TIDMBOOT
RNS Number : 0935P
Boot(Henry) PLC
24 May 2018
24 May 2018
HENRY BOOT PLC
('Henry Boot', 'the Company' or 'the Group')
AGM TRADING UPDATE
Henry Boot PLC, a company engaged in land promotion, property
investment and development, and construction, will hold its Annual
General Meeting at 12.30 p.m. today at which the Chairman will make
the following statement regarding current trading and the outlook
for the current financial year.
Trading and outlook
The Group's land promotion and property investment and
development business segments traded well during the first five
months of this year. Despite the poor weather conditions
experienced earlier this year, the financial performance of our
construction and plant hire businesses remain in-line with our
expectations. Hallam Land has a strong pipeline of sales
opportunities which are expected to conclude in the remainder of
2018, although, and as is always the case, there is some
uncertainty with regard to the timing of these deals within a
particular financial period.
Given the good start we have made in 2018, and anticipating no
major changes to the underlying UK economic conditions, we expect
the Group's performance for the current financial year ending 31
December 2018 to be in-line with the Board's expectations.
KEY EVENTS IN THE PERIOD
LAND PROMOTION
Hallam Land Management, our strategic land business, has made a
particularly solid start to the year, with the timing of
transactions expected to complete this financial year currently
ahead of expectation.
-- We have concluded land sales totalling
over 1,841 plots on 12 sites. In addition,
we have unconditionally exchanged on two
further sites and are in detailed discussions
regarding the sales of a further 15 schemes
which are expected to complete later in
2018 and 2019.
-- We have recently obtained planning permission
on a further two sites for 276 units and
now have 47 sites for sale comprising
over 16,770 units. We have 9,074 units
on 33 sites which are currently subject
to undetermined planning applications
or are at appeal.
-- The total portfolio of land promotion
sites is now 170 covering over 13,500
acres with a further 29 sites, over 2,000
acres, expected to be brought into the
portfolio subject to the completion of
due diligence and legal agreement.
PROPERTY INVESTMENT AND DEVELOPMENT
Henry Boot Developments continues to successfully deliver a
number of schemes, whilst acquiring new opportunities for the
future. The largest two schemes we are working on at present
are:
-- The Aberdeen Exhibition and Conference
Centre is now a little over halfway through
its development programme and remains
on course to be completed by mid-2019.
-- The forward funded 539 unit build to rent
redevelopment of the former Manchester
Metropolitan University Campus site in
central Manchester is also progressing
on programme, targeting delivery of the
first phase of residential units in 2020.
-- The Company has also exchanged a number
of new, long-term, joint venture agreements
covering large business and industrial
park development sites in Sunderland,
Taunton, Enfield, Wakefield and Preston,
totalling over 500 acres.
-- Our jointly owned house builder, Stonebridge
Homes, is trading well and is targeting
sales of over 120 units in 2018, up from
79 units in 2017. Reservations and sales
to date are consistent with achieving
this goal.
CONSTRUCTION AND PLANT HIRE
Our construction and plant hire businesses have been slightly
affected by the poor weather conditions experienced in the first
part of the year, but we have worked hard to ensure that the
financial performance remains in-line with our expectations.
-- Our construction business continues to
work across a wide range of sectors, including
industrial, residential, custodial, health,
commercial, education, leisure and civil
engineering. We have made a slightly slow
start to the year but, in 2018, we expect
to achieve a similar level of activity
to 2017. We are currently bidding for
some larger contracts which, if successful,
will underpin the 2019/2020 order books.
-- Our plant hire business, Banner Plant,
reflecting slower UK construction activity
in the first quarter of 2018, was slightly
down on a 2017 like-for-like basis through
the first quarter. However, the improved
weather conditions have seen higher levels
of activity and, at this stage of the
year, we expect the business to achieve
a similar result to 2017 for the full
year.
-- Road Link (A69) Limited, our PFI contract
was also impacted by the adverse winter
weather, resulting in some incremental
cost of repairing the road. This work
has now concluded and the contract is
trading in-line with previous years and
management expectations.
For further information, please contact:
Henry Boot PLC
John Sutcliffe, Chief Executive Officer
Darren Littlewood, Group Finance Director
Tel: 0114 255 5444
www.henryboot.co.uk
Investec Bank plc
Stockbrokers
Garry Levin/Carlton Nelson/David Anderson
Tel: 020 7597 5970
Hudson Sandler LLP
Financial PR
Nick Lyon/Wendy Baker
Tel: 020 7796 4133
About Henry Boot PLC
Henry Boot PLC (BOOT.L) was established over 130 years ago and
is one of the UK's leading and long-standing property investment
and development, land promotion and construction companies. Based
in Sheffield, the Group is comprised of the following three
divisions:
Land Promotion:
Hallam Land Management Limited
Property Investment & Development:
Henry Boot Developments Limited, Stonebridge Homes Limited
Construction:
Henry Boot Construction Limited, Banner Plant Limited, Road Link
(A69) Limited
The Group possess a high-quality strategic land portfolio, a
substantial investment portfolio and an enviable reputation in the
property development market. It has a construction specialism in
both the public and private sectors, a growing plant hire business,
and generates strong cash flows from its PFI contract through Road
Link (A69) Limited.
www.henryboot.co.uk
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END
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