Henry Boot (BOOT) H1 2025 earnings summary

Executive summary

• Achieved total land and property sales of £159.6 million (company share £100 million) amid uncertain markets, demonstrating resilient demand for prime property.

• Revenue rose 19% year-over-year to £126.4 million, with profit before tax up to £7.8 million, driven by strong land and property disposals.

• Outline planning secured for £1bn Golden Valley development; Origin JV performing well and growing.

• Sale of Henry Boot Construction for £4 million to simplify group structure, reduce risk, and focus on core activities.

• Increased half-year dividend by 5% to 3.24p, reflecting confidence in growth and returns.

Financial highlights

• Revenue up 19% year-over-year to £126.4 million, driven by significant land promotion and property development transactions.

• Gross profit rose 30% to £32 million; gross margin improved to 25.3%.

• Underlying profit (excluding valuation movements) up 79% to £6.5 million; profit before tax up 111% to £7.8 million.

• Operating profit at £10.2 million; EPS increased to 4.8p; NAV per share (ex-pension) down 2.6% to 304p.

• Net debt increased to £88.1 million; gearing at 21.4%, slightly above optimal range.

Outlook and guidance

• Confident in achieving full-year performance in line with expectations, with 80% of budgeted land and property sales for 2025 already completed, exchanged, or secured.

• Targeting over 3,500 plot sales this year in Hallam, with medium-term target of 3,500 per annum.

• Stonebridge aiming for 240-250 home completions in 2025, with plans to scale up to 600 homes per annum.

• Expecting to return to growth in 2025, supported by expanded land bank and new regional outlets.

• Committed to growing capital employed to over £500 million and maintaining ROCE within 10-15%.