Boot(Henry) PLC AGM Trading Update (0935P)

TIDMBOOT

RNS Number : 0935P

Boot(Henry) PLC

24 May 2018

24 May 2018

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

The Group's land promotion and property investment and development business segments traded well during the first five months of this year. Despite the poor weather conditions experienced earlier this year, the financial performance of our construction and plant hire businesses remain in-line with our expectations. Hallam Land has a strong pipeline of sales opportunities which are expected to conclude in the remainder of 2018, although, and as is always the case, there is some uncertainty with regard to the timing of these deals within a particular financial period.

Given the good start we have made in 2018, and anticipating no major changes to the underlying UK economic conditions, we expect the Group's performance for the current financial year ending 31 December 2018 to be in-line with the Board's expectations.

KEY EVENTS IN THE PERIOD

LAND PROMOTION

Hallam Land Management, our strategic land business, has made a particularly solid start to the year, with the timing of transactions expected to complete this financial year currently ahead of expectation.

 
      --   We have concluded land sales totalling 
            over 1,841 plots on 12 sites. In addition, 
            we have unconditionally exchanged on two 
            further sites and are in detailed discussions 
            regarding the sales of a further 15 schemes 
            which are expected to complete later in 
            2018 and 2019. 
      --   We have recently obtained planning permission 
            on a further two sites for 276 units and 
            now have 47 sites for sale comprising 
            over 16,770 units. We have 9,074 units 
            on 33 sites which are currently subject 
            to undetermined planning applications 
            or are at appeal. 
      --   The total portfolio of land promotion 
            sites is now 170 covering over 13,500 
            acres with a further 29 sites, over 2,000 
            acres, expected to be brought into the 
            portfolio subject to the completion of 
            due diligence and legal agreement. 
 

PROPERTY INVESTMENT AND DEVELOPMENT

Henry Boot Developments continues to successfully deliver a number of schemes, whilst acquiring new opportunities for the future. The largest two schemes we are working on at present are:

 
      --   The Aberdeen Exhibition and Conference 
            Centre is now a little over halfway through 
            its development programme and remains 
            on course to be completed by mid-2019. 
      --   The forward funded 539 unit build to rent 
            redevelopment of the former Manchester 
            Metropolitan University Campus site in 
            central Manchester is also progressing 
            on programme, targeting delivery of the 
            first phase of residential units in 2020. 
      --   The Company has also exchanged a number 
            of new, long-term, joint venture agreements 
            covering large business and industrial 
            park development sites in Sunderland, 
            Taunton, Enfield, Wakefield and Preston, 
            totalling over 500 acres. 
      --   Our jointly owned house builder, Stonebridge 
            Homes, is trading well and is targeting 
            sales of over 120 units in 2018, up from 
            79 units in 2017. Reservations and sales 
            to date are consistent with achieving 
            this goal. 
 

CONSTRUCTION AND PLANT HIRE

Our construction and plant hire businesses have been slightly affected by the poor weather conditions experienced in the first part of the year, but we have worked hard to ensure that the financial performance remains in-line with our expectations.

 
      --   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 slightly slow 
            start to the year but, in 2018, we expect 
            to achieve a similar level of activity 
            to 2017. We are currently bidding for 
            some larger contracts which, if successful, 
            will underpin the 2019/2020 order books. 
      --   Our plant hire business, Banner Plant, 
            reflecting slower UK construction activity 
            in the first quarter of 2018, was slightly 
            down on a 2017 like-for-like basis through 
            the first quarter. However, the improved 
            weather conditions have seen higher levels 
            of activity and, at this stage of the 
            year, we expect the business to achieve 
            a similar result to 2017 for the full 
            year. 
      --   Road Link (A69) Limited, our PFI contract 
            was also impacted by the adverse winter 
            weather, resulting in some incremental 
            cost of repairing the road. This work 
            has now concluded and the contract is 
            trading 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]

About Henry Boot PLC

Henry Boot PLC (BOOT.L) was established over 130 years ago and is one of the UK's leading and long-standing property investment and development, land promotion and construction companies. Based in Sheffield, the Group is comprised of the following three divisions:

Land Promotion:

Hallam Land Management Limited

Property Investment & Development:

Henry Boot Developments Limited, Stonebridge Homes Limited

Construction:

Henry Boot Construction Limited, Banner Plant Limited, Road Link (A69) Limited

The Group possess a high-quality strategic land portfolio, a substantial investment portfolio and an enviable reputation in the property development market. It has a construction specialism in both the public and private sectors, a growing plant hire business, and generates strong cash flows from its PFI contract through Road Link (A69) Limited.

www.henryboot.co.uk

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May 24, 2018 02:00 ET (06:00 GMT)