Henry Boot (BOOT) Trading update summary

Strategic and operational highlights

• Delivered resilient 2025 performance with profits expected in line with market expectations, supported by strong demand for high-quality residential land.

• Accelerated planning applications for over 11,000 plots, increased ownership and landbank of Stonebridge Homes, and completed the sale of Henry Boot Construction to simplify operations.

• Net debt rose to approximately £108m due to accelerated planning and landbank growth, with gearing slightly above the preferred range.

• Hallam Land achieved record residential plot sales and secured consent for over 4,000 plots, positioning for medium-term growth.

• HBD completed £119m GDV in schemes, expanded its industrial JV, and secured new development opportunities including a £1bn mixed-use campus in Cheltenham.

Market and financial performance

• Transaction volumes remained subdued, with house prices and land values broadly flat; industrial property saw 4.8% rental growth.

• Investment portfolio outperformed the wider market, with total property return ahead of the CBRE UK Monthly Index.

• Stonebridge Homes completed 185 homes, below expectations due to planning and build delays, but expanded its landbank to 2,572 plots.

• HBC and other subsidiaries performed in line with expectations, with Road Link entering the final months of its PFI contract.

Outlook and guidance

• Focus remains on residential, industrial/logistics, and urban development, with positive long-term trends expected as inflation and interest rates decline.

• Hallam Land and HBD are well positioned with strong pipelines, while Stonebridge Homes is undergoing operational improvements.

• Lower forward sales and expiry of the Road Link contract will impact 2026 results; profit before tax for 2026 is now expected to be significantly below current market expectations.

• Group remains well placed for market recovery, supported by a strong balance sheet and disciplined investment approach.