Henry Boot delivers 'resilient performance' over last financial year

The profit before tax was £37.3m, compared with £45.6m the previous year, which Henry Boot said was in line with market expectations “and supported by our focus on high quality land and development in prime locations”.

In a statement to accompany the results, the group said: “We have confidence in the long-term fundamentals of our key markets, with growing conviction that our concentration on prime, high quality buildings and projects together with our focus on developments with strong ESG (environmental, social, and governance) credentials will reward us with improved liquidity and enhanced returns.

It added: "Our balance sheet remains rock solid and, with agreed terms from our banks on renewing and enlarging our facilities expected to be in place during Q2 24 (the second quarter of 2024), we have the resources to continue to grow the business in line with our medium term targets.”

Tim Roberts, Chief Executive Officer, commented: "Our focus on high quality land, commercial property development and housebuilding in prime locations meant that demand for our premium products remained resilient and allowed Henry Boot to perform relatively well against a backdrop of a slowing economy, rising interest rates, high inflation and decreasing volumes in our key markets.

“We are not immune from the challenges that the UK economy presents to the near-term trading environment and as previously reported, we expect a lag in performance in the year ahead.

He added: “ However, the outlook for both inflation and interest rates is improving and it's beginning to feel as though the UK economy has turned a corner, with recent reductions in mortgage rates also pointing towards a hopefully brighter future.

"With this in mind, and given the group's continued strong financial position, we remain confident in achieving our medium term growth and return targets, as reflected in the 10 per cent dividend increase we have announced today."

Commenting on the results, analysts at Panmure Gordon said near-term prospects will be impacted by the challenged macro environment and the phasing of activity.

The note added: “However, the team is seeing broadening interest from housebuilders for consented land. Elsewhere, the opportunities within developments remain intact and the group’s asset value continues to be robust.”

"Confidence in the group’s medium-term growth opportunities remains strong, plus the solid balance sheet, has led to management proposing a 10 per cent uplift in the dividend.”

It added: "The medium-term prospects remain intact, with the growing asset base of the group delivering value for shareholders.”