Property firm’s profits increase to £26.2m for last six months
Sheffield property firm Henry Boot saw a 15.9% increase in profit to £26.2m in the first six months of the year.
The firm issued interim results this morning covering the period until the end of June.
Chief Executive John Sutcliffe said he was delighted with the company’s performance but there was a word of warning about the uncertainty surrounding Brexit negotiations.
He said: “We are very pleased to report another impressive performance in the first half of 2018, achieving improved profit, earnings per share, net asset value and dividends, while significantly reducing debt, compared to a year ago.
“So long as market conditions remain stable as we transit through the political and economic uncertainties, we look to the future with confidence. We have a strong pipeline of land, housing and commercial development opportunities to provide our customers with the property assets they require.
“Trading in the second half of 2018 has started well, and given the level of forward contracted business, the board is confident in meeting its expectations for the full year and those for 2019 which, at this early stage, remain unchanged.”
Henry Boot is one of the UK’s leading and long-standing property investment and development, land promotion and construction companies.
Chairman Jamie Boot added: “Economic conditions throughout the first half of 2018 remained similar to 2017.
“The UK real estate sector thrives on certainty and stutters on uncertainty, which typically causes investment decisions to be deferred.
“The current negotiations to leave the EU do not create a certain economic environment and while there is no evidence that we are seeing investment decisions deferred, we are seeing a little more caution and higher levels of due diligence before projects progress.
“However, we continue to trade as actively as we have ever done. Customers and clients continue to take new space, particularly within the industrial and logistics markets and we have been successfully increasing the number of future opportunities in that area.
“The UK housing market remains resilient with UK housebuilders continuing to report strong levels of demand, supporting both our strategic land business and our small housebuilder. While these resilient market conditions exist, we maintain a strong stock of sites and schemes to supply customers the land, houses and commercial developments they need.
“The group continues to trade well and in line with the board’s expectations for the 2018 full year and at this early stage, our expectations for 2019 remain unchanged.”
Vivienne Clements, director at Henry Boot Developments, said: “Another positive set of results, the half-year figures are illustrative of the strength of our business.
“We have continued to build on the outstanding 2017 results, further expanding our interests across the UK and bringing forward landmark schemes that are real game-changers – Yorkshire and the North East is no exception, with Markham Vale continuing to attract new occupiers alongside our strategic business park Wakefield Hub.
“Our world leading manufacturing development IAMP, North East is also attracting a great amount of interest. The results are very much testament to the talent and ambition within our team and our continued focus on delivering high-quality schemes which we can all be proud of.”
