HENRY BOOT PLC
('Henry Boot', the 'Company' or the 'Group')
Ticker: BOOT.L: Main market premium listing: FTSE: Real Estate Investment and Services.
Unaudited results for the year ended 31 December 2021
Strong operational performance driven by industrial development and residential land sales, with material progress towards medium-term strategic targets
Henry Boot PLC, a Company engaged in land promotion, property investment and development, and construction, announces its unaudited results for the year ended 31 December 2021.
Tim Roberts, Chief Executive Officer, commented:
“Strong demand within our three key markets of Industrial & Logistics, Residential and Urban Development has helped us to achieve a good set of results. By continued investment in our significant pipeline of opportunities and using our strong balance sheet, we have achieved material growth in the business and secured attractive returns for our shareholders. Whilst there are pressures facing the economy and the industry, particularly inflation and supply restrictions, we continue to manage these effectively. We have also made a very good start to the year, building on the strong momentum across the Group, with high levels of forward sales in land and housebuilding, further leasing of our developments and a full order book in construction.”
Financial highlights
- Revenue of £230.6m (2020: £222.4m), up 3.7%, driven by residential land sales
- Profit before tax increased to £35.1m (2020: £17.1m) up 105.3%, driven by strong performance of residential land sales, industrial development, investment property revaluation gains and returns from joint ventures
- Increased ROCE¹ of 9.6% (2020: 4.9%), up 4.7%, approaching our medium-term strategic target of 10%-15
- EPS grew significantly to 21.2p (2020: 9.0p), up 135.6%
- NAV² per share grew to 267p (2020: 235p), an increase of 13.6%, due to retained earnings and actuarial gains on the defined benefit pension scheme
- Robust balance sheet, with Net Debt³ of £43.5m (2020: Net Cash £27.0m) following strategic investments made during the year, whilst gearing remains prudent at 12.2% (2020: nil)
- Proposed final dividend of 3.63p (2020: 3.30p), an increase of 10.0%, reflecting the Group's strong operational performance and in line with our progressive dividend policy, bringing the total dividend for the year to 6.05p
Operational highlights
Actively investing in three key markets: Industrial & Logistics, Residential and Urban Development
- £60.0m invested in new opportunities across the Group
- Strong demand contributed to material progress in delivering against our evolved strategy and towards our medium-term growth and return targets
- Strong forward sales in land, development and housebuilding and a full construction order book
Land promotion
- 3,008 plots sold (2020: 2,000) at an average gross profit per plot of £7,820 (2020: £6,456), driven by robust demand from housebuilders replenishing their land portfolios
- Land bank increased to 92,667 plots (2020: 88,070)
- 12,865 (2020: 15,421) plots with planning permission, which are held at the lower of cost or net realisable value, allowing the Group to capture valuation gains and crystallise profit at the point of sale
Property investment & development
- Committed development programme materially stepped up in response to demand from £85m to £277m, with 72% pre-sold or pre-let
- Approximately 1m sq ft of industrial & logistics development underway (de-risked with 92% pre-sold or pre-let)
- £1.4bn development pipeline (Henry Boot share £1.1bn), 75% of which is focused on industrial & logistics
- Investment portfolio value increased to £126m (2020: £92m), delivering a strong total property return of 19.5%
- Stonebridge Homes has already secured 77% of its annual sales target of 200 units for 2022. Total owned and controlled land bank is now 1,157 plots (2020: 1,119) with detailed or outline planning permission on 912 plots (2020: 657)
Construction
- The construction business is performing ahead of expectations with turnover of £81.6m (68% in public sector) out of £110.3m segment total and has secured over 100% of 2022 order book
- £89.0m urban development, the Glass Works in Barnsley, completed in June 2021
- £42.0m urban development, Heart of the City, for Sheffield City Council, commenced in March 2021.
- £38.9m Build-to-Rent residential scheme, Kangaroo Works in Sheffield, commenced in April 2021
Responsible Business
- Launched Phase 2 of our Responsible Business Strategy setting ambitious objectives
- Clear medium-term targets relating to Our People, Our Places, Our Planet and Our Partners
- Our Responsible Business Committee ensures our commitments are embedded into the Group's operations to drive achievement of our medium-term targets
- Committed to our first Net Zero Carbon office development, Island in Manchester