Property group enjoys ‘strong momentum’ after profits doubled
Pre-tax profits doubled at property group Henry Boot as it benefitted from strong demand in its three key markets.
Industrial and logistics, residential and urban development all performed well as the group generated £35.1m profits in 2021. Revenues in the year edged up 4% to £230.6m.
In particular, the increase in profit was driven by significant growth in industrial and logistics capital values – a result of continued occupier demand, increasing rents and the weight of investment capital targeting the sector – and an improvement in plot sales from its strategic land business.
The Sheffield-headquartered group sold 3,000 plots at an average gross profit of £7,820, a big improvement on 2020’s 2,000 plots at £6,456.
Henry Boot’s chief executive Tim Roberts is confident the group can maintain momentum, despite the challenges facing the industry and wider economy.
He said: “Whilst there are pressures facing the economy and the industry, particularly inflation and supply restrictions, we continue to manage these effectively.
“We have also made a very good start to the year, building on the strong momentum across the group, with high levels of forward sales in land and housebuilding, further leasing of our developments and a full order book in construction.”
Henry Boot’s share price has climbed steadily since the market slump at the start of the first lockdown two years ago and has now returned close to the all-time highs it enjoyed just before the pandemic hit.
Roberts, who joined as chief executive in January 2020, said: “Strong demand within our three key markets of Industrial & Logistics, Residential and Urban Development has helped us to achieve a good set of results.
“By continued investment in our significant pipeline of opportunities and using our strong balance sheet, we have achieved material growth in the business and secured attractive returns for our shareholders.”
Earnings per share was up 136% to 21.2p, while net asset value per share increased 14% to 267p.
