20th Sep 2022 12:14
(Alliance News) - Henry Boot PLC on Tuesday reported significant increases in both profit and revenue in its half year results.
Pretax profit increased 68% to GBP38.8 million in the six months to June 30 from GBP23.1 million in the same period last year. This was the result of a strong performance in residential land sales and industrial development activity.
Revenue increased substantially as well, rising 12% to GBP144.4 million from GBP129.0 million last year, driven by land disposals and property development completions.
The Sheffield, England-based builder and property developer reported it had sold 3,447 plots compared to 2,288 last year, with the difference mainly due to the disposal of 2,170 plots at Didcot, Oxfordshire.
The construction segment also achieved turnover of growth of 22% to GBP66.5m compared to GBP54.7 million in June 2021.
The company declared an interim dividend of 2.66 pence, an increase of 10% from 2.42p last year.
With regard to property investment, the company recorded an 11% increase in net asset value per share to 297 pence on June 30 from 267p on December 31, 2021. The total value of the investment portfolio increased to GBP134 million.
The company said that its full year results will be heavily weighted to the first half of 2022 and that it expects some of its markets to adjust as economic output falls. However, it noted that it has had a busy summer and expects to benefit from this momentum in the second half and into 2023.
Chief Executive Officer Tim Roberts said: "We have had one of our best ever first half years with materially rising profits and good progress achieved against our strategic targets. Taking advantage of our three key markets we have made significant sales whilst being selective on purchases. This has allowed us to keep gearing low, despite continued investment in our high-quality committed development programme and our growing housebuilder, and at the same time increase our interim dividend by 10%.
"We have worked hard to do our best to adjust to supply restrictions, inflation and an increasingly complex planning system. This work, together with our committed team of people and the relatively high level of forward sales for 2023, see us well placed as we enter what seems yet another period of economic uncertainty."
Shares in Henry Boot were trading 3.3% higher at 279.00 pence each in London at midday.
By Chris Dorrell; [email protected]
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