TIDMBOOT
RNS Number : 1915Z
Boot(Henry) PLC
20 May 2021
20 May 2021
HENRY BOOT PLC
('Henry Boot' or 'the Group')
AGM TRADING UPDATE
Henry Boot has had a positive start to the year as it continues
to see its markets recover and is trading in line with the Board's
expectations. In the year to date, the Group's performance has been
supported by nine strategic land sales and the completion of
developments with a total Gross Development Value (GDV) of
GBP29.0m. The third lockdown had a minimal impact on Henry Boot's
activities, which has allowed the Group to continue to make
strategic investments in its three long-term markets. In
particular, a further 582 acres of strategic land have been secured
through a mixture of freehold purchases and promotion agreements,
combined with the acquisition of a prime 2.6 acre site in
Birmingham City Centre for potential residential-led redevelopment.
Additionally, the Group has acquired two industrial estates in
Manchester and Skelmersdale, for a total of GBP10.5m, which will be
retained in the investment portfolio. After investing in these and
other new opportunities, the Group remains in a strong financial
position with net debt of GBP4.0m and a robust balance sheet.
Hallam Land Management (HLM) had a solid start to the year,
selling 2,088 plots and securing sales on 493 plots, either
unconditionally exchanged or exchanged subject to reserved matters
approval, which are expected to complete later in the year. Demand
for strategic land remains strong, with housebuilders increasing
the pace of land acquisition. New opportunities have been secured
resulting in our portfolio increasing to 17,289 acres. HLM's
trading outlook remains positive and we continue to receive a good
level of bids for our sites at pre-COVID-19 levels.
HBD has also made a good start to the year, experiencing strong
demand in the industrial & logistics and urban residential
sectors. Following the development of a 297,018 sq ft unit for Aver
at its industrial and logistics scheme at Markham Vale, the
business is now committed to a total of GBP336.0m GDV (HBD share
GBP87.5m), 89% of which is pre-sold or pre-let. This includes a
site pre-sold for a 2m sq ft unit at Wakefield Hub, which
successfully secured planning consent in April 2021 and a 260,000
sq ft unit pre-let to a German pharmaceutical company which,
subject to planning, should commence on site in H2 2021. A further
GBP110.0m GDV has been added to the Group's GBP1.4bn development
pipeline after acquiring a former Sytner dealership in Birmingham
City Centre, which has the potential to be developed into over 400
build-to-rent residential units. Progress has also been made at
Walsall, Phoenix 10, a GBP114.0m GDV industrial and logistics
scheme with potential to deliver 620,000 sq ft, which gained
planning approval in April and is set to begin grant-funded
remediation works in H2 2021.
As of May 2021, the Group's investment portfolio has increased
to GBP91.8m, after the acquisition of two industrial estates: the
Allied Business Centre, Skelmersdale for GBP4.7m and City Court,
Ancoats, Manchester for GBP5.8m, generating a combined initial
yield of 4.9%. Rent collection for the whole investment portfolio
in the first two quarters of 2021 stands at 90% and when factoring
in deferrals and expected monthly rents, the figure is 94%.
Stonebridge Homes (SH) has now secured 66% of its 2021 delivery
target and has achieved a sales rate of 0.75 units per site per
week. The housing market has remained resilient this year, however
we have continued to experience delays which has impacted sites
gaining planning permission. Notwithstanding this, the business
expects to obtain detailed planning on a further 255 units in the
year and is actively pursuing sites in Yorkshire and the North
East, in line with its ambitions to expand the business. This
leaves SH well placed to deliver its annual target and to secure
the pipeline of new sites required to meet its medium-term growth
aspirations.
After a positive start to the year, Henry Boot Construction
(HBC) is trading ahead of expectations with an orderbook for 2021
that is already full and has seen productivity increase to
approximately 98% of planned activity across all site operations.
In general, the construction sector is rebounding following the
initial lockdown last year, which coupled with continued investment
by the public sector, is contributing to an increase in
opportunities. The Glassworks, a GBP130.0m urban development
project in Barnsley, is progressing on time and budget, with the
scheme set to be handed over later this year. Work has also
commenced on major urban development projects, The Kangaroo Works
(GBP40.0m) and Heart of the City, Sheffield, Block H (GBP42.5m).
HBC remain optimistic about the immediate outlook and having
already secured a significant amount of its 2022 orderbook, the
business is well placed for the future.
Banner Plant has seen a rise in demand for its services, with
activity levels returning to that of pre-COVID-19 and is now ahead
of budget for the year. Road Link (A69) continues to see an
increase in traffic levels and is performing broadly in line with
management's expectations.
Outlook
Henry Boot has been encouraged by current performance levels and
the growing signs of recovery. The Group will therefore continue to
use its strong financial position to increase investments in its
three key markets: industrial & logistics, residential and
urban development. This leaves Henry Boot confident that the
business is very much on track to deliver its 2021 targets as well
as taking early steps towards the medium-term targets recently set
out in the preliminary statement.
For further information, please contact:
Henry Boot PLC
Tim Roberts, Chief Executive Officer
Darren Littlewood, Group Finance Director
Daniel Boot, Group Communications Manager
Tel: 0114 255 5444
www.henryboot.co.uk
Numis Securities Limited
Joint Corporate Broker
Garry Levin/George Fry
Tel: 020 7260 1000
Peel Hunt LLP
Joint Corporate Broker
Charles Batten/Harry Nicholas
Tel: 020 7418 8900
Hudson Sandler
Financial PR
Nick Lyon/Wendy Baker
Tel: 020 7796 4133
About Henry Boot PLC
Henry Boot PLC (BOOT.L) was established 135 years ago and is one
of the UK's leading and longest standing land promotion, property
investment and development, and construction groups of companies.
Based in Sheffield, the Group comprises the following three
segments:
Land Promotion:
Hallam Land Management Limited
Property Investment & Development:
Henry Boot Developments Limited (HBD) , Stonebridge Homes
Limited
Construction:
Henry Boot Construction Limited , Banner Plant Limited , Road
Link (A69) Limited
The Group possesses a high-quality strategic land portfolio, an
enviable reputation in the property development market backed by a
substantial investment property portfolio and an expanding, jointly
owned, housebuilding business. It has a construction specialism in
both the public and private sectors, a plant hire business, and
generates strong cash flows from its PFI contract, Road Link (A69)
Limited.
www.henryboot.co.uk
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END
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