TIDMBOOT
RNS Number : 0663M
Boot(Henry) PLC
19 January 2021
19 January 2021
HENRY BOOT PLC
('Henry Boot' or 'the Group')
TRADING UPDATE FOR THE YEAR ENDED 31 DECEMBER 2020
The Board of Henry Boot PLC issues the following trading update
for the year ended 31 December 2020 ahead of the preliminary
statement of results which will be issued on 23 March 2021.
The Group has ended the year materially ahead of the Board's
revised expectations for 2020, due primarily to land disposals and
a resilient performance from the development, construction and
house building businesses, in Henry Boot's target industrial and
residential markets. The Group's financial position remains strong,
with a robust balance sheet and net cash of c.GBP27m (2019:
GBP27m). During 2020 operations generated significant levels of
cash which has allowed for reinvestment within the Group's focused
three long-term key markets: industrial & logistics,
residential and urban development.
Despite the ongoing challenges of a global pandemic, the Group
saw a steady increase in activity as the year progressed resulting
in an outcome ahead of revised expectations. Since the beginning of
2021, the Government has confirmed that construction and
housebuilding activities should continue during the latest COVID-19
lockdown, allowing Henry Boot to carry on, in line with
COVID-secure guidelines, delivering a high-quality service to its
customers and the communities in which it operates.
Hallam Land Management saw housebuilder demand for land continue
in 2020, driven by the housing market recovering in the second half
of the year. Further transactions which exchanged in H2 will make a
significant contribution to the Group's profit in 2021. A major
contribution to Hallam Land's performance in H2 was the disposal of
an interest in a joint venture site in the Midlands, which has
long-term potential for residential and commercial development.
Additionally, new opportunities were secured in the year which
resulted in the land bank growing to 16,607 acres (2019:14,898
acres).
In 2020, HBD completed on developments with a total Gross
Development Value (GDV) of GBP62m (HBD share GBP58m). The Group is
committed to projects with a total GDV of GBP313m (HBD share
GBP85m), with the bulk of this in the significant BTR Kampus scheme
in Manchester which has been forward funded. The rest comprising
657,000 sq ft of industrial & logistics has been 69% pre-let or
pre-sold. Further opportunities have also been secured in the
Group's three key markets, notably at Mabgate, Leeds (60,000 sq ft)
and St John's College in Manchester (27,000 sq ft). Both buildings
add redevelopment potential in strong urban regeneration
settings.
Stonebridge Homes completed the year slightly ahead of target
and, due to resilient demand within the housing market, maintained
strong sales rates. Stonebridge Homes is now over 35% forward sold
for 2021.
In H2, Henry Boot Construction's productivity increased on sites
to 95% of planned activity with growing existing public sector work
leading to a strong orderbook for 2021. The Glassworks scheme in
Barnsley remains on time and budget and a GBP40m contract has been
signed to deliver a BTR scheme, the Kangaroo Works, in the centre
of Sheffield. Banner Plant has also seen a similar increase in
activity levels to 93%. Road Link (A69) experienced traffic level
disruptions due to COVID-19 but performed broadly in line with
management expectations.
Commenting on the performance, Tim Roberts, Chief Executive
Officer said:
'Henry Boot has adjusted well to the unprecedented challenges
that have faced everyone in 2020, but with a continued strong
financial position, and engaged teams, we have managed the business
to focus successfully on our key long term markets which are today,
as relevant as ever.
Whilst the latest lockdown shows that significant uncertainties
remain, with strong forward sales and a growing store of
opportunities, we start the year in good shape.'
This announcement contains inside information for the purposes
of article 7 of EU Regulation 596/2014. The person responsible for
making this announcement on behalf of Henry Boot is Amy Stanbridge,
Company Secretary.
Enquiries:
Henry Boot PLC
Tim Roberts, Chief Executive Officer
Darren Littlewood, Group Finance Director
Daniel Boot, Group Communications Manager
Tel: 0114 255 5444
www.henryboot.co.uk
Numis Securities Limited
Joint Corporate Broker
Garry Levin/George Fry
Tel: 020 7260 1000
Peel Hunt LLP
Joint Corporate Broker
Charles Batten/Harry Nicholas
Tel: 020 7418 8900
Hudson Sandler
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
segments:
Land Promotion:
Hallam Land Management Limited
Property Investment and Development:
Henry Boot Developments Limited (HBD) , Stonebridge Homes
Limited
Construction:
Henry Boot Construction Limited , Banner Plant Limited , Road
Link (A69) Limited
The Group possess a high-quality strategic land portfolio, an
enviable reputation in the property development market backed by a
substantial investment property portfolio and an expanding, jointly
owned, house building business. It has a construction specialism in
both the public and private sectors, a long-standing 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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