Henry Boot (BOOT) H1 2024 earnings summary

Executive summary

• Focus on high-quality land, property development, and housebuilding in prime UK locations, with resilient operational performance and a strong balance sheet.

• 81% of annual sales budget for 2024 is already secured, supporting confidence in meeting full-year expectations.

• Interim dividend increased by 5% to 3.08p, reflecting confidence in future prospects.

• Capital employed rose to £424m, progressing toward the medium-term target of £500m.

Financial highlights

• Revenue for H1 2024 fell 41% to £106.0m, with gross profit down 40% to £24.7m and operating profit at £5.9m.

• Underlying profit before tax dropped to £3.6m; basic EPS was 2.8p.

• Net asset value per share was 305p; net debt increased to £103.9m, with gearing peaking at 25.5% and reducing to c.18% post-period.

• ROCE was 1.4%, expected to improve in H2 but remain below the 10-15% medium-term target.

• Interim dividend up 5% to 3.08p per share, with dividend cover at 0.9x.

Outlook and guidance

• Full-year results expected to be heavily weighted to H2, with performance on track to meet market expectations.

• 81% of FY24 sales are already secured; strong orderbook and improving planning environment support confidence in medium-term targets.

• Economic recovery, lower inflation, and government support for planning reforms and housebuilding seen as positive drivers.

• Medium-term targets include growing capital employed to £500m, achieving 3,500 plot sales per annum, and completing £192m of development this year.