpole and I'm joined here by my colleague, Chris Davidson. Together, we are the regional directors of Harworth Yorkshire and Central Region, roles we've had since in 2021. As we've already touched on Harworth introduced 3 distinct operating regions in 2019 to support its growth ambitions. Our teams in each of these regions comprise local specialists in acquisitions, planning and project management, all of whom live in and have a deep working knowledge of their local areas. These regions are supported by a wide array of specialist expertise in our central functions, which are based here in Rotherham. Our Yorkshire Central region is our oldest and also our largest region by a number of sites and team members. The sites in this region range from mature major projects, which we've spent years delivering to new acquisitions of currently unconsented brownfield land, as you can see from this slide. We have over 4,000 homes which have either been constructed or are under construction and over 5,500 jobs, which have been supported, generating GBP 390 million of gross value added for the region. What is still to come in our pipeline is more significant still with the potential to deliver almost 15,000 housing plots with over 1/4 of these already consented and 16 million square feet of industrial and logistics space with the potential to generate GBP 2 billion of gross value added to the Yorkshire economy and surrounding areas. Before we talk more about the sites we're going to be seeing today, we just wanted to provide a quick update on 3 key developments, which wants to watch as the next year is likely to prove a busy period for them. These are Skelton Grange and Gascoigne Wood, close to Leeds and Thoresby Vale in the heart of the Sherwood Forest in Nottinghamshire. Starting with Skelton Grange. Skelton Grange is a 50-acre site adjacent to Junction 45 of the M1 to the Southeast of Leeds City Centre. The site was formerly the location of the Skelton Grange power station and was acquired by Harworth in 2014 with remediation and enabling works commencing shortly thereafter. In April 2020, Harworth sold 19.5 acres of land at the site to Enfinium for the development of an energy from waste facility, which is currently under construction and expected to be operational in late 2023. In August 2021, further plans were approved for the development of a 99-megawatt battery storage facility on a 5.4-acre parcel on the site. In late 2021, we submitted a planning application for development of up to 800,000 square feet of industrial and logistics space across up to 5 units, ranging in size from 126,000 square feet to 202,000 square feet, alongside infrastructure upgrades, the plans included a segregated cycle and pedestrian path that is proposed to connect to the Transpennine trail and Sustrans route 67 as well as tree planting, hedge punting and other ecological enhancements. Gascoigne Wood is 185-acre former colliery site in Sherburn-in-Elmet, North Yorkshire and not far from Leeds. The site benefits from an existing rail connection through the Sherburn rail freight interchange and also lies in close proximity to the A1(M) and the M62. In 2021, Network Rail began using part of the site as a logistics hub to support the Transpennine route upgrade project. Harworth plans for the site would see the development of up to 2 million square feet of rail-linked industrial and logistics brakes, as you can see from the CGI on screen now. Thoresby colliery was Nottinghamshire's last operational coal mine and its closure in 2015 ended a 750 year history of mining in the county. Just a few years later, in 2019, Harworth received planning permission to transform the site into a sustainable new community, comprising 800 new homes, a retirement village and up to 250,000 square feet of commercial space, which expected to create around a 1,000 jobs. The plans will also see the restoration of the site's former spoil heap, which can be seen at the top of the image on the slide to create a 350-acre country park with multiple ecological habitats and significant areas of green infrastructure at its peak, the park will offer the highest vantage point for miles around and offering panoramic views of Sherwood Forest. Harworth completed demolition clearance and remediation works in 2018 which including permanently filling and capping the 2 mine shafts. We have since sold service plots to Harron Homes and Barratt David Wilson homes to develop units on the site. And as you can see from the image on this slide -- you can see home construction is well underway. A new primary school will also be constructed at the site, incorporating a forest school ethos, which aims to connect students with the outside world as far as possible. The school design will be future-proofed through the inclusion of a number of energy-saving features, including mechanical free ventilation and roof-mounted solar PV panels. We received planning permission for the school last month and enabling works are already underway as can be seen on the far left of this image. The colliery's original workshop has also been retained as a heritage asset and will soon be refurbished to accommodate a range of community and leisure uses as part of a new local center. We're really excited about the progress being made at Thoresby and you can expect to hear more from us about this next phase of plot sales at the site and the school in the next few months. That rounds up a collection of sites that you are not going to see today, which we are looking forward to showing you around at some point in the near future. And now I'd like to hand over to my colleague, Chris to set the scene for the sites that you are going to see today, starting with the one that we are speaking up right now, which is Waverley and the AMP.

Thank you, Ed. Good morning, everybody. I'd like -- Peter have also been here nearly a decade, not bald yet, but as my wife keeps telling me getting there fast. So -- Waverley and the AMP. What would I say, we're going to see the site very shortly. But an enormous source of pride for everybody working at Harworth, it's our largest. It's our most mature site. Its journey from coal mine and caulking works to the site we're going to see today as being a remarkable one actually, extraordinary. The site was once the Orgreave colliery and caulking works where coal mining and caulking operations were conducted for over 150 years. Orgreave was perhaps most famous or infamous for the battle of Orgreave in 1984, most of you will remember that -- one of the flash points of the minus strikes. The colliery closed in 1981. There was also the caulking plant, which supplied caulk to the steel factories of Scunthorpe, and this finally closed in 1990 with a loss of approximately 500 jobs. In 1995, British Coal, open cast began restoring the sites tip to make part of the land fit for rebuilding. The remediation process was extremely challenging, taking a decade to remove all of the coal from the site and only reaching completion around 2011. In 2002, outline planning consent was granted for the AMP and the AMP combines a research institution, training and graduates from the University of Sheffield and private sector firms, the origins of AMP lie with the Advanced Manufacturing Research Center, or AMRC, which itself is a joint intervention between the University of Sheffield and Boeing, and occupied the first buildings on the site when they were completed in 2004. Since then, the AMP has grown significantly. In 2008, Rolls-Royce open its Factory of the Future, at the site, including workshop, lab, office and conference space. And then in 2013, which is when I joined ironically, Rolls-Royce bought land to build a 215,000 square foot blade casting facility -- lots of details here, sorry about this. Hopefully, you remember them all. But in 2017, McLaren Automotive took a 20-year lease on a new carbon fiber tube manufacturing facility. And in '21, the U.K. Atomic Energy Authority moved into a new building at the site, taking a 20-year lease. In 2008, planning was submitted for a new community of almost 4,000 homes at the site and this was approved in 2011. And the first house was occupied at the site just before 2012. Since then, we've sold land for over 2,400 homes to a range of national and regional house builders including Taylor Wimpey, Barratt, Harron Homes and Avant. From the start we were committed to make Waverley a great place to live, ensuring plentiful of green space, a range of on-site amenities which we'll talk to you about when we go around on the coach. And the bespoke design code, which was fundamental actually to making sure that we did achieve that sense of place and belonging and making sure that the house builders had something to abide to effectively, to create the place. So in this span, the site now includes a primary school, a junior Waverley Academy, a family pub, a community garden, several playgrounds and 300-acres of green space set around 2 very large lakes. There's also a 4-star hotel being built just across the road, and we'll soon be breaking ground on Olive Lane, which is a new mixed-use heart of the community that's going to provide shops, cafes, medical center and office space. I'll touch on some of this in detail very shortly, but a very exciting scheme for Harworth. And here are just a few images that show the scale of that transformation. The left-hand limit shows the Orgreave site as it looked in the late 1980s, just before its closure. And the right-hand image shows the site around 2011 before the first residential development took place, but with some of the AMRC buildings already in situ. And this is an image of the site taken just 2 weeks ago. So you can see the amount of development that has taken place both on the AMP and on the residential area in the distance over the space of just 10 years. But there's still a lot of work to do and this is what we hope it looks like by 2027. We've marked on here some of the key developments between now and that date, which we'll talk to you about shortly when we get on the bus. They include Olive Lane, which I've just mentioned, and Highwall Park which I'll come on to talk about next. They also include further residential development in the Waverley waterfront area. And our Net Zero Carbon Homes, part that James has talked about, as well as the mix of land sales, small-scale speculative development and build-to-suit opportunities as part of the next phase of the AMP. We've also entered into active discussions about bringing a train station to Waverley on the existing line running across the site boundary, which is at the bottom of the image here, which is the Sheffield to Lincoln line. The Waverley scheme was included in the government's national infrastructure strategy published alongside spending review announcements in November 2020. So we're now working with the South Yorkshire Mayoral combined authority to develop a business case to support a new station, which is really important for the site. And this new infrastructure would be transformational for the area allowing even easier commuting into and out of the development with good accessibility to Olive Lane and other amenities on the site. That brings me on to Olive Lane, which is something I've been working on for the last couple of years personally. This is roughly what the site looks like today. It's 10-acres. It will shortly be transformed into a new heart of the community scheme designed to join together the advanced manufacturing part of the north of the development and the residential development to the south through high-quality commercial community and residential uses. And the center will effectively support Waverley's strengthening flourishing resident population, which currently numbers over 2,500 people in addition to approximately 2,000 workers in the Advanced Manufacturing park. So Olive Lane scheme we've been aiming to bring forward for several years now. It's -- the original scheme was envisaged before COVID, and it was very retail heavy. But the delay is caused by COVID and its impact on the retail environment as well as considerations about the impact of traffic and other factors on the local area have led us effectively to revisit the design for the scheme, a public consultation for the revised scheme, which is more convenience and community focused. And as -- a greater degree of residential development is currently progressing through public consultation, with a detailed planning application due to be submitted imminently, actually. And we really do strongly believe that the new scheme, which is smaller, is going to be much more sustainable and appropriate for Waverley. Planning application for the medical center actually, which is at the southern end of the Olive Lane scheme has already got the benefit of a planning permission. We've got a contractor lined up, and this facility is about to commence shortly in the next few months. And this is an artist's impression of Olive Lane. Just to orientate you, you've got the residential area at the bottom of the picture and the AMP slightly uphill at the top. You can see that the scheme will be focused around the high street on the eastern side or the right of that picture, with a medical center closest to the residential area at the bottom and commercial units forming the street, leading up to stairs to the north or top of the picture, which will then connect into the AMP. At the center of the scheme, you can just see the blue line going to that. We'll have a convenience store, which we are already in discussions with a local retailer -- no sorry, a national retailer. And then the remaining space to the west of the local center will be a mixture of slightly higher density residential and townhouses. And you'll see the quality and design of that type of product when we get out there on the bus. So we feel that, that whole scheme is going to be very vibrant, and the quality of the architecture is going to be fantastic. So this is an artist's impression of the high street, looking down from the steps from the AMP towards the Waverley residential area. Note that the buildings have been designed to gradually transition from the materials used in the advanced manufacturing parts such as corrugated cladding through to much more brick work as we head towards the houses, towards the bottom. And these are some artist's impressions of what the Street might look like in the evening. With a range of shops, cafes and restaurants available. And then finally, this is a view from the bottom of the high street from the residential end looking north. And again, you can see the greater use of brick work and timber to tie in with the housing reflect the residential area. And then in the foreground here, you can see that's the medical center, which will be developed by a specialist in partnership with the local council and clinical commissioning group. And then finally, another really exciting piece of work that we're about to embark on this year is what we call High Field Park. This is key infrastructure that we'll shortly be commencing at Waverley. It's about 1.5 kilometers of green spares, called Highwall Park. The park will connect the AMP through the housing right the way down to the Waverley Lakes, via Olive Lane and will comprise 4 distinct areas: number one, an area of tree planting with [indiscernible]; number two, a main area of play and activity, including a British cycling funded bike track and outside gym equipment; number three, Wetlands; and finally, open Grasslands used for games and other recreational purposes. So that's Highwall park, and we look forward to showing you where that's going to be after lunch. Look, I mean, it looks very small on there, but it's a huge vast stretch of land. The next site that we will be visiting this afternoon will be Gateway 36 in Barnsley. Gateway 36 is a site that actually I've been involved with for about 10 years now. It's a 127-acre site. It's formally home to the Rockingham Colliery. It benefits from -- its adjacency to Junction 36 of the M1, so fantastic location and direct frontage onto the Dearne Valley Parkway in Barnsley providing direct links to Leeds, Sheffield and Doncaster. The development received GBP 3.1 million of funding from Sheffield City region, which we've spent on the infrastructure works at the site. And then in 2015, we received outline planning permission for Phase 1, which comprises about 145,000 square foot of space with units let to occupiers, including the environment agency Esco and car supermarket and a number of small fast food outlets, too. Then in summer 2019, Harworth sold the commercial units on Phase 1 to Mayfair Capital to fund new acquisition opportunities across the business. And then in December 2021, we sold a 24-acre plot at the site, representing Phase 3 of the development to Firethorn for GBP 11.6 million. And Firethorn, as you'll see later, are now on site, constructing a 340,000 square foot logistics facility. Earlier this year, we Harworth completed the development of 110,000 square foot of Grade A industrial and logistics space at the site across 3 units, which are sort of bottom left of that picture, representing the initial stage of what we call Phase 2 and these units were Harworth's commercial building spec that Pete mentioned earlier, achieving a rating of BREEAM very good and then benefiting from the installation of solar PV panels with the ability for occupiers to increase this to full roof coverage. The wider scheme includes 20 EV charging points, rainwater harvesting and a sustainable heating and cooling system, as well as a building envelope design that is sympathetic to the surrounding environment, which you'll see when you go up there later from the colors of the cladding and the design of the buildings, which are effectively set on a large hill side. Planning has also been submitted for 139,000 square foot unit at the site as part of the next part of Phase 2, which Harworth intends to pre-let before construction begins and you'll see that's the top building on the top left of the picture there. And this is what the site looked like a few months ago. We recently completed the letting of a 39,200 square feet unit as part of that first phase -- of the second phase of development, if you like. And that unit has been let on a 10-year lease to a lifestyle fashion brand, Lucy & Yak and will be used for warehousing and distribution, and we should be able to get you in to have a look at that later. You can also see on this slide the construction underway of the Firethorn unit, which is to the right of the main road here just in the middle there -- and sorry, just towards the top of the screen. So lots to see at this site when we get there this afternoon. I really look forward to taking you around and showing you some of the units. That brings me to the end now. I'm going to now hand you back to Lynda, who will make a few closing comments. So thank you.

Thanks, Chris. So we've been busy, I think. And I think the one thing when you look at these pictures on the screen and you get on the sites, the pictures make them look a lot smaller than they actually are -- these sites are enormous. So I'd like to thank my colleagues for the presentation and [indiscernible] them through the material that they have so far. I think we've covered a lot -- and I'd like to open -- before we open it up to Q&A, I'd like to just conclude with a few final points. Just really to reinforce the fact; I mean, what you've seen my colleagues present shows that we are a long-term through-the-cycle business. These schemes don't happen by magic and they don't happen in 1 or 2 years. They take decades. We've made some really strong strategic and operational sort of progress so far in 2023. Again, it's a more challenging market backdrop than maybe we saw 18 months ago. But we're also delivering against all 4 drivers of our GBP 1 billion growth strategy. As James has covered, diversifying our residential products will be a key component of that strategy. The market dynamics for these products remains favorable, and they will help us to accelerate development, add to placemaking and grow our strategic partnerships. As Pete has covered, a massive amount of work in this space over the last 12 months. The Harworth Way will be our guiding framework as we execute our strategy, ensuring that we make positive lasting impact for our communities, the planet and our people. And the development you'll see today as well as those that have been brought to life across Yorkshire & Central and the rest of our portfolio are really exemplars of the Harworth way in action. Our focus markets are drivers of economic growth, and they continue to have really robust fundamentals. And moreover, in an economy in need of planned reform that truly drives growth there, I've not got off that bandwagon yet and won't stop. There remains an acute shortage of high-quality consented land. We control our land bank, we control where and when we invest, and we have a highly experienced management team who focus on execution. And as we navigate the business through the challenges of the wider economic backdrop, we're confident that the strategy is the right one to deliver long-term value to stakeholders while meeting our net 0 carbon commitments. And our strong financial position, our differentiated products and the scale and mix of our portfolio position us well to realize the full potential of our size. So with that, I'd like to invite the speakers back to the stage please, and Kitty, if you would, and we'll go to Q&A.

So if you just bear with us in a couple of moments, we're just going to just set up slightly so that you can see us all in those watching online can as well. We'll take questions from the room first, and then we'll get to anything that comes in across the webcast. I know we've thrown a lot at you. Questions, I've got Colm, who's just about halfway down.

Thanks, Lynda. Sorry, for being the eager beaver, but I thought it was very interesting on the new proposal on the net zero carbon, housing side of being your own direct build approach to the market. I think it's very interesting. It's also a new departure as the strategy evolves and perhaps James is a question maybe for you, for a bit of detail on it or Pete as well on the sustainability side. So one of the things I'd be curious to look at is given all the relationships you have with national and regional house builders across the portfolio, have you seen examples of those house builders taking a sort of net carbon zero approach on their specific sites. So are there similar products being built on these locations? And then when we look at perhaps some of the details around it, and obviously, it was stipulating that you must have him heat exchanges, et cetera, built in. Are there examples of that elsewhere in terms of are there housebuilders within the overall portfolio going down a similar route? Or is this an entirely new point and a new departure for your sites?

Shall I start and then just sort of hand into Pete and James. So you will see, and I know they're going to say this house builders across our geography as well as the rest of the country that are starting to bring forward net zero carbon development to be able to measure and demonstrate sort of the performance of that product and both in terms of the technology, but also sort of the market. So you start -- we are seeing that, and we're seeing that across some of our house that we work with today and have worked with for a number of years. One of our objectives in what we're proposing is as a master developer and the fact that we put all the infrastructure in, we really want to understand how this works. We want to understand how the infrastructure works. We want to understand how we can make it work on our sites, and how we can integrate it. And we think -- I mean, as James hopefully brought to life that there are some more tricky sort of parts of some of our sites that actually this is a better fit product for. So we want to make sure that we as Harworth actually understand how we deliver that, how it performs because that will actually help us to unlock some areas of our sites that may be harder to do. It's not every site that supplies is harder to do than others, but will also be -- it will inform the discussion that we have with some of the housebuilders to bring some of their products into our sites. So there is an element of pilot and testing on this. Do you want to pick around maybe some examples, James, of who's doing this around the region?

Yes. I think just to clarify, so the government has always moved in the industry towards net zero carbon. So everyone is moving greatly in that direction. And as I mentioned, the key focus at the moment is moving towards the future home standard, which is aiming to get people into net zero in operation by 2025. So there is a big push there. I think the key differentiator that we're looking at for this parley is how we actually zoom in on the embodied carbon because that's something really where everyone is so focused on the operational carbon. It's is how do we deal with the embodied carbon through the process of development. And with us being a master developer, we look at what does that mean in terms of the ground, as well as the house building. And that's to get us towards the 2030 objectives. So we're looking well ahead in terms of the future. So that ultimately when we hand the house over to the end customer, we can effectively offset any residual carbon, so it is a truly net zero carbon house. So I think the differentiator for our product is really about understanding the embodied carbon as well as that operational carbon target.

[Indiscernible] just looking forward. We're in the process of getting new planning permission for new residential sites. If you live in London, you'll be familiar with the carbon sort of tax arrangements in place in London, you'll be familiar possibly with what's coming through in Manchester, Leeds, in terms of consultation from a planning perspective. So part of the pilot is us understanding what we need to meet for those future planning permissions and also preempting the question of the local authority planning departments in relation to zero carbon, not only from an operational perspective, but also from an embodied carbon perspective. And really the whole thing feeds back into the rather complex flow chart I put on the screen earlier in terms of also understanding our impact from start to finish.

Any further questions? John and James.

John Mozley, Liberum. Can I ask a couple of questions around the affordable homes portfolio. The first one is, are you going to actually be responsible for delivering the homes yourselves? Or are you going to be just selling the land for someone else to actually deliver them? So that's the first question. And then the second question was, is the idea of this that effectively you're taking away the Section 106 responsibilities from housebuilders and that makes the other parcels of land more attractive to them?

James that one -- you?

Yes. So to answer first question, we are proposing to deliver the homes on a forward funding basis, so very similar to the build-to-rent portfolio that we have in process. So we're working with our delivery partners, and it will be a turnkey delivery. So we won't ultimately be operating or owning the home, just delivering turnkey via our partners. To answer the second question, it's a blend of additionality as we talked about earlier, so where there isn't a 106 obligation and benefit from the group funding, but also where we do have those Section 106 obligations, then yes, the proposal is that Harworth could self-deliver those. So that really helps us with the place making so that we can bring that forward earlier, and we can control whereabouts we deliver those and the quality of those homes. And that, in turn, should drive value through subsequent land sales.

And can I ask one last question. Sorry to ask this -- can you tell me what sewage cake is, please?

I'm going to definitely shut that one up, Pete.

Pre-lunch, given my response to [Indiscernible], but it's waste material that's used in fertilizer that allows soil lichen to occur, which then allows biodiversity flora and fauna to a flourish effectively.

No, I'll ask different questions. I mean, I guess looking backwards, you've had one route to market on the residential side. Looking forward, you're going to have, what? Probably 4, well, potentially more reason, you have quite a few different routes to market. I mean, I shall I think in terms of the step change in delivering some of these bigger projects like Waverley, I mean what are we -- I mean -- well, if you rerun the clock and you're doing Waverley starting today, it looks like it's going to take about 15 years or so on the residential side. How much quicker could you do that with these different routes to market now and looking forward?

It's a really, really good question. Do you want to go? Or you want me to go? When we did the strategy -- let me just wind back probably 2 years, it's probably as [Indiscernible] was involved really heavily in that [Indiscernible] . When we did the strategy work, we looked to -- at that time, we're probably about 30,000 plots in the portfolio. And we had a number of things going on. When we look to each site in detail, you've got the absorption rate -- market absorb rate to sales for those sites. Some of those were telling us we could go fastest. So Waverley and Coalville, for example, Waverley very established location, there was demand from housebuilders, they knew the product, there was demand from occupiers and people to buy. All the announces we did said we could go faster on sales. And Coalville established itself really quickly, but also being further south it's a different market dynamic. And again, we've been able to go sort of faster on that on sales. So the analysis site-by-site also showed us that there were some sites around our patches where actually you might get a sale every 2 years or every 3 -- and that because just the local market couldn't absorb that. But when we looked at it through a rental lens, there was a very strong sort of rental market sitting there and people waiting for product. So what it enables us to do is probably go sort of faster on those sites that had slower absorption. So let's say we work through those -- so it's not necessarily twice as fast. It's not that binary because there's a certain amount of how we phase the infrastructure, building the Ecom rental product dominating a site versus the [Indiscernible] product that got to [Indiscernible] in tandem. But there is an acceleration. And it's that point as we were doing at 860 units a year, where we sized it, so we'd be going around 2,000 plots a year. So that sort of gives you a scale that it's more than double, so the number of units. But site-by-site it's not necessary as they were going twice as fast because they still all have different market dynamics. I don't know if you want to say, was that what you would have said?

Yes, I would -- very conveniently, yes. No, I would have said that in a similar way at Waverley. I would have thought sort of a large site like Waverly, Coalville was sort of running with a maximum of sort of 3 to 4 of outlets for housebuilders at any one time. So you are limited by sort of the phasing that you can bring through. You also don't want too much of the alternative products on your sites as well. So there's a balance for every single site. So I suppose that Waverly, we would have been thinking about a couple of phases of built to rental. If we started a bit earlier, we might have had sort of a phase of sort of affordable in there. And so you'd be sort of putting those alongside as of your house builder and so flags of work through. So it would sort of speed it up. It wouldn't be double. My sense would be something like 1/3 or so, sort of quicker. But every site is different. Every dynamic is different, and it's important that we work with the constraints of each site to get sort of the maximum value out as we go through.

I think, James, one other thing I'd add is, it's important to look back and think about where the company was in 2015 in terms of size and scale and the capital to deploy. We're a totally different business today through that lens. And actually, we now plan on the basis that we're describing to you today where I think actually sort of back then, it would have been much harder to have got that momentum and that speed because we wouldn't have been able to fund it so...

And the build and rent sector didn't exist -- it is a function of where we are now, but it's quite interesting as we underwrite new sites because lending as we now sort of factor in sort of those mixed tenure products now into our underwrite. So we're starting to sort of get visibility of how we can sort of build those in on a regular basis.

And then maybe -- you talked about the transformation in the last 5, 6, 7 years of Harworth. I mean, clearly, part of that is increasing the kind of the skill set within the company. You're now moving into appreciating possibly small amounts, but you're building houses on your own balance sheet. I mean does that require another kind of change in that internal kind of resource and skill set? Or do you think most of that's now in place?

I mean we've sized the company to deliver the early phases of the strategy. As we get -- I mean, you can see with the sort of affordable product, that's another sort of big slug of sites that we're going to be delivering on behalf of an investor, sort of actually as we move into some of these other things. We will need to put some more resource in as they go. We look at each -- not just the business, how it's running today and the resources we need, but actually, we're looking forward to say, actually, at the point we've got maybe 14 sites in production at the same time, sort of on whether it's spur or whether it's affordable or whatever. Actually, as James has outlined, it's him plus 2. It stands to reason. And even with the skill set in the regional teams, the regional teams are active across not just residential, but they've got the sort of commercial in there as well. So we will continue to sort of put resources into the team to support the delivery and where we're driving an unlocking value.

And Dan, I would just sort of pick up on your point about sort of building on balance sheet. And we are with the net zero carbon product. But we've got 30,000 plots in the pipeline. We've got sort of 7,000, 8,000 sort of consented we're delivering 2,000 plus a year that we're talking about 100 homes in the first instance. So this is very much about sort of trialing it as a system, taking the learnings for what does that mean to James' point on sort of embodied carbon, what does it mean for the infrastructure that we put into our sites like Iron bridges, we're delivering them sort of fully electric, how can we help the house builders to their product as well. But at the moment, it's not that sort of that big sort of shift.

And I think just to add to that, if you think about our product for house builds, its service remediated land. The service remediated land product of 5 years ago is not going to be the service remediated land 5 years in the future. So it's all part of our as getting to grips on that actually.

It's Lee Marshall from the PPF. Two questions. One more general, which is sort of how do you balance in a project like Waverly or generally projects like Highwall Park and place-making with monetizing the space that you have to work with? And then the second question, which is probably for Pete, which is why not start the sequestration projects earlier rather than leaving them right until the end of the process?

Can you do the first one?

Yes. I mean, I'm a firm believer that actually, I think Harworth is in a really, really unique position as a major strategic land owner that actually -- the initiatives around placemaking and SGM value creation actually go hand-in-hand. And there's not many companies that I think can say that. But as Harworth, I do believe that when you create the right facilities, you create the right social value you put in place so the schools, the shops, the Highwall parks of this world, what that enables is ultimately more people to want to come and live on your sites, which does do something for supporting and buildings at the land values and -- and also sort of house prices on the site as well. So I do think there's that link. I think the other thing is it's really important we make commitments to our communities as well as part of securing our planning applications, a part of looking at delivering sites that look and feel like Harworth as well, and we think quite a lot about that. It's not necessarily for us about just building sort of the densest schemes. It's about having sort of the right balance because we believe that, that will go to delivering sort of value over the long run. So it's sort of -- it's not always -- you can't -- you're always sometimes making a little bit of a leap of faith on some of that. But I think that when we compare places like Waverly and we look at it relative to sort of the market growth, we can see that actually we create something that's quite special where people want to be. So that's very much how we approach and sort of size it through and look at how actually we can through that place-making deliver a premium on other schemes too.

Can I just add a little bit to that. Actually, yes. I think back to the mixed tenure and the acceleration, I think it's really exciting for me, and in terms of cash flowing the full development cycle, it's -- the projects like Highwall Park, instead of coming towards the end of the development, actually, we hit a critical mass earlier because of the diversification, then you can start delivering the really key infrastructure much earlier in the cycle. So that for me is the exciting win.

And then Pete.

The sequestration question? So if you look at the 2 graphs [Indiscernible] corporate emissions roughly 1,000 tonnes for last year and our development emissions, which would be substantially larger. And the way we've approached this, and if you're familiar with the offset market as it stands, it's quite a great area. So the way we're approaching it is for our corporate emissions, we're looking at being in control of our own sequestration, using different terminology to offsets. The reason that, that sequestration comes in, in the future years is hopefully to allow us to grow a number of facilities. So if you use [Indiscernible] for instance, as a sequestration process, the benefits of that doesn't accrue 4, 5, 6, 7 years until the trees to start to mature. So you'll see that sequestration starts roughly in 5, 6, 7 years' time, give or take. And then more widely on the offsetting side of things from our development. As I said, it is a great area at the moment. There are no strict definitions. There is an emerging market. You'll have seen the BBC press articles recently around offsetting. We're taking a very considered approach to that, and we'll be developing our strategy in relation to potential offsets in the main around our embodied carbon emissions. So our ethos on our commercial build and on our residential product is to address the operational emissions/energy challenge through good design. But the embodied carbon element, we won't keep a really close eye on and that will come through further development of our specifications, but also as planning authorities start to implement sort of carbon emission tax processes as well.

[Indiscernible]

Thanks for the presentation, guys. A few left for me, I think. The first one, just following on from the comments you made on resources going on to the residential side, I suppose, in addition to additional people that may be required to go down the more diversified route that you spoke of. It's also an additional skill set. And I wonder if you can give us an idea of the scale that you think is required in the business to satisfy that. But also whether to date, you found that the availability of people with that skill set, whether it be dealing with [AHPs] and other entities like that, whether that's something that's been easily satisfied for the business or whether that could be a sticking point going forward. Second one, just more big picture on residential, how your thinking has evolved or whether the thinking could evolve on the [Indiscernible] for these residential developments ultimately to fall into the income portfolio and whether that's -- it could be suitable within the business in that way in the future. And then the third is just on sustainability, I suppose. There's a lot of very long-term targets set out in the presentation. We know that you've had a focus on this for quite a while. I wonder to what extent you've been able to or for that extent, we'll continue to see Harworth push this into the remuneration strategy more generally, whether that be at a senior management level or across the rest of the business and how that has progressed to date.

Okay. Am I just answer that very last part -- of that very last point really quickly. And then I'll bring sort of Pete and the team in to maybe sort of add a bit more color just because it will be the [Indiscernible] front of my mind. Last year, we had, in our group scorecard, we had a 5% target for the entire business on ESG for -- so that last year in 2022. For 2023, that's 10%. So it's in all of our -- every member of the Harworth team in the room, it's actually in all of our sort of targets. We've taken that approach because we think it's really important to basically walk the walk, sort of within the business in terms of how it links into our remuneration. So that's just like you have snapshot is in there already. We've grown it sort of year-on-year from 5% to 10%, and then I'll come back, maybe sort of Pete to sort of talk about some of the other things because there's a lot going on in that sort of ESG and net zero carbon pathway space. In terms of resourcing into the company, we've grown significantly, as you'll have seen, sort of it's reflected in the sort of overhead sort of costs that you see in our annual reports. We don't see ourselves in the next period growing at the same rate as we've grown in sort of in the last sort of 2.5 years. So we will continue to grow, but it's more selectively about making sure we're supplementing resource sort of into parts of the business where we're opening either new areas up to create value or to sort of great profits and grow. So if you look back over, I think since I joined, we probably have between 30 and 50 people joined depending on which financial year you look at. Some of those have replaced sort of people who have either left a company or we had interims. But we've grown quite significantly and actually upskilled sort of the sort of business in terms of putting more of the skills in that we need. We don't see that the next phase of that strategy is going to need that same sort of leap again, but we will need to grow probably, I suspect, over the next sort of few years by sort of 10 to 20 sort of as we roll out some of these initiatives and the business continues to scale up because that's the phase we're in. We're in the phase of scaling up a business. And actually, that means we've got more and more things moving simultaneously.

Yes. Let me take question 2, yes. So I think numbers around sort of holding residential products within the investment portfolio. And I certainly think that's sort of a really interesting sort of opportunity for us as we progress. It maybe into the middle term or medium term as we prove sort of the product and continue to sort of deliver the mixed tenure products across the sites. I think at this stage, we're very conscious that actually managing a residential portfolio is very different from managing an industrial and logistics portfolio. We already have an experienced asset management team. We've got GBP 250 million of industrial and logistics space. So holding and managing sort of that part is a very natural progression of the industrial and logistics development pipeline. It's something that we've been doing for years anyway and so part of that transitioning through. So the residential side, at the moment, we see probably the investment portfolio being met more by industrial and logistics than residential. But I think as it becomes a more sort of established market, as we understand the product, it's definitely something that we'll continue to keep an eye on.

And we do have some of those skills or people with that skill set in the business from a fund management or an asset management lens. They're all doing different things at the moment. So that skill set is there. It's just not deployed at the moment into sort of holding that resi stock. I just want to come back on -- you asked me how easy we were finding it to hire and find skills. I mean, I was at South Yorkshire CEO networking thing actually last night and skills is the #1 and everybody's priority on all of the CEO's list in terms of being able to sustain and grow their businesses. And actually, we've been really successful in hiring in a really difficult market. It comes back to something Pete said in the people's slide. We want to make ourselves the employer of choice, and we want to make sure that the people within our business have a career path that they can see in Harworth. And that means sort of a lot of the work that we've done over the last couple of years around remuneration, around well-being, around some of the policies that we've brought in, actually we're all going to support that side of it. But fundamentally, Harworth has got a really strong culture. I mean, people are massively proud about what they do, and we do think we make a difference. And I think that's just -- that's a magnet actually, for people who want to just come and work in a great company. So we've been really good at hiring over the last sort of 18 to 24 months. And we're continuing to make sure that the company is seen sort of speed to be that place to get it. And then Pete.

On the ESG, the only one thing I would add, and it kind of hopefully comes across in the interlocking model that we demonstrated [Indiscernible] that we don't necessarily see ESG and sustainability as a separate thing to what we do. It's an integral part of it. So alongside the measures that Lynda has described, the other targets by their very nature, embeds ESG and sustainability measures within them, whether that's around the commercial buildings or residential or master planning. So we're very much trying to take the ESG and sustainability arena and embed it as quickly as we can as the legislation regulation arrives straight into that delivery model and then it manifests itself through what we deliver. So hopefully that gives a bit of a steer.

Okay. Any more questions in the room? We've got any online?

So the first question is, is the planning system making it hard to -- or is it delay in approvals for sites like Skelton Grange and Gascoigne Wood? And if so, what levers do you have as a business to pull to speed that process up?

The answer is yes, but it's not peculiar to Harworth. It's only major housebuilder will talk to you about, any developer will talk to you about the planning system basically is not massively user-friendly. And it has got slower. It's got slower for a number of reasons. COVID actually got an extraordinary amount of planning obligations going for domestic things, alongside all the sort of big commercial sort of schemes that would have been put forward. And it's broadly going into the same funnel and the same teams in local authorities. So there is a sort of volume issue that's going on here. There is a resourcing issue. Local authorities have struggled to retain and recruit planners, and it's different. The bigger authorities tend to have more resource. Smaller authorities can actually sort of struggle and being more challenged. We work really hard on relationships with local authorities. It's massively important. There is a heart and minds things there. They need to believe what you're doing as a business is going to be great for their communities. They still have a governance process to go through that sort of they are able to defend any decisions they make. It has been slower than I think at any point in my career in the last 2 to 5 years. We continue to bash away at the most senior levels as well as actually the most junior levels in planning authorities to push the schemes forward. Your ultimate sanction, of course, is like you take it to pursue a case for non-determination of an application. It's a very hostile act. It doesn't win new friends and actually sort of my experience is people have [Indiscernible]. That's not Harworth. We try to get back consensually in a way that delivers the right scheme sort of in the right location. But it is taking time. There are resource constraints. We've had local elections. We've got focus now turning to the general election. We've got combined authorities forming who are taking a look at everything that's coming into them. And it is just a case that we just keep pushing away, like I say, from the most senior and most junior levels to get them through. My experience is planning has always been hard. It's something we're really good at, but it is taking us time.

And then the second question, I think, is probably more for Kitty. It is -- you mentioned the use of local authority funding to deliver some of your sites. Is this part of your funded package going forward?

Yes, but that's -- it's not something new. So whenever we sort of underwrite a site, we're always looking at where might there be pockets of capital that we can tap into. I think the important thing on our site is we don't rely on that money. It can be quite short termism as and when it becomes available. But we absolutely do not use at Waverly. We've used this sort of Logistics North, Moss Nook, we're using at Chatterley at the moment as well. So we do use those and it comes in variety of forms, comes in grant form, comes in loans as well. And then also we access the local authorities that pension fund type money as well to sometimes sort of borrow as well against those sites, which typically the sort of money is looking at what are the social outcomes, what jobs are we creating, what's the GVA, et cetera, how we're approaching the development and sometimes the pricing on that can be attractive as well. We've also used obviously sort of [Indiscernible] money in the past as well. So lots of different sources. And we're always looking at what's the best use of sort of funding where can we pool it from on our schemes. But it is -- I think I always think it's quite nice that we have success almost without it as well, but where we can use it than we do.

Great. there's no more questions from the webcast.

Okay. So you've got any more questions from those in the room.

We've got the rest of the afternoon with us so you can ask us anything you've do not want to ask us in here. I'd just like to thank those people who have joined us online. If something occurs to you after this, please message us, and we'll come back to you and for those in the room, and thank you for listening. And I think we've got some lunch outside, and then we'll start the tour of sites. Thank you, everybody.