Henry Boot announces record results
Construction firm Henry Boot, has reported a record year with an annual pre-tax profits rise of 40%, which is says it due to development schemes being delivered more quickly than initially anticipated.
Reporting its annual results to 31 December 2017, the Sheffield-headquartered firm said its pre-tax profits increased 40% to £55.4m, up from £39.5m in 2016. Revenue increased 33% to £408.5m, up from £306.8m in 2016 and more than double that achieved two years ago in 2015.
Earnings per share increased 49% to 32.1p. Strategic land acreage now stands at 13,273 acres, up from 11,888 acres in 2016.
Total capital employed rose to £270m. The firm is currently delivering projects such as the new Aberdeen Exhibition and Conference Centre, the residential conversion of the former Terry’s Chocolate Factory and the extension it Markham Vale industrial scheme.
During 2017, Henry Boot sold 15 strategic land sites, delivered over £60m of construction work, £17m of plant hire sales and almost £25m of new house sales through a joint venture house builder, Stonebridge Homes. The firm’s commercial development scheme pipeline now exceeds £1bn for the first time.
Chairman Jamie Boot said: “I am very pleased to report revenue growth of 33% resulting in a 40% increase in profit before tax and a 49% increase in earnings. In addition, net assets per share exceeded 200p for the first time. Dividends increased by 14% and gearing reduced slightly compared with the previous year.
“We have made a good start to the 2018 financial year, having already concluded a number of land sales. In addition, we have a strong pipeline of construction work, commercial development projects and strategic land sites working through the marketing process, on which to capitalise through the year. Our focus consequently continues to be on the profitable delivery of these schemes and the value they will create for all our stakeholders. I look forward to reporting on our success in doing this through 2018 and beyond.”
Chief executive, John Sutcliffe, added: “2017 delivered a record financial performance, primarily due to development schemes being delivered more quickly than we initially anticipated. As a result, profit before tax and earnings per share increased by 40% and 49% respectively, and we were able to more than replenish our portfolio of future opportunities during the year. Notwithstanding any potential impact from the decision to leave the EU, our business model and strategic aims remain unchanged, and 2018 has started well across all our business streams.”
Vivienne Clements, director at Henry Boot Developments in Yorkshire and the North East, added: “Our financial results illustrate the strength of our business and our hugely talented and ambitious team. We’ve been part of the property industry for or over 130 years and the legacy of what we create is extremely important to us – something which is reflected in the quality of the schemes we deliver and the strength of our reputation.”
