24th Aug 2018 09:25
LONDON (Alliance News) - Construction and property development firm Henry Boot PLC on Friday said interim profit and revenue both rose in an "impressive" first half performance.
For the six months to June, Henry Boot's pretax profit was up 16% to GBP26.2 million, while revenue rose slightly to GBP196.2 million from GBP195.4 million a year prior.
Its net asset value per share increased by 18% to 217 pence.
Henry Boot is paying an interim dividend to shareholders of 3.20p, from 2.80p a year prior.
The company said seen "consistent" levels of demand across all of its businesses in the first half of 2018, particularly in housing development land.
Henry Boot's land promotion business did well, with 1,904 plots sold in the period, and it has sold 365 plots so far since the end of June.
Property development was "relatively" buoyant, with all projects currently in their development phases going as planned.
The company's housebuilding business Stonebridge Homes Ltd had a "very successful" first half, Henry Boot said, as it doubled the number of reservations year-on-year and finished 53 sites compared to 24 a year prior.
In Construction, work wins were in line with expectations despite an uncertain environment, and the business is on track to meet targets for 2018.
Overall, Henry Boot said it is seeing a "little" more caution caused due to Brexit, leading to higher levels of due diligence before projects start, but trading is generally continuing as normal. It guides to meet expectations for 2018, and keeps 2019 expectations unchanged.
Chief Executive John Sutcliffe said: "We are very pleased to report another impressive performance in the first half of 2018, achieving improved profit, earnings per share, net asset value and dividends, while significantly reducing debt, compared to a year ago.
"So long as market conditions remain stable as we transit through the political and economic uncertainties, we look to the future with confidence. We have a strong pipeline of land, housing and commercial development opportunities to provide our customers with the property assets they require."
Sutcliffe continued: "Trading in the second half of 2018 has started well, and given the level of forward contracted business, the board is confident in meeting its expectations for the full year and those for 2019 which, at this early stage, remain unchanged."
Shares were 2.7% higher on Friday at a price of 277.70 pence each.
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