27th Mar 2014 09:52
LONDON (Alliance News) - Property investment and construction company Henry Boot PLC Thursday reported an increase in profit for 2013, as revenue in its property division more than doubled.
The company which constructs homes and retail buildings across the UK posted pretax profit of GBP18.4 million for 2013, up from GBP13.4 million in 2012, as revenue rose 49% to GBP153.8 million from GBP103.1 million a year earlier.
Henry Boot attributed its improved revenue to higher land sales and development segment sales in York and Bromley. However, the company was boosted mainly by its property investment and development business, which saw revenue more than double to GBP37.9 million from GBP15.7 million a year earlier.
The company said it saw a general improvement in the property market, although the recovery in values and occupier demand is unevenly spread across regions.
Nonetheless it said: "We have continued to build on the previous year's progress letting most of the remaining vacant space within the investment portfolio and, at December 31, 2013, we had no large voids and rental income receivable increased over the year."
The land development business also made gains with revenue for the division rising to GBP37.6 million from GBP8.8 million. At the period end, the company held interest in 9,723 acres compared with 9,011 acres. Henry Boot said it is in discussions regarding a number of new sites which have been identified as possible additions to its portfolio.
The company's third division - construction - saw revenue creep up to GBP82.2 million from GBP80.0 million a year earlier, in the face of a challenging market conditions.
"Pleasingly, after many months of contraction in general construction output we are starting to see increases in activity and consequently expect a small increase in general tender price levels during the coming year," the company said of the construction business.
Looking head the company said it remains "positive" for 2014 and expects steady growth and further expansion within its businesses.
In November the company opened a new office, its seventh overall, in Leeds.
"We now feel we have full coverage of the UK and with this structure in place we can achieve the growth identified in our plans," it added.
On the back of its strong results the company increased its final dividend to 3.15 pence, compared with 2.90 pence, giving a total dividend of the year of 5.10 pence, up from 4.70 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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