- First-half adjusted pre-tax profit down 38 per cent to £23.3mn
- Weaker construction and property development markets
- Analysts rein in earnings estimates
Sheffield-based Henry Boot (BOOT:198p), a land development, property and construction company, delivered the best annual results in its 137-year history last year. Markets are proving more challenging now and guidance at the start of the year was for a lower result, reflecting subdued activity levels across commercial and residential markets and lower profits from property investment and development activities.
However, Boot’s construction business is trading below management’s expectations. This is partly due to project delays, most notably on the Kangaroo Works build-to-rent and Block H urban development schemes in Sheffield, but the general slowdown in UK activity, too. Only 72 per cent of its full-year revenue has been secured, so Panmure Gordon expects the 31 per cent fall in divisional operating profit to be replicated in the second half with margins hit, too. Analysts expect the recovery in the business to take a couple of years.