Henry Boot warns of 'challenging' 2019 as profits edge lower
Source - SMW
Henry Boot saw its annual profits edged lower on a modest dip in revenue and also warned that 2019 would be 'challenging year' amid Brexit.
In 2018, profit before tax fell to £48.6m from £55.4m and revenue decreased 3% to £397.1m.
The company blamed the fall in revenue on lower activity within the property investment and development segment arising from work which would now commence in 2019, though this was offset by an increased level of activity within construction.
Gross profit decreased 10% to £78.0m for the year as gross profit margin fell to 20% from 21%. Strategic land acreage grew to 14,325 acres from 13,273 acres a year earlier.
The company proposed a final dividend of 5.80p, up from 5.20p last year, taking the total for the year to 9.00p, 13% from a year earlier.
'We anticipate that 2019 will be a challenging year, as the UK real estate sector adapts to the marketplace following the UK's decision to leave the EU,' said Chairman, Jamie Boot.
'Nevertheless, I remain confident that we will achieve sector-leading results, despite the challenges we face, as we continue to build an extensive pipeline of opportunities in each of our businesses.'