Record year predicted for Henry Boot
CONSTRUCTION and property investment firm Henry Boot is looking for a record year in 2016, after announcing they will be delivering more commercial development schemes than at any time in the company’s history.
Revenues reached £176.1m in the year to 31 December 2015 up from £147.2m the year before.
For the year to 31 December, profit before tax increased 14% to £32.4m.
In 2016 Henry Boot will begin to deliver approximately a dozen projects with a gross development value of around £500m over a period of four years.
The construction company said that there is ongoing demand for high quality residential sites and UK housebuilders are performing strongly, indicating a good year ahead for the business.
This follows a period of management restructuring for the business.
Jamie Boot moved from chief executive officer to non-executive chairman, taking over from John Brown.
John Sutcliffe, formerly group finance director moved into the role of chief executive, with Darren Littlewood moving into the finance director role and there was a number of non-executive director moves, with Joanne Lake, Peter Mawson and Gerald Jennings joining.
John Sutcliffe spoke to TheBusinessDesk.com. He said: “Provided the markets look after us,and we continue with the kind of economy we have at the minute, it will be steady.
“What you don’t see in the results is how much work is going into things moving forward. We’ve gone from having a development pipeline of £100-150m to a dozen projects worth £500m GDV.
“There is far more petrol in the tank today that 2 years ago and more in terms of opportunities in 2016 compared to 2014/5.”
In terms of the state of the market, Mr Sutcliffe said that he looks upon the EU referendum like the Scottish devolution referendum and the General Election.
He said: “These events create a hiatus in the market. People sit on their thumbs. It’s a shame that we have had three years of it.
“In common with every business, we’re here to get things done and generate returns for shareholders. At the end of the day, we’re a UK-focused business and will see no direct impact on the business from coming in or out of the EU.”
Mr Sutcliffe said that part of Henry Boot’s success was avoiding more speculative development, taking the risk away by pre selling developments. He said that 90% of the development pipeline
“It’s a really good position to be in – trying to do over last 18 months.”
Markham Vale will see Henry Boot delivering 1m sq ft of industrial space, as well as a major scheme in Aberdeen following approval from local authorities to kick start the construction firm’s major pipeline.
Jamie Boot said: “I am delighted to report a 14% increase in profit before tax to £32.4m for the year ended 31 December 2015. Once again, all our business segments performed well within a solid UK economy.
“I have taken over as chairman with the business in excellent shape and with our people energised to deliver significant growth in activity. I look forward to reporting on progress through 2016 and beyond.”
