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Henry Boot to beat expectations

Strong demand for building land and a robust construction business bode well for Henry Boot.
January 27, 2015

Shares in Henry Boot (BHY) rose nearly 4 per cent after the land management group revealed that pre-tax profit for 2014 will be comfortably ahead of current market expectations. Accordingly, analysts at Numis are upgrading their forecasts for the third time in a year to pre-tax profit of £28.2m and EPS of 15.3p. Through its core Hallam Land management business, the group buys land, pushes it through the planning process and sells it 'oven ready' to hungry housebuilders.

IC TIP: Buy at 196p

Trading at the start of the current year shows a continuing strong trend, with seven land sales progressing well to a successful conclusion. Significantly, the group's construction and jointly-owned housebuilder business has also performed well.