Henry Boot CEO hails ‘resilient’ results despite falls in revenue and profit

John Sutcliffe

The outgoing chief executive of Sheffield-headquartered construction business Henry Boot is pleased with the firm’s half-year performance – hailing them “resilient” in a deal-driven business impacted by the UK economy.

Reporting on the half-year period ended 30 June 2019, the listed firm said its pre-tax profits had fallen 8%; from £26m last year to £24m in the current period. Revenues fell from £196m to £188m.

Chief Executive John Sutcliffe, who is to retire from his role in January, said: “Once again, we are very pleased to report on another period of successful trading. A deal-driven business, such as Henry Boot, always shows a degree of variability in profits and to have achieved over £24m in profit before tax, given the uncertainties affecting the UK economy, is a very resilient result.

Trading conditions in the first half have remained consistent with 2018 and all business streams performed well as we continued to deliver a significant number of high quality land, housing and commercial development opportunities. Hallam Land, in particular, had a strong half year.”

The board declared a 16% increase to the interim dividend to 3.70p (2018: 3.20p). 

After the period end, Henry Boot handed over The Event Complex Aberdeen (TECA), concluded on two investment property sales  and acquired a majority shareholding in Starfish Commercial – a small partnership homes contractor in the North of England.

Earlier this month, the firm announced the appointment of Tim Roberts as Chief Executive with effect from 1 January 2020. Sutcliffe, will continue to lead the company until the end of 2019. He will then remain in an advisory position until the conclusion of the AGM on 21 May 2020, at which point he will retire and step down from the Board.

The business operates three divisions: land promotion (Hallam Land); property investment & development (Henry Boot Developments and Stonebridge Homes); construction (Henry Boot Construction, Banner Plant and Road Link (A69)).

It Hallam Land division reported that 2,148 plots sold in the period, across 15 sites. Henry Boot said that the continued availability of land with planning consents in good quality locations had ensured that pressure on land pricing and average returns per plot continued.

But the firm added: “The UK’s exit from the EU has not impacted our business activity in the first half of the year, but the change in political persuasion of several local authorities in recent local elections has resulted in additional delay and uncertainty in relation to some of our projects. However, we continue to source a very healthy number of new opportunities in strong market locations.”

 

Trading in the second half has started well and we remain confident in meeting expectations for the full year, albeit some uncertainty remains regarding the UK’s exit from the EU and how this may affect future trading conditions. However, the opportunities we have do not change and we will be carrying little or no debt, from the disposal of assets held for sale, should any competitively priced assets become available to us.”

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