Shares in Henry Boot (BHY) jumped 6 per cent in an otherwise dull market after releasing an upbeat trading statement covering the first five months of 2016. All three segments of the business have delivered a strong performance, although uncertainty ahead of the EU referendum in some cases held back transaction volumes.
In the period, Boot achieved four land sales totalling 450 units to housebuilders, with unconditional exchange on a further two sites. There are also discussions on a further 10 sites, all of which are expected to be sold by the end of this year. On the planning front, where the company brings land through the planning process to sell on to builders, planning permission has been secured on five sites for over 3,400 units in total. It now has 52 sites for sale with over 15,000 units and a further 29 sites for 13,000 units either at appeal or subject to a planning application.
On the property investment and development side, a 200-acre business park at Markham Vale is being developed in conjunction with Derbyshire County Council to develop 1m sq ft of distribution space, while an 850,000 sq ft exhibition and conference centre in Aberdeen has received final approval. Construction work is on target to meet objectives for the full year, and improvements in construction activity have allowed the company to push through price increases.
