Confidence building in property marketplace – Henry Boot
THE stabilisation of the commercial property market is giving firms confidence that will help fuel a recovery.
That is the view of John Sutcliffe, finance director at property and construction group Henry Boot, as the company announced pre-tax profits of £18.9m today, turning around an £11.9m loss in 2009.
Speaking to TheBusinessDesk.com, Mr Sutcliffe said: “It feels like we have got a fair market to be working in at the moment where we can make money provided there are no further financial shocks.
“Going back two or three years, property values were just falling and we didn’t know where they were going to stop. Our development business just shut up shop and wasn’t doing anything. You couldn’t do anything because you were catching a falling knife.
“Having got to the bottom we have at least had stability from that and we have started to get a bit of growth. It is not going to be easy but you can budget, you can forecast and you can plan.
“Generally businesses are going to be cautious but a bit more optimistic than they have been. If that stability breeds confidence we will see the recovery grow.”
Having cut debt during the recession, Henry Boot now believes it is well placed to take advantage of opportunities as the economy recovers.
Mr Sutcliffe said: “We have got plenty of opportunities in our business. Within our own control we have probably got developments valued in excess of £250m to £300m, 20 to 25 opportunities within the development portfolio that could give that kind of gross development value and within the land base we have got some cracking sites.”
Among the opportunities the company is looking to take forward is a new phase at the Priory Park business park in Hull and has asked for European Regional Development Fund money to help unlock the project.
Mr Sutcliffe confirmed the firm was still waiting to hear the outcome of that application but said necessary agreements were in place with the Highways Agency clearing the way for a planning application to be submitted.
