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Developer and construction firm Henry Boot has claimed a 鈥渞esilient鈥� performance in half year results to  the end of June despite seeing its profit drop by 36% amid deepening economic uncertainty.

The firm saw its pre-tax profit drop to 拢25m from 拢38.8m in the six month period in 2022 and admitted the outlook for 2024 was 鈥渘ot so clear鈥�.

Henry Boot鈥檚 turnover for the six months rose sharply on the back of a planned expansion in its housing business, increasing to 拢180m from 拢144m in 2022. The firm said its housebuilding subsidiary Stonebridge Homes sold 99 homes, up from 39 in previous year.

However, the Sheffield-based firm said the number of plots that its land promotion business had sold had dropped sharply and that its construction business had so far managed to secure just 72% of its expected turnover for the year.

Tim Roberts, Henry Boot chief executive, said the first half of the year had seen its markets slow as interest rates had continued to rise.

He said: 鈥淭hese results show our focus on prime strategic sites, high quality development and premium homes has provided us with a degree of resilience.

鈥淲hilst uncertainty in our markets has increased, we believe we have enough momentum to carry us through the year, although the outlook for 2024 for the time being is not so clear.鈥�

Roberts said the firm nevertheless had 鈥渃onviction in our three markets鈥� and said the business remained on track to hit medium term growth and return targets.鈥�

The planned expansion of Henry Boot鈥檚 housebuilding business remained on track, the firm said, with 97% of the targeted 250 sales for the year already secured as of 1 September. Reservations per site per week dropped to 0.48 in the first half of the year, from 0.6 in 2022, Boot said, but have actually risen in the trading weeks since the end of the half year, to 0.52. It said the prices secured had been above budget.

Sales at the firm鈥檚 land promotion business dropped to 1,900 plots, from 3,447 in the previous year, albeit the fall in volume was offset by increased profit per plot on the sales.

Henry Boot said its construction business experienced 鈥渃hallenging鈥� trading conditions given subcontractor and material availability issues which caused 鈥渄elays and budget challenges鈥� on two of its largest projects, including a 拢47m build-to-rent scheme, Kangaroo Works, plus an urban regen development Block H, worth 拢42m, both in Sheffield.

The business said the construction arm, HBC, was 鈥渢rading below management鈥檚 expectations鈥�, having experienced difficult operating conditions in line with the UK construction market.

Net debt at the business rose to 拢70.8m from 拢48.6m.