REG - Boot(Henry) PLC - Final Results
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RNS Number : 8544X Boot(Henry) PLC 24 March 2026
24 March 2026
HENRY BOOT PLC
('Henry Boot', the 'company' or the 'group')
Ticker: BOOT.L: Main market premium listing: FTSE: Real Estate Investment and
Services.
Unaudited results for the year ended 31 December 2025
Resilient performance in challenging markets: record land sales and strong
foundation for future growth
Henry Boot PLC, a company engaged in land promotion, property investment and
development, and home building, announces its unaudited results for the year
ended 31 December 2025.
Tim Roberts, Chief Executive Officer, commented:
"Henry Boot delivered a resilient performance in 2025 against a backdrop of
continued economic and political uncertainty. Hallam Land performed
particularly well, achieving a record number of plot sales and making
excellent strategic progress in the acceleration of planning applications to
grow its consented land bank. However, our performance was impacted by slower
house sales and some cost overruns at Stonebridge Homes. We took important
steps to further simplify the group and sharpen our strategic focus, through
the sale of Henry Boot Construction, and the planned increase in our ownership
of Stonebridge Homes. These actions, together with the launch of our Future
Ways of Working programme, are improving efficiencies, enhancing collaboration
across the group and creating a strong platform for future growth.
As we progress into 2026, we are encouraged by the strong, sustained demand
for our high quality residential land and the signs of improvement at
Stonebridge Homes, where sales rates have strengthened, although due to the
timing of key transactions, we expect the group's performance to be once again
second half weighted. Underpinned by our strong balance sheet, an increasingly
supportive planning environment, and a development pipeline filled with
opportunity, we are well positioned to meet full year market expectations,
assuming the conflict in the Middle East is not prolonged. Over the medium
term we are confident the group can deliver significant value for
shareholders."
Financial highlights
· Total land and property sales of £356m, our share at £193m
(2024: £347m: £224m our share), highlights particularly strong demand from
housebuilders for our high quality residential land
· Revenue(1) marginally lower at £307.0m (2024: £325.8m) due to
reduced turnover in our home building segment, partially offset by higher land
promotion sales
· Profit before tax(1), including initial profit recognition on
disposal of Henry Boot Construction (HBC), broadly in line with market
expectations at £29.1m (2024: £30.7m), supported by record plot sales.
Profit before tax ( )from continuing operations £26.4m (2024: £28.4m)
· Return on capital employed (ROCE(1,3,8)) of 7.5% (2024: 8.0%)
before revised classification of the group's main borrowing facility (based on
revised classification ROCE was 6.2% (2024: 6.8%)). We remain confident in the
group's potential to deliver attractive returns over the medium term.
· We remain confident in the group's potential to deliver
attractive returns over the medium term
· Net Asset Value (NAV(4)) per share, excluding the defined benefit
pension scheme surplus, broadly unchanged at 312p (2024: 312p), after
completion of the first tranche of the Stonebridge Homes (SBH) acquisition
· Net debt(5) at December 2025 was £108.0m (2024: £62.7m) with
gearing at 25.7% (2024: 14.7%) as a result of the investment in SBH land bank
to support future growth and the reduction in cash from the sale of HBC
· Proposed final dividend of 4.62p (2024: 4.62p), bringing the
total dividend for the year to 7.86p (2024: 7.70p), an increase of 2.1%
Operational highlights
· Land promotion
o Hallam Land achieved record sales of 3,957 plots (2024: 2,661), increasing
operating profit by 35% to £32.9m (2024: £24.3m)
o During the year, consents were secured on 4,159 plots (2024: 2,982),
increasing the total plots with planning permission to 9,024 (2024: 8,822),
all held at cost. Further 19,580 plots await planning determination (2024:
13,146)
o Positive changes to the National Planning Policy Framework (NPPF) resulted
in a focus to materially accelerate planning applications, with c.11,000 plots
submitted in 2025 (2024: 4,447 plots), with a similar level to be submitted
over the next 12 months
o Begun the year exchanging on a further 465 plots for completion during
2026, as well as having 2,181 plots under offer
· Property investment & development
o Property investment and development delivered an operating profit of
£9.4m (2024: £14.9m)
o Gross development value (GDV) of HBD completed schemes amounted to £119m
(our share: £33m GDV), of which 32% have been pre-let or pre-sold
o Completed schemes included 449,000 sq ft within Origin JV with Feldberg
Capital, which completed on time and budget. With a total of 134,000 sq ft let
or under offer, all the Origin schemes are attracting a good level of occupier
interest
o A committed development programme of £66m GDV (our share: £18m). Strong
near term pipeline to build up committed programme, including phase one of
Golden Valley, Cheltenham (£98m GDV)
o £1.7bn development pipeline (our share: £1.4bn GDV), 55% of which is
Industrial and Logistics (I&L)
o Continued outperformance of Investment portfolio (IP) with a total
property return(6) of 11.1%, well ahead of the CBRE UK Monthly Index (7.1%).
Market value, including our share of JVs, now £119.8m (2024: £107.4m)
· Home building
o In January 2025, the group increased its ownership in SBH to 62.5%, and
continues to make progress in professionalising and integrating the business
into the group
o Operating loss of £9.2m (2024: £1.9m profit), delivering 185 home
completions (2024: 270), reflecting slower trading conditions and delays in
securing detailed planning
o Average selling price for private units of £403,000 (2024: £402,000)
o Net private weekly reservation rate at 0.37 in the year (2024: 0.45)
o In line with its growth ambitions, SBH has secured 1,031 plots in the
period, resulting in a total owned and controlled land bank of 2,572 plots
(December 2024: 1,726)
o Net private weekly reservation rate from 29 December 2025 to 15 March 2026
was ahead of budget at 0.43 (2025: 0.34)
NOTES:
(1)Adjusted including discontinued operations.
(2) Underlying profit is an alternative performance measure (APM) and is
defined as profit before tax excluding revaluation movements on completed
investment properties. Revaluation movement on completed investment properties
includes gains of £1.5m (2024: £1.2m) on wholly owned completed investment
property and a gain of nil (2024: £0.1m) on completed investment property
held in joint ventures. This APM is used as it provides the users with a
measure that excludes specific external factors beyond management's controls
and reflects the group's underlying results. This measure is used in the
business in appraising senior management performance.
(3) Return on Capital Employed is an APM and is defined as operating
profit/capital employed where capital employed is the average of total assets
less current liabilities and pension asset/obligation at the opening and
closing balance sheet dates. Before the revised classification of the group's
main borrowing facility. Previously presented as current liabilities these
borrowings are now classified as non‑current.
(4) Net Asset Value (NAV) per share is an APM and is defined as total equity
adjusted to remove retirement benefit assets.
(5) Net debt is an APM and is reconciled to statutory measures in note 7.
( )
(6)Total property return is a metric that combines capital and income returns
for the investment portfolio. It is calculated as the percentage value change
plus net income accrual, relative to the capital employed and is calculated on
a monthly basis and then indexed in line with the benchmark.
( )
(7)Total Accounting Return is an APM and is defined as the growth in NAV per
share plus dividends paid, expressed as a percentage of NAV per share at the
beginning of the period.
(8) Before the revised classification of the group's main borrowing facility.
Previously presented as current liabilities, these borrowings are now
classified as non‑current.
For further information, please contact:
Henry Boot PLC
Tim Roberts, Chief Executive Officer
Darren Littlewood, Chief Financial Officer
Daniel Boot, Senior Corporate Communications Manager
Tel: 0114 255 5444
www.henryboot.co.uk (http://www.henryboot.co.uk)
Deutsche Numis
Joint Corporate Broker
Oliver Hardy
Tel: 020 7260 1000
Peel Hunt LLP
Joint Corporate Broker
Ed Allsopp/Tom Graham
Tel: 020 7418 8900
FTI Consulting
Financial PR
Giles Barrie/Richard Sunderland
020 3727 1000
henryboot@fticonsulting.com (mailto:henryboot@fticonsulting.com)
A webcast for analysts and investors will be held at 9.30am today and
presentation slides will be available to download via www.henryboot.co.uk
(https://eur01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.henryboot.co.uk%2F&data=04%7C01%7Cdboot%40henryboot.co.uk%7C3047ba2e3e124f89e90508da0c453adc%7C4a6f086a81e542f197c2f8470d12d61d%7C0%7C0%7C637835788744426781%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=4sRskhTQwO77WteakjZGIfafow9n1GJw7e1Xwsozt98%3D&reserved=0)
. Details for the live dial-in facility and webcast are as follows:
Participants (UK): Tel: +44 (0) 33 0551 0200
Confirmation code: Quote "Henry Boot"
Webcast link: https://stream.brrmedia.co.uk/broadcast/6968ab7221449c0013b76cbe
(https://stream.brrmedia.co.uk/broadcast/6968ab7221449c0013b76cbe)
About Henry Boot PLC
Henry Boot is one of the UK's leading land, property development and home
building businesses - and we've been transforming land and spaces since 1886.
Listed on the London Stock Exchange since 1919, we're renowned for quality,
expertise, delivery and a partnership approach across the group - which
comprises Hallam Land, HBD, Stonebridge Homes, Banner Plant and Road Link.
Operating across the UK, and employing over 400 people, we focus on three key
markets: residential, industrial and logistics, and urban development. Hallam
Land has facilitated 52,000 new homes since 1990, managing one of the top five
largest land portfolios in the country, with the potential to facilitate over
105,000 homes.
HBD manages a development pipeline of £1.4bn, the equivalent of 7m sq ft of
developments across our key markets, while maintaining a c.£120m investment
portfolio.
Stonebridge Homes, our jointly-owned home building business, manages a land
portfolio capable of delivering 2,500 homes, with an ambition to deliver up to
600 new homes a year.
For 65 years, Banner Plant has supplied construction products and services,
operating from seven regional depots in the north of England. We have also
developed an ambitious responsible business strategy to help us meet our aim
of being net zero carbon by 2030.
From land promotion and property development investment to home building and
plant hire, Henry Boot is where great places start.
Chair's introduction
Henry Boot delivered a resilient performance in 2025 despite being impacted by
challenging markets as a result of continuing global political and economic
uncertainty. In particular, we saw strong demand from housebuilders for our
high quality residential land, achieving a record number of plot sales.
Across our markets, generally transaction volumes remain subdued, with deals
taking longer to complete, particularly in the second half of the year in the
run up to November's budget. Against this backdrop, we delivered a profit
before tax, including the initial profit recognition on disposal of HBC, of
£29.1m (2024: £30.7m), broadly in line with market expectations*, or on an
underlying profit basis £27.5m (2024: £29.4m) excluding revaluation
movements on completed investment property. We are closely monitoring the
events in the Middle East, and the implications it might have on the wider
economy, our markets, and our customers.
The group's NAV per share, excluding the defined benefit pension scheme, was
broadly unchanged at 312p (2024: 312p), and including dividends paid in the
period, we delivered a total accounting return(1,7) of 2.5% (2024: 5.8%). This
reflects lower retained earnings and the impact of the completion of the first
tranche of the SBH acquisition. We continue to drive the store of worth within
our portfolio through increased levels of planning permissions achieved in
both Hallam Land and HBD. It is important to highlight that the majority of
our assets are conservatively held at cost, rather than marked to market,
therefore the value we have created will be recognised in future periods, on
disposal.
Strategically, 2025 marked a year of significant progress. We accelerated
planning applications to grow our consented plots within Hallam Land, and
following the increase in our ownership of SBH to 62.5%, we have introduced
new processes to further professionalise its operations. Agreeing the sale of
HBC in September 2025 was a significant step, allowing us to streamline our
structure and sharpen our focus on high quality land, prime property
development, and premium homes. In anticipation of these changes, the Future
Ways of Working (FWoW) programme commenced in March 2025, driving
organisational and management changes to boost agility, resilience,
responsiveness, and efficiency.
The Board has proposed to pay a final dividend of 4.62p per share, which,
together with the interim dividend of 3.24p, gives a total dividend of 7.86p
(2024: 7.70p), an increase of 2.1% for the year. Subject to approval at the
AGM on 21 May 2026, this will be paid on 29 May 2026 to shareholders on the
register at the close of business on 01 May 2026.
The decision to hold the final dividend at last year's level is consistent
with our policy to invest selectively across the group while acknowledging the
importance of delivering an income return to our shareholders. We remain
committed to a progressive dividend over the medium term as earnings pick up.
On behalf of the Board, I wish to extend my thanks to our people for their
dedication and hard work throughout the year. Our annual Employee Engagement
Survey continues to inform our ambition to make Henry Boot an outstanding
place to work. This year's results maintained a 'very good' employee Net
Promoter Score (eNPS) of 29 (2024: 30), which is +14 points above our peer
group average, a true reflection of our team's commitment to Henry Boot.
Peter Mawson
Chair
*Company compiled market consensus for 2025 profit before tax is £29.2m.
CEO's review
The macro economic environment remains challenging, with transaction volumes
across our markets still below long term averages as investors, occupiers and
customers take longer to make decisions. The prolonged lead up to the November
Budget had a particularly negative impact on both consumer and business
confidence. Despite this, we continued to experience good demand from
housebuilders for our high quality residential land, as many look to increase
the number of sales outlets. Against this backdrop, we were relatively pleased
that total sales of land, commercial property, and houses for the year were
£356m (2024: £347m) with our share at £193m (2024: our share £224m). We
are alert to the events in the Middle East, and the effects will depend on how
long the conflict lasts.
Commercial property markets are recovering, with capital values rising by 1.4%
and total returns reaching 7.1% in 2025 according to the CBRE Monthly Index.
Industrial performed particularly well, with capital values increasing by 2.5%
on the back of 4.8% rental growth. The majority of our committed developments
and pipeline sit within the industrial sector, where we are also leveraging
our operational expertise through the Origin JV. Urban development has become
increasingly uneconomic without public sector grant support. We have therefore
pivoted our focus toward the innovation and technology-led opportunities,
where we can leverage our experience in this specialist sub sector. This
includes market leading schemes in Cheltenham and Duxford.
In 2025, UK house prices rose by 0.6%, with residential land values softening
slightly. Benefiting from the changes to the NPPF, we secured consents for
4,159 plots, a significant 39% increase on the prior year. In 2025, we
invested £28.8m of capital, growing our store of consents to 9,024 plots and
into new opportunities. We plan to invest an additional c.£27m in 2026,
submitting a similar level of planning applications, as we materially increase
our portfolio of consented land to sell to housebuilders.
To support our growth ambitions, we are streamlining and coordinating our
sales processes within Hallam Land, ensuring more efficiency and agility as we
move forward. Last year, we sold 3,957 plots, a record number, with
expectations to sell more in 2026. The investment and growth in consents and
the number of planning applications create a sustainable platform to achieve
our medium term target of selling 3,500 plots per annum on average and to grow
sales beyond that level.
Throughout 2025, we completed schemes with a total of £119m GDV (our share:
£33m) with 32% pre‑let or sold. We maintained a good level of I&L
activity, including completing on c.449,000 sq ft of industrial space through
our Origin JV. We have seen encouraging occupier interest and anticipate
securing additional lettings. At the start of the year, we are committed to
£66m GDV (our share: £18m), delivering an additional 412,000 sq ft, the
majority of which is in Origin. The JV provides us with the dual benefit of
receiving development management fees alongside the opportunity to generate
performance fees.
We continue to upgrade and replenish our development pipeline, which currently
stands at £1.4bn (our share) and provides us with a strong near term pipeline
to create value. It also gives us optionality to increase our level of
committed development in line with demand, while in the meantime allowing us
to keep our capital employed in future opportunities low at £61m. In this
respect, in the summer we expect to commit to phase one of Golden Valley
Cheltenham (£98m GDV), a £1bn flagship mixed use campus adjacent to GCHQ,
focused on national security and emerging technologies such as AI and quantum
computing. Public sector funds have already been secured to fully fund the
construction of this nationally significant cybersecurity development.
Last year was challenging for SBH, which experienced slower sales, completing
185 homes, with delays in obtaining detailed planning consents, affecting our
ability to get on site and open new outlets. Combined with a relatively high
number of sites that are almost fully sold, this resulted in a sales rate of
0.37. We also saw some cost overruns. However, we are focused on rebuilding
momentum, with output expected to recover to between 200-220 homes in 2026,
putting us back on track to achieve our medium term target of delivering 600
homes per annum. The residential market is long term, and with Hallam Land now
directing the land buying strategy, we have the skills, a clear plan to scale,
and strong conviction in our regional model.
Having become the majority owner of SBH in 2025, we replaced the Managing
Director as part of our programme to professionalise and integrate the
business into the group. The search for a permanent replacement is underway,
and meanwhile, Ed Hutchinson, Managing Director of HBD and Executive committee
(ExCo) member, is serving as Interim Managing Director. Ed has extensive
expertise in building and construction processes, as well as land acquisition,
planning and stakeholder engagement, including customers. He has overseen the
successful delivery of several major premium residential developments for HBD,
including The Chocolate Works in York and SETL in Birmingham.
We are investing in our people and systems, supported by our group function
teams, to strengthen SBH's sales capability and elevate the customer
experience. Our improvement plan focuses on enhancing operational efficiency
and improving our use of data to create stronger links between teams. We also
expect to make selective land disposals to increase asset turn and ensure site
sizes align with our premium homes strategy. While it's still early in 2026,
we are encouraged by the fact that net private weekly reservation rates at SBH
are running at 0.43 over the 11 weeks to 15 March, compared with 0.34 for the
same period in 2025.
At the end of 2025, we completed the sale of HBC. This transaction creates a
more focused mix of businesses with greater synergies, as well as reducing the
risk profile of the group. HBC begin this year with a strong order book, which
leaves our former colleagues well positioned for future success and able to
commence repayment of the £4.0m vendor loan due over the next five years.
In anticipation of the sale of HBC, the integration of SBH, and our ambition
to create a more agile, robust, and responsive organisation, supported by a
leaner central function, we commenced our FWoW programme in March of last
year. The programme is designed to drive efficiency, improve collaboration and
the sharing of expertise and resources across our three core businesses. This
included reshaping functions within the group, with Steve Stacey, formerly
Group Finance Director, appointed as Chief Operating Officer. Jaimie Read has
been promoted to the role of Company Secretary, and Iain MacSween has been
appointed Managing Director of Hallam Land. Steve and Iain will also join
ExCo.
As part of the FWoW programme, we have already delivered a reduction in
central overheads of 20% in 2025, with further savings anticipated in 2026.
This initiative is designed to strengthen profitability by aligning our
resources and capabilities with the group's new structure and strategic focus,
while still enabling incremental investment in priority areas that will
support medium term growth. We have also implemented the first phase of
Dynamics 365, enabling processes to be systemised and data to be captured,
stored, and used more effectively to support decision making.
Strategy
The group set a medium term strategy in 2021 to grow the size of the business
by increasing capital employed from £365m to £500m, focusing on its three
key markets: I&L, residential and urban development, while maintaining
ROCE within a 10-15% range.
Although we continue to make progress towards our medium term objectives,
persistent economic and political uncertainty, which has led to a subdued
market environment have made it increasingly difficult to deliver against the
timeframe envisaged in 2021. Looking ahead, we remain confident in the group's
potential to deliver attractive returns for shareholders given the increased
depth and quality of opportunities within our portfolio.
See below for the performance in 2025 against our current stated medium term
targets:
Measure Medium term target FY 25 Performance Commentary
Capital employed(8) To over £500m £446m as at 31 Dec 2025 On track to continue to grow capital employed
Return on average capital employed (1,3,8) 10-15% per annum 7.5% in FY 25* We remain confident in the group's potential to deliver attractive returns
over the medium term
Land promotion plot sales c.3,500 per annum 3,957 plots in FY 25 Fast tracked applications to grow our consented plots, positioning the group
to meet its target
Development completions Our share c.£200m per annum FY 25 £33m GDV We have a strong near term pipeline, are well placed to respond quickly to
market conditions, and are set to build up the committed programme this year
Grow investment portfolio To around £150m £119.8m as at 31 December 2025 Growth while further enhancing portfolio quality, with retained developments
from Origin
Stonebridge Homes sales Up to 600 units per annum 185 homes completed in FY 25 Focus on rebuilding output in FY 26 and the growth trajectory in the near term
* before revised classification of the group's main borrowing facility (based
on revised classification ROCE was 6.2%)
Outlook
We continue to focus on land promotion and premium home building, whilst
expanding our industrial development activity. Within Urban Development, we
are increasingly targeting high growth specialised sub sectors such as cyber
and innovation, where we see strong medium term prospects.
Land promotion remains a core driver of value creation for the group, with
Hallam Land focused on growing its store of planning consents and increasing
volumes of plot sales to housebuilders. As a result of the positive planning
changes, we believe this is an opportunity which is very deliverable and will
support our expectations for medium term profit growth. Hallam Land is
therefore expected to have another good year. However, the anticipated sales
mix, with a higher percentage of promotion agreements and a lower share of
freeholds, is likely to result in profit per plot being lower than our typical
rate of £10,000, with a corresponding impact on operating profit.
Within HBD, the strategic focus remains on industrial development, primarily
through the Origin JV. This is underpinned by a £1.4bn development pipeline,
which is expected to support an increase in committed development activity
over £150m by late 2026 and into 2027. A key milestone will be the
commencement of phase one of Golden Valley (£98m GDV), which is scheduled to
start this summer.
At SBH, we anticipate that performance will begin to recover during 2026.
Delays in the planning system are expected to remain a limiting factor on the
number of new outlets during the year. While the important spring selling
season is still in its early stages, there are early indications of market
recovery.
Primarily due to the timing of large land and development transactions in the
pipeline, together with the inherent seasonality of housebuilding, means that,
as in previous years, the group expects performance to be heavily weighted
towards the second half of the financial year. It is expected that these large
transactions will also help reduce gearing towards our optimum range. While we
continue to monitor the situation in the Middle East and its potential impact
on inflation and interest rates, which could affect transaction volumes in our
markets, there are significant opportunities across our portfolio, supported
by a rock solid balance sheet. Assuming the impact from the conflict in the
Middle East is not prolonged, the business is well positioned to deliver the
recently revised market expectations for FY26* and with a continued belief
that we will deliver against our medium term growth and return targets.
Tim Roberts
Chief Executive Officer
*Company compiled of recently updated market consensus for 2026 profit before
tax is £20.2m.
Business review
Land promotion
Hallam Land performed strongly in 2025, delivering a 35% increase in operating
profit of £32.9m (2024: £24.3m). A record 3,957 residential plots were sold
(2024: 2,661 plots), monetising the value it has created and resulting in the
business exceeding its full year financial target. The average gross profit
per plot was £11,414 (2024: £10,155), which is ahead of the five year
average of £10,187.
During the period, Hallam Land experienced strong demand for prime deliverable
sites, with sales producing an average ungeared internal rate of return of 27%
p.a. Key disposals included:
· 290 residential plots at Sittingbourne, Kent, to Taylor Wimpey.
Hallam Land entered into a promotion agreement in 2017 before submitting an
outline planning application in November 2022. After an initial refusal,
consent was successfully secured on appeal in July 2024.
· 112 residential plots at Yalding, Kent, to Fernham Homes. Hallam
Land purchased the freehold site in 2018 and submitted a planning application
in November 2023 in line with the draft allocation. An appeal was subsequently
made in May 2024 on the basis of non-determination and approval secured in
December 2024.
· 1,270 residential plots at Tamworth, Staffordshire. In 2016,
Hallam Land reached an agreement with the landowners to promote the 237 acre
site. Due to the site being located on the border between North Warwickshire
and Tamworth, duplicate planning applications were initially submitted in
2018. The site gained outline planning permission in June 2025 and was
subsequently sold to Persimmon in November 2025.
UK greenfield land values, softened slightly by 1.4% in 2025 according to
Savills Research. Positive changes to the planning system, following the
government's revision to the NPPF, have significantly increased our ability to
secure outline consents. In anticipation of this, an early decision was made
to increase resources within Hallam Land and fast track a number of planning
applications. During the period, 4,159 plots secured planning consent, across
17 sites, of which 7 sites were won on appeal. Following this, plots with
planning permission (or a Resolution to Grant, subject to S106) increased to
9,024 (2024: 8,822).
Hallam Land continues to accelerate applications, submitting 11,083 plots in
2025, across 37 sites (2024: 4,447 plots). As a result of this sustained
momentum, a total of 19,580 plots currently remain within the planning system,
awaiting determination (2024: 13,146 plots). A similar level of applications
as in 2025 has been identified, which are expected to be submitted for
planning over the next 12 months. All of this activity not only positions the
group well to meet its medium term strategic target of selling 3,500 plots pa,
but also to grow sales beyond that level.
The total land bank marginally grew to 105,854 plots as at 31 December 2025
(2024: 104,787 plots), securing 15 new sites which have the potential to
deliver c.5,000 plots. Moving forward, the primary focus will remain on
continuing to increase sales and secure planning permissions, whilst growing
the overall portfolio at a modest pace.
There is significant latent value in the group's strategic land portfolio,
which is held as inventory at the lower of cost or net realisable value. As
such, no uplift in value is recognised in the balance sheet relating to any of
the 9,024 plots with planning and any gain will only be recognised on
disposal.
Residential land plots
With planning permission In planning Future Total
b/f granted sold c/f
2025 8,822 4,159 (3,957) 9,024 19,580 77,250 105,854
2024 8,501 2,982 (2,661) 8,822 13,146 82,819 104,787
2023 9,431 1,014 (1,944) 8,501 13,468 79,003 100,972
2022 12,865 435 (3,869) 9,431 12,297 73,976 95,704
2021 15,421 452 (3,008) 12,865 11,259 68,543 92,667
As of 15 March, Hallam Land has exchanged on 465 plots for completion during
2026, as well as having an additional 2,181 plots under offer.
Property investment and development
Property investment and development, which is now solely made up of HBD,
delivered an operating profit of £9.4m (2024: £14.9m). The results of SBH
have been reclassified from the property investment and development segment to
be reported within home building, and the prior year restated.
According to the CBRE Monthly Index, commercial property values increased by
1.4% in 2025. Industrial property continues to deliver the highest growth with
capital values up 2.5% during the period ahead of retail up 1.8%, and offices
down 0.9%. Rental value growth also remains strongest for the industrial
sector at 4.8% in 2025, with yields up marginally over the period.
I&L, a sector where long term growth is supported by several structural
drivers, experienced a further steady recovery in 2025 with annual occupier
take up 1% and the overall vacancy rate declining modestly to 7.6%, according
to Newmark. Occupational demand remains broad-based but is led by logistics
and e-commerce operators, alongside new international entrants and
defence-related manufacturers. Speculative development remains subdued, with
starts at their lowest level since 2017, and stronger demand for modern,
energy efficient space means that rental growth is concentrated in new high
quality units.
In 2025, HBD completed schemes with a total GDV of £119m (our share: £33m
GDV), after taking a disciplined approach to new projects in the current
subdued environment (2024: our share: £188m GDV). 32% of the developments
have been pre-let or pre-sold. This included three schemes totalling 449,000
sq ft (our share: £25m) within Origin, an I&L JV with Feldberg Capital,
which all completed on time and budget:
1. SPARK, Walsall (phase one), two units totalling 270,000 sq ft on a 13
acre site just off the M6 (Total GDV: £52m).
2. INTER, Welwyn Garden City, a 71,000 sq ft scheme on a three acre site
on Tewin Road near Junction 4 of the A1(M) (Total GDV: £28m).
3. ARK, Markham Vale, completed four units totalling 107,000 sq ft on a
six acre site (Total GDV: £20m).
All three of these projects are attracting a good level of occupier interest,
with a total of 53,000 sq ft let or under offer as of 15 March 2026. This
includes a 17,000 sq ft unit at Ark let to Capital Angling, a 18,000 sq ft
unit let to Perfect Group at Inter and an 18,000 sq ft unit under offer at
Spark.
HBD completed on a further four development and land sales (our share: £8m),
which included a site at Aberdeen Bridge of Don, which has planning for 420
residential units, and a 20,000 sq ft self storage development at Melton Road,
Leicester. A further land sale was completed at Markham Vale and a pre-let
development at Southend, which was retained within the group's IP.
2025 Completed schemes
Scheme GDV HBD share of GDV Commercial Residential Status
(£m) (£m) ('000 sq ft) (Units)
Industrial & logistics
Origin, INTER, Welwyn Garden City 28 7 71 - Speculative - 25% let
Origin, SPARK, Walsall (phase one) 52 13 271 - Speculative - 7% under offer
Origin, ARK Markham Vale (phase one) 20 5 107 - Speculative - 16% let
100 25 449 -
Land & other
Aberdeen, Bridge of Don 12 1 - 420 Pre-sold
Leicester, Melton Road 2 2 20 - Pre-sold
Southend 4 4 16 - Pre-sold
Markham Vale 1 1 31 - Pre-sold
19 8 67 420
Total for the year 119 33 517 420
In line with our ambition to scale up Origin, we added three further schemes
with a combined GDV of £56m (our share: £14m) into its pipeline in December
2025:
1. SPARK, Walsall (phase two): A six acre site with a £25m GDV, located
at junctions 9 and 10 of the M6. Detailed planning consent was secured in
September 2025 for 101,000 sq ft across three units.
2. APTUS, Preston: The second phase of the scheme near junction 31a of the
M6, previously held in JV with Barnfield Construction Limited, was transferred
to Origin in December 2025. The £22m GDV scheme totals 107,000 sq ft across
three units.
3. ARK, Markham Vale (phase two): A three acre site adjacent to junction
J29A of the M1, with a £9m GDV. In October 2025, a resolution to grant
planning permission was secured for a 54,000 sq ft unit.
Construction on each development has now commenced and is on programme and
budget, with delivery from H2 26. HBD also benefits from development
management fees with the potential for performance fees.
The group's committed development programme now totals a GDV of £66m (HBD
share: £18m GDV) and is currently 48% pre-let, pre-sold or under offer.
2026 Committed programme
Scheme GDV HBD share of GDV Commercial Residential Status Completion
(£m) (£m) ('000 sq ft) (Units)
Industrial
Origin, APTUS 22 5 107 - Speculative Q4 26
Origin, Markham, ARK (phase two) 9 2 54 - Speculative Q3 26
Origin, Walsall SPARK (phase two) 25 6 101 - Speculative Q4 26
Preston, APTUS 10 5 150 - Pre-sold Q4 26
Total for the year 66 18 412 0
% sold or pre-let 15% 48%*
*This includes space under offer at Origin - 01/03/26
HBD has optionality on a strong near term pipeline, which includes the
landmark £1bn Golden Valley, located adjacent to GCHQ in Cheltenham. In July
2025, the scheme received outline planning permission for around 1m sq ft of
prime commercial space, including IDEA, the new 160,000 sq ft National Cyber
Innovation Centre, as well as 576 residential units of various tenures. The
first phase (£98m GDV) is expected to commence in H2 2026, having now agreed
terms with several occupiers for around half the space. The scheme is an
important public private partnership, being part of the UK Government's Modern
Industrial Strategy and has secured a £104m funding package, including £20m
direct from the Government.
HBD's total future development pipeline has grown to £1.7bn GDV (our share:
£1.4bn GDV). All these opportunities sit within the group's three key markets
of I&L (55%), Urban Commercial (26%) and Urban Residential (19%). Last
year, the pipeline was replenished, improving its quality with schemes such as
'Duxford AvTech' (£120m GDV). The project totals 435,000 sq ft and is set to
create a technology campus dedicated to developing low and zero carbon
aircraft technology at IWM Duxford, 8 miles south of Cambridge city centre.
HBD is targeting high sustainability credentials, including BREEAM Excellent
and an EPC A+ Rating. Additionally, in September 2025, FREEPORT 36, Goole
(Phase one: £130m GDV), in partnership with St John's College Cambridge,
secured outline planning to develop a 5.5m sq ft high quality, sustainable
industrial and manufacturing park, with buildings ranging from 40,000 sq ft to
1m sq ft.
Investment portfolio - key stats
Dec 2025 Dec 2024
Market values - inc. share of JV's £119.8m £107.4m
Total area - '000 sq ft¹ 706 767
'Topped-up' net initial yield 5.2% 5.5%
Reversionary yield 6.2% 6.7%
WAULT to expiry² 9.7 years 9.7 years
Occupancy(3) 97% 94%
¹Total completed investment property
²Weighted average unexpired lease term (WAULT) on commercial properties
(3) As a percentage of like-for-like completed property portfolio estimated
rental value (ERV)
The IP, including our share of joint ventures, has continued to outperform the
wider market, with a total property return of 11.1% for 2025, which was ahead
of the total return from the CBRE UK Monthly Index (7.1%). Since 2022, HBD has
focused on recycling capital from its investment portfolio rather than
acquiring new investments. This continued in 2025, with HBD completing on four
sales, for a total of £17.7m at an average 12% premium to December 2024 book
values. This includes TWO45, Skelmersdale, where we secured planning for
245,000 sq ft of I&L space, representing a 66% increase on the original
building. The sale to Garbe, a German fund, for £9.5m was completed in June
2025 and generated an ungeared IRR of 25% p.a.
The total value of the investment portfolio (including our share of completed
JV investment properties and assets held for sale) increased to £119.8m
(2024: £107.4m), largely as a result of the addition of the finished schemes
within Origin. On a like-for-like basis capital values increased by 2.0%, with
rental value growth of 2.8% for the I&L assets, which represent 81% of the
total portfolio by value. During the period, like-for-like occupancy remained
high at 97% (2024: 94%), or 75% including the recently completed Origin
developments. The weighted average unexpired lease term is now 9.7 years (8.5
years to first break). Currently, 95% of the IP has an EPC rating of 'C' or
higher, (76% being rated 'A' or 'B'), with the remainder of the portfolio
allocated for either redevelopment, refurbishment or sale in the short to
medium term.
Post period end, in March 2026, HBD completed the sale of a supermarket and
three adjoining retail units anchored by Waitrose, in Warminster, to a UK real
estate investment trust for £8.6m. The sale represents a net initial yield of
6.6% and a 7.5% premium to the 31 December 2025 book value.
Home building
SBH's results have been reclassified from property investment and development
to be reported as home building.
According to Nationwide, UK house prices increased by 0.6% during 2025 on a
seasonally adjusted basis. Most regions recorded modest house price growth,
with Northern England continuing to outperform the South. Whilst there was an
increase in new home registrations in 2025, completions remain 39% below the
2022 peak according to the National House Building Council.
SBH completed 185 homes (166 private/ 19 affordable) (2024: 270) with a
private average selling price of £403,000 (2024: £402,000). Completions were
materially below our expectation of 240-250 units due to softer trading
conditions and a slower than planned outlet opening profile, reflecting delays
in securing detailed planning permission. As a result, SBH operated from an
average of nine outlets in 2025, compared with a budgeted 12. In addition,
around 30 completions moved into 2026 as build schedules were delayed by
utility connections and changes in planning conditions. However, selling
prices were broadly in line with our expectations, with the level of
incentives remaining stable during the year.
The net private reservation rate per active outlet per week decreased by 18%
to 0.37 (2024: 0.45). There were no bulk sales in either period, as this
approach does not form part of the SBH sales strategy. Whilst many of our
customers remain cautious, sales rates were also affected by several sites
nearing the end of their sales programme and therefore offering a reduced
product range.
Revenue was £69.7m (2024: £98.1m), excluding part exchanged homes. The lower
level of completions against our expectations was the primary driver of an
operating loss of £(9.2)m (2024: £1.9m operating profit). Performance was
also impacted by cost overruns related to adverse ground conditions and
additional costs associated with extended site durations due to slower sales
rates. In response, we have increased contingency within schemes to better
reflect project delivery times.
In 2025, 1,031 plots were added to the SBH land bank across five sites,
including Whitby, Carlton and Kingston Village, which together have the
potential to deliver 846 homes. SBH's total owned and controlled land bank now
stands at 2,572 plots (2024: 1,726). Following several successful applications
during the year, plots with full planning consent increased to 842 (2024: 531
plots), representing 4.6 years' supply based on completions in the last 12
months. During 2026, selective land disposals will still provide us with the
land supply needed to maintain our ambition to scale up output in line with
our medium term growth ambitions.
In January 2025, we increased our ownership of SBH to 62.5% as part of the
transaction agreed in December 2024 to take full ownership by the end of 2030.
The deal is structured to complete in three tranches, with the total purchase
price linked to the performance of SBH over this period. Bearing in mind the
recent underperformance, the final aggregated payment to take full control is
likely to be materially less than originally anticipated. Post period end, in
February 2026, we increased our ownership further to 75%. The third and final
tranche to acquire the remaining 25% is expected to be completed in January
2030, with consideration payable in 2030 and 2031.
Given our market positioning, we are committed to delivering an outstanding
customer experience alongside the premium homes SBH deliver. We are investing
in our people and systems to strengthen sales capability and customer
engagement. We are also providing direct support from our group function teams
across several key services to ensure teams are coordinated and collaborative.
We differentiate our product by placing emphasis on the design and layout of
our homes, but our improvement plan recognises the need to strengthen
operational efficiency, ensuring that our processes and systems are aligned
with our strategic priorities. We will strengthen the quality, consistency,
and timeliness of data across the business to improve the link between cost
management, procurement, build programmes and sales.
As part of the integration into the group, using the skills of Hallam Land, we
are also undertaking a comprehensive review of SBH's land portfolio. This is
expected to result in selective disposals and a rebalancing of the land bank
to reduce risk, improve asset turn, and better align site size and scale with
our premium homes strategy and medium term growth ambitions.
Trading at the start of 2026 shows encouraging signs of improvement, with
stronger year on year sales rates. Over the 11 weeks to 15 March 2026, our
private net reservation rate was 0.43, compared with 0.34 in the same period
last year. There has also been a corresponding reduction in cancellation rates
and the use of part exchange. The total forward order book at 15 March 2026
comprised 96 units (2025: 108) with a value of £36.1m (2025: £33.6m).
Construction
The group's construction segment, which includes Banner Plant (BP) and Road
Link (A69), delivered an operating profit of £6.7m (2024: £7.2m). BP and
Road Link (A69) both traded in line with management expectations. Road Link
PFI contract is set to expire at the end of March 2026.
On 31 December 2025, the group completed the sale of HBC to PWS, a new company
formed by HBC's management team, for £4.0m via a vendor‑funded loan.
Additional overage may be payable depending on future performance. As a result
of the transaction, HBC's results for the current and comparative period have
been reclassified and disclosed separately from the rest of the business as
discontinued operations. In 2025, including the initial profit recognised on
disposal, HBC delivered an operating profit of £2.7m (2024: loss of £2.3m).
With 100% of its 2026 turnover already secured, HBC is well positioned to
start repayment of the vendor loan. The group wishes our former colleagues all
the best for the future.
Responsible business
Henry Boot's Responsible Business Strategy (RBS) was launched in January 2022,
which is seen as a component to delivering future returns and value creation.
A primary aim is to achieve Net Zero Carbon by 2030 in respect of Scope 1 and
2 greenhouse gas (GHG) emissions. Alongside the strategy, a number of interim
RBS objectives were established and completed at the end of 2025 to help guide
progress.
Performance against the 2022-2025 targets is summarised below:
· Our People - The group successfully launched a Health and
Wellbeing Strategy, underpinned by targeted initiatives such as the financial
wellbeing programme delivered with Finwell. Female representation across the
workforce increased to 30%, demonstrating meaningful progress in gender
diversity compared with 2022.
· Our Places - The group exceeded its pledge to contribute £1m in
financial and equivalent value to charitable partners. In addition, employees
delivered more than 10,000 volunteering hours, significantly surpassing the
original target of 7,500 hours.
· Our Planet - The group remains committed to environmental
stewardship, continuing to reduce Scope 1 and 2 emissions, with 2025 figures
showing a 40% decrease from the 2019 baseline. Work is also underway to map
out a pathway to achieving Net Zero Carbon by 2030.
· Our Partners - The group has actively collaborated with leading
organisations to promote equality, diversity and inclusion (EDI). Ongoing
engagement with partners continues to support collective progress towards
shared environmental goals.
A complete report on the RBS will be available in the annual report on 21
April, and the next phase of the strategy will be announced in the summer of
2026.
Financial review
Summary of financial performance
2025 2024 Change
£'m £'m %
Total revenue
Property investment and development 69.0 69.2 -
Home building 69.7 98.1 -29
Land promotion 83.0 78.0 +6
Construction - continuing operations 29.8 30.8 -3
251.5 276.1 -9
Construction - discontinued operations 55.5 49.7 11
307.0 325.8 -6
Operating profit/(loss)
Property investment and development 9.4 14.9 -36
Home building (9.2) 1.9 -584
Land promotion 32.9 24.3 35
Construction - continuing operations 6.7 7.2 -7
Central overheads (9.4) (11.8) -20
30.4 36.5 -17
Construction - discontinued operations 2.7 (2.3) -217
33.1 34.2 -3
Net finance cost and other (4.0) (3.5) -14
Profit before tax 29.1 30.7 -5
Profit before tax - continuing operations 26.5 33.0 -20
Profit before tax - discontinued operations 2.6 (2.3) -213
Profit before tax 29.1 30.7 -5
The group navigated another challenging year in 2025. Total profit before tax
decreased 5% to £29.1m (2024: £30.7m), or £27.5m (2024: £29.4m) on an
underlying basis(1). While market activity remains subdued, the fundamentals
of our three key markets remain compelling, and we are well placed to benefit
from the significant opportunities we have been building up within our
portfolio, supported by a strong balance sheet and a disciplined approach to
investment.
On 31 December 2025, the group completed its sale of HBC Construction Limited,
formerly Henry Boot Construction Limited (HBC), part of the groups
Construction segment. Results of HBC are classified as a discontinued
operation in both the current and prior year.
Land promotion (Hallam Land):
Segment operating profit £32.9m (2024: £24.3m). During the year, we disposed
of a record number of residential plots at 3,957 (2024: 2,661) at an average
gross profit per plot of 11.4k (2024: 10.2k) reflecting continued demand for
our high quality sites.
Home building (Stonebridge):
Segment operating loss £9.2m (2024: £1.9m profit). SH completed 185 homes
(2024: 270). Due to softer trading conditions and a slower outlet opening
profile as a result of delays in securing detailed planning, completions were
significantly below our expectation.
Property investment and development (including HBD):
Segment operating profit £9.4m (2024: £14.9m). After taking a disciplined
approach to new projects in the current subdued environment, HBD completed
schemes with a total gross development value (GDV) of £119m (our share: £33m
GDV) (2024: our share: £188m GDV), of which 32% has been pre-let or
pre-sold. Fair value gains on investment property were £2.1m (2024: £4.5m).
We also recorded profits on sales of investment properties and assets held for
sale of £0.5m and £0.9m, respectively (2024: £0.1m, £nil).
Construction:
External sales £85.2m (2024: £80.5m), with operating profit £9.4m (2024:
£4.9m). As noted above, results reflect performance up to the disposal of HBC
on 31 December 2025. On a standalone basis, HBC delivered revenue of £55.4m
and operating profit of £0.7m or £2.7m including the profit on disposal; net
assets at disposal were £nil.
Consolidated Statement of Comprehensive Income
Revenue from continuing operations declined by 9% to £251.5m (2024:
£276.2m), reflecting the subdued market backdrop and the anticipated timing
of key transactions. Land promotion performed strongly, with revenue rising to
£83.0m (2024: £78.0m) driven by sustained demand for high‑quality
strategic sites. Property development held steady at £69.0m (2024: £69.2m)
despite muted market conditions. SH generated £69.7m of revenue (2024:
£98.1m), with the reduction largely due to a lower volume of completions
compared with the prior year.
The group generated a gross profit of £65.8m in 2025 (2024: £71.9m),
reflecting a gross margin of 26%, compared with 26% in the prior year.
Administrative expenses were £40.3m, a reduction from the prior year (2024:
£42.0m), reflecting tighter cost control across the group.
Property revaluation gains amounted to £4.1m (2024: £4.6m), comprising
£2.1m of gains on wholly owned investment property and £2.0m on the group's
share of investment property held in joint ventures.
Property revaluation gains/(losses) 2025 2024
£'m
£'m
Wholly owned investment property:
- Completed investment property 1.5 1.2
- Investment property in the course of construction 0.6 3.3
2.1 4.5
Joint ventures and associates:
- Completed investment property - 0.1
- Investment property in the course of construction 2.0 -
2.0 0.1
4.1 4.6
Tax
The tax charge for the year was £8.1m (effective rate of tax 30.5%) (2024:
£7.4m effective rate of tax 22.9%) and is higher than (2024: lower than) the
standard rate of corporation tax due to prior year adjustments. Current
taxation on profits was £9.5m (2024: £5.9m), partly offset by a deferred tax
credit of £1.5m (2024: £1.6m charge).
Return on capital employed (ROCE)
ROCE(2) was 7.5% (2024: 8.0%) before revised classification of the group's
main borrowing facility (based on revised classification ROCE was 6.2% (2024:
6.8%)). We remain confident in the group's potential to deliver attractive
returns over the medium term.
Finance and gearing
Net finance costs reflected finance income of £3.9m and finance costs of
£8.0m (2024: £5.1m and £8.7m, respectively).
Interest cover, expressed as the ratio of operating profit (excluding the
valuation movement on investment properties, disposal of investment properties
and joint venture profits) to net interest (excluding interest received on
other loans and receivables), was 5 times (2023: 9 times). No interest
incurred in either year has been capitalised into the cost of assets.
The group's banking facilities were renewed on 21 May 2024 at £125.0m. The
facility with Barclays Bank PLC, HSBC UK Bank plc and National Westminster
Bank Plc runs for three years and includes two one-year extensions. The first
of these extensions was called upon on 31 March 2025 extending the facility to
21 March 2028. Bank facilities in place at 31 December 2024 totalled £125m
with an accordion to extend the facility by up to £60m taking the facility to
£185m. The facility was extended on 21 March 2025 to £140m and again on 5
March 2026 to £155m, increasing headroom over the going‑concern period.
On 27 June 2024, the group extended a £25.0m receivables purchase agreement
with HSBC Invoice Finance UK Limited (HSBC) that allows it to sell deferred
income receivables to the bank. The risk and rewards of ownership are deemed
to fully transfer to HSBC and, therefore, this agreement is recorded off
balance sheet. The group had sold £13.4m of receivables under the agreement
at 31 December 2025 (2024: £15.9m).
The 2025 year-end net debt(4) was £108.0m (2024: £62.7m) resulting in
gearing of 25.7% (2023: 14.7%) in excess of our targeted range of 10-20%.
Despite challenging market conditions, we continue to invest in our prime land
portfolio, growing our premium housebuilder and delivering our high quality
committed development programme.
All bank borrowings continue to be from facilities linked to floating rates or
short term fixed commitments. Throughout the year, we operated within the
facility covenants and continue to do so.
Cash flow summary
2025 2024
£'m
£'m
Operating profit (including discontinued operations) 33.1 34.2
Depreciation and other non-cash items 2.1 0.4
Net movement on equipment held for hire (1.4) (2.6)
Movement in working capital (49.9) 10.5
Cash generated from operations (16.1) 42.5
Acquisition of non-controlling interest (10.1) -
Disposal of subsidiary (note 8) (9.1) -
Net capital investments 15.4 (4.9)
Net interest and tax (12.7) (13.3)
Dividends paid (12.7) (12.1)
Dividends received from joint ventures - 2.9
Change in net debt (45.3) 15.1
Net debt brought forward (62.7) (77.8)
Net debt carried forward (108.0) (62.7)
During 2025, cash used in operations amounted to £16.1m (2024: £42.5m
inflow), after a net movement on equipment held for hire of £1.4m (2024:
£2.6m) and working capital outflows of £49.9m (2024: £10.5m inflow) driven
by investment in land and an increase in deferred receivables.
Net capital investment of £15.4m (2024: £4.9m outflow) arose primarily from
proceeds on disposal of assets held for sale of £13.1m (2024: £nil) and
proceeds on disposal of investment property of £5.2m (2024: £0.6m).
Net dividends totalled £12.7m (2024: £12.1m), comprising equity dividends of
£10.5m (2024: £10.0m) and dividends to non‑controlling interests of £2.2m
(2024: £2.1m), with no dividends received from joint ventures in the year
(2024: £2.9m).
After net interest and tax of £12.7m (2024: £13.3m), there was an overall
cash outflow of £45.3m (2024: £15.1m inflow), resulting in net debt of
£108.0m (2024: £62.7m).
Statement of financial position summary
2025 2024
£'m
£'m
Investment properties and assets classified as held for sale 94.6 105.6
Intangible assets 1.3 0.6
Property, plant and equipment, including right-of-use assets 29.8 32.8
Investment in joint ventures and associates 22.9 13.3
148.6 152.3
Inventories 368.1 332.9
Receivables 126.3 111.6
Payables (113.8) (111.5)
Other (4.1) (7.3)
Net operating assets 525.1 478.0
Net debt(5) (108.0) (62.7)
Retirement benefit asset 3.0 9.9
Net assets 420.1 425.2
Less: Non-current liabilities and pension asset 137.5 86.4
Capital employed 557.6 511.6
Wholly owned investment properties, over 70% of which are I&L assets,
totalled £94.6m (2024: £105.6m). During the year, the group disposed of five
properties, two previously held for sale (£9.3m book value, £0.9m profit)
and a further three properties in the year (£7.0m book value, £0.4m of
profit). These reductions were partially offset by £3.5m of additions (2024:
£0.1m), including completion of a new industrial unit in Southend, along with
£2.1m of valuation gains (2024: £4.5m).
Intangible assets increased to £1.3m (2024: £0.6m), driven by capitalisation
of costs associated with the group's flagship D365 digital transformation
project.
Property, plant and equipment decreased to £26.9m (2024: £29.3m) and largely
comprises group occupied properties and equipment held for hire. Additions
during the year of £2.1m (2024: £5.6m) were offset by depreciation charges
of £3.9m (2024: £3.9m) and the disposal of assets. Right‑of‑use assets
totalled £2.9m (2024: £3.5m).
Investments in joint ventures and associates increased to £22.9m (2024:
£13.3m), reflecting additional investment of £7.9m (2024: £2.9m), and the
group's share of profits during the year of £1.7m (2024: £2.4m). The group
continues to undertake development projects with third‑party partners where
mutually beneficial.
Inventories increased to £368.1m (2024: £332.9m), driven primarily by a
£44.7m rise in the group's housebuilder land bank (2024: £15.4m). Despite a
record level of strategic land disposals in 2025, continued progress of sites
through planning has maintained the value of the strategic land portfolio.
Property development inventory reduced by £8.8m as capital continues to be
transferred into joint venture arrangements.
Receivables increased to £126.3m (2024: £111.6m), driven by an increase in
non-current trade receivables relating to strategic land disposals. Deferred
payment receivables continue to reflect the scale and nature of strategic land
transactions.
Payables increased to £113.8m (2024: £111.5m), reflecting the timing of
transactions and deferred land payments. Provisions reduced to £0.9m (2024:
£1.7m) as strategic land provisions unwind and the Road Link (A69) concession
approaches completion. Contract liabilities fell to nil (2024: £4.9m)
following the disposal of the group's construction business.
Net debt increased to £108.0m (2024: £62.7m), primarily as a result of the
growth in SBH's land bank and the sale of Construction. This resulted in
gearing rising to 26% (2024: 15%), higher than our preferred range of 10-20%.
As we complete sales throughout the year, we expect our gearing to move back
towards our optimal range. Net debt comprises cash and cash equivalents of
£8.4m (2024: £16.8m), borrowings of £112.0m (2024: £72.5m), other loans of
£1.1m (2024: £3.0m) and lease liabilities of £3.3m (2024: £3.9m).
At 31 December 2025, the IAS 19 pension valuation reported a surplus of £3.0m
(2024: £9.9m), mainly as a result of a lower market value of scheme assets.
The scheme continues to be managed through a diversified portfolio with
oversight from Trustees and external advisers.
Overall, the net assets of the group decreased by 1.2% to £420.1m (2024:
£425.1m), arising from retained profits less distributions to shareholders
and acquisition of Stonebridge with NAV per share(3) decreasing 0.9% to 313p
(2024: 317p).
Darren Littlewood
Chief Financial Officer
NOTES:
(1) Underlying profit is an alternative performance measure (APM) and is
defined as profit before tax excluding revaluation movements on completed
investment properties. Revaluation movement on completed investment properties
includes gains of £1.5m (2024: £1.2m) on wholly owned completed investment
property and loss of £0.1m (2024: £0.1m gain) on completed investment
property held in joint ventures. This APM is used as it provides the users
with a measure that excludes specific external factors beyond management's
controls and reflects the group's underlying results. This measure is used in
the business in appraising senior management performance.
(2) Return on Capital Employed is an APM and is defined as operating
profit/capital employed, where capital employed is the average of total assets
less current liabilities and pension asset/obligation at the opening and
closing balance sheet dates.
(3) Net Asset Value (NAV) per share is an APM and is defined using the
statutory measures net assets/ordinary share capital.
(4) Net debt is an APM and is reconciled to statutory measures in note 7.
(5) Including cash and cash equivalents.
UNaudited Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
2025 2024
Restated(1)
£'000 £'000
Revenue 251,549 276,198
Cost of sales (185,725) (204,263)
Gross profit 65,824 71,935
Other operating income 16,040 2,603
Administrative expenses (40,296) (42,023)
Other operating expenditure (16,329) (3,012)
25,239 29,503
Increase in fair value of investment properties 2,087 4,464
Profit on sale of investment properties 512 102
Profit on sale of assets held for sale 887 -
Share of profit of joint ventures and associates 1,727 2,431
Operating profit 30,452 36,500
Finance income 3,940 5,115
Finance costs (7,975) (8,664)
Profit before tax 26,417 32,951
Tax (8,062) (7,434)
Profit for the year from continuing operations 18,355 25,517
Profit for the year from discontinued operations 2,176 (1,887)
Profit for the period 20,531 23,630
Other comprehensive income/(expense) not being reclassified to profit or loss
in subsequent years:
Revaluation of group occupied property 25 64
Deferred tax on property revaluations 63 (67)
Actuarial (loss)/gain on defined benefit pension scheme (6,927) 2,196
Deferred tax on actuarial (loss)/gain 1,732 (549)
Total other comprehensive (expense)/income not being reclassified to profit or
loss in subsequent years
(5,107) 1,644
Total comprehensive income for the year 15,424 25,274
Profit for the year attributable to:
Owners of the Parent Company 23,517 23,333
Non-controlling interests (2,986) 297
20,531 23,630
Total comprehensive income attributable to:
Owners of the Parent Company from continuing operations 18,410 24,977
Non-controlling interests (2,986) 297
15,424 25,274
Earning per share:
Basic, profit attributable to the ordinary equity holders of the Parent 17.6p 17.4p
Diluted, profit attributable to the ordinary equity holders of the Parent 17.1p 17.0p
Earning per share for continuing operations:
Basic, profit attributable to the ordinary equity holders of the Parent 15.9p 18.9p
Diluted, profit attributable to the ordinary equity holders of the Parent 15.5p 18.4p
(1) See note 1 to the financial statements.
UNaudited Statement of Financial Position
as at 31 December 2025
2025 2024
Restated(1)
£'000 £'000
Assets
Non-current assets
Intangible assets 1,265 617
Property, plant and equipment 26,913 29,293
Right-of-use assets 2,929 3,460
Investment properties 94,646 96,275
Investment in joint ventures and associates 22,886 13,280
Retirement benefit asset 3,009 9,930
Trade and other receivables 47,920 8,458
Deferred tax assets - 219
199,568 161,532
Current assets
Inventories 368,065 332,871
Contract assets 8,419 12,693
Trade and other receivables 69,920 90,467
Cash 8,399 16,764
Assets held for sale - 9,315
454,803 462,110
Liabilities
Current liabilities
Trade and other payables 86,411 89,820
Contract liabilities - 4,882
Current tax liabilities 4,701 2,909
Borrowings 871 1,943
Lease liabilities 882 895
Provisions 857 1,723
93,722 102,172
Net Current Assets 361,081 359,938
Non-current liabilities
Trade and other payables 21,722 11,991
Borrowings 112,222 73,592
Lease liabilities 2,450 3,017
Deferred tax liabilities 4,115 7,568
Provisions - 154
140,509 96,322
Net Assets 420,140 425,148
Equity
Share capital 13,811 13,801
Property revaluation reserve 856 1,008
Retained earnings 409,918 399,791
Other reserves (1,271) 8,293
Cost of shares held by ESOP trust (645) (645)
Equity attributable to owners of the Parent Company 422,669 422,248
Non-controlling interests (2,529) 2,900
Total Equity 420,140 425,148
(1) See note 1 to the financial statements.
UNaudited Statement of Changes in Equity
for the year ended 31 December 2025
Attributable to owners of the Parent Company
Group Share Property Retained Other Cost of Total Non- Total
capital revaluation earnings reserves shares £'000 controlling equity
£'000 reserve £'000 £'000 held interests £'000
£'000 by ESOP £'000
trust
£'000
At 1 January 2024 13,799 1,011 383,219 8,248 (875) 405,402 4,716 410,118
Profit for the year - - 23,333 - - 23,333 297 23,630
Other comprehensive income - (3) 1,647 - - 1,644 - 1,644
Total comprehensive income - (3) 24,980 - - 24,977 297 25,274
Equity dividends - - (10,019) - - (10,019) (2,113) (12,132)
Proceeds from shares issued 2 - - 45 - 47 - 47
Share-based payments - - 1,611 - 230 1,841 - 1,841
2 - (8,408) 45 230 (8,131) (2,113) (10,244)
At 31 December 2024 13,801 1,008 399,791 8,293 (645) 422,248 2,900 425,148
Profit/(loss) for the year - - 23,517 - - 23,517 (2,986) 20,531
Other comprehensive income - 88 (5,195) - - (5,107) - (5,107)
Total comprehensive income - 88 18,322 - - 18,410 (2,986) 15,424
Realised profits on disposal of revalued property - (240) 240 - - - - -
Acquisition of subsidiary - - - (9,741) - (9,741) (309) (10,050)
Equity dividends - - (10,535) - - (10,535) (2,134) (12,669)
Proceeds from shares issued 10 - - 177 - 187 - 187
Share-based payments - - 2,100 - - 2,100 - 2,100
10 (240) (8,195) (9,564) - (17,989) (2,443) (20,432)
At 31 December 2025 13,811 856 409,918 (1,271) (645) 422,669 (2,529) 420,140
UNaudited Statement of Cash Flows
for the year ended 31 December 2025
2025 2024
£'000 £'000
Cash flows from operating activities
Cash used in operations (16,077) 42,573
Interest paid (7,082) (7,772)
Tax paid (7,751) (9,235)
Net cash flows from operating activities (30,910) 25,566
Cash flows from investing activities
Disposal of subsidiary (9,050) -
Purchase of intangibles (1,229) -
Purchase of property, plant and equipment (153) (1,391)
Purchase of investment property (3,539) (96)
Investment in joint ventures and associates (4,944) -
Proceeds on disposal of property, plant and equipment (excluding equipment 685 272
held for hire)
Proceeds on disposal of assets held for sale 13,054 -
Proceeds on disposal of investment properties 5,170 625
Advances of loans to joint ventures and associates (8,266) (17,410)
Repayment of loans from joint ventures and associates 13,654 13,456
Interest received 2,139 3,695
Dividends received from joint ventures - 2,850
Net cash flows from investing activities 7,521 2,001
Cash flows from financing activities
Acquisition of non-controlling interest (10,050) -
Proceeds from shares issued 187 47
Repayment to joint ventures and associates 939 (75)
Repayment of borrowings (59,442) (56,117)
Proceeds from borrowings 97,000 45,134
Principal elements of lease payments (941) (694)
Dividends paid - ordinary shares (10,514) (9,998)
- non-controlling interests (2,134) (2,113)
- preference shares (21) (21)
Net cash flows from financing activities 15,024 (23,837)
Net increase in cash and cash equivalents (8,365) 3,730
Net cash and cash equivalents at beginning of year 16,764 13,034
Net cash and cash equivalents at end of year 8,399 16,764
Notes to the Financial Statements
for the year ended 31 December 2025
1. Basis of preparation
These results for the year ended 31 December 2025 are unaudited. The financial
information set out in this announcement does not constitute the group's
statutory accounts for the years ended 31 December 2025 or 31 December 2024,
as defined by Section 434 of the Companies Act 2006.
The results have been prepared in accordance with UK adopted international
accounting standards. They have been prepared on the historic cost basis,
except for financial instruments, investment properties and group occupied
land and buildings, which are measured at fair value.
The financial information for the year ended 31 December 2024 is derived from
the statutory accounts for that year, which have been delivered to the
Registrar of Companies. The current auditor, Ernst & Young LLP, reported
on those accounts and their report was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement under Section
498 (2) or (3) of the Companies Act 2006.
The statutory accounts for the year ended 31 December 2025 will be finalised
on the basis of the financial information presented by the Directors in these
results and will be delivered to the Registrar of Companies following the AGM
of Henry Boot PLC. The same accounting policies and methods of computation are
followed as in the latest published audited accounts for the year ended 31
December 2024, which are available on the group's website at
www.henryboot.co.uk (http://www.henryboot.co.uk) .
The following standards, amendments and interpretations to existing standards
are effective or mandatory for the first time for the accounting year ended
31 December 2025:
Effective from
IAS 21 (amended 2023) 'Lack of Exchangeability' 1 January 2025
The standard did not have a material impact on the group's results.
The group did not early adopt any standard or interpretation not yet
mandatory.
Prior year restatements
Discontinued operations
As described in note 8, on 31 December 2025, the group disposed of HBC
Construction Limited (formerly Henry Boot Construction Limited) and therefore
have classified it as a discontinued operation in the year. In accordance with
IFRS 5, the results of the discontinued operation have been presented as a
single amount within the income statement. Consequently, the group has
restated its comparative information for the year ended 31 December 2024 to
reflect the discontinued classification.
Part exchange homes
Prior year restatement of revenue and costs of sale relating to the sale of
part exchange homes have been restated for the period ended 31 December 2024.
The group previously recognised consideration on disposal of part exchange
homes in revenue and the related expense in cost of sales. The increase in
volume of part exchange sales has resulted in the consideration received being
reclassified as other operating income and expenditure being reclassified as
other operating expenditure and now separates out the trading of non-core
operations. There is no impact on the Statement of Financial Position,
Statement of Changes in Equity or Statement of cash flows. The impact on the
31 December 2024 income statement is to decrease revenue and cost of sales by
£2,603,000 and £3,012,000 respectively and increase other operating income
and other operating expenditure by the same.
Non-current borrowings
Comparative information has been restated in respect of the classification of
the groups main borrowing facility. In the prior year, the group presented
these borrowings as current liabilities based on contractual maturity.
Following a review of the terms of the group's financing arrangements, and in
accordance with IAS 1 Presentation of Financial Statements, borrowings are now
presented as non-current where, at the reporting date, the group had the right
to defer settlement of the liability for at least twelve months after the
reporting date. This reclassification has no impact on profit for the year,
earnings per share or cash flows. The impact on the statement of financial
position as at 31 December 2024 is to decrease current borrowings and increase
non-current borrowings by £72,500,000. Comparative figures have been restated
accordingly.
Going concern
In undertaking their going concern review, which covers the period to December
2027, the Directors considered the Group's principal risk areas that they
consider material to the assessment of going concern.
As the UK economy continues to prove challenging, the Directors have assessed
the Groups ability to operate in a more uncertain environment in modelling a
base case scenario. They have also modelled what they consider to be a severe
downside scenario, including further curtailment in activities. This downside
scenario shows a c26% reduction in sales and c90% reduction in operating
profits from the base case. Development activity and land sales only take
place where already contracted or well progressed. For Stonebridge Homes a 10%
decline in house prices is assumed along with a 10% reduction in the number of
plots sold and Banner Plant revenue declines c17%. This downside model assumes
that acquisition and development spend is restricted other than that already
committed and is all consistent with previous experience in recessionary
environments. Having started 2026 with net debt of £108.0m, and with
c.£118.6m of net debt as at 20 March 2026 against current facilities of
£155.0m the Directors have concluded that the group is able to control the
level of uncommitted expenditure while delivering contracted schemes. Allowing
it to retain and even improve the cash position in the event of a severe
downside scenario, although the impact of doing so on the profit and loss
account would be unavoidable.
The group meets its day-to-day working capital requirements through a secured
loan facility. The facility with Barclays Bank PLC, HSBC UK Bank plc and
National Westminster Bank Plc runs for three years and includes two one-year
extensions. The facility includes an accordion to increase the facility by up
to £60.0m, increasing the overall facility to £185m.
None of the modelling undertaken by the Directors gives rise to any breach of
bank facility covenants. The most sensitive covenant in our facilities relates
to the ratio of EBIT (Earnings Before Interest and Tax) on a 12-month rolling
basis to senior facility finance costs. Our downside modelling, which reflects
a 26% reduction in revenue and 90% reduction in operating profit from our base
case for 2025, demonstrates headroom over this covenant throughout the
forecast period to the end of December 2027.
As part of the going concern assessment, the Directors considered a reverse
stress test to determine the level of adverse performance required to exhaust
debt facility headroom and cause covenant breaches over the assessment period.
The Directors concluded that the combination of events required to cause such
breaches are remote, and even in a case of worsening economic conditions, the
Group has several mitigations available to it which remain unmodelled in the
stress test scenarios.
The Directors have also considered the current ongoing conflict in the Middle
East and the potential impact upon the Group should the conflict be prolonged.
Whilst the Group is not immune to global economic shocks, the Directors
believe that the strength of the Group balance sheet, the facility headroom
demonstrated in the Groups downside modelling, and the strong supply and
demand fundamentals underpinning our key markets mean the Group is well
positioned to manage economic deterioration as a result of the conflict.
At the time of approving the Financial Statements the Directors expect that
the company and the group will have adequate resources, liquidity and
available bank facilities to continue in operational existence for the
foreseeable future. Accordingly, they continue to adopt the going concern
basis of accounting in preparing the Financial Statements.
2. Segment information
For the purpose of the Board making strategic decisions, the group is
currently organised into four operating segments: Property Investment and
Development; Home building; Land Promotion; and Construction. Central
overheads are not a reportable segment; however, information about them is
considered by the Board in conjunction with the reportable segments.
During the year, the group added a new operating segment - Home building -
following the acquisition of a further 12.5% interest in Stonebridge Homes
which now stands at 62.5%. The segment was identified based on the internal
reporting provided to the chief operating decision maker, being the Board of
Henry Boot. The Home building segment is managed separately due to its
distinct nature and customer profile. Comparative results have been restated.
Operations are carried out entirely within the United Kingdom.
Inter-segment sales are charged at prevailing market prices.
The accounting policies of the reportable segments are the same as the group's
Accounting Policies.
Segment profit represents the profit earned by each segment before tax and is
consistent with the measure reported to the group's Board for the purpose of
resource allocation and assessment of segment performance.
2025
Revenue Property Home Land Construction Central Eliminations Total
Investment Building Promotion £'000 overheads £'000 £'000
and £'000 £'000 £'000
Development
£'000
External sales 69,028 69,747 82,987 29,787 - - 251,549
Inter-segment sales 335 - - 16,291 84 (16,710) -
Total revenue 69,363 69,747 82,987 46,078 84 (16,710) 251,549
Gross profit/(loss) 14,871 (2,208) 43,760 9,415 (9) (5) 65,824
Other operating income - 16,040 - - - - 16,040
Administrative expenses (10,648) (6,659) (10,864) (2,754) (9,376) 5 (40,296)
Other operating expenses - (16,329) - - - - (16,329)
Other 5,213 - - - - - 5,213
Operating profit/(loss) 9,436 (9,156) 32,896 6,661 (9,385) - 30,452
Finance income 1,353 2 1,306 531 50,053 (49,305) 3,940
Finance costs (57) (170) (1,022) (362) (6,651) 287 (7,975)
Profit/(loss) before tax 10,732 (9,324) 33,180 6,830 34,017 (49,018) 26,417
Tax (2,818) 2,158 (8,398) (1,733) 2,729 - (8,062)
Profit/(loss) for the year 7,914 (7,166) 24,782 5,097 36,746 (49,018) 18,355
2024 (restated(1))
Revenue Property Home Land Construction Central Eliminations Total
Investment Building Promotion £'000 overheads £'000 £'000
and £'000 £'000 £'000
Development
£'000
External sales 69,194 98,142 78,036 30,826 - - 276,198
Inter-segment sales 387 - - 777 150 (1,314) -
Total revenue 69,581 98,142 78,036 31,603 150 (1,314) 276,198
Gross profit 17,848 9,539 33,747 10,806 4 (9) 71,935
Other operating income - 2,603 - - - - 2,603
Administrative expenses (9,929) (7,270) (9,456) (3,641) (11,736) 9 (42,023)
Other operating expenses - (3,012) - - - - (3,012)
Other 6,997 - - - - - 6,997
Operating profit/(loss) 14,916 1,860 24,291 7,165 (11,732) - 36,500
Finance income 5,486 45 1,784 486 36,183 (38,869) 5,115
Finance costs (85) - (1,517) (492) (6,891) 321 (8,664)
Profit before tax 20,317 1,905 24,558 7,159 17,560 (38,548) 32,951
Tax (3,681) 1,023 (6,482) (1,883) 3,589 - (7,434)
Profit for the year 16,636 2,928 18,076 5,276 21,149 (38,548) 25,517
(1) See note 1 to the financial statements.
2025 2024
Restated(1)
£'000 £'000
Segment assets
Property Investment and Development 231,251 246,892
Home Building 159,869 120,770
Land Promotion 210,435 183,539
Construction 28,536 37,896
Group overheads 12,872 7,632
642,963 596,729
Unallocated assets
Deferred tax assets - 219
Retirement benefit asset 3,009 9,930
Cash and cash equivalents 8,399 16,764
Total assets 654,371 623,642
Segment liabilities
Property Investment and Development 23,463 24,870
Home Building 45,500 21,948
Land Promotion 30,086 38,767
Construction 4,034 18,082
Group overheads 5,907 4,903
108,990 108,570
Unallocated liabilities
Current tax liabilities 4,701 2,909
Deferred tax liabilities 4,115 7,568
Current lease liabilities 882 895
Current borrowings 871 1,943
Non-current lease liabilities 2,450 3,017
Non-current borrowings 112,222 73,592
Total liabilities 234,231 198,494
Total net assets 420,140 425,148
(1) See note 1 to the financial statements.
3. Tax
2025 2024
£'000 Restated(1)
£'000
Current tax:
UK corporation tax on profits for the year 8,023 6,519
Adjustment in respect of earlier years 1,510 (654)
Total current tax 9,533 5,865
Deferred tax:
Origination and reversal of temporary differences (1,471) 1,569
Total deferred tax (1,471) 1,569
Total tax 8,062 7,434
(1) See note 1 to the financial statements.
4. Dividends
2025 2024
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
Preference dividend on cumulative preference shares 21 21
Final dividend for the year ended 31 December 2024 of 4.62p per share (2023: 6,180 5,879
4.40p)
Interim dividend for the year ended 31 December 2025 of 3.24p per share (2024: 4,334 4,119
3.08p)
10,535 10,019
The proposed final dividend for the year ended 31 December 2025 of 4.62p per
share (2024: 4.62p) makes a total dividend for the year of 7.86p (2024:
7.70p).
The proposed final dividend is subject to approval by shareholders at the AGM
and has not been included as a liability in these Financial Statements. The
total estimated dividend to be paid is £6,200,000.
Notice has been received from Moore Street Securities Limited waiving its
right as corporate trustee for the Employee Share Ownership Plan ('ESOP') to
receive all dividends in respect of this and the previous financial year.
5. Investment properties
Fair value measurements recognised in the Statement of Financial Position
The following table provides an analysis of the fair values of investment
properties recognised in the Statement of Financial Position by the degree to
which the fair value is observable:
Level 1 Level 2 Level 3 2025 2024 Increase/
£'000 £'000 £'000 £'000 £'000 (decrease)
in year
Completed investment property
Industrial - - 74,911 74,911 70,692 4,219
Leisure - - 5,743 5,743 5,585 158
Residential - - 3,282 3,282 3,783 (501)
Office - - - - 2,418 (2,418)
Retail - - 10,710 10,710 13,797 (3,087)
Total carrying value - - 94,646 94,646 96,275 (1,629)
The group's policy is to recognise transfers into and out of fair value
hierarchy levels as of the date of the event or change in circumstances that
causes the transfer. The Directors determine the applicable hierarchy that a
property falls into by assessing the level of comparable evidence in the
market, that the asset falls into and the inherent level of activity. As at
the reporting date, and throughout the year, all property was determined to
fall into Level 3, so there were no transfers between hierarchies.
Explanation of the fair value hierarchy:
Level 1 - fair value measurements are those derived from quoted prices
(unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date;
Level 2 - fair value measurements are those derived from the use of a model
with inputs (other than quoted prices included in Level 1)
that are observable from directly or indirectly observable market data; and
Level 3 - fair value measurements are those derived from use of a model with
inputs that are not based on observable market data.
Investment properties have been split into different classes to show the
composition of the investment property portfolio of the group as at the
reporting date. Management has determined that aggregation of the results
would be most appropriate based on the type of use that each property falls
into, which is described below:
Class
Industrial Includes manufacturing and warehousing, which are usually similar in
dimensions and construction method.
Leisure Includes restaurants and gymnasiums or properties in which the main activity
is the provision of entertainment and leisure facilities to the public.
Residential Includes dwellings under assured tenancies.
Office Includes buildings occupied for business activities not involving storage or
processing of physical goods.
Retail Includes any property involved in the sale of goods.
Land Includes land held for future capital appreciation as an investment.
Investment properties under construction are categorised based on the future
anticipated highest and best use of the property.
6. Share capital
Authorised, allotted,
issued and fully paid
2025 2024
£'000 £'000
400,000 5.25% cumulative preference shares of £1 each (2024: 400,000) 400 400
134,110,155 ordinary shares of 10p each (2024: 134,010,541) 13,411 13,401
13,811 13,801
7. Cash generated from operations
2025 2024
£'000 £'000
Profit before tax - continuing operations 26,417 28,369
Profit before tax - discontinued operations 2,649 2,291
Profit before tax 29,066 30,660
Adjustments for:
Amortisation of intangibles 581 522
Goodwill impairment - 1,040
Depreciation of property, plant and equipment 3,899 4,063
Depreciation of right-of-use assets 883 857
Revaluation increase in investment properties (2,087) (4,464)
Amortisation of capitalised letting fees 19 34
Share-based payment expense 2,100 1,841
Pension scheme debit 530 338
Profit on disposal of property, plant and equipment (596) (151)
Profit on disposal of equipment held for hire (66) (1,156)
Gain on disposal of investment properties (512) (102)
Profit on disposal of assets held for sale (887) -
Finance income (3,940) (5,115)
Finance costs 7,975 8,678
Share of profit of joint ventures and associates (1,727) (2,431)
Operating cash flows before movements in equipment held for hire 35,238 34,614
Purchase of equipment held for hire (1,942) (4,183)
Proceeds on disposal of equipment held for hire 509 1,550
Operating cash flows before movements in working capital 33,805 31,981
Increase in inventories (35,466) (35,253)
(Increase)/decrease in receivables (34,646) 18,791
Decrease in contract assets 100 966
Increase in payables and provisions 21,528 22,266
(Decrease)/increase in contract liabilities (1,398) 3,822
Cash flows from operations (16,077) 42,573
2025 2024
£'000 £'000
Analysis of net debt:
Cash and cash equivalents 8,399 16,764
Bank overdrafts - -
Net cash and cash equivalents 8,400 16,764
Bank loans (112,000) (72,500)
Other loans (1,093) (3,015)
Lease liabilities (3,332) (3,912)
Net debt (108,026) (62,683)
8. Discontinued operations
On 31 December 2025 the group, disposed of its 100% interest in HBC
Construction Limited, formerly Henry Boot Construction Limited (HBC) for a
total consideration of £4,000,000 to the existing management team. The
transaction is funded through a vendor loan note issued by the group and
includes potential future payments subject to performance. The agreement also
makes certain guarantees to HBC relating to performance bonds and credit
insurance. The fair value of these guarantees is include in the profit and
loss on disposal.
2025
£'000
Sales proceeds 4,000
Book value of assets -
Fair value of guarantees provided (2,000)
Profit on disposal 2,000
The results of HBC for the year are presented below:
2025 2024
£'000 £'000
Revenue 55,427 49,578
Expenses (54,762) (51,855)
Operating profit/(loss) 665 (2,277)
Finance (cost)/income (20) (14)
Profit/(loss) before tax from discontinued operations 645 (2,291)
Tax (469) 404
Profit/(loss) for the year from discontinued operations 176 (1,887)
Profits from discontinued operations, comprising the results of HBC and the
profit on disposal amount to £2,176,000.
The major classes of assets and liabilities of HBC at the disposal date were
as follows:
2025
£'000
Assets
Property, plant and equipment 69
Right-of-use assets 634
Contract assets 32
Trade and other receivables 12,847
Cash 9,051
Liabilities
Trade and other payables (22,007)
Lease liabilities (626)
Net assets directly associated with disposal group -
The net cash flows incurred by HBC are as follows:
2025 2024
£'000 £'000
Operating 33,917 12,010
Investing 2,412 3,171
Financing (27,415) (15,000)
Net cash flow 8,914 181
9. Events after the balance sheet date
Since the balance sheet date the group has proposed a final dividend for 2025.
Further information can be found in note 4.
In December 2024, terms were agreed to take full ownership of Stonebridge
Homes Group Limited, acquiring the 50% share the group does not already own,
in three tranches over a five year period. Having exercised the option to
acquire the first 12.5% in January 2025, the group have further exercised the
option to acquire a second tranche of 12.5% in January 2026.
There were no other significant events since the balance sheet date that may
have a material effect on the financial position or performance of the group.
10. These results were approved by the Board of Directors and authorised for
issue on 24 March 2026.
11. The 2025 Annual Report and Financial Statements is to be published on the
Company's website at www.henryboot.co.uk (http://www.henryboot.co.uk) and sent
out to those shareholders who have elected to continue to receive paper
communications by no later than 21 April 2026. Copies will be available from
The Company Secretary, Henry Boot PLC, Isaacs Building, 4 Charles Street,
Sheffield S1 2HS.
12. The AGM of the Company is to be held at Double Tree by Hilton Sheffield
City, Bramall Lane Sheffield, Sheffield S2 4SU on Thursday 21 May 2026,
commencing at 12.30pm.
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. END FR PPUBCWUPQUCC
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