DJ Boot(Henry) PLC AGM Trading Update
KEY EVENTS IN THE PERIOD
LAND DEVELOPMENT
Since the start of 2016 activity levels have been, and continue to be, strong.
— We have already concluded four land sales
totalling over 450 units and have unconditionally
exchanged on two further sites, with completion
expected later in the year. In addition, we
are in detailed sale discussions on ten other
schemes; the majority of which should also
complete before the year end.
— We have seen further success in our planning
activities since December 2015, having obtained
planning permission on five sites, for over
3,400 units. We now have 52 sites for sale
with over 15,000 units and an additional 29
sites, over 13,000 units, either at appeal
or as yet undetermined planning applications.
— Our land promotion portfolio now totals over
150 sites and 11,200 acres. Furthermore, we
have board approval for some 30 new sites,
for in excess of 2,000 acres, to replenish
the portfolio for the future.
— House builders continue to report good progress
with stable levels of demand for new homes
and are replenishing their land banks as sales
are made. We look forward to reporting further
activity as sales complete throughout the
rest of the year.
PROPERTY INVESTMENT AND DEVELOPMENT
— At Markham Vale, our 200 acre business park
being developed in partnership with Derbyshire
County Council, we are on track to develop
over one million sq ft of distribution space
by the end of the year. This follows the exchange
of contracts for a 225,000 sq ft bespoke unit
and agreement of terms for a further 480,000
sq ft of warehousing, in addition to the 480,000
sq ft of space already pre-let to Great Bear
Distribution Limited. These three schemes,
which are forward funded or pre-sold, are
all expected to complete in late 2016 or early
2017.
— The 850,000 sq ft exhibition and conference
centre in Aberdeen continues to move forward
following the final approval of the scheme
by the City Council. We are now working on
the final terms with our construction partner
and our funder and hope to be on site, as
planned, in the second half of 2016.
— Contracts were exchanged early in the year
with Atkins Limited on a site in Epsom, Surrey,
to develop 110,000 sq ft of high specification
offices. With detailed planning permission
already secured, initial enabling works will
start this year and the development, which
is forward funded, is expected to be completed
towards the end of 2017.
— In Manchester city centre, contracts have
been exchanged with U.S. Property Fund, Ares,
to forward fund a 570 unit private rented
apartment development on a 2.5 acre site which
we hold under contract. A detailed planning
application for the scheme was recently submitted;
once secured, we expect to commence this GBP200m
development in the first half of 2017.
— At the former Terry's chocolate factory in
York, our development opened for apartment
sales in April 2016. We already have reservations
on over 40 luxury apartments at sales values
above those originally envisaged. The first
sales completions are expected in the second
half of 2016 and current demand indicates
that we should see further sales throughout
this year and 2017.
— Elsewhere, a number of other smaller projects
have commenced. These include retail warehouse
developments in Livingston and Belper, a car
dealership site on the edge of Chesterfield
and an office refurbishment and extension
in Uxbridge.
— Our jointly owned house builder, Stonebridge,
started development on the 109 unit site in
Leeds late in 2015 and recently began building
out the 114 unit site in Stocksbridge. Sales
have commenced on both sites with good initial
interest. We expect these two sites to be
the main areas of growth for Stonebridge supported
by a growing site portfolio.
CONSTRUCTION DIVISION
— Our Construction business continues to undertake
projects across a wide range of sectors including
industrial, residential housing, custodial,
health, commercial, education, leisure, renewable
energy and civil engineering. We have made
a strong start to the year and expect to achieve
targeted activity in 2016 and are already
building the 2017 order book. Encouragingly,
and contrary to certain press comment regarding
parts of the UK construction market, we are
seeing improvements in both construction activity
and the size of opportunities coming to the
market. As a consequence, we anticipate a
small improvement in pricing levels associated
with the growing workload in all our operating
sectors.
— Our plant business is trading well and activity
is ahead of the equivalent period last year.
Encouragingly, we are currently seeing good
demand for all parts of the hire fleet from
a generally busy construction industry in
the North of England.
— Road Link (A69) Limited, our PFI contract,
continues to trade in line with previous years
and management expectations.