Final Results

HENRY BOOT PLC

('Henry Boot', the 'company' or the 'group')

Ticker: BOOT.L: Main market premium listing: FTSE: Real Estate Investment and Services.

Unaudited results for the year ended 31 December 2025

Resilient performance in challenging markets: record land sales and strong foundation for future growth

Henry Boot PLC, a company engaged in land promotion, property investment and development, and home building, announces its unaudited results for the year ended 31 December 2025.

Tim Roberts, Chief Executive Officer, commented:

"Henry Boot delivered a resilient performance in 2025 against a backdrop of continued economic and political uncertainty. Hallam Land performed particularly well, achieving a record number of plot sales and making excellent strategic progress in the acceleration of planning applications to grow its consented land bank. However, our performance was impacted by slower house sales and some cost overruns at Stonebridge Homes. We took important steps to further simplify the group and sharpen our strategic focus, through the sale of Henry Boot Construction, and the planned increase in our ownership of Stonebridge Homes. These actions, together with the launch of our Future Ways of Working programme, are improving efficiencies, enhancing collaboration across the group and creating a strong platform for future growth.

As we progress into 2026, we are encouraged by the strong, sustained demand for our high quality residential land and the signs of improvement at Stonebridge Homes, where sales rates have strengthened, although due to the timing of key transactions, we expect the group's performance to be once again second half weighted. Underpinned by our strong balance sheet, an increasingly supportive planning environment, and a development pipeline filled with opportunity, we are well positioned to meet full year market expectations, assuming the conflict in the Middle East is not prolonged. Over the medium term we are confident the group can deliver significant value for shareholders."

Financial highlights

· Total land and property sales of £356m, our share at £193m (2024: £347m: £224m our share), highlights particularly strong demand from housebuilders for our high quality residential land

· Revenue1 marginally lower at £307.0m (2024: £325.8m) due to reduced turnover in our home building segment, partially offset by higher land promotion sales

· Profit before tax1, including initial profit recognition on disposal of Henry Boot Construction (HBC), broadly in line with market expectations at £29.1m (2024: £30.7m), supported by record plot sales. Profit before tax  from continuing operations £26.4m (2024: £28.4m)

· Return on capital employed (ROCE1,3,8) of 7.5% (2024: 8.0%) before revised classification of the group's main borrowing facility (based on revised classification ROCE was 6.2% (2024: 6.8%)). We remain confident in the group's potential to deliver attractive returns over the medium term.

· We remain confident in the group's potential to deliver attractive returns over the medium term

· Net Asset Value (NAV4) per share, excluding the defined benefit pension scheme surplus, broadly unchanged at 312p (2024: 312p), after completion of the first tranche of the Stonebridge Homes (SBH) acquisition

· Net debt5 at December 2025 was £108.0m (2024: £62.7m) with gearing at 25.7% (2024: 14.7%) as a result of the investment in SBH land bank to support future growth and the reduction in cash from the sale of HBC

· Proposed final dividend of 4.62p (2024: 4.62p), bringing the total dividend for the year to 7.86p (2024: 7.70p), an increase of 2.1%

Operational highlights

· Land promotion

o  Hallam Land achieved record sales of 3,957 plots (2024: 2,661), increasing operating profit by 35% to £32.9m (2024: £24.3m)

o  During the year, consents were secured on 4,159 plots (2024: 2,982), increasing the total plots with planning permission to 9,024 (2024: 8,822), all held at cost. Further 19,580 plots await planning determination (2024: 13,146)

o  Positive changes to the National Planning Policy Framework (NPPF) resulted in a focus to materially accelerate planning applications, with c.11,000 plots submitted in 2025 (2024: 4,447 plots), with a similar level to be submitted over the next 12 months

o  Begun the year exchanging on a further 465 plots for completion during 2026, as well as having 2,181 plots under offer

· Property investment & development

o  Property investment and development delivered an operating profit of £9.4m (2024: £14.9m)

o  Gross development value (GDV) of HBD completed schemes amounted to £119m (our share: £33m GDV), of which 32% have been pre-let or pre-sold

o  Completed schemes included 449,000 sq ft within Origin JV with Feldberg Capital, which completed on time and budget. With a total of 134,000 sq ft let or under offer, all the Origin schemes are attracting a good level of occupier interest

o  A committed development programme of £66m GDV (our share: £18m). Strong near term pipeline to build up committed programme, including phase one of Golden Valley, Cheltenham (£98m GDV)

o  £1.7bn development pipeline (our share: £1.4bn GDV), 55% of which is Industrial and Logistics (I&L)

o  Continued outperformance of Investment portfolio (IP) with a total property return6 of 11.1%, well ahead of the CBRE UK Monthly Index (7.1%). Market value, including our share of JVs, now £119.8m (2024: £107.4m)

· Home building

o  In January 2025, the group increased its ownership in SBH to 62.5%, and continues to make progress in professionalising and integrating the business into the group

o  Operating loss of £9.2m (2024: £1.9m profit), delivering 185 home completions (2024: 270), reflecting slower trading conditions and delays in securing detailed planning

o  Average selling price for private units of £403,000 (2024: £402,000)

o  Net private weekly reservation rate at 0.37 in the year (2024: 0.45)

o  In line with its growth ambitions, SBH has secured 1,031 plots in the period, resulting in a total owned and controlled land bank of 2,572 plots (December 2024: 1,726)

o  Net private weekly reservation rate from 29 December 2025 to 15 March 2026 was ahead of budget at 0.43 (2025: 0.34)

NOTES:

1Adjusted including discontinued operations.

2 Underlying profit is an alternative performance measure (APM) and is defined as profit before tax excluding revaluation movements on completed investment properties. Revaluation movement on completed investment properties includes gains of £1.5m (2024: £1.2m) on wholly owned completed investment property and a gain of nil (2024: £0.1m) on completed investment property held in joint ventures. This APM is used as it provides the users with a measure that excludes specific external factors beyond management's controls and reflects the group's underlying results. This measure is used in the business in appraising senior management performance.

3 Return on Capital Employed is an APM and is defined as operating profit/capital employed where capital employed is the average of total assets less current liabilities and pension asset/obligation at the opening and closing balance sheet dates. Before the revised classification of the group's main borrowing facility. Previously presented as current liabilities these borrowings are now classified as non‑current.

4 Net Asset Value (NAV) per share is an APM and is defined as total equity adjusted to remove retirement benefit assets.

5 Net debt is an APM and is reconciled to statutory measures in note 7.

6Total property return is a metric that combines capital and income returns for the investment portfolio. It is calculated as the percentage value change plus net income accrual, relative to the capital employed and is calculated on a monthly basis and then indexed in line with the benchmark.

7Total Accounting Return is an APM and is defined as the growth in NAV per share plus dividends paid, expressed as a percentage of NAV per share at the beginning of the period.

8 Before the revised classification of the group's main borrowing facility. Previously presented as current liabilities, these borrowings are now classified as non‑current.

For further information, please contact:

Henry Boot PLC

Tim Roberts, Chief Executive Officer

Darren Littlewood, Chief Financial Officer

Daniel Boot, Senior Corporate Communications Manager

Tel: 0114 255 5444

www.henryboot.co.uk

Deutsche Numis

Joint Corporate Broker

Oliver Hardy

Tel: 020 7260 1000

Peel Hunt LLP

Joint Corporate Broker

Ed Allsopp/Tom Graham

Tel: 020 7418 8900

FTI Consulting

Financial PR

Giles Barrie/Richard Sunderland

020 3727 1000

[email protected]

A webcast for analysts and investors will be held at 9.30am today and presentation slides will be available to download via www.henryboot.co.uk. Details for the live dial-in facility and webcast are as follows:

About Henry Boot PLC

Henry Boot is one of the UK's leading land, property development and home building businesses - and we've been transforming land and spaces since 1886. Listed on the London Stock Exchange since 1919, we're renowned for quality, expertise, delivery and a partnership approach across the group - which comprises Hallam Land, HBD, Stonebridge Homes, Banner Plant and Road Link.

Operating across the UK, and employing over 400 people, we focus on three key markets: residential, industrial and logistics, and urban development. Hallam Land has facilitated 52,000 new homes since 1990, managing one of the top five largest land portfolios in the country, with the potential to facilitate over 105,000 homes.

HBD manages a development pipeline of £1.4bn, the equivalent of 7m sq ft of developments across our key markets, while maintaining a c.£120m investment portfolio.

Stonebridge Homes, our jointly-owned home building business, manages a land portfolio capable of delivering 2,500 homes, with an ambition to deliver up to 600 new homes a year.

For 65 years, Banner Plant has supplied construction products and services, operating from seven regional depots in the north of England. We have also developed an ambitious responsible business strategy to help us meet our aim of being net zero carbon by 2030.

From land promotion and property development investment to home building and plant hire, Henry Boot is where great places start.

Chair's introduction

Henry Boot delivered a resilient performance in 2025 despite being impacted by challenging markets as a result of continuing global political and economic uncertainty. In particular, we saw strong demand from housebuilders for our high quality residential land, achieving a record number of plot sales.

Across our markets, generally transaction volumes remain subdued, with deals taking longer to complete, particularly in the second half of the year in the run up to November's budget. Against this backdrop, we delivered a profit before tax, including the initial profit recognition on disposal of HBC, of £29.1m (2024: £30.7m), broadly in line with market expectations*, or on an underlying profit basis £27.5m (2024: £29.4m) excluding revaluation movements on completed investment property. We are closely monitoring the events in the Middle East, and the implications it might have on the wider economy, our markets, and our customers.

The group's NAV per share, excluding the defined benefit pension scheme, was broadly unchanged at 312p (2024: 312p), and including dividends paid in the period, we delivered a total accounting return1,7 of 2.5% (2024: 5.8%). This reflects lower retained earnings and the impact of the completion of the first tranche of the SBH acquisition. We continue to drive the store of worth within our portfolio through increased levels of planning permissions achieved in both Hallam Land and HBD. It is important to highlight that the majority of our assets are conservatively held at cost, rather than marked to market, therefore the value we have created will be recognised in future periods, on disposal. 

Strategically, 2025 marked a year of significant progress. We accelerated planning applications to grow our consented plots within Hallam Land, and following the increase in our ownership of SBH to 62.5%, we have introduced new processes to further professionalise its operations. Agreeing the sale of HBC in September 2025 was a significant step, allowing us to streamline our structure and sharpen our focus on high quality land, prime property development, and premium homes. In anticipation of these changes, the Future Ways of Working (FWoW) programme commenced in March 2025, driving organisational and management changes to boost agility, resilience, responsiveness, and efficiency.

The Board has proposed to pay a final dividend of 4.62p per share, which, together with the interim dividend of 3.24p, gives a total dividend of 7.86p (2024: 7.70p), an increase of 2.1% for the year. Subject to approval at the AGM on 21 May 2026, this will be paid on 29 May 2026 to shareholders on the register at the close of business on 01 May 2026.

The decision to hold the final dividend at last year's level is consistent with our policy to invest selectively across the group while acknowledging the importance of delivering an income return to our shareholders. We remain committed to a progressive dividend over the medium term as earnings pick up.

On behalf of the Board, I wish to extend my thanks to our people for their dedication and hard work throughout the year. Our annual Employee Engagement Survey continues to inform our ambition to make Henry Boot an outstanding place to work. This year's results maintained a 'very good' employee Net Promoter Score (eNPS) of 29 (2024: 30), which is +14 points above our peer group average, a true reflection of our team's commitment to Henry Boot.

Peter Mawson

Chair

*Company compiled market consensus for 2025 profit before tax is £29.2m.

CEO's review

The macro economic environment remains challenging, with transaction volumes across our markets still below long term averages as investors, occupiers and customers take longer to make decisions. The prolonged lead up to the November Budget had a particularly negative impact on both consumer and business confidence. Despite this, we continued to experience good demand from housebuilders for our high quality residential land, as many look to increase the number of sales outlets. Against this backdrop, we were relatively pleased that total sales of land, commercial property, and houses for the year were £356m (2024: £347m) with our share at £193m (2024: our share £224m). We are alert to the events in the Middle East, and the effects will depend on how long the conflict lasts.

Commercial property markets are recovering, with capital values rising by 1.4% and total returns reaching 7.1% in 2025 according to the CBRE Monthly Index. Industrial performed particularly well, with capital values increasing by 2.5% on the back of 4.8% rental growth. The majority of our committed developments and pipeline sit within the industrial sector, where we are also leveraging our operational expertise through the Origin JV. Urban development has become increasingly uneconomic without public sector grant support. We have therefore pivoted our focus toward the innovation and technology-led opportunities, where we can leverage our experience in this specialist sub sector. This includes market leading schemes in Cheltenham and Duxford.

In 2025, UK house prices rose by 0.6%, with residential land values softening slightly. Benefiting from the changes to the NPPF, we secured consents for 4,159 plots, a significant 39% increase on the prior year. In 2025, we invested £28.8m of capital, growing our store of consents to 9,024 plots and into new opportunities. We plan to invest an additional c.£27m in 2026, submitting a similar level of planning applications, as we materially increase our portfolio of consented land to sell to housebuilders.

To support our growth ambitions, we are streamlining and coordinating our sales processes within Hallam Land, ensuring more efficiency and agility as we move forward. Last year, we sold 3,957 plots, a record number, with expectations to sell more in 2026. The investment and growth in consents and the number of planning applications create a sustainable platform to achieve our medium term target of selling 3,500 plots per annum on average and to grow sales beyond that level.

Throughout 2025, we completed schemes with a total of £119m GDV (our share: £33m) with 32% pre‑let or sold. We maintained a good level of I&L activity, including completing on c.449,000 sq ft of industrial space through our Origin JV. We have seen encouraging occupier interest and anticipate securing additional lettings. At the start of the year, we are committed to £66m GDV (our share: £18m), delivering an additional 412,000 sq ft, the majority of which is in Origin. The JV provides us with the dual benefit of receiving development management fees alongside the opportunity to generate performance fees.

We continue to upgrade and replenish our development pipeline, which currently stands at £1.4bn (our share) and provides us with a strong near term pipeline to create value. It also gives us optionality to increase our level of committed development in line with demand, while in the meantime allowing us to keep our capital employed in future opportunities low at £61m. In this respect, in the summer we expect to commit to phase one of Golden Valley Cheltenham (£98m GDV), a £1bn flagship mixed use campus adjacent to GCHQ, focused on national security and emerging technologies such as AI and quantum computing. Public sector funds have already been secured to fully fund the construction of this nationally significant cybersecurity development.

Last year was challenging for SBH, which experienced slower sales, completing 185 homes, with delays in obtaining detailed planning consents, affecting our ability to get on site and open new outlets. Combined with a relatively high number of sites that are almost fully sold, this resulted in a sales rate of 0.37. We also saw some cost overruns. However, we are focused on rebuilding momentum, with output expected to recover to between 200-220 homes in 2026, putting us back on track to achieve our medium term target of delivering 600 homes per annum. The residential market is long term, and with Hallam Land now directing the land buying strategy, we have the skills, a clear plan to scale, and strong conviction in our regional model.

Having become the majority owner of SBH in 2025, we replaced the Managing Director as part of our programme to professionalise and integrate the business into the group. The search for a permanent replacement is underway, and meanwhile, Ed Hutchinson, Managing Director of HBD and Executive committee (ExCo) member, is serving as Interim Managing Director. Ed has extensive expertise in building and construction processes, as well as land acquisition, planning and stakeholder engagement, including customers. He has overseen the successful delivery of several major premium residential developments for HBD, including The Chocolate Works in York and SETL in Birmingham.

We are investing in our people and systems, supported by our group function teams, to strengthen SBH's sales capability and elevate the customer experience. Our improvement plan focuses on enhancing operational efficiency and improving our use of data to create stronger links between teams. We also expect to make selective land disposals to increase asset turn and ensure site sizes align with our premium homes strategy. While it's still early in 2026, we are encouraged by the fact that net private weekly reservation rates at SBH are running at 0.43 over the 11 weeks to 15 March, compared with 0.34 for the same period in 2025.

At the end of 2025, we completed the sale of HBC. This transaction creates a more focused mix of businesses with greater synergies, as well as reducing the risk profile of the group. HBC begin this year with a strong order book, which leaves our former colleagues well positioned for future success and able to commence repayment of the £4.0m vendor loan due over the next five years.

In anticipation of the sale of HBC, the integration of SBH, and our ambition to create a more agile, robust, and responsive organisation, supported by a leaner central function, we commenced our FWoW programme in March of last year. The programme is designed to drive efficiency, improve collaboration and the sharing of expertise and resources across our three core businesses. This included reshaping functions within the group, with Steve Stacey, formerly Group Finance Director, appointed as Chief Operating Officer. Jaimie Read has been promoted to the role of Company Secretary, and Iain MacSween has been appointed Managing Director of Hallam Land. Steve and Iain will also join ExCo.

As part of the FWoW programme, we have already delivered a reduction in central overheads of 20% in 2025, with further savings anticipated in 2026. This initiative is designed to strengthen profitability by aligning our resources and capabilities with the group's new structure and strategic focus, while still enabling incremental investment in priority areas that will support medium term growth. We have also implemented the first phase of Dynamics 365, enabling processes to be systemised and data to be captured, stored, and used more effectively to support decision making.

Strategy

The group set a medium term strategy in 2021 to grow the size of the business by increasing capital employed from £365m to £500m, focusing on its three key markets: I&L, residential and urban development, while maintaining ROCE within a 10-15% range.

Although we continue to make progress towards our medium term objectives, persistent economic and political uncertainty, which has led to a subdued market environment have made it increasingly difficult to deliver against the timeframe envisaged in 2021. Looking ahead, we remain confident in the group's potential to deliver attractive returns for shareholders given the increased depth and quality of opportunities within our portfolio.

See below for the performance in 2025 against our current stated medium term targets:

* before revised classification of the group's main borrowing facility (based on revised classification ROCE was 6.2%)

Outlook

We continue to focus on land promotion and premium home building, whilst expanding our industrial development activity. Within Urban Development, we are increasingly targeting high growth specialised sub sectors such as cyber and innovation, where we see strong medium term prospects.

Land promotion remains a core driver of value creation for the group, with Hallam Land focused on growing its store of planning consents and increasing volumes of plot sales to housebuilders. As a result of the positive planning changes, we believe this is an opportunity which is very deliverable and will support our expectations for medium term profit growth. Hallam Land is therefore expected to have another good year. However, the anticipated sales mix, with a higher percentage of promotion agreements and a lower share of freeholds, is likely to result in profit per plot being lower than our typical rate of £10,000, with a corresponding impact on operating profit.

Within HBD, the strategic focus remains on industrial development, primarily through the Origin JV. This is underpinned by a £1.4bn development pipeline, which is expected to support an increase in committed development activity over £150m by late 2026 and into 2027. A key milestone will be the commencement of phase one of Golden Valley (£98m GDV), which is scheduled to start this summer.

At SBH, we anticipate that performance will begin to recover during 2026. Delays in the planning system are expected to remain a limiting factor on the number of new outlets during the year. While the important spring selling season is still in its early stages, there are early indications of market recovery.

Primarily due to the timing of large land and development transactions in the pipeline, together with the inherent seasonality of housebuilding, means that, as in previous years, the group expects performance to be heavily weighted towards the second half of the financial year. It is expected that these large transactions will also help reduce gearing towards our optimum range. While we continue to monitor the situation in the Middle East and its potential impact on inflation and interest rates, which could affect transaction volumes in our markets, there are significant opportunities across our portfolio, supported by a rock solid balance sheet. Assuming the impact from the conflict in the Middle East is not prolonged, the business is well positioned to deliver the recently revised market expectations for FY26* and with a continued belief that we will deliver against our medium term growth and return targets.

Tim Roberts

Chief Executive Officer

*Company compiled of recently updated market consensus for 2026 profit before tax is £20.2m.

Business review

Land promotion

Hallam Land performed strongly in 2025, delivering a 35% increase in operating profit of £32.9m (2024: £24.3m). A record 3,957 residential plots were sold (2024: 2,661 plots), monetising the value it has created and resulting in the business exceeding its full year financial target. The average gross profit per plot was £11,414 (2024: £10,155), which is ahead of the five year average of £10,187.

During the period, Hallam Land experienced strong demand for prime deliverable sites, with sales producing an average ungeared internal rate of return of 27% p.a. Key disposals included:

· 290 residential plots at Sittingbourne, Kent, to Taylor Wimpey. Hallam Land entered into a promotion agreement in 2017 before submitting an outline planning application in November 2022. After an initial refusal, consent was successfully secured on appeal in July 2024.

· 112 residential plots at Yalding, Kent, to Fernham Homes. Hallam Land purchased the freehold site in 2018 and submitted a planning application in November 2023 in line with the draft allocation. An appeal was subsequently made in May 2024 on the basis of non-determination and approval secured in December 2024.

· 1,270 residential plots at Tamworth, Staffordshire. In 2016, Hallam Land reached an agreement with the landowners to promote the 237 acre site. Due to the site being located on the border between North Warwickshire and Tamworth, duplicate planning applications were initially submitted in 2018. The site gained outline planning permission in June 2025 and was subsequently sold to Persimmon in November 2025.

UK greenfield land values, softened slightly by 1.4% in 2025 according to Savills Research. Positive changes to the planning system, following the government's revision to the NPPF, have significantly increased our ability to secure outline consents. In anticipation of this, an early decision was made to increase resources within Hallam Land and fast track a number of planning applications. During the period, 4,159 plots secured planning consent, across 17 sites, of which 7 sites were won on appeal. Following this, plots with planning permission (or a Resolution to Grant, subject to S106) increased to 9,024 (2024: 8,822).

Hallam Land continues to accelerate applications, submitting 11,083 plots in 2025, across 37 sites (2024: 4,447 plots). As a result of this sustained momentum, a total of 19,580 plots currently remain within the planning system, awaiting determination (2024: 13,146 plots). A similar level of applications as in 2025 has been identified, which are expected to be submitted for planning over the next 12 months. All of this activity not only positions the group well to meet its medium term strategic target of selling 3,500 plots pa, but also to grow sales beyond that level.

The total land bank marginally grew to 105,854 plots as at 31 December 2025 (2024: 104,787 plots), securing 15 new sites which have the potential to deliver c.5,000 plots. Moving forward, the primary focus will remain on continuing to increase sales and secure planning permissions, whilst growing the overall portfolio at a modest pace.

There is significant latent value in the group's strategic land portfolio, which is held as inventory at the lower of cost or net realisable value. As such, no uplift in value is recognised in the balance sheet relating to any of the 9,024 plots with planning and any gain will only be recognised on disposal.

 As of 15 March, Hallam Land has exchanged on 465 plots for completion during 2026, as well as having an additional 2,181 plots under offer.

Property investment and development

Property investment and development, which is now solely made up of HBD, delivered an operating profit of £9.4m (2024: £14.9m). The results of SBH have been reclassified from the property investment and development segment to be reported within home building, and the prior year restated.

According to the CBRE Monthly Index, commercial property values increased by 1.4% in 2025. Industrial property continues to deliver the highest growth with capital values up 2.5% during the period ahead of retail up 1.8%, and offices down 0.9%. Rental value growth also remains strongest for the industrial sector at 4.8% in 2025, with yields up marginally over the period.

I&L, a sector where long term growth is supported by several structural drivers, experienced a further steady recovery in 2025 with annual occupier take up 1% and the overall vacancy rate declining modestly to 7.6%, according to Newmark. Occupational demand remains broad-based but is led by logistics and e-commerce operators, alongside new international entrants and defence-related manufacturers. Speculative development remains subdued, with starts at their lowest level since 2017, and stronger demand for modern, energy efficient space means that rental growth is concentrated in new high quality units.

In 2025, HBD completed schemes with a total GDV of £119m (our share: £33m GDV), after taking a disciplined approach to new projects in the current subdued environment (2024: our share: £188m GDV). 32% of the developments have been pre-let or pre-sold. This included three schemes totalling 449,000 sq ft (our share: £25m) within Origin, an I&L JV with Feldberg Capital, which all completed on time and budget:

1. SPARK, Walsall (phase one), two units totalling 270,000 sq ft on a 13 acre site just off the M6 (Total GDV: £52m).

2. INTER, Welwyn Garden City, a 71,000 sq ft scheme on a three acre site on Tewin Road near Junction 4 of the A1(M) (Total GDV: £28m).

3. ARK, Markham Vale, completed four units totalling 107,000 sq ft on a six acre site (Total GDV: £20m).

All three of these projects are attracting a good level of occupier interest, with a total of 53,000 sq ft let or under offer as of 15 March 2026. This includes a 17,000 sq ft unit at Ark let to Capital Angling, a 18,000 sq ft unit let to Perfect Group at Inter and an 18,000 sq ft unit under offer at Spark.

HBD completed on a further four development and land sales (our share: £8m), which included a site at Aberdeen Bridge of Don, which has planning for 420 residential units, and a 20,000 sq ft self storage development at Melton Road, Leicester. A further land sale was completed at Markham Vale and a pre-let development at Southend, which was retained within the group's IP.

2025 Completed schemes

In line with our ambition to scale up Origin, we added three further schemes with a combined GDV of £56m (our share: £14m) into its pipeline in December 2025:

1. SPARK, Walsall (phase two): A six acre site with a £25m GDV, located at junctions 9 and 10 of the M6. Detailed planning consent was secured in September 2025 for 101,000 sq ft across three units.

2. APTUS, Preston: The second phase of the scheme near junction 31a of the M6, previously held in JV with Barnfield Construction Limited, was transferred to Origin in December 2025. The £22m GDV scheme totals 107,000 sq ft across three units.

3. ARK, Markham Vale (phase two): A three acre site adjacent to junction J29A of the M1, with a £9m GDV. In October 2025, a resolution to grant planning permission was secured for a 54,000 sq ft unit.

Construction on each development has now commenced and is on programme and budget, with delivery from H2 26. HBD also benefits from development management fees with the potential for performance fees.

The group's committed development programme now totals a GDV of £66m (HBD share: £18m GDV) and is currently 48% pre-let, pre-sold or under offer.

2026 Committed programme

\* This includes space under offer at Origin - 01/03/26

HBD has optionality on a strong near term pipeline, which includes the landmark £1bn Golden Valley, located adjacent to GCHQ in Cheltenham. In July 2025, the scheme received outline planning permission for around 1m sq ft of prime commercial space, including IDEA, the new 160,000 sq ft National Cyber Innovation Centre, as well as 576 residential units of various tenures. The first phase (£98m GDV) is expected to commence in H2 2026, having now agreed terms with several occupiers for around half the space. The scheme is an important public private partnership, being part of the UK Government's Modern Industrial Strategy and has secured a £104m funding package, including £20m direct from the Government.

HBD's total future development pipeline has grown to £1.7bn GDV (our share: £1.4bn GDV). All these opportunities sit within the group's three key markets of I&L (55%), Urban Commercial (26%) and Urban Residential (19%). Last year, the pipeline was replenished, improving its quality with schemes such as 'Duxford AvTech' (£120m GDV). The project totals 435,000 sq ft and is set to create a technology campus dedicated to developing low and zero carbon aircraft technology at IWM Duxford, 8 miles south of Cambridge city centre. HBD is targeting high sustainability credentials, including BREEAM Excellent and an EPC A+ Rating. Additionally, in September 2025, FREEPORT 36, Goole (Phase one: £130m GDV), in partnership with St John's College Cambridge, secured outline planning to develop a 5.5m sq ft high quality, sustainable industrial and manufacturing park, with buildings ranging from 40,000 sq ft to 1m sq ft.

Investment portfolio - key stats

¹Total completed investment property

²Weighted average unexpired lease term (WAULT) on commercial properties

3 As a percentage of like-for-like completed property portfolio estimated rental value (ERV)

The IP, including our share of joint ventures, has continued to outperform the wider market, with a total property return of 11.1% for 2025, which was ahead of the total return from the CBRE UK Monthly Index (7.1%). Since 2022, HBD has focused on recycling capital from its investment portfolio rather than acquiring new investments. This continued in 2025, with HBD completing on four sales, for a total of £17.7m at an average 12% premium to December 2024 book values. This includes TWO45, Skelmersdale, where we secured planning for 245,000 sq ft of I&L space, representing a 66% increase on the original building. The sale to Garbe, a German fund, for £9.5m was completed in June 2025 and generated an ungeared IRR of 25% p.a.

The total value of the investment portfolio (including our share of completed JV investment properties and assets held for sale) increased to £119.8m (2024: £107.4m), largely as a result of the addition of the finished schemes within Origin. On a like-for-like basis capital values increased by 2.0%, with rental value growth of 2.8% for the I&L assets, which represent 81% of the total portfolio by value. During the period, like-for-like occupancy remained high at 97% (2024: 94%), or 75% including the recently completed Origin developments. The weighted average unexpired lease term is now 9.7 years (8.5 years to first break). Currently, 95% of the IP has an EPC rating of 'C' or higher, (76% being rated 'A' or 'B'), with the remainder of the portfolio allocated for either redevelopment, refurbishment or sale in the short to medium term.

Post period end, in March 2026, HBD completed the sale of a supermarket and three adjoining retail units anchored by Waitrose, in Warminster, to a UK real estate investment trust for £8.6m. The sale represents a net initial yield of 6.6% and a 7.5% premium to the 31 December 2025 book value.

Home building

SBH's results have been reclassified from property investment and development to be reported as home building.

According to Nationwide, UK house prices increased by 0.6% during 2025 on a seasonally adjusted basis. Most regions recorded modest house price growth, with Northern England continuing to outperform the South. Whilst there was an increase in new home registrations in 2025, completions remain 39% below the 2022 peak according to the National House Building Council.

SBH completed 185 homes (166 private/ 19 affordable) (2024: 270) with a private average selling price of £403,000 (2024: £402,000). Completions were materially below our expectation of 240-250 units due to softer trading conditions and a slower than planned outlet opening profile, reflecting delays in securing detailed planning permission. As a result, SBH operated from an average of nine outlets in 2025, compared with a budgeted 12. In addition, around 30 completions moved into 2026 as build schedules were delayed by utility connections and changes in planning conditions. However, selling prices were broadly in line with our expectations, with the level of incentives remaining stable during the year.

The net private reservation rate per active outlet per week decreased by 18% to 0.37 (2024: 0.45). There were no bulk sales in either period, as this approach does not form part of the SBH sales strategy. Whilst many of our customers remain cautious, sales rates were also affected by several sites nearing the end of their sales programme and therefore offering a reduced product range.

Revenue was £69.7m (2024: £98.1m), excluding part exchanged homes. The lower level of completions against our expectations was the primary driver of an operating loss of £(9.2)m (2024: £1.9m operating profit). Performance was also impacted by cost overruns related to adverse ground conditions and additional costs associated with extended site durations due to slower sales rates. In response, we have increased contingency within schemes to better reflect project delivery times.

In 2025, 1,031 plots were added to the SBH land bank across five sites, including Whitby, Carlton and Kingston Village, which together have the potential to deliver 846 homes. SBH's total owned and controlled land bank now stands at 2,572 plots (2024: 1,726). Following several successful applications during the year, plots with full planning consent increased to 842 (2024: 531 plots), representing 4.6 years' supply based on completions in the last 12 months. During 2026, selective land disposals will still provide us with the land supply needed to maintain our ambition to scale up output in line with our medium term growth ambitions.

In January 2025, we increased our ownership of SBH to 62.5% as part of the transaction agreed in December 2024 to take full ownership by the end of 2030. The deal is structured to complete in three tranches, with the total purchase price linked to the performance of SBH over this period. Bearing in mind the recent underperformance, the final aggregated payment to take full control is likely to be materially less than originally anticipated. Post period end, in February 2026, we increased our ownership further to 75%. The third and final tranche to acquire the remaining 25% is expected to be completed in January 2030, with consideration payable in 2030 and 2031.

Given our market positioning, we are committed to delivering an outstanding customer experience alongside the premium homes SBH deliver. We are investing in our people and systems to strengthen sales capability and customer engagement. We are also providing direct support from our group function teams across several key services to ensure teams are coordinated and collaborative.

We differentiate our product by placing emphasis on the design and layout of our homes, but our improvement plan recognises the need to strengthen operational efficiency, ensuring that our processes and systems are aligned with our strategic priorities. We will strengthen the quality, consistency, and timeliness of data across the business to improve the link between cost management, procurement, build programmes and sales.

As part of the integration into the group, using the skills of Hallam Land, we are also undertaking a comprehensive review of SBH's land portfolio. This is expected to result in selective disposals and a rebalancing of the land bank to reduce risk, improve asset turn, and better align site size and scale with our premium homes strategy and medium term growth ambitions.

Trading at the start of 2026 shows encouraging signs of improvement, with stronger year on year sales rates. Over the 11 weeks to 15 March 2026, our private net reservation rate was 0.43, compared with 0.34 in the same period last year. There has also been a corresponding reduction in cancellation rates and the use of part exchange. The total forward order book at 15 March 2026 comprised 96 units (2025: 108) with a value of £36.1m (2025: £33.6m).

Construction

The group's construction segment, which includes Banner Plant (BP) and Road Link (A69), delivered an operating profit of £6.7m (2024: £7.2m). BP and Road Link (A69) both traded in line with management expectations. Road Link PFI contract is set to expire at the end of March 2026.

On 31 December 2025, the group completed the sale of HBC to PWS, a new company formed by HBC's management team, for £4.0m via a vendor‑funded loan. Additional overage may be payable depending on future performance. As a result of the transaction, HBC's results for the current and comparative period have been reclassified and disclosed separately from the rest of the business as discontinued operations. In 2025, including the initial profit recognised on disposal, HBC delivered an operating profit of £2.7m (2024: loss of £2.3m). With 100% of its 2026 turnover already secured, HBC is well positioned to start repayment of the vendor loan. The group wishes our former colleagues all the best for the future.

Responsible business

Henry Boot's Responsible Business Strategy (RBS) was launched in January 2022, which is seen as a component to delivering future returns and value creation. A primary aim is to achieve Net Zero Carbon by 2030 in respect of Scope 1 and 2 greenhouse gas (GHG) emissions. Alongside the strategy, a number of interim RBS objectives were established and completed at the end of 2025 to help guide progress.

Performance against the 2022-2025 targets is summarised below:

· Our People - The group successfully launched a Health and Wellbeing Strategy, underpinned by targeted initiatives such as the financial wellbeing programme delivered with Finwell. Female representation across the workforce increased to 30%, demonstrating meaningful progress in gender diversity compared with 2022.

· Our Places - The group exceeded its pledge to contribute £1m in financial and equivalent value to charitable partners. In addition, employees delivered more than 10,000 volunteering hours, significantly surpassing the original target of 7,500 hours.

· Our Planet - The group remains committed to environmental stewardship, continuing to reduce Scope 1 and 2 emissions, with 2025 figures showing a 40% decrease from the 2019 baseline. Work is also underway to map out a pathway to achieving Net Zero Carbon by 2030.

· Our Partners - The group has actively collaborated with leading organisations to promote equality, diversity and inclusion (EDI). Ongoing engagement with partners continues to support collective progress towards shared environmental goals.

A complete report on the RBS will be available in the annual report on 21 April, and the next phase of the strategy will be announced in the summer of 2026.

Financial review

Summary of financial performance

The group navigated another challenging year in 2025. Total profit before tax decreased 5% to £29.1m (2024: £30.7m), or £27.5m (2024: £29.4m) on an underlying basis1. While market activity remains subdued, the fundamentals of our three key markets remain compelling, and we are well placed to benefit from the significant opportunities we have been building up within our portfolio, supported by a strong balance sheet and a disciplined approach to investment.

On 31 December 2025, the group completed its sale of HBC Construction Limited, formerly Henry Boot Construction Limited (HBC), part of the groups Construction segment. Results of HBC are classified as a discontinued operation in both the current and prior year.

Land promotion (Hallam Land):

Segment operating profit £32.9m (2024: £24.3m). During the year, we disposed of a record number of residential plots at 3,957 (2024: 2,661) at an average gross profit per plot of 11.4k (2024: 10.2k) reflecting continued demand for our high quality sites.

Home building (Stonebridge):

Segment operating loss £9.2m (2024: £1.9m profit). SH completed 185 homes (2024: 270). Due to softer trading conditions and a slower outlet opening profile as a result of delays in securing detailed planning, completions were significantly below our expectation. 

Property investment and development (including HBD):

Segment operating profit £9.4m (2024: £14.9m). After taking a disciplined approach to new projects in the current subdued environment, HBD completed schemes with a total gross development value (GDV) of £119m (our share: £33m GDV) (2024: our share: £188m GDV), of which 32% has been pre-let or pre-sold. Fair value gains on investment property were £2.1m (2024: £4.5m). We also recorded profits on sales of investment properties and assets held for sale of £0.5m and £0.9m, respectively (2024: £0.1m, £nil).

Construction:

External sales £85.2m (2024: £80.5m), with operating profit £9.4m (2024: £4.9m). As noted above, results reflect performance up to the disposal of HBC on 31 December 2025. On a standalone basis, HBC delivered revenue of £55.4m and operating profit of £0.7m or £2.7m including the profit on disposal; net assets at disposal were £nil.

Consolidated Statement of Comprehensive Income

Revenue from continuing operations declined by 9% to £251.5m (2024: £276.2m), reflecting the subdued market backdrop and the anticipated timing of key transactions. Land promotion performed strongly, with revenue rising to £83.0m (2024: £78.0m) driven by sustained demand for high‑quality strategic sites. Property development held steady at £69.0m (2024: £69.2m) despite muted market conditions. SH generated £69.7m of revenue (2024: £98.1m), with the reduction largely due to a lower volume of completions compared with the prior year.

The group generated a gross profit of £65.8m in 2025 (2024: £71.9m), reflecting a gross margin of 26%, compared with 26% in the prior year. Administrative expenses were £40.3m, a reduction from the prior year (2024: £42.0m), reflecting tighter cost control across the group.

Property revaluation gains amounted to £4.1m (2024: £4.6m), comprising £2.1m of gains on wholly owned investment property and £2.0m on the group's share of investment property held in joint ventures.

Tax

The tax charge for the year was £8.1m (effective rate of tax 30.5%) (2024: £7.4m effective rate of tax 22.9%) and is higher than (2024: lower than) the standard rate of corporation tax due to prior year adjustments. Current taxation on profits was £9.5m (2024: £5.9m), partly offset by a deferred tax credit of £1.5m (2024: £1.6m charge).

Return on capital employed (ROCE)

ROCE2 was 7.5% (2024: 8.0%) before revised classification of the group's main borrowing facility (based on revised classification ROCE was 6.2% (2024: 6.8%)). We remain confident in the group's potential to deliver attractive returns over the medium term.

Finance and gearing

Net finance costs reflected finance income of £3.9m and finance costs of £8.0m (2024: £5.1m and £8.7m, respectively).

Interest cover, expressed as the ratio of operating profit (excluding the valuation movement on investment properties, disposal of investment properties and joint venture profits) to net interest (excluding interest received on other loans and receivables), was 5 times (2023: 9 times). No interest incurred in either year has been capitalised into the cost of assets.

The group's banking facilities were renewed on 21 May 2024 at £125.0m. The facility with Barclays Bank PLC, HSBC UK Bank plc and National Westminster Bank Plc runs for three years and includes two one-year extensions. The first of these extensions was called upon on 31 March 2025 extending the facility to 21 March 2028. Bank facilities in place at 31 December 2024 totalled £125m with an accordion to extend the facility by up to £60m taking the facility to £185m. The facility was extended on 21 March 2025 to £140m and again on 5 March 2026 to £155m, increasing headroom over the going‑concern period.

On 27 June 2024, the group extended a £25.0m receivables purchase agreement with HSBC Invoice Finance UK Limited (HSBC) that allows it to sell deferred income receivables to the bank. The risk and rewards of ownership are deemed to fully transfer to HSBC and, therefore, this agreement is recorded off balance sheet. The group had sold £13.4m of receivables under the agreement at 31 December 2025 (2024: £15.9m).

The 2025 year-end net debt4 was £108.0m (2024: £62.7m) resulting in gearing of 25.7% (2023: 14.7%) in excess of our targeted range of 10-20%. Despite challenging market conditions, we continue to invest in our prime land portfolio, growing our premium housebuilder and delivering our high quality committed development programme.

All bank borrowings continue to be from facilities linked to floating rates or short term fixed commitments. Throughout the year, we operated within the facility covenants and continue to do so.

Cash flow summary

During 2025, cash used in operations amounted to £16.1m (2024: £42.5m inflow), after a net movement on equipment held for hire of £1.4m (2024: £2.6m) and working capital outflows of £49.9m (2024: £10.5m inflow) driven by investment in land and an increase in deferred receivables.

Net capital investment of £15.4m (2024: £4.9m outflow) arose primarily from proceeds on disposal of assets held for sale of £13.1m (2024: £nil) and proceeds on disposal of investment property of £5.2m (2024: £0.6m).

Net dividends totalled £12.7m (2024: £12.1m), comprising equity dividends of £10.5m (2024: £10.0m) and dividends to non‑controlling interests of £2.2m (2024: £2.1m), with no dividends received from joint ventures in the year (2024: £2.9m).

After net interest and tax of £12.7m (2024: £13.3m), there was an overall cash outflow of £45.3m (2024: £15.1m inflow), resulting in net debt of £108.0m (2024: £62.7m).

Statement of financial position summary

Wholly owned investment properties, over 70% of which are I&L assets, totalled £94.6m (2024: £105.6m). During the year, the group disposed of five properties, two previously held for sale (£9.3m book value, £0.9m profit) and a further three properties in the year (£7.0m book value, £0.4m of profit). These reductions were partially offset by £3.5m of additions (2024: £0.1m), including completion of a new industrial unit in Southend, along with £2.1m of valuation gains (2024: £4.5m).

Intangible assets increased to £1.3m (2024: £0.6m), driven by capitalisation of costs associated with the group's flagship D365 digital transformation project.

Property, plant and equipment decreased to £26.9m (2024: £29.3m) and largely comprises group occupied properties and equipment held for hire. Additions during the year of £2.1m (2024: £5.6m) were offset by depreciation charges of £3.9m (2024: £3.9m) and the disposal of assets. Right‑of‑use assets totalled £2.9m (2024: £3.5m).

Investments in joint ventures and associates increased to £22.9m (2024: £13.3m), reflecting additional investment of £7.9m (2024: £2.9m), and the group's share of profits during the year of £1.7m (2024: £2.4m). The group continues to undertake development projects with third‑party partners where mutually beneficial.

Inventories increased to £368.1m (2024: £332.9m), driven primarily by a £44.7m rise in the group's housebuilder land bank (2024: £15.4m). Despite a record level of strategic land disposals in 2025, continued progress of sites through planning has maintained the value of the strategic land portfolio. Property development inventory reduced by £8.8m as capital continues to be transferred into joint venture arrangements.

Receivables increased to £126.3m (2024: £111.6m), driven by an increase in non-current trade receivables relating to strategic land disposals. Deferred payment receivables continue to reflect the scale and nature of strategic land transactions.

Payables increased to £113.8m (2024: £111.5m), reflecting the timing of transactions and deferred land payments. Provisions reduced to £0.9m (2024: £1.7m) as strategic land provisions unwind and the Road Link (A69) concession approaches completion. Contract liabilities fell to nil (2024: £4.9m) following the disposal of the group's construction business.

Net debt increased to £108.0m (2024: £62.7m), primarily as a result of the growth in SBH's land bank and the sale of Construction. This resulted in gearing rising to 26% (2024: 15%), higher than our preferred range of 10-20%. As we complete sales throughout the year, we expect our gearing to move back towards our optimal range. Net debt comprises cash and cash equivalents of £8.4m (2024: £16.8m), borrowings of £112.0m (2024: £72.5m), other loans of £1.1m (2024: £3.0m) and lease liabilities of £3.3m (2024: £3.9m).

At 31 December 2025, the IAS 19 pension valuation reported a surplus of £3.0m (2024: £9.9m), mainly as a result of a lower market value of scheme assets. The scheme continues to be managed through a diversified portfolio with oversight from Trustees and external advisers.

Overall, the net assets of the group decreased by 1.2% to £420.1m (2024: £425.1m), arising from retained profits less distributions to shareholders and acquisition of Stonebridge with NAV per share3 decreasing 0.9% to 313p (2024: 317p).

Darren LittlewoodChief Financial Officer

NOTES:

1 Underlying profit is an alternative performance measure (APM) and is defined as profit before tax excluding revaluation movements on completed investment properties. Revaluation movement on completed investment properties includes gains of £1.5m (2024: £1.2m) on wholly owned completed investment property and loss of £0.1m (2024: £0.1m gain) on completed investment property held in joint ventures. This APM is used as it provides the users with a measure that excludes specific external factors beyond management's controls and reflects the group's underlying results. This measure is used in the business in appraising senior management performance.

2 Return on Capital Employed is an APM and is defined as operating profit/capital employed, where capital employed is the average of total assets less current liabilities and pension asset/obligation at the opening and closing balance sheet dates.

3 Net Asset Value (NAV) per share is an APM and is defined using the statutory measures net assets/ordinary share capital.

4 Net debt is an APM and is reconciled to statutory measures in note 7.

5 Including cash and cash equivalents.

UNaudited Consolidated Statement of Comprehensive Income

for the year ended 31 December 2025

1 See note 1 to the financial statements.

UNaudited Statement of Financial Position

as at 31 December 2025

1 See note 1 to the financial statements.

UNaudited Statement of Changes in Equity

for the year ended 31 December 2025

UNaudited Statement of Cash Flows

for the year ended 31 December 2025

Notes to the Financial Statements

for the year ended 31 December 2025

1. Basis of preparation

These results for the year ended 31 December 2025 are unaudited. The financial information set out in this announcement does not constitute the group's statutory accounts for the years ended 31 December 2025 or 31 December 2024, as defined by Section 434 of the Companies Act 2006.

The results have been prepared in accordance with UK adopted international accounting standards. They have been prepared on the historic cost basis, except for financial instruments, investment properties and group occupied land and buildings, which are measured at fair value.

The financial information for the year ended 31 December 2024 is derived from the statutory accounts for that year, which have been delivered to the Registrar of Companies. The current auditor, Ernst & Young LLP, reported on those accounts and their report was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 (2) or (3) of the Companies Act 2006.

The statutory accounts for the year ended 31 December 2025 will be finalised on the basis of the financial information presented by the Directors in these results and will be delivered to the Registrar of Companies following the AGM of Henry Boot PLC. The same accounting policies and methods of computation are followed as in the latest published audited accounts for the year ended 31 December 2024, which are available on the group's website at www.henryboot.co.uk.

The following standards, amendments and interpretations to existing standards are effective or mandatory for the first time for the accounting year ended 31 December 2025:

The standard did not have a material impact on the group's results.

The group did not early adopt any standard or interpretation not yet mandatory.

Prior year restatements

Discontinued operations

As described in note 8, on 31 December 2025, the group disposed of HBC Construction Limited (formerly Henry Boot Construction Limited) and therefore have classified it as a discontinued operation in the year. In accordance with IFRS 5, the results of the discontinued operation have been presented as a single amount within the income statement. Consequently, the group has restated its comparative information for the year ended 31 December 2024 to reflect the discontinued classification.

Part exchange homes

Prior year restatement of revenue and costs of sale relating to the sale of part exchange homes have been restated for the period ended 31 December 2024. The group previously recognised consideration on disposal of part exchange homes in revenue and the related expense in cost of sales. The increase in volume of part exchange sales has resulted in the consideration received being reclassified as other operating income and expenditure being reclassified as other operating expenditure and now separates out the trading of non-core operations. There is no impact on the Statement of Financial Position, Statement of Changes in Equity or Statement of cash flows. The impact on the 31 December 2024 income statement is to decrease revenue and cost of sales by £2,603,000 and £3,012,000 respectively and increase other operating income and other operating expenditure by the same.

Non-current borrowings

Comparative information has been restated in respect of the classification of the groups main borrowing facility. In the prior year, the group presented these borrowings as current liabilities based on contractual maturity. Following a review of the terms of the group's financing arrangements, and in accordance with IAS 1 Presentation of Financial Statements, borrowings are now presented as non-current where, at the reporting date, the group had the right to defer settlement of the liability for at least twelve months after the reporting date. This reclassification has no impact on profit for the year, earnings per share or cash flows. The impact on the statement of financial position as at 31 December 2024 is to decrease current borrowings and increase non-current borrowings by £72,500,000. Comparative figures have been restated accordingly.

Going concern

In undertaking their going concern review, which covers the period to December 2027, the Directors considered the Group's principal risk areas that they consider material to the assessment of going concern.

As the UK economy continues to prove challenging, the Directors have assessed the Groups ability to operate in a more uncertain environment in modelling a base case scenario. They have also modelled what they consider to be a severe downside scenario, including further curtailment in activities. This downside scenario shows a c26% reduction in sales and c90% reduction in operating profits from the base case. Development activity and land sales only take place where already contracted or well progressed. For Stonebridge Homes a 10% decline in house prices is assumed along with a 10% reduction in the number of plots sold and Banner Plant revenue declines c17%. This downside model assumes that acquisition and development spend is restricted other than that already committed and is all consistent with previous experience in recessionary environments. Having started 2026 with net debt of £108.0m, and with c.£118.6m of net debt as at 20 March 2026 against current facilities of £155.0m the Directors have concluded that the group is able to control the level of uncommitted expenditure while delivering contracted schemes. Allowing it to retain and even improve the cash position in the event of a severe downside scenario, although the impact of doing so on the profit and loss account would be unavoidable. 

The group meets its day-to-day working capital requirements through a secured loan facility. The facility with Barclays Bank PLC, HSBC UK Bank plc and National Westminster Bank Plc runs for three years and includes two one-year extensions. The facility includes an accordion to increase the facility by up to £60.0m, increasing the overall facility to £185m.

None of the modelling undertaken by the Directors gives rise to any breach of bank facility covenants. The most sensitive covenant in our facilities relates to the ratio of EBIT (Earnings Before Interest and Tax) on a 12-month rolling basis to senior facility finance costs. Our downside modelling, which reflects a 26% reduction in revenue and 90% reduction in operating profit from our base case for 2025, demonstrates headroom over this covenant throughout the forecast period to the end of December 2027.

As part of the going concern assessment, the Directors considered a reverse stress test to determine the level of adverse performance required to exhaust debt facility headroom and cause covenant breaches over the assessment period. The Directors concluded that the combination of events required to cause such breaches are remote, and even in a case of worsening economic conditions, the Group has several mitigations available to it which remain unmodelled in the stress test scenarios.

The Directors have also considered the current ongoing conflict in the Middle East and the potential impact upon the Group should the conflict be prolonged. Whilst the Group is not immune to global economic shocks, the Directors believe that the strength of the Group balance sheet, the facility headroom demonstrated in the Groups downside modelling, and the strong supply and demand fundamentals underpinning our key markets mean the Group is well positioned to manage economic deterioration as a result of the conflict.

At the time of approving the Financial Statements the Directors expect that the company and the group will have adequate resources, liquidity and available bank facilities to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the Financial Statements.

2. Segment information

For the purpose of the Board making strategic decisions, the group is currently organised into four operating segments: Property Investment and Development; Home building; Land Promotion; and Construction. Central overheads are not a reportable segment; however, information about them is considered by the Board in conjunction with the reportable segments.

During the year, the group added a new operating segment - Home building - following the acquisition of a further 12.5% interest in Stonebridge Homes which now stands at 62.5%. The segment was identified based on the internal reporting provided to the chief operating decision maker, being the Board of Henry Boot. The Home building segment is managed separately due to its distinct nature and customer profile. Comparative results have been restated.

Operations are carried out entirely within the United Kingdom.

Inter-segment sales are charged at prevailing market prices.

The accounting policies of the reportable segments are the same as the group's Accounting Policies.

Segment profit represents the profit earned by each segment before tax and is consistent with the measure reported to the group's Board for the purpose of resource allocation and assessment of segment performance.

1 See note 1 to the financial statements.

1 See note 1 to the financial statements.

3. Tax

1 See note 1 to the financial statements.

4. Dividends

The proposed final dividend for the year ended 31 December 2025 of 4.62p per share (2024: 4.62p) makes a total dividend for the year of 7.86p (2024: 7.70p).

The proposed final dividend is subject to approval by shareholders at the AGM and has not been included as a liability in these Financial Statements. The total estimated dividend to be paid is £6,200,000.

Notice has been received from Moore Street Securities Limited waiving its right as corporate trustee for the Employee Share Ownership Plan ('ESOP') to receive all dividends in respect of this and the previous financial year.

5. Investment properties

Fair value measurements recognised in the Statement of Financial Position

The following table provides an analysis of the fair values of investment properties recognised in the Statement of Financial Position by the degree to which the fair value is observable:

The group's policy is to recognise transfers into and out of fair value hierarchy levels as of the date of the event or change in circumstances that causes the transfer. The Directors determine the applicable hierarchy that a property falls into by assessing the level of comparable evidence in the market, that the asset falls into and the inherent level of activity. As at the reporting date, and throughout the year, all property was determined to fall into Level 3, so there were no transfers between hierarchies.

Explanation of the fair value hierarchy:

Level 1 - fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2 - fair value measurements are those derived from the use of a model with inputs (other than quoted prices included in Level 1) that are observable from directly or indirectly observable market data; and

Level 3 - fair value measurements are those derived from use of a model with inputs that are not based on observable market data.

Investment properties have been split into different classes to show the composition of the investment property portfolio of the group as at the reporting date. Management has determined that aggregation of the results would be most appropriate based on the type of use that each property falls into, which is described below:

Investment properties under construction are categorised based on the future anticipated highest and best use of the property.

6. Share capital

7. Cash generated from operations