Firm reports fall in revenue, but profit up 81% to 拢13.4m
Developer and contractor Henry Boot has reported an 81% leap in its pre-tax profit in the first half of the year despite a 20% fall in revenue.
In its results for the six months to 30 June 2014 the firm reported a pre-tax profit of 拢13.4m, up from 拢7.4m over the same period last year.
This came despite revenue falling to 拢66m, down from 拢82m.
The firm鈥檚 revenue fall was largely because the 拢15m sale of land at its Chocolate Factory site in York in the first half of 2013 was not repeated in 2014.
The results showed that Henry Boot鈥檚 construction division had performed well in the first half of the year. Although its revenue fell 2% to 拢40m, down from 拢42m, it reported a 27% rise in pre-tax profit to 拢4.4m, up from 拢3.4m.
Writing in the accounts John Brown, chair of Henry Boot, said: 鈥淐ontract pricing remains competitive and there are some raw material pricing pressures. However, the opportunities to tender are also very good and we are very comfortable with the current marketplace.鈥�
It was the company鈥檚 property division that contributed the biggest boost to profitability as it reported a pre-tax profit of 拢3.6m, up from a pre-tax loss of 拢1.5m.
Pre-tax profit in the firm鈥檚 land development business, however, slipped slightly to 拢5.1m, down from 拢5.3m.
Brown said he was 鈥減leased鈥� with the 鈥渟trong set of results鈥� and that he now expected 鈥渢rading profits including revaluation gains鈥� for the year to 鈥渆xceed鈥� the firm鈥檚 initial expectations.
鈥淐ommercial development activity is now at its highest level since 2007 with new, pre-let developments achieving hurdle rates of return, expected to commence in the second half of the year.
鈥淭he combination of this increased level of commercial development, our strategic land sites with well over 10,800 permissioned housing units available for future sale and the solid returns from the construction segment should strongly support growing shareholder returns into 2015 and beyond.鈥�
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