Henry Boot PLC delivered a resilient set of outcomes for 2025, with management saying profit before tax is expected to be broadly in line with consensus despite difficult market conditions.
Residential land sales hit a record
The company's Hallam Land division sold a record 3,957 residential plots during the period, ahead of its stated target of 3,500 plots per year. Hallam Land also secured 4,159 planning consents in the period, reflecting continued planning activity across its portfolio.
Balance sheet and investment activity
Net debt rose to 108 million, which the company attributed to increased planning and land investment. Management noted this level is slightly above the firm's stated target range of 10-20%.
Development and joint venture progress
Henry Boot Developments (HBD) completed 119 million of gross development value (GDV) during the period, with the group's share of that amounting to 33 million. Around 32% of those schemes were either pre-let or pre-sold at completion.
The Origin joint venture was expanded and now comprises three schemes with a combined 449,000 square feet of space.
Planning milestones and housebuilding
The group reported several significant planning wins, naming Golden Valley and new projects at Duxford and FREEPORT 36 among the milestones reached. Stonebridge Homes completed 185 homes over the period, a figure described as below expectations, while the division increased its land bank to 2,572 plots.
"While market activity remains subdued, the fundamentals of our three key markets remain compelling, and we are well placed to benefit from the significant opportunities we have been building up within our portfolio, supported by a strong balance sheet and a disciplined approach to investment," the company's chief executive, Tim Roberts, said.
Outlook - a warning for 2026
Despite the positives in 2025, Henry Boot warned that profit before tax for 2026 is expected to be "significantly below current market expectations." The company cited ongoing subdued transaction activity, wider macroeconomic uncertainty, a lower forward sales position and the expiry in March of the profitable Road Link contract as the reasons for the weaker 2026 outlook.
The group emphasised its portfolio progress and balance sheet strength as positioning it to exploit opportunities when market conditions improve, while recognising near-term headwinds to earnings.