Annual profit forecast just shy of pre-Covid levels

Henry Boot is on course to hit market expectations for 2022 on the back of a large sale of residential plots in Oxfordshire.

The Sheffield-based developer and contractor released its half-year results today, reporting 拢144.4m revenue for the six months to 30 June.

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Chief executive Tim Roberts said the firm was working hard to adjust to supply restrictions and inflation

That is a 11.9% increase on the 拢129m recorded over the same period last year and produced pre-tax profit of 拢38.8m, up 68%.

The increase in turnover was driven by property development completions and land disposals, including the.

Chief executive Tim Roberts said it was among the firm鈥檚 鈥渂est ever first half years鈥�, though the reports noted that the year鈥檚 results were expected to be 鈥渉eavily weighted鈥� to H1 after a 鈥渂usy summer鈥�.

Henry Boot is forecast to earn 拢47.8m in profit before tax over the course of the full year, just shy of the 拢49m recorded before covid hit in 2019.

The firm鈥檚 full-year results for 2021 saw its pre-tax profit more than double to 拢35.6m as it bounced back from a difficult period during pandemic which saw the firm cut staff.

The business, which operates in the industrial and logistics, residential and urban development sectors, was set up by Henry Boot in 1886.

Earlier this year, the founder鈥檚 great, great grandson, Jamie Boot, stepped down as chair to be replaced by Peter Mawson, marking the first time in history the firm has not been family run.

鈥淭aking advantage of our three key markets we have made significant sales whilst being selective on purchases,鈥� said Roberts.

鈥淭his 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%.鈥�

鈥淲e have worked hard to do our best to adjust to supply restrictions, inflation and an increasingly complex planning system.鈥�

The firm鈥檚 construction business saw profit increase to 拢6.3m for the six months up to 30 June this year (2021 H1: 拢4.3m), based on turnover of 拢66.5m, which was up 21.6% from 拢54.7m in the same period last year.

The firm has taken a selective approach to acquisitions, with total purchases of just 拢10m (2021: 拢55m) reflecting its decision to slow spending in what it described as 鈥渁 particularly competitive market for assets鈥� and in advance of 鈥渁nother period of economic uncertainty鈥�.

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