Derbyshire construction company faces challenges

Henry Boot’s leadership has acknowledged that the construction division is performing below management’s expectations due to challenges in identifying suitable contracts.

The latest half-year results for the construction company indicate a decline in pre-tax profit in the construction division, falling from £6.6m to £4.4m for the six months ending June 30, 2023.

Turnover has also decreased from £66.5m to £56.2m.

The division has achieved only 72% of its targeted turnover for 2023 due to project delays caused by uncertain customers and only 18% of the 2024 order book has been confirmed so far this year, falling short of the 65% target.

Two of their primary contracts this year have experienced delays, and the Banner Plant division is also performing below expectations.

The group’s pre-tax profits rose to £25m from £39m in the previous period, thanks to increased land sales and strong housing completions.

Turnover also saw an increase, reaching £179.7m from £144.4m before.