Henry Boot PLC on Tuesday hailed 2022 performance, saying it was the ‘best year ever’ at an underlying profit level. It also announced the sale of logistics scheme in Preston.
However, the Sheffield, England-based builder and property developer added that a fall in the value of its UK commercial property investment portfolio will lead to pretax profit coming in ‘slightly’ below market consensus of £48.1 million for the year.
‘It is too early to predict the outturn for 2023, however overall, the group expects this year to be more challenging than 2022,’ the company said.
It expects to continue to invest in growing the business in line with objectives. Full-year results will be announced on March 21.
Henry Boot added that its Hallam Land Management traded strongly in 2022, topping its target of selling 3,500 plots per annum. The total land portfolio increased to 95,407 plots from 92,667 in 2021, of which 9,325 plots have planning. ‘Whilst demand for land from the national housebuilders reduced in [second half of 2022] against the backdrop of a slowing economy, the ongoing challenges of the planning system combined with critical housing shortages will ensure that demand for HLM’s stock of permissioned sites remains robust,’ the company said.
The firm also said that Henry Boot Developments, alongside Barnside Group, completed the sale of East logistics scheme in Preston, in a £30 million transaction. This represents a premium of 10% to the last reported book value.
Chief Executive Officer Tim Roberts said: ‘Having seen strong sales across the group, we have had our best year ever at an underlying profit level. Reflecting a particularly challenging backdrop as the year progressed, during which a noteworthy £30 million of accretive sales was achieved in a weak market, the year-end valuation movements in our investment portfolio have had an impact on our 2022 profit before tax.’
In September, Henry Boot had said its pretax profit increased by 68% to £38.8 million in the six months to June from £23.1 million the year before. Revenue increased substantially as well, rising 12% to £144.4 million from £129.0 million.
Shares were down 4.5% on Tuesday morning in London.
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