Henry Boot boosts profits and revenue
HENRY BOOT today said it has an “unprecedented” number of strategic land sites working through the planning process, as it announced an increase in profits and revenue.
In its half-yearly results for the period ended 30 June 2013, the South Yorkshire-based construction and development group said the higher land sales and operating profits within its Hallam Land arm and the £15m back to back sale of land immediately following the acquisition of the former Terry’s Chocolate Factory site in York have helped it report pre-tax profits up 34% to £7.4m (2012: £5.5m), revenue up to £81.8m (2012: £43.3m) and an increase in operating profit to £7.8m (2012: £5.9m).
Chairman, John Brown, said: “I am pleased to report another strong set of results for Henry Boot.
“We currently have an unprecedented number of strategic land sites working through the evolving planning process, and during the first half of the year added over 550 acres to our portfolio which now totals 9,565 acres, concluded the acquisition of the 270,000 sq ft former Terry’s Chocolate Factory in York and are currently on site with two development projects and are expecting to begin working on several others in the near future.
“We continue to trade in line with the board’s expectations for the year ended December 31 2013 and our balance sheet strength and ability to commit funding to land and property development is resulting in a significant number of competitively priced opportunities arising. These sites will serve to increase our profit generation capability in future years.”
The 125-year-old Sheffield firm, which as well as a plant hire business, operates the A69 road between Newcastle and Carlisle, said the directors have declared an 8% increase in the interim dividend to 1.95p (2012: 1.80p).
Henry Boot said its Hallam Land Management arm has had a more productive first half year in terms of land disposals, helped by the significant number of planning permissions obtained in 2012. It said it has submitted new applications where there is a “demonstrable” shortage of building land which continues to bring success in terms of new consents.
“We expect this pattern of increase in the number of permissions obtained and their subsequent disposal to continue in the second half of 2013 and into 2014,” the group said.
