Henry Boot (BOOT) H2 2024 earnings summary

Executive summary

• Achieved total land and property sales of nearly £350 million, with the group’s share at £224 million, maintaining resilience despite challenging markets and strong H2 momentum.

• Strategic progress includes full ownership terms for Stonebridge Homes, entry into the Origin JV to accelerate industrial development, and increased headcount at Hallam to boost planning consents.

• Maintained a strong balance sheet, with NAV over £3 per share and a 5% increase in the full-year dividend, reflecting confidence in medium-term targets.

• Focused on high-quality land, prime property development, and premium homes.

Financial highlights

• Revenue declined 9% year-over-year to £328.4 million; gross profit decreased 3% to £74.5 million, but gross margin improved to 22.7%.

• Operating profit was £34.2 million; underlying profit before tax was £29.4 million.

• Earnings per share fell to £0.174; net asset value per share rose 3.6% to £3.17.

• Net debt reduced to £62.7 million, with gearing at 14.7%.

• Total accounting return, including dividends, was 6.1%.

Outlook and guidance

• Expectation to sell 3,000 plots in 2025, moving closer to the 3,500 medium-term target.

• Performance anticipated to be second-half weighted again in 2025 due to deal timing.

• Planning policy improvements expected to support advancing 10,000 plots in the next 12 months.

• Confident in hitting medium-term growth and return targets, with improving market sentiment and planning environment.