Henry Boot sees 'operational progress' in first half of 2017 as pre-tax profit hits £22m

Henry Boot PLC, the land promotion, property investment and development and construction specialist, has seen “operational progress” delivered across the group during the period ending 30th June 2017.

During the first half of 2017, the Sheffield-based group saw revenue increase by 82% to £195.4m (2016: £107.3m). This was driven by higher levels of activity across all business segments.

Property development activity continued to benefit from several active schemes, in particular at Aberdeen, York and Markham Vale. The sale of land at Southam completed in the period helped increase both turnover and cost of sales proportionately.

As a result of this growth in activity, administrative expenses grew due to recruiting more staff headcount and the acquisition of Premier Plant Tool Hire & Sales Limited.

Operating profits increased by 8.1% to £22.8m (2016: £21.1m), whereas net finance costs fell to £600k (2016: £700k) as a result of the reduction in the base rates which arose in the second half of the prior year.

This, together with joint venture property development activity gains of £400k, resulted in an 8.7% increase in pre-tax profit to £22.6m (2016: £20.8m).

Retained profit increased 9.1% to £18m (2016: £16.5m), helping earnings per share to rise 10.1% to 13.1p (2016: 11.9p).

John Sutcliffe, chief executive, said: “We are pleased to report another good performance in the first half against a strong comparative result in 2016, with further operational progress delivered across the Group.

“This momentum has continued into the second half of the year and we are seeing high levels of activity across our operations.

“Whilst we remain mindful of a continued degree of economic and political uncertainty, sentiment amongst our customers and clients remains positive and we have a strong pipeline of profitable opportunities.

“The Group continues to trade well and in line with the Board’s expectations for the full year.”