Boot(Henry) PLC AGM Trading Update (0945G)

TIDMBOOT

RNS Number : 0945G

Boot(Henry) PLC

25 May 2017

25 May 2017

HENRY BOOT PLC

('Henry Boot', 'the Company' or 'the Group')

AGM TRADING UPDATE

Henry Boot PLC, a company engaged in land promotion, property investment and development, and construction, will hold its Annual General Meeting at 12.30 p.m. today at which the Chairman will make the following statement regarding current trading and the outlook for the current financial year.

Trading and outlook

Property trading and development activity levels since the beginning of 2017 have been very encouraging and the Group's three business segments; land promotion, property investment and development and construction are trading strongly. Henry Boot is, fundamentally, a transactions driven business and there is always a degree of uncertainty with regard to the timing of these deals within a particular financial period. We are pleased to report that any uncertainty created by the current UK general election process is not having an impact on our business.

Given the strong start we have made in 2017, and anticipating no major changes to the underlying economic conditions in which we operate, we now anticipate the Group's performance for the current financial year ending 31 December 2017 will be comfortably ahead of the Board's existing expectations.

KEY EVENTS IN THE PERIOD

LAND PROMOTION

Hallam Land Management, our strategic land business, has made a very solid start to the year. Transactions expected to complete in 2017 are progressing as anticipated and the UK's major house builders are reporting slightly higher levels of activity and strong demand for new houses.

 
      --   So far this year we have concluded land 
            sales totalling over 900 units on seven 
            sites. In addition, we have unconditionally 
            exchanged on two other sites and are in 
            detailed discussions regarding the sales 
            of a further nine schemes. 
      --   We have also obtained planning permission 
            on six sites for 1,965 units and now have 
            50 sites for sale comprising over 17,600 
            units. We have a further 11,000 units 
            on 32 sites which are currently undetermined 
            planning applications or at appeal. 
      --   The total portfolio of land promotion 
            sites is now 163 covering 11,900 acres 
            with a further 28 sites, over 2,100 acres, 
            expected to be brought into the portfolio 
            subject to the completion of due diligence 
            and legal agreement. 
 

PROPERTY INVESTMENT AND DEVELOPMENT

 
      --   The 200-acre business park at Markham 
            Vale will once again see a number of developments 
            delivered in 2017 with over 650,000 sq 
            ft of industrial and distribution space 
            in progress. 
      --   We have been on site at the Aberdeen Exhibition 
            and Conference Centre for almost a year 
            now and construction is progressing to 
            plan, with a target completion date of 
            mid-2019. 
      --               We expect that the remaining 76 of the 
                      original 163 apartments within the main 
                       factory building at the former Terry's 
                       Chocolate Factory in York will be sold 
                        during 2017, completing this phase of 
                        work. We will then turn our attention 
                     to the smaller Clock Tower redevelopment 
                       and the final three-acre site which is 
              likely to be a further residential opportunity, 
                                         subject to planning. 
      --   In Manchester city centre, the jointly 
            developed and forward funded 539-unit 
            private rented apartment development should 
            see the completion of the strip out and 
            demolition contract by mid-2017, with 
            the main redevelopment beginning on the 
            conclusion of that work. 
      --   Our jointly owned house builder, Stonebridge 
            Projects, is trading well and is targeting 
            sales of 100 units in 2017, up from 70 
            units in 2016. Reservations and sales 
            at this stage of the year are on track 
            to achieve our targets. 
 

CONSTRUCTION

 
      --   Our construction business continues to 
            work across a wide range of sectors, including 
            industrial, residential, custodial, health, 
            commercial, education, leisure and civil 
            engineering. We have made a good start 
            to the year and expect to achieve targeted 
            activity in 2017, whilst also building 
            our 2018 order book. The level of contract 
            opportunities coming to the market is 
            similar to the previous two years and 
            we continue to win work at broadly the 
            same rate. 
      --   Our plant hire business, Banner Plant, 
            completed the acquisition of Premier Plant 
            Tool Hire & Sales Limited in Leicester 
            for GBP2.8m in the period; taking our 
            activities a little further south down 
            the M1 motorway corridor. The integration 
            of the new business is progressing well 
            and both the existing and new depots are 
            trading in line with our expectations. 
      --   Road Link (A69) Limited, our PFI contract, 
            continues to trade well and in line with 
            previous years and management expectations. 
 

For further information, please contact:

Henry Boot PLC

John Sutcliffe, Chief Executive Officer

Darren Littlewood, Group Finance Director

Tel: [phone]

www.henryboot.co.uk

Investec Bank plc

Stockbrokers

Garry Levin/Carlton Nelson/David Anderson

Tel: [phone]

Hudson Sandler LLP

Financial PR

Nick Lyon/Wendy Baker

Tel: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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May 25, 2017 02:00 ET (06:00 GMT)