Henry Boot (BOOT) Trading Update summary

Trading performance and market conditions

• Gradual improvement in market conditions during 2024 led to increased demand across key sectors, resulting in profits expected to be in line with market expectations.

• UK house prices rose 4.7% and industrial property rents grew 5.0% in 2024, though transaction volumes remained slow.

• Net debt reduced to approximately £63m by year-end, with gearing within the optimal 10-20% range.

• Outlook for 2025 is cautiously optimistic, with expectations of steady market improvement and a slower pace of interest rate reductions.

Strategic initiatives and investments

• Acquired full ownership of Stonebridge Homes, increasing investment in premium housebuilding and supporting growth plans.

• Formed a joint venture with Feldberg Capital (Origin) to accelerate industrial and logistics development, targeting £1bn GDV over seven years.

• Hallam Land expanded its land bank to 104,787 plots and secured consents on 2,982 plots, positioning for 10,000 new planning applications in 2025.

• HBD completed schemes with £331m GDV (72% pre-let/sold), including major net zero carbon and residential projects.

Operational highlights

• Hallam Land sold 2,661 residential plots and 52 acres of employment land, meeting financial targets despite missing volume targets.

• Stonebridge Homes completed 270 homes, with a growing land bank and new sites added, including its first in the Midlands.

• HBD’s committed development programme reduced to £124m GDV, with 25% pre-let/sold and 98% of costs fixed.

• Henry Boot Construction starts 2025 with 55% of its order book secured and a focus on diversifying into private sector projects.