19th Jan 2021 11:37
(Alliance News) - Henry Boot PLC said Tuesday it has ended the year "materially" ahead of its internal revised expectations for 2020.
Shares in the construction and property development firm were 5.8% higher in London on Tuesday at 274.00 pence each.
Henry Boot attributed this to land disposals and a resilient performance from the development, construction and house building businesses, in Henry Boot's target industrial and residential markets.
Chief Executive Tim Roberts said: "Henry Boot has adjusted well to the unprecedented challenges that have faced everyone in 2020, but with a continued strong financial position, and engaged teams, we have managed the business to focus successfully on our key long term markets which are today, as relevant as ever."
Henry Boot noted its financial position remains "strong", with a "robust" balance sheet and net cash of about GBP27 million, unchanged on the year before.
"During 2020 operations generated significant levels of cash which has allowed for reinvestment within the group's focused three long-term key markets: industrial & logistics, residential and urban development," the company added.
Henry Boot noted a "steady" increase in activity as 2020 progressed resulting in an outcome ahead of revised expectations.
The firm said its Henry Boot Developments unit, in 2020, completed on developments with a total gross development value of GBP62 million. The unit is committed to projects with a total gross development value of GBP313 million, with the bulk of this in the significant BTR Kampus scheme in Manchester which has been forward funded.
In the second half, the company said its Construction unit's productivity increased on sites to 95% of planned activity with growing existing public sector work leading to a strong orderbook for 2021.
Roberts added: "Whilst the latest lockdown shows that significant uncertainties remain, with strong forward sales and a growing store of opportunities, we start the year in good shape."
Henry Boot will issue its annual results on March 23.
By Paul McGowan; [email protected]
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