Contractor predicts 'patchy' recovery following 拢22.4m writedown on land

Listed builder and developer Henry Boot slumped to a pre-tax loss of 拢11.9m after it took a further 拢22.4m hit on the value of its land, in end of year results announced today.

The loss compares to a profit of 拢19.3m in 2008, and was achieved on turnover also down 40% to 拢116.5m. The firm also saw operating profits fall by three quarters to just 拢11.5m

However, the firm managed to reduce its net debt to 拢32.1m over the year, down from 拢49.3m in 2008. the firm said it would start work on a 26,500 sq ft retail scheme in Warminster, previously on hold.

Henry Boot chair, John Reis, said he was optimistic about recovery in the market, but the focus of the firm nevertheless remained on reducing debt and preserving asset values.

In addition he admitted that much of the work of the construction division, which accounts for two thirds of turnover, was from the public sector, 鈥渁nd therefore potentially at risk given the likelihood of public spending cuts following the forthcoming General Election.鈥�

He said: 鈥淚 believe that the recovery will be patchy and relatively long drawn out. Therefore, the prudent strategy outlined above is the correct one until we can see clear evidence of a sustained recovery.鈥�

鈥淲e retain significant headroom in our three-year debt facilities and this, along with the support of our long term banking partners, will allow us to gear up again as the recovery takes hold.鈥�

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