Henry Boot’s (BOOT) statutory numbers belied what was a resilient first half – while operating profits fell 6 per cent to just under £25m, that was due to the non-recurrence of investment property sales the prior year.
The property development and construction group concluded the largest project in its history post-period end - the TECA scheme in Aberdeen. Outgoing chief executive John Sutcliffe believes this is his greatest single legacy at the company, having completed the project on budget and on time. Sites in Markham Vale, South End, and Luton have also been concluded since the start of the second half, cutting debt, which Mr Sutcliffe told the Investors Chronicle is now “fully extinguished”.
The group’s strategic land business stood out. Hallam Land Management sold 2,148 plots across 15 sites in the half, and has since completed sales on an additional 90 plots. However, other divisions put in varying performances – while construction returns rose almost a third, those of property investment and development dwindled by 26 per cent. Overall operating margins held steady at around 13 per cent.
Analysts at house broker Peel Hunt forecast EPS of 31.6p for the year to December 2019, up from 30.7p the prior year.
| HENRY BOOT (BOOT) | ||||
| ORD PRICE: | 242p | MARKET VALUE: | £ 322m | |
| TOUCH: | 239-242p | 12-MONTH HIGH: | 304p | LOW: 229p |
| DIVIDEND YIELD: | 3.9% | TRADING PROP: | £44m | |
| PREMIUM TO NAV: | 4% | |||
| INVESTMENT PROP: | £86m* | NET DEBT: | 16% | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 | 217 | 26 | 16 | 3.2 |
| 2019 | 233 | 24 | 14 | 3.7 |
| % change | +7 | -8 | -10 | +16 |
| Ex-div: | 19 Sep | |||
| Payment: | 18 Oct | |||
| *Includes investments in joint ventures | ||||
