Developer keen to build on its North West activity

Kampus

Developer Henry Boot is keen to develop its portfolio in the Manchester region and build on its busy schedule of existing developments and collaborations.

The group announced annual results today for the year to December 31, 2018.

Revenues and pre-tax profits were both down, but the group is increasing its total dividend to shareholders by 13%, with a 9p per share payout.

It also managed to reduce debt to £18.4m from £29m the previous year, while gearing was cut from 11% to 6%.

Total revenues of £397.1m compared with £408.5m in 2017, while a pre-tax profit of £48.6m was down from £55.4m a year ago.

The business has a range of ongoing schemes across the Manchester region, and Adam Brady, director and head of Henry Boot Developments’ Manchester office, said: “This is another positive set of results for the Henry Boot Group of Companies, with a strong performance by Henry Boot Developments.

“Manchester is an important market for us with £450m already committed to delivering some really special schemes, including Kampus, Equitable Building and Island, a joint venture with Greater Manchester Pension Fund.

“Our ambition is to continue to grow our portfolio in the city and we’re always looking to collaborate with the most creative and inspiring people and businesses to deliver positive change.”

Kampus is a £220m forward-funded 533 build-to-rent apartment scheme and is on track to complete in 2020.

The company expects to start construction work on 27 apartments on the upper floors of Equitable House in central Manchester following the sale of the ground floor retail units in 2018.

Jamie Boot, chairman of the Sheffield-based group, said: “The key strategic ethos of Henry Boot is to create long-term value and sustainable growth for our stakeholders by financially empowering and commercially developing our people.

“In 2018 we continued this journey as we delivered yet another strong financial performance, while replenishing the longer-term property development opportunities within the business.

“We anticipate that 2019 will be a challenging year, as the UK real estate sector adapts to the marketplace following the UK’s decision to leave the EU.

“Nevertheless, I remain confident that we will achieve sector-leading results, despite the challenges we face, as we continue to build an extensive pipeline of opportunities in each of our businesses.”

Chief executive John Sutcliffe added: “We continue to take a long-term strategic approach to land promotion and property development, while at the same time focusing on the delivery of the existing pipeline which should enable us to produce good results for the years ahead.

“2019 has started well throughout the group and will see us delivering significant schemes across the whole spectrum of our strategic land, property investment and development, housebuilding and construction businesses.”

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