The property investment, construction and plant hire group Boot(henry) (LON:BHY) announced this morning a pre tax loss of £11.9 million for 2009 end of year results. The company was hit hard by the dramatic fall in the value of its land, resulting in fall in turnover, down 40%, to £116.5 million. Operating profits also fell by 75% to £11.5 million. The company also confirmed it has completed the sale of its Waterloo Square site in South Shields. However, the firm managed to reduce its net debt to £32.1m over the year, down from £49.3m in 2008 and as it would start work on a 26,500 sq ft retail scheme in Warminster, previously on hold. The company is also paying a second interim dividend of 1.25p taking the total for the year to 2.5p (2008: 5p), the report said. Chairman John Reis commented:
"Our strategic focus during this recessionary period has been to preserve our asset values and reduce our debt. Whilst the general economic background and the property market, in particular, remains tough, I believe that the market is beginning to recover from its low point. In addition he admitted that much of the work of the construction division, which accounts for two thirds of turnover, was from the public sector, and therefore potentially at risk given the likelihood of public spending cuts following the forthcoming General Election.” Reis concluded, "Therefore, our prudent strategy is the correct one until we can see clear evidence of a sustained recovery."
Following this report, the company released another announcement confirming they had sold the Waterloo Square retail investment in South Shields town centre to Royal London Mutual Insurance Society Limited. This retail development was originally undertaken in partnership with South Tyneside Council as part of a large regeneration scheme which also includes a 60,000 sq ft Asda foodstore, comprises over 70,000 sq ft of non food retail space let to quality fashion retailers Next, Debenhams, BHS and River Island. The sale price of the retail development was reportedly GBP11.5 million with an investment yield of 5.8% and was 28% above the 2009 year end valuation of GBP9 million.
