Proven skills help unlock success for Yorkshire developer

ONE of Yorkshire’s biggest property group’s says having an excellent track record and proving your skills, will help to unlock finance for future development.

Henry Boot, the South Yorkshire-based construction and development group, said despite working in a cyclical market, it has an “unprecedented” number of profitable land and property development sites to work on.

Finance director, John Sutcliffe, said: “We’ve got good support from the banks and I think there will be financial support for other successful property companies.

“The banks are naturally now more choosy about who they will lend to – you’ve got to be really good and show a sensible track record.

“We never borrow more than 60% loan to value. Businesses should be relatively prudent about the level of borrowing.”

In its full year results announced yesterday, the firm, which employs around 460 people, reported an increase in operating profit of 34% to £19m and a jump in pre-tax profits by 37% to £18.4m. Dividends for the year increased 8.5% to a record 5.1p and revenue increased by 49% to £153.8m.

“We are always going to be in a cyclical market and industry but over the longer term, we have got really good opportunities.”

One of the challenges facing Henry Boot, according to Sutcliffe, is the planning process.

“Our core aim is about improving the value of residential development but the planning process is a challenge. If we are successful in the process we will add some great value to the opportunity we have got.

“But our strongest asset is getting difficult sites through the planning process. We can add a lot of value to relatively low value acquisitions and can create something really valuable.”

However, Sutcliffe said the planning process has got slightly easier recently. In 2013, the group got 60 sites through planning but two years ago, only 35.

Sutcliffe highlighted the National Planning Policy Framework (NPPF) which requires each local planning authority to review annually the five-year supply of housing in its area.

“This has become the crux of the planning process. If that local authority doesn’t have that five year supply, there is a good chance of gaining permission.”

Overall, Sutcliffe said every part of Henry Boot – which has a number of divisions including Stonebridge, a residential property development specialist, Hallam Land Management, Henry Boot Constructions, Banner Plant and it also operates the A69 road between Newcastle and Carlisle – is moving ahead in good shape.

“It’s about the people in the business – it is all about having really good people. And motivating them to do a fantastic job,” Sutcliffe concluded.