Property group Henry Boot PLC is observing an improvement in its key markets, despite a notable fall in both revenues and profits for the first half of 2024.
The Sheffield-based company reported a decline in revenues from £179.8 million in the same period last year to £106 million. Operating profit was also significantly reduced from £25.7 million to £5.9 million. Despite these figures, Henry Boot completed and exchanged on land and property sales worth over £150 million. However, a lower starting forward sales position resulted in the observed decline in revenues and profits.
Chief Executive Officer Tim Roberts stated, “During the first half of the year we have started to see an improvement in our markets, and this together with our focus on prime land and development, plus premium homes has helped us to achieve relatively strong property sales.” He noted that 81% of budgeted sales for 2024 had either completed, exchanged, or reserved, maintaining the company’s trajectory towards meeting market expectations for the full year.
Roberts highlighted that the recovering demand in key markets was driven by lower interest rates and economic growth, alongside the company’s strategic focus on prime land, premium homes, and developments. He expressed optimism about the Government’s proposed changes to the planning system, which could expedite permissions for new housebuilding projects.
Roberts added, “The group remains convinced that our three key markets – industrial, residential and urban development – benefit from long-term structural trends where demand is likely to outstrip supply. That, together with a rock-solid balance sheet, the recently signed larger banking facility, and a portfolio across the group with attractive opportunities, means we are confident we have the resources to continue to grow the business and achieve returns in line with our medium-term targets.”
The company’s unaudited six-month results were released shortly after announcing the sale of nearly 500 housing plots to a major homebuilder.
In summary, while Henry Boot experienced a significant drop in revenues and profits in the first half of 2024, the company remains optimistic due to improving market conditions, strategic focus, and supportive Government policies. The firm continues to expect better financial performance in the latter half of the year.