Best results since 2007 for Henry Boot shows strength of property recovery
PROPERTY group Henry Boot has announced its best results since 2007, providing further support for the buoyancy and optimism with the sector.
Pre-tax profits increased 54% to £28.3m in 2014, on revenue of £147.2m. This was down slightly, by £6.6m, because the previous year included £20m of unprofitable one-off revenue.
Analyst Nick Spoliar from WH Ireland said: “In line perhaps, but Henry Boot’s full-year numbers reported this morning can only be described as a stunning set of results providing extensive support for the model and suggesting that the company is well set to produce further strong results over the next 3-5 years.”
The target price is 317.5p, while Henry Boot is currently trading at 228p.
The Sheffield-based group has three divisions – land development, property investment and construction – and chairman John Brown said each “performed well in their market segment, supported by a generally improving UK economy”.
Already in 2015, Henry Boot has concluded two land sales, agreed terms on several others, and received backing from Aberdeen City Council for its funding proposals for a £333m exhibition and conference centre.
“We have had a good year, we are very pleased – all our businesses did well in the year,” said John Sutcliffe, Henry Boot’s finance director.
“It’s been a long time coming in a sense, the period from 2008 to 2012 was pretty tough for everyone in the property industry, so it’s nice to see the hard work come to fruition.
“2015 will be a similar year to last year. We are carrying a lot of momentum but I feel a bit cautious about the overall outcome given the election. Elections tend to create a period of hiatus where things seem to slow down, planning grinds to a slow pace – for this year that’s my main concern.”
Its strategic land business gained planning permission for a further 15 sites to bring its total of housing units available to 11,500, while it could double this number of permissioned units if all 25 sites it is currently taking through the planning process are approved.
Its property investment division did face some planning hurdles, including at the former Terry’s Chocolate Factory in York and at a mixed-use development in Skipton. At the York site, heads of terms have been agreed for the sale of one of the listed buildings to a care home operator and with a residential developer for the conversion of the main listed factory building into apartments. It is now in for planning and, if approved, could be on site by the end of the year,
The 56-acre development in Skipton was refused permission for a foodstore and employment scheme, however a residential and employment-based plan is now being progressed through negotiations with planners.
Its construction division enjoyed a busy year, with schemes across Yorkshire and further afield, including completing a large office refubishment for Sheffield City Council and being awarded a contract with Ampleforth College in North Yorkshire.
