Property group Henry Boot has warned of a tough year ahead with profits falling well below current expectations following expiry of a major contract and slower transaction activity continuing to weigh on the sector.<\/p>\n
The news saw its share price fall by 18% to 179p in early trading.<\/p>\n
In a trading update the Sheffield company reported a resilient performance in 2025 profit before tax for the year ended 31 December 2025 is expected to be broadly in line with market consensus, supported by strong demand for its high-quality residential land and strategic progress across the business.<\/p>\n
Chief executive Tim Roberts said the group had continued to move forward despite challenging conditions.<\/p>\n
\u201cDespite the uncertain backdrop, we have delivered a resilient performance in 2025, underpinned by continued demand for our high-quality land,\u201d he said. \u201cAcross the group, we have made good strategic progress which positions us well for the medium term.\u201d<\/p>\n
A key driver was Hallam Land, which achieved a record 3,957 residential plot sales during the year, significantly ahead of 2024. The division also secured planning consent for more than 4,100 plots and fast-tracked applications for over 11,000 plots in anticipation of favourable planning policy changes.<\/p>\n
Strategic simplification was another major theme, with the sale of Henry Boot Construction completed during the year. Roberts described the disposal as \u201ca significant step in sharpening our focus on high quality land, prime property development and premium homes\u201d.<\/p>\n
Housebuilding arm Stonebridge Homes had a tougher year, completing 185 homes, well below expectations due to planning delays and softer demand. However, Henry Boot increased its ownership of the business and expanded its landbank to more than 2,500 plots as part of a longer-term growth plan.<\/p>\n
Net debt rose to around \u00a3108m, pushing gearing slightly above the group\u2019s preferred range, reflecting investment in planning activity and land acquisition. Roberts said this was a \u201cdeliberate and disciplined decision\u201d to build future value.<\/p>\n
Looking ahead, the outlook for 2026 is more cautious. The group expects profit before tax to be significantly below market expectations, citing lower forward sales, subdued transaction volumes and the expiry of the profitable Road Link PFI contract.<\/p>\n
\u201cWhile the fundamentals of our core markets remain compelling, there will inevitably be a lag before improving conditions feed through to performance,\u201d Roberts added. \u201cThat said, we believe the group is well placed to benefit when our markets recover.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Profits in 2026 to fall well below expectations as subdued transaction activity and contract expiry impact results<\/p>\n","protected":false},"author":271992,"featured_media":2068813,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"coauthors":[137100],"class_list":["post-2149582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-featured-story","tag-top-story"],"yoast_head":"\n