REG - Boot(Henry) PLC - Half-year Report
Tue 07:00
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RNS Number : 3380A Boot(Henry) PLC 23 September 2025
23 September 2025
HENRY BOOT PLC
('Henry Boot', the 'Company' or the 'group')
Ticker: BOOT.L: Main market premium listing: FTSE: Real Estate Investment and
Services.
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
Sales performance drives growth in profitability and underpins increased
dividend
Henry Boot PLC, a Company engaged in land promotion, property investment and
development, home building and construction, announces its unaudited interim
results for the six months ended 30 June 2025.
Tim Roberts, Chief Executive Officer, commented:
'Operationally, we have had a solid first half, which is no mean feat in
uncertain markets, but we are also making strong progress strategically. In
particular, early investment into the resources at Hallam Land, anticipating
positive changes to the NPPF, are already bearing fruit in the form of a good
first half, both in terms of sales and planning consents. Equally, although
trading is more subdued, in HBD and Stonebridge Homes, we have grasped the
opportunity to build up a store of near-term opportunity, respectively, in the
development pipeline and home building landbank. The announced sale of HBC
also tightens our focus on our chosen areas of land promotion, development and
home building. With 80% of budgeted sales achieved, we have confidence of
meeting full-year expectations, and we also have conviction that there are
clear opportunities within our high quality portfolio to hit our medium term
growth and return targets.'
Financial highlights
· 19% increase in revenue to £126.4m (H1 24: £106.0m) driven by
land and property disposals and profit before tax of £7.8m (H1 24: £3.7m) or
£6.5m (H1 24: £3.6m) on an underlying statutory basis(1)
· Completed and exchanged on total land and property sales of
£159.6m, our share £99.3m (H1 24: £150.8m), against an uncertain backdrop
reflecting resilient demand for our prime projects and buildings
· 80% of budgeted sales for 2025 completed, exchanged or reserved,
with the balance either under offer or in detailed negotiations.
· 5% increase in interim dividend to 3.24p, consistent with our
progressive dividend policy and our confidence in achieving full year
performance in line with market expectations and in the group's future
prospects
· Return on capital employed(2) (ROCE) of 9.1% (H1 24: 4.9%). We
remain confident of achieving returns within the target range of 10-15% over
the medium term
· Capital employed at £427m (December 2024: £439m), reflecting
the first tranche payment of the Stonebridge Homes (SBH) acquisition in line
with the group's ambition to grow its home building business
· The group's Net Asset Value(3) (NAV) per share, excluding the
defined benefit scheme, was 304p (31 December 2024: 312p). The NAV per share
was 307p as of 30 June (December 2024: 317p)
· Net debt(4) at £88.1m (December 2024: £62.7m) with gearing at
21.4% (December 2024: 14.7%) as we invest in accelerating planning
applications on Hallam land sites, grow SBH's land bank and position the
business for future growth
Operational highlights
· Land promotion
o Hallam Land has had a strong start to 2025, with 1,222 plots sold in the
first half (H1 24: 843), with 410 plots exchanged, and another 1,959 plots
under offer. We are on target to exceed 3,500 plot sales this year (December
2024: 2,661)
o Following the amendments to the National Planning Policy Framework (NPPF)
and investment in our workforce and systems, we are on track to submit
applications for 10,000 plots this year. To date planning for 4,844 plots has
been submitted
o We have secured planning on 2,782 plots year to date, with 1,237 in H1 25.
This brings our total plots with planning to 8,837 as of 30 June (December
2024: 8,822), or 9,972 including post-half-year consents
o The total land bank has grown to 107,173 plots (December 2024: 104,787)
· Property investment & development
o The Origin joint venture (JV) with Feldberg Capital, seeded by three sites
with a combined Gross Development Value (GDV) of £100m, is progressing well,
with good occupier interest and its first pre-let secured. The JV is expected
to add a further £56m GDV in H2 25
o We have a high quality committed development programme with a GDV of
£128m (our share: £37m) as well as a strong near term pipeline, including
the first phase (£98m GDV) of Golden Valley, Cheltenham, an innovation and
technology project located adjacent to GCHQ
o £1.5bn development pipeline (our share: £1.3bn GDV), of which 56% is
focused on Industrial & Logistics (I&L) markets
o Our investment portfolio (IP) total property return(5) of 5.7%, was again
ahead of the CBRE UK Monthly Index (4.2%). Four sales were completed or
exchanged in H1 25 for a total of c.£18m at an average 12% premium. IP now
valued at £96.1m (December 2024: £107.4m)
· Home building
o In January 2025, the group increased its ownership in SBH to 62.5%, and
integration has been progressing well
o During the period, SBH completed 85 homes (H1 24: 90 homes), with private
average sales price on completions up 3% to £391k (H1 24: £381k)
o Net private weekly reservation rate was 0.45 in H1 25 (H1 24: 0.50),
operating from an average of 9 sales outlets (H1 24: 8 outlets)
o In line with its growth ambitions, SBH has secured 846 plots in the
period, resulting in a total owned and controlled land bank of 2,487 plots
(December 2024: 1,726)
· Construction
o The construction segment achieved turnover of £41.0m (H1 24: £43.5m)
with an operating profit of £1.9m (H1 24: £2.9m)
o Sale of Henry Boot Construction has been agreed for £4.0m with completion
around YE 25
· Responsible business
o We are making good progress towards our medium term Responsible Business
Strategy targets set in January 2022, which will be refreshed in 2026
NOTES:
(1 ) Underlying profit before tax 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 £1.3m (2024: £nil) on
wholly owned completed investment property and gains of £nil (2024: £0.1m)
on completed investment property held in joint ventures. This APM 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 (ROCE) is an APM and is a 12
month rolling average defined as operating profit /average of total assets
less current liabilities (excluding DB pension surplus) at the opening and
closing balance sheet dates.
(3 ) Net Asset Value (NAV) per share is an APM and defined using
the statutory measures net assets/ordinary share capital.
(4 ) Net (debt)/cash is an APM and is reconciled to statutory
measures in note 14.
(5 ) 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.
For further information, please contact:
Enquiries:
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
Deutsche Numis
Joint Corporate Broker
Oliver Hardy/Heraclis Economides
Tel: 0207 260 1000
Peel Hunt LLP
Joint Corporate Broker
Ed Allsopp/Pete Mackie
Tel: 0207 418 8900
FTI Consulting
Financial PR
Giles Barrie/Richard Sunderland
Tel: 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
Password: Henry Boot
Webcast link: https://stream.brrmedia.co.uk/broadcast/689a03bb2d863300135196d3
About Henry Boot
Henry Boot is one of the UK's leading land, property development, home
building and construction 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, Henry Boot
Construction, Banner Plant and Road Link.
Operating across the UK, and employing over 500 people, we focus on three key
markets: urban development, industrial and logistics and residential. 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
107,000 homes. HBD manages a development pipeline of £1.3bn, the equivalent
of 8.3m sq ft of developments across our key markets, while maintaining a
£96.1m investment portfolio, of which 90% of the properties have an EPC
rating of 'C' or higher. Stonebridge Homes, our jointly-owned home building
business, manages a land portfolio capable of delivering c.2,500 homes, with
an ambition to deliver up to 600 new homes a year.
Henry Boot Construction has extensive experience in both the public and
private sectors, including major projects such as the £200m regeneration of
Barnsley town centre, and The Cocoa Works, a £57m residential development in
York. For over 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, and to deliver, by 2025,
charitable, community and education work valued at £1m.
From land promotion, property development and investment to home building,
construction and plant hire, Henry Boot is where great places start -
www.henryboot.co.uk (http://www.henryboot.co.uk)
CEO's review
Henry Boot has delivered a solid performance in the first six months of this
year, generating a profit before tax of £7.8m (H1 24: £3.7m). Despite the
ongoing global political and economic uncertainty, demand for our prime
property has remained resilient, and particularly strong for our high quality
residential land.
According to CBRE, the volume of UK commercial property transactions totalled
£21.9bn in H1 25, a decrease of 18% compared to H1 2024. However, more
encouragingly, rolling 12-month investment volumes were up 6% on the prior 12
months. Whilst there has been a slowdown in investment volumes in alternative
sectors such as build to rent residential and student accommodation, this has
been more than offset by increased transactions in the industrial, office and
retail sectors over the last year.
House prices increased by 0.6% during H1 25 according to Nationwide.
Completions of new homes increased by 16% year on year during H1 25 but remain
some way below the post Covid-19 peak in 2022. In the land market there has
been an increase in activity as housebuilders selectively acquire sites, with
an emphasis on prime locations. This continues to be the focal point for
Hallam Land, our land promotion business.
Against this subdued market backdrop, our strategic focus on high quality
land, prime property development and premium homes allowed us to complete
and/or exchange on total land and property sales of £159.6m, our share
£99.3m (our share H1 24: £150.8m). As of 14 September, the total had risen
to £172.0m (our share £111.9m), reflecting further progress post period end.
Completing these sales allows us to crystallise the significant uplift in
value we have created, due to assets being held at cost.
As flagged in our FY 24 results announcement in March, a lower starting
forward sales position, the delay between increased activity and the timing of
key transactions means the FY 25 performance is weighted heavily to the second
half. This follows a similar pattern to last year, where our performance over
the final six months allowed us to deliver results in line with expectations.
With further sales completed since the period end, we are confident of again
achieving a full year performance in line with market expectations*.
Since amendments were made to the NPPF earlier this year, there have been
significant improvements in securing outline consents. In anticipation of
this, in 2024, we completed a strategic workforce plan within Hallam Land,
making the early decision to increase resources and fast-track a number of
planning applications, with a target to submit applications for 10,000 plots
this year. I am pleased to say that having submitted planning for 4,844 plots
year to date and with a significant pipeline of applications ready to submit
in the coming months, we are on track to achieve our goal. We have achieved
planning on 2,782 plots year to date, of which 1,237 plots (H1 24: 332) were
secured in H1 25. This means we have increased our store of worth with
planning for 9,972 plots, with 8,837 plots at 30 June (December 2024: 8,822).
All these sites continue to be held at cost, materially understating our
conservatively assessed NAV.
Hallam Land has experienced good demand for its prime deliverable sites year
to date, completing and exchanging on 1,792 plots at a total gross sales value
of £113.5m (Hallam Land share £41.5m). With a further 1,799 plots under
offer, we are on track to exceed our medium term target of selling 3,500 plots
this year.
While the government's amendments to the NPPF have improved the process for
securing outline consents, including an uptick in success at appeal, the same
progress has not been seen for obtaining detailed consents. Many local
planning authorities remain under resourced, which has extended the timeframe
for decisions and subsequently delayed the opening of new outlets across the
home building industry. If the government is to meet its target of delivering
1.5 million homes by 2030, it must address this issue.
The net private reservation rate per active sales outlet per week in H1 25 was
0.45 (H1 24: 0.50) as many of our customers took longer to commit to buying
homes in an environment which for them had become more uncertain. We have
therefore seen softer trading conditions during the summer period, with our
sales rate also affected by several of our active sites nearing completion and
consequently not offering the full product range. Whilst we have made good
progress growing our total land bank, reservation levels have also been
impacted by delays in securing detailed planning at Whitby, Barnby Dunn and
Market Rasen, which reduced the opening of new sales outlets. The net private
reservation rate for the 6 weeks to 14 September was 0.38. As a result, total
home completions for 2025 are now anticipated to be c.240-250. There remains a
long term structural undersupply of housing in our targeted regions, and we
maintain our medium term ambition to build 600 homes per annum.
Over the past 12 months, due to slower occupier demand as businesses extend
decision making in the current unsettled environment and more uncertain
investment markets, we have been selective in replenishing HBD's committed
development programme. We have however, continued to build up a strong
near-term pipeline, which offers us optionality to increase our commitments
and respond swiftly when market conditions improve.
A standout scheme in our near‑term pipeline is Golden Valley, Cheltenham, a
£1bn flagship mixed use campus adjacent to GCHQ, focused on national security
and emerging technologies such as AI and quantum computing. This world‑class
innovation district will eventually deliver around 2,500 new homes, 1.25m sq
ft of commercial space with the National Cyber Innovation Centre at its heart
and support the creation of almost 12,000 jobs. In July, we received outline
planning consent for approximately 1m sq ft of prime commercial space,
including IDEA, a 160,000 sq ft National Cyber Innovation Centre, along with
576 residential units. We expect to commit to phase one (£98m GDV) in H1 26.
I believe our involvement in a government backed project of this importance is
a great reflection of our team's track record of delivering high quality large
scale innovation led projects. Our credentials in this growth sector are
further strengthened by HBD's recent appointment as the development partner at
'Duxford AvTech', a £162m GDV technology campus at IWM Duxford.
Another key element of HBD's development programme is our 25:75 I&L JV
with Feldberg Capital, Origin, which was seeded with three sites from our
pipeline with a combined GDV of c.£100m. The JV, which was only formed in
December 2024, is running well, with all the schemes progressing on time and
on budget. We have also seen a good level of occupier interest. We are looking
to profitably accelerate the development of a further seven units at Walsall,
Markham Vale, and Preston, with a total GDV of £56m (our share: £14m) by
transferring the sites into the JV. The schemes are set to be added to the
committed development programme by the year end.
The group's IP has once again performed well, with a total property return
over six months of 5.7%, which is ahead of the CBRE UK Monthly Index at 4.2%.
On a like-for-like basis capital values in the IP increased by 2.0% in H1 25.
In the first six months of the year, we have either completed or exchanged on
four sales, for a total of £17.7m at an average 12% premium to 31 December
book value. As a result, at 30 June the IP was valued at £96.1m (31 December
2024: £107.4m). Our focus has been on recycling capital rather than acquiring
standing investments, completing disposals of c.£59.4m over the past four
years at an average of 16% above book value. This strategy has been accretive
to performance.
During the first half of the year and including post H1 sales up to 14
September, 80% of budgeted sales for 2025 have either been completed,
exchanged or reserved. Significant transactions that have exchanged or are
anticipated to complete this year, include:
· Queniborough, Leicestershire (Hallam Land) - in September, we
exchanged on the sale of 160 residential plots to Harpur Crewe. The sale is
scheduled to complete in October.
· Origin (HBD) - a site with the potential to deliver three units
totalling 101,000 sq ft at Spark, Walsall has been conditionally exchanged for
sale into our Origin JV. The transaction is expected to complete in H2 25.
The remaining transactions which are in advanced discussions, once completed
in H2 25, will mean we hit our sales target for 2025. This includes securing
SBH's completion target of c.240-250 units, of which 124 units are either
completed or exchanged as of 14 September, with a further 68 units reserved.
There are several other deals across the group also in negotiation:
· Across Hallam Land's portfolio, a total of 1,799 plots across
four sites are currently under offer, which, when concluded, will see Hallam
Land exceed its financial target for 2025.
· The Chocolate Works in York (HBD) - the sale of the final
two-acre development site is under offer to a national developer. We expect
the sale to complete in Q4 25.
· Aptus, Preston (HBD), a site with outline planning for three
units totalling 107,000 sq ft, is under offer to be transferred into our
Origin JV.
The group's NAV per share, excluding the defined benefit scheme, was at 304p
(December 2024: 312p) after the payment of the increased final dividend for
2024 of 4.62p and completion of the first tranche of the SBH acquisition. The
IFRS NAV per share was 307p as at 30 June (December 2024: 317p).
Net debt was £88.1m as at 30 June 2025 (December 2024: £62.7m), reflecting
an acceleration of planning applications on Hallam Land sites and the growth
of SBH's landbank, with acquisitions at Bracebridge Heath and Kingston Village
(total 641 plots). This has resulted in an increase in our gearing to 21.4% as
at 30 June 2025 (December 2024: 14.7%), although it is below the 25.5% level
this time last year. While this is marginally above our optimal 10-20% range,
our gearing remains relatively low, and this gives us the flexibility to
utilise our existing borrowing facilities to continue to invest in growing the
business where there are good opportunities to do so.
We remain committed to investing in our long term future, and so far this
year, we have made good strategic progress. I am glad to report the following:
· We have agreed the sale of Henry Boot Construction (HBC) to PWS,
a new company formed by the HBC management team, for £4m. This transaction
aligns with the group's focus on high-quality land, prime property development
and premium homes. I believe a more focused portfolio will better serve
shareholders by enhancing synergies and long-term growth prospects while
simplifying the group's structure and investment case. The transaction is
expected to be completed around the year end.
· In January 2025, the group increased its ownership in SBH to
62.5%. We immediately initiated an integration plan and identified a list of
quick wins, which have already been implemented. Additional integration
benefits and cost savings, including working with Hallam Land to set up a
strategic land portfolio, merging and rationalising centralised services with
our group central functions, will be achieved as we grow our ownership. In H1
25, we also added 846 plots to our landbank as we scale up the business to
align with our growth aspirations.
· We are modernising our digital and technology capabilities. This
summer we began to successfully roll out Microsoft Dynamics 365, which will
digitise processes within Henry Boot, store information and support group
collaboration. At the same time, we are increasing our use of AI to improve
business processes.
*Market expectations being the average of current analyst consensus of £30.0m
profit before tax, comprising four forecasts from Deutsche Numis, Jefferies,
Panmure Liberum and Peel Hunt.
Dividend
The Board has declared an interim dividend of 3.24p (H1 24: 3.08p), with the
5% increase demonstrating our progressive dividend policy and continued
confidence in the future prospects for the business. This will be paid on 24
October 2025 to shareholders on the register at the close of business on 3
October 2025.
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.
See below for the progress made in the first half of 2025 against our stated
medium term targets:
Measure Medium term target H1 25 Performance Progress
Capital employed To over £500m £427m as at 30 June 2025 On track to grow capital employed to over £500m
Return on average capital employed 10-15% pa 12-month rolling ROCE of 9.1% Maintain our medium term target through the cycle
Land promotion plot sales c.3,500 pa 1,222 plots in H1 25 On course for FY 25 to exceed sales of 3,500 plots
Development completions Our share c.£200m pa FY 25 £42m GDV Expect to be below target due to selective replenishment of the committed
programme. A strong near term pipeline allows us to increase commitments as
markets improve
Grow investment portfolio To around £150m £96.1m as at 30 June 2025 Focus on profitably recycling capital instead of acquiring new investments.
Will remain patient in growing the portfolio
Stonebridge Homes sales Up to 600 units pa 85 homes completed in HY 25 Total home completions for 2025 to be c.240-250, reflecting market conditions
and delay in opening new sales outlets. Our firm ambition remains up to 600
homes pa.
Construction order book secured Minimum of 65% for the following year 45% at H1 25 for 2026 On course to meet target
Responsible business
We launched our Responsible Business Strategy (RBS) in January 2022, with our
primary aim to be Net Zero Carbon by 2030 with respect to Scopes 1 and 2
greenhouse gas (GHG) emissions. I am pleased with the progress we have made so
far against our 2025 objectives and targets. Our strategy is guided by three
principal objectives:
· To further embed ESG factors into commercial decision making so
that the business adapts, ensuring long term sustainability and value creation
for the group's stakeholders.
· To empower and engage our people to deliver long term meaningful
change and impact for the communities and environments Henry Boot works in.
· To focus on issues deemed to be most significant and material to
the business and hold ourselves accountable by reporting regularly on
progress.
Performance against our 2025 targets
At the midpoint of our final year for the 2025 Responsible Business targets,
the table below highlights the significant progress we have made. We are
pleased that we are on track to achieve the majority of our goals before we
refresh our RBS in 2026.
Our people Performance Our places Performance
Develop and deliver a group-wide Health and Wellbeing Strategy Delivery is underway, including the launch of a financial wellbeing programme Contribute £1,000,000 of financial (and equivalent) value to our charitable We have contributed (financial and equivalent value of) over £990,000 to our
with Finwell and a well-established network of Mental Health First Aiders. partners charitable and community
partners.
Increase gender representation in the business, aiming for 30% of our team and Female representation across our workforce has increased to 30% (2024: 29%). Contribute 7,500 volunteering hours to a range of community, charity, and More than 10,000 volunteering hours have been delivered, meaning we have
line managers being female education projects already significantly exceeded our goal.
Our planet Performance Our partners Performance
Reduce Scope 1 and 2 GHG emissions by over 20% to support reaching NZC by 2030 Total direct GHG emissions (Scopes 1 and 2) in 2024 were 2,989 tonnes (2023: Engage key partners to create a more EDI Working group has engaged with organisations including the CBI and BITC to
2,833 tonnes), which equates to a 10% reduction from the 2019 baseline.
collaborate with business and supplier partners to review initiatives to
diverse and inclusive built environment improve diversity.
sector and form business-led
partnerships to improve EDI
Reduce consumption of avoidable Waste Management Plan due for implementation to enable baselining and Collaborate with all our partners to reduce our environmental impact We continue to engage with membership organisations
reduction in avoidable plastic.
plastic by 50% and our supply chain to share knowledge and best practice.
Outlook
Despite starting the year in an uncertain market environment, demand for our
prime projects remains resilient, and we continue to make good strategic
progress by increasing our focus on land promotion, property development and
home building. This, alongside the day to day activities within the group are
enabling us to further expand our strong pipeline of opportunities, while
crystalising value within our portfolio.
Significant steps include the sale of HBC and the agreed route to full
ownership of SBH. Now that we are the majority owner of SBH, we have greater
autonomy to both grow and improve its landbank, while continuing to establish
the brand and its network of sites across our three targeted regions. We
expect this strategy will drive volume growth and return on capital as the
business scales up. We have also started to extract synergies and efficiencies
through integrating the business into Henry Boot.
Hallam Land has had a particularly good half in terms of sales, planning
consents and applications. The NPPF has established a presumption in favour of
development and, while planning remains slow and complicated, we can skilfully
navigate the system to create value within this improved policy framework.
During the life of this Parliament, it is Hallam Land's firm intention to
materially increase our plots with planning and, in so doing, build up a
material store of future profit.
Similarly, HBD is well positioned with a strong near term development pipeline
including smart JV's like Origin and nationally significant schemes like
Golden Valley. Having taken a highly selective approach to starting
developments over the past few years, we expect to grow our committed
developments as early as next year, while remaining disciplined in our
approach and attuned to market conditions.
This all provides a clear path of growth, which as a well funded, long term
business, we are able to pursue. In the meantime, with 80% of budgeted sales
secured, we are on course to meet our full-year expectations, and our balance
sheet remains rock solid. This puts us in a strong position for the future and
gives us confidence to once again increase the dividend, by 5%.
Business review
Land promotion
Hallam Land has performed strongly, delivering an operating profit of £13.8m,
which was more than three times the amount in the comparable period last year
(H1 24: £4.2m). This was from sales of 1,222 plots (H1 24: 843), with a
further 410 plots exchanged and another 1,959 plots under offer, all of which
are targeted for completion in 2025. This leaves Hallam Land well positioned
to exceed sales of 3,500 plots this year.
UK greenfield land values were broadly unchanged in H1 25, softening slightly
by 0.3% according to Savills Research. Whilst there has been an overall
increase in activity during 2025, deals continue to take longer to progress
than in the post Covid-19 bounce back period. Changes to the NPPF introduced
in 2025 are starting to filter through into the land market in terms of
achieving outline planning. Unfortunately, this has not yet been reflected in
detailed consents with 36% fewer homes across the UK granted full approval
consent in the 12 months to June 2025, compared with the 2021 peak, according
to the Home Builders Federation.
During the period, Hallam Land has seen strong demand for its high quality
land, achieving an average gross profit per plot of £15,734 (H1 24: £9,680)
from 1,222 disposals across 8 sites. These sales delivered an average ungeared
internal rate of return of 22.5% p.a and include:
· 75 residential plots at Ambrosden, Oxfordshire, to Mulberry
Homes, which were particularly profitable for the group, given the site's
freehold status. The site was acquired in 2014, with outline planning granted
in December 2023.
· 290 residential plots at Sittingbourne, Kent, to Taylor Wimpey.
In 2017, Hallam Land entered into a promotion agreement and submitted an
outline planning application in November 2022. After an initial refusal in
2022, consent was successfully secured on appeal in July 2024.
· 112 residential plots at Yalding, Kent to Fernham Homes. Hallam
Land purchased the freehold of the site in 2018 and submitted a planning
application in November 2023 in line with the draft allocation. Hallam Land
appealed in May 2024 on the basis of non-determination and successfully
secured approval in December 2024.
During H1 25 Hallam land have exchanged or completed on the sale of a further
570 plots. At 30 June 2025, an additional 1,799 plots were under offer at
sites located in Tamworth, Hambleton, Haverhill and Carlton Selby. When
agreed, together with those sites already exchanged and completed, this will
exceed Hallam Land's financial target for 2025.
In the first half of this year, following the government's revision to the
NPPF, Hallam Land has seen positive changes to the planning system, which have
significantly increased our ability to secure outline consents. In the year to
date, Hallam Land has secured planning on 2,782 plots, of which 1,237 plots
were granted in the first half of the year (H1 24: 332). This brings the total
number of plots within the portfolio with planning permission (or a Resolution
to Grant, subject to S106) to 9,972 plots or, as of 30 June, 8,837 plots
(December 2024: 8,822).
There are also a further 14,604 plots currently awaiting determination, of
which 1,189 plots are subject to appeal. Hallam Land has been successful in
utilising the appeal system to unlock more sites with appeals won on 1,986
plots across 5 sites in H1 25.
In response to the easing of planning policy, Hallam Land continues to
accelerate applications in line with its target of submitting 10,000 plots
this year and helping deliver much-needed homes across the country. Hallam
Land is making good progress on this ambition, submitting 4,844 plots year to
date, and we anticipate maintaining this momentum in 2026.
Hallam Land has grown its land bank to 107,173 plots (December 2024: 104,787),
securing 8 new sites which have the potential to deliver 3,608 plots. 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 within its accounts relating to any of the 8,837
plots with planning and any increase in value created from securing planning
permission is only crystallised into profit on disposal.
Residential Land Plots
With permission In planning Future Total
b/f granted sold c/f
2025 8,822 1,237 (1,222) 8,837 14,604 83,732 107,173
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
Property investment and development
Property investment and development, which is now solely made up of HBD, has
delivered an operating profit of £0.8m (H1 24: £3.2m). The results of SBH
have been reclassified from the property Investment and development segment to
be reported within home building, and the prior period restated.
According to the CBRE Monthly Index, commercial property values increased by
1.4% in H1 25. Industrial property continues to deliver the highest growth
with capital values up 2.0% during the period ahead of retail up 1.6%, and
offices up 0.8%. Rental value growth also remains strongest for the industrial
sector at 2.0% in H1 25, with yields broadly unchanged over the period.
Industrial and logistics, a sector where long-term growth is underpinned by a
number of structural societal drivers, experienced a 10% increase in take-up
compared to H1 24. Although it remains below the exceptional bounce during
Covid-19, demand is back in line with the 10-year average. Activity has been
driven by internet retailers and third-party logistics providers as well as by
manufacturers looking to de-risk supply chains through nearshoring operations.
Whilst the overall vacancy rate has risen, relatively moderate development
activity and stronger demand for modern energy-efficient space means that
new-build availability remains more constrained. It is also anticipated that
the increase in defence spending will increase occupier demand for the sector.
Committed programme as at 30 June 2025
Scheme GDV HBD share of GDV Commercial Residential size Status Completion
(£m) (£m) ('000 sq ft) (Units)
Industrial
Origin, Markham, Ark 20 5 107 - Speculative / part pre let Q4 25
Origin, Welwyn, Inter 28 7 71 - Speculative/ part under offer Q3 25
Origin, Walsall SPARK 52 13 271 - Speculative Q4 25
Preston, Roman Way 10 5 150 - Pre-sold Q4 25
Southend, ABP 4 4 16 - Pre-let Q4 25
114 34 615 -
Urban Residential
Aberdeen, Bridge of Don 12 1 - 420 Pre-sold Q3 25
Land & other
Leicester, Melton Road 2 2 20 - Pre-sold Q2 25
Total for the year 128 37 635 420
% sold or pre-let 35% 40%*
*This includes space pre-let or under offer in the joint venture Origin at
14/09/25
HBD's committed development programme has marginally increased since the year
end to £128m (HBD share: £37m GDV) following the addition of a c.16,500 sq
ft logistics unit at Southend. Some 40% of the schemes in the committed
programme have been pre-let or pre-sold. The majority of the schemes are in
I&L, including those held in our Origin JV, with Feldberg Capital.
Initially, the JV was seeded with three schemes from our development pipeline,
with a combined GDV of c.£100m (HBD share: £25m). All three of these
projects are on programme and are attracting a good level of occupier
interest, and in September Origin secured its first pre-let, a 17,000 sq ft
unit at Ark, Markham Vale to Capital Angling, while at Welwyn Garden City
another c.18,000 sq ft unit is under offer.
Origin will continue to grow in H2 25, with a further three sites from HBD's
pipeline either exchanged or under offer to be sold profitably into the JV.
The three schemes have a total GDV of £56m (HBD share: £14m) and comprise:
o Aptus, Preston (JV) - three units with planning totalling 107,000 sq ft
are under offer to be transferred into the Origin JV. Building works are
expected to commence in Q4 25.
o Spark, Walsall (Phase two) - in August 2025, a reserved matters planning
application was secured for three units consisting of 101,000 sq ft.
Construction is expected to begin in Q4 25.
o Ark, Markham Vale (Phase two) - post H1 25, a planning application for a
further 54,000 sq ft has been submitted. Subject to the consent being granted,
work is expected to start in Q4 25.
After taking a more prudent approach to committing to new projects due to
market conditions over the past 12 months, HBD has built a strong near term
pipeline. This includes:
o The landmark £1bn Golden Valley, located adjacent to GCHQ in Cheltenham.
In July, 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 referred to in the UK government's Modern Industrial
Strategy, as well as 576 residential units of various tenures. This first
phase of the development (£98m GDV) is set to begin in H1 26.
o c.3.8m sq ft of I&L schemes with planning permission at various
flagship projects, including Walsall, Southend, Luton and Preston.
o Humber Goole Freeport South (Phase one: £130m GDV), in partnership with
St John's College Cambridge, a resolution to grant has been achieved in
relation to an outline planning consent 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.
Updates on recently completed key projects include:
o Island, (HBD share: £33m GDV), the Net Zero Carbon office in Manchester
city centre, developed in a JV with Greater Manchester Pension Fund, 50% has
been leased to Virgin Media and with fit-out on track, the occupier is aiming
to move in by Q4 25. Following the successful launch, we are progressing well
with leasing the remaining space.
o At Setl (HBD share: £32m GDV), a 102-unit premium apartment building in
Birmingham, we have increased sales by 43% since the beginning of the year,
with total sales having either completed or unconditionally exchanged now at
c.£20m (December: c.£14m). All sales to date have been completed in line
with target price levels. Following further progress post period end, as at 14
September 91% of the units are now sold or reserved.
o Finally, at Momentum Rainham, (an 80:20 JV with Barings), a four unit NZC
I&L development, HBD continue to progress discussions with potential
occupiers, with letting activity in the mid and large box market in Greater
London remaining limited in H1 25.
HBD's future total development pipeline has grown to £1.5bn GDV (HBD share:
£1.3bn GDV). All these opportunities sit within the Company's three key
markets of I&L (56%), Urban Commercial (22%) and Urban Residential (22%).
Post half year, HBD has been appointed the development partner of 'Duxford
AvTech', adding £162m GDV to its development pipeline. The project totals
435,000 sq ft and is set to create a technology campus that will be at the
intersection of academia, industry and government, 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 for the new
campus, including BREEAM Excellent and an EPC A+ Rating.
Investment portfolio - key stats
Jun 2025 Dec 2024
Market values - inc. share of JVs £96.1m £107.4m
Total Area - '000 sq ft 607 767
'Topped-up' net initial yield 5.7% 5.5%
Reversionary yield 6.8% 6.7%
WAULT to Expiry¹ 10.0 years 9.7 years
Occupancy² 94% 94%
¹Weighted average unexpired lease term (WAULT) on commercial properties
²As a percentage of completed property portfolio estimated rental value (ERV)
The IP has continued to outperform the wider market, with a total property
return of 5.7% for H1, which was ahead of the total return from the CBRE UK
Monthly Index (4.2%). Since 2022, HBD has focused on recycling capital from
its investment portfolio rather than acquiring standing investments,
completing on c.£59.4m sales over the past 4 years at an average premium of
16%. This has continued in H1 25, with HBD exchanging and/or completing on
four sales, for a total of £17.7m representing an average 12% premium to
December 2024 book values. This includes TWO45, Skelmersdale, where we secured
planning for 245,000 sq ft of industrial space, representing a 66% increase in
size on the original building. The sale to Garbe, a German fund, for £9.5m
was completed in June and generated an ungeared IRR of 25% p.a.
As a result of sales, the total value of the IP (including our share of
completed JV investment properties and assets held for sale) stands at £96.1m
(December 2024: £107.4m). On a like-for-like basis capital values increased
by 2.0% in H1 25, with rental value growth of 2.9% for the I&L assets
which represent 73% of the total portfolio by value. During the period,
occupancy remained at 94% (December 2024: 94%) with the weighted average
unexpired lease term now 10.0 years (8.3 years to first break).
Currently, 90% of the IP (based on floor area) has an EPC rating of 'C' or
higher, with 52% being rated 'A' or 'B'. The 10% of the portfolio that does
not have an EPC within the target range is allocated for either redevelopment,
refurbishment or sale in the short to medium term.
Home building
The results of SBH have been reclassified from Property investment and
development to be reported as Home building and the prior period restated. SBH
delivered 85 home completions in H1 25 (H1 24: 90) and revenue of £30.0m (H1
24: £29.2m) with an operating loss of £(2.0)m (H1 24: £(0.5)m). The average
sales price (ASP) for private units completed in the period was £391,000, a
3% increase on the same period last year (H1 24: £381,000). Housing
completions in 2025 are expected to be H2 weighted in line with previous
years.
According to Nationwide, after taking account of seasonal effects, UK house
prices increased by 0.6% during H1 25, with growth impacted by the increase in
stamp duty at the start of April. According to the National House Building
Council, the number of new homes registered in H1 25 was up 16% on H1 24, but
the level of completions remains 47% below the H1 22 peak. Recent changes to
the planning system are taking time to feed into an improvement in the time
taken to secure detailed planning consent, and as a result at 30 June 2025 SBH
was operating from 9 active sales outlets, compared to our budget expectations
of 12 outlets.
The net private reservation rate per active sales outlet per week in H1 25 was
0.45 (H1 24: 0.50). Following a slower start to the year the sales rate
increased to 0.51 in Q2 25, compared to 0.38 in Q1 25. We have seen good
interest at recently launched sites with pricing levels remaining stable
across our regions. There continues to be some cost inflation, but it is
currently running at a manageable rate.
Whilst many of our customers remain cautious, and mortgage rates have not
fallen as quickly as anticipated at the start of the year, our private sales
rate has also been impacted by several of our active sites nearing the end of
their sales programme and consequently not offering the full product range.
The net private weekly reservation rate for the 6 weeks to 14 September was
0.38. Due to a slower outlet opening profile and softer market conditions in
recent months we now expect total home completions for 2025 to be c.240-250.
SBH's total owned and controlled land bank stands at 2,487 plots (December
2024: 1,726), equating to a healthy 9 years' supply based on completions in
the last 12 months. Three sites were added in the period at Whitby, Wynyard
and Kingston Village, which together have the potential to deliver 846 homes.
A further 406 plots are under offer across four sites, which will grow our
presence in both the Midlands and the North East. The consented land bank now
stands at 945 plots (December 2024: 862) and we expect to be selling from
around 15 outlets, across all three of our targeted regions: Yorkshire, North
East and the Midlands in 2026.
Construction
The group's construction segment, which includes HBC, BP and Road Link (A69),
delivered an operating profit of £1.9m (June 2024: £2.9m).
The UK construction market remained challenging during H1 25 with the volume
of new work contracting by 7.1% since late-2022 according to data from the
Office for National Statistics. The S&P Global UK Construction Purchasing
Managers Index shows that total activity has fallen during 2025, with a
reduction in housing, commercial and civil engineering activity.
HBC has now secured 94% of its orderbook for 2025 and is on track to secure
turnover in line with budget. In H1 25, HBC secured a £16m contract for the
National Centre for Child Health Technology in Sheffield, a new world-class
research and technology centre for children and young people. HBC has also
been appointed to deliver a £10m restoration of a historic University of
Huddersfield building.
Today we have announced that it has been agreed to sell the entire issued
share capital of HBC to PWS, a company newly formed by the HBC management
team, for £4.0m, which is being funded by PWS in the form of a vendor loan
from the group. The transaction also provides for additional overage payable
to the group in the future based on certain performance criteria. The sale is
in line with the group's strategic focus on three key areas of high-quality
land, prime property development and premium homes. HBC is not part of the
group's medium term growth strategy and makes only a small contribution to
group profits.
The transaction is expected to complete around the year end. The excess of the
carrying value of the vendor loan above the net assets being disposed of will
be reflected as a profit on disposal. The group will continue to provide
temporary support to HBC under a transitional services agreement, with
operational oversight from two Henry Boot representatives on the HBC board
until the point when the vendor loan has been repaid.
Banner Plant and Road Link (A69) are both trading in line with management
expectations. Road Link has entered the final 7 months of the PFI contract.
Financial review
Consolidated statement of comprehensive income
Group revenue for the period increased 19.2% to £126.4m (H1 24: £106.0m)
with transactional activity in land promotion and property development
increasing on the prior period, despite relatively subdued housing and
commercial real estate markets. Stonebridge delivered 85 plot completions (H1
24: 90) with most of their activity weighted to H2.
Gross profit was up 29.6% on the prior period at £32.0m (H1 24: £24.7m) a
solid performance. With the increase being delivered by plot disposals in the
land promotion segment which increased to 1,222 plots (H1 24: 843) resulting
from increased freehold sales in the period at an average gross profit per
plot of £16k (H1 24: £10k).
Administrative expenses increased £2.7m on the prior period (H1 24: decreased
£0.1m) with continued investment in our people, systems, brand and due to a
one-off bad debt recovery in the prior year.
Fair value of investment properties increased £0.9m (H1 24: increase £0.1m)
with group assets performing ahead of the CBRE index. Profits on sale of
investment properties were £1.4m (H1 24: £nil), including £1.0m from assets
held for sale (H1 24: £nil). The group's share of losses from joint ventures
and associates was £1.2m (H1 24: £1.9m profit), including investment
property valuation losses of £0.4m (H1 24: £0.1m gain).
Property revaluation gains/(loss) H1 25 H1 24 2024
£'m £'m £'m
Wholly owned investment property:
- Completed investment property 1.3 - 1.2
- Investment property in the course of construction - - 3.3
1.3 - 4.5
Joint ventures and associates:
- Completed investment property - 0.1 0.1
- Investment property in the course of construction (0.4) - -
- - 0.1
0.9 0.1 4.6
This results in an operating profit of £10.2m (H1 24: £5.9m) which generated
a profit before tax(1) of £7.8m on a statutory basis or £6.5m on an
underlying basis (H1 24: £3.7m statutory or £3.6m underlying). Earnings per
share follows the above, increasing to 4.8p (H1 24: 2.8p).
Return on capital employed
Higher operating profits in the period resulted in an increase in return on
capital employed (ROCE) to 9.1% on a rolling 12 month basis (H1 24: 4.9%).
Over a 12-month period we continue to believe a target return of 10-15% is
appropriate for our current operating model.
Finance and gearing
Financing costs were £4.0m (H1 24: £4.3m) reflecting the impact of lower
borrowing levels and interest rates. This is partially offset by finance
income of £1.7m (H1 24: £2.1m) as an element of financing costs are
recovered through our joint venture arrangements.
At 30 June 2025, net debt was £88.1m (H1 24: £103.9m). This reflects
recycling of assets into cash offset by additional investment in strategic and
residential land and work in progress. Debt levels are forecast to remain
broadly consistent in H2 as profits continue to be reinvested in acquiring key
residential sites and progressing planning on strategic land sites to deliver
future growth.
As a result of the decrease in debt in H1, gearing levels have fallen to 21.4%
(H1 24: 25.5%) and while above our preferred operating range of 10%-20% we
remain within the board approved limit of 30%.
Cash flows
Having refinanced in FY 24, the group has a secured financing facility in
place to 2029 of up to £180m.
Operating cash inflows before movements in working capital were £11.5m (H1
24: £6.6m).
Working capital requirements have increased due to continued progression of
residential and strategic land investments, resulting in outflows of £21.2m
(H1 24: £13.4m) which in turn meant that operations generated outflows of
£9.7m (H1 24: £6.8m). After interest paid of £3.1m (H1 24: £3.6m) and tax
paid of £4.8m (H1 24: £3.9m) net cash outflows from operating activities
were £17.6m (H1 24: £14.2m).
In January 2025, the group completed the acquisition of the first tranche of
Stonebridge Homes, increasing its ownership to 62.5% for cash consideration of
£10.0m (H1 24: £nil) and increased investment in associates of £2.8m (H1
24: nil), these investments are offset by proceeds on disposal of investment
property of £5.0m (H1 24: £0.2m) and assets held for sale of £9.3m (H1 24
£nil) resulting in net cash outflows from investing activities of £0.1m (H1
24: £4.1m).
The final dividend on ordinary shares for FY 24 increased by 5% to £6.2m (H1
24: £5.9m).
Statement of financial position
Total non-current assets were £193.0m (31 December 2024: £161.5m).
Significant movements arose as follows:
- an increase in non-current trade receivables of £36.4m (31 December
2024: £8.5m) due to the ageing of receivables due from joint venture
arrangements;
- the pension scheme asset has decreased £3.0m to £6.9m (31 December
2024: £9.9m); and,
- an increase in investments in joint ventures and associates of
£4.4m to £17.7m (31 December 2024: £13.3m), being additional investments of
£5.6m offset by losses generated of £1.2m (H1 24: £1.8m profit).
Current assets were £34.2m lower at £427.9m (31 December 2024: £462.1m)
resulting from:
- lower trade and other receivables of £57.2m (31 December 2024:
£90.5m), due to the ageing of receivables due from joint ventures
arrangements;
- A £10.4m uplift in inventories to £343.3m (31 December 2024:
£332.9m) due to investment in our strategic and home builder land banks;
- cash and cash equivalents which were £6.9m lower at £9.9m (31
December 2024: £16.8m) due to current cash requirements and timing on loan
repayments; and,
- assets held for sale which decreased £5.4m following the disposal
of a mutli-let industrial led business park in the property investment and
development segment.
Total liabilities rose to £208.8m (31 December 2024: £198.5m) with the most
significant changes arising from:
- trade and other payables, including contract liabilities, decreased
£5.5m to £101.2m (31 December 2024: £106.7m) due to payables of sizeable
land purchases made on deferred terms; and,
- borrowings, including lease liabilities, increased to £94.6m (31
December 2024: £75.5m) as the Group continues to invest in strategic and home
building land assets through the year with many transactions completing in H2.
Profit for the year less dividends paid were broadly neutral in H1. The
acquisition of a further 12.5% interest in Stonebridge Homes recognised
directly through equity along with an actuarial loss on the defined benefit
pension scheme saw net assets decrease to £412.1m (31 December 2024:
£425.1m) with the net asset value per share decreasing by 3.1% to 307p (31
December 2024: 317p), an underlying decrease of 2.6% to 304p (December 2024:
312p) when excluding the defined benefit pension scheme surplus net of tax
liability.
NOTES:
(1 ) Underlying profit before tax 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 £1.3m (2024: £nil) on
wholly owned completed investment property and gains of £nil (2024: £0.1m)
on completed investment property held in joint ventures. This APM 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 (ROCE) is an APM and is defined
as operating profit/ average of total assets less current liabilities
(excluding DB pension surplus) 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)/cash is an APM and is reconciled to statutory
measures in note 14.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
for the half year ended 30 June 2025
Half year Half year Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Revenue 126,424 106,047 328,379
Cost of sales (94,454) (81,373) (253,836)
Gross profit 31,970 24,674 74,543
Administrative expenses (23,350) (20,689) (47,317)
8,620 3,985 27,226
Increase/(decrease) in fair value of investment properties 1,320 (28) 4,464
Profit on sale of investment properties 465 37 102
Profit on sale of assets held for sale 958 - -
Share of (loss)/profit of joint ventures and associates (1,197) 1,860 2,431
Operating profit 10,166 5,854 34,223
Finance income 1,661 2,116 5,115
Finance costs (4,029) (4,283) (8,678)
Profit before tax 7,798 3,687 30,660
Tax (1,871) (478) (7,030)
Profit for the period from continuing operations 5,927 3,209 23,630
Revaluation of group occupied property - (14) 64
Deferred tax on property revaluations - (48) (67)
Actuarial (loss)/gain on defined benefit pension scheme (3,052) 2,024 2,196
Deferred tax on actuarial (loss)/gain 763 (506) (549)
Total other comprehensive (expense)/income not being reclassified to profit or (2,289) 1,456 1,644
loss in subsequent periods
Total comprehensive income for the period 3,638 4,665 25,274
Profit for the period attributable to:
Owners of the Parent Company 6,391 3,689 23,333
Non-controlling interests (464) (480) 297
5,927 3,209 23,630
Total comprehensive income attributable to:
Owners of the Parent Company 4,102 5,145 24,977
Non-controlling interests (464) (480) 297
3,638 4,665 25,274
Basic earnings per ordinary share for the profit attributable 4.8p 2.8p 17.4p
to owners of the Parent Company during the period
Diluted earnings per ordinary share for the profit attributable 4.6p 2.7p 17.0p
to owners of the Parent Company during the period
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
as at 30 June 2025
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Assets
Non-current assets
Intangible assets 371 1,809 617
Property, plant and equipment 28,303 28,533 29,293
Right of use assets 3,023 3,837 3,460
Investment properties 91,591 100,468 96,275
Investment in joint ventures and associates 17,720 10,844 13,280
Retirement benefit asset 6,923 9,800 9,930
Trade and other receivables 44,852 41,511 8,458
Deferred tax assets 219 214 219
193,002 197,016 161,532
Current assets
Inventories 343,298 350,402 332,871
Contract assets 13,494 13,851 12,693
Trade and other receivables 57,211 64,734 90,467
Cash and cash equivalents 9,946 14,379 16,764
Assets classified as held for sale 3,905 - 9,315
427,854 443,366 462,110
Liabilities
Current liabilities
Trade and other payables 85,966 82,578 89,820
Contract liabilities 3,471 4,915 4,882
Current tax liabilities 105 3,304 2,909
Borrowings 94,052 111,929 74,443
Lease liabilities 863 898 895
Provisions 2,756 3,177 1,723
187,213 206,801 174,672
Net current assets 240,641 236,565 287,438
Non-current liabilities
Trade and other payables 11,740 13,647 11,991
Borrowings 526 2,083 1,092
Lease liabilities 2,592 3,389 3,017
Deferred tax liability 6,720 5,896 7,568
Provisions - 422 154
21,578 25,437 23,822
Net assets 412,065 408,144 425,148
Equity
Share capital 13,803 13,799 13,801
Property revaluation reserve 1,008 949 1,008
Retained earnings 388,864 383,181 399,791
Other reserves 8,318 8,252 8,293
Cost of shares held by ESOP trust (645) (645) (645)
Equity attributable to owners of the Parent Company 411,348 405,536 422,248
Non-controlling interests 717 2,608 2,900
Total equity 412,065 408,144 425,148
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
for the half year ended 30 June 2025
Attributable to owners of the Parent Company
Cost of
Property shares held Non-
Share revaluation Retained Other by ESOP controlling Total
capital reserve earnings reserves trust Total interests equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 13,799 1,011 383,219 8,248 (875) 405,402 4,716 410,118
Profit for the period - - 3,689 - - 3,689 (480) 3,209
Other comprehensive expense - (62) 1,518 - - 1,456 - 1,456
Total comprehensive income - (62) 5,207 - - 5,145 (480) 4,665
Equity dividends - - (5,890) - - (5,890) (1,628) (7,518)
Proceeds from shares issued - - - 4 - 4 - 4
Share-based payments - - 645 - 230 875 - 875
- - (5,245) 4 230 (5,011) (1,628) (6,639)
At 30 June 2024 (unaudited) 13,799 949 383,181 8,252 (645) 405,536 2,608 408,144
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 expense - (3) 1,647 - - 1,644 - 1,644
Total comprehensive income - (3) 24,980 - - 24,977 297 25,274
Transfer between reserves - - - - - - - -
Equity dividends - - (10,019) - - (10,019) (2,113) (12,132)
Purchase of treasury shares - - - - - - - -
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 (audited) 13,801 1,008 399,791 8,293 (645) 422,248 2,900 425,148
Profit for the period - - 6,391 - - 6,391 (464) 5,927
Other comprehensive income - - (2,289) - - (2,289) - (2,289)
Total comprehensive income - - 4,102 - - 4,102 (464) 3,638
Equity dividends - - (6,190) - - (6,190) (1,455) (7,645)
Investment in subsidiary - - (9,778) - - (9,778) (264) (10,042)
Proceeds from shares issued 2 - - 25 - 27 - 27
Share-based payments - - 939 - - 939 - 939
2 - (15,029) 25 - (15,002) (1,719) (16,721)
At 30 June 2025 (unaudited) 13,803 1,008 388,864 8,318 (645) 411,348 717 412,065
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
for the half year ended 30 June 2025
Half year Half year Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Cash flows from operating activities
Cash generated from operations (9,716) (6,761) 42,573
Interest paid (3,123) (3,575) (7,772)
Tax paid (4,761) (3,857) (9,235)
Net cash flows from operating activities (17,600) (14,193) 25,566
Cash flows from investing activities
Acquisition of subsidiary (10,000) - -
Purchase of investment in associates (2,838) - -
Purchase of intangible assets (5) - -
Purchase of property, plant and equipment (125) (375) (1,391)
Purchase of investment property (1,170) (43) (96)
Proceeds on disposal of property, plant and equipment (excluding assets held 123 66 272
for hire)
Proceeds on disposal of assets held for sale 9,288 - -
Proceeds on disposal of investment properties 4,982 176 625
Repayment of loans from joint ventures and associates 803 1,004 13,456
Advances to joint ventures and associates (2,123) (8,266) (17,410)
Distributions received from joint ventures and associates - 1,500 2,850
Interest received 918 1,851 3,695
Net cash flows from investing activities (147) (4,087) 2,001
Cash flows from financing activities
Proceeds from shares issued 27 4 47
Advances/(Payments to) from joint ventures and associates 11 (71) (75)
Decrease in borrowings (40,957) (7,722) (56,117)
Increase in borrowings 60,000 35,216 45,134
Principal element of lease payments (457) (284) (694)
Dividends paid - ordinary shares (6,180) (5,879) (9,998)
- non-controlling interests (1,505) (1,628) (2,113)
- preference shares (10) (11) (21)
Net cash flows from financing activities 10,929 19,625 (23,837)
Net (decrease)/increase in cash and cash equivalents (6,818) 1,345 3,730
Net cash and cash equivalents at beginning of period 16,764 13,034 13,034
Net cash and cash equivalents at end of period 9,946 14,379 16,764
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
for the half year ended 30 June 2025
1. GENERAL INFORMATION
The Company is a public limited company, listed on the London Stock Exchange
and incorporated and domiciled in the United Kingdom. The address of its
registered office: is Isaacs Building, 4 Charles Street, Sheffield, United
Kingdom, S1 2HS.
The financial information set out above does not comprise statutory accounts
within the meaning of Section 434 of the Companies Act 2006 and is neither
audited nor reviewed. The Financial Statements for the year ended 31 December
2024, which were prepared in accordance with UK-adopted International
Accounting Standards, have been reported on by the group's auditors and
delivered to the Registrar of Companies. The Independent Auditors' Report was
unqualified and did not contain any statement under Section 498 of the
Companies Act 2006.
2. Basis of preparation and accounting policies
The half-yearly financial information has been prepared in accordance with the
Disclosure and Transparency Rules of the Financial Conduct Authority and with
UK adopted International Accounting Standard IAS 34 'Interim Financial
Reporting'.
The half-yearly financial information has been prepared using the same
accounting policies and methods of computation as compared with the annual
Financial Statements for the year ended 31 December 2024.
A number of other standards, amendments and interpretations became effective
from 1 January 2025, which do not have a material impact on the group's
financial statements or accounting policies.
Going Concern
The group meets its day-to-day working capital requirements through a secured
loan facility. The facility was renewed on 21 May 2024, at a level of £125m,
for a period of three years and extended by one year in May 2025 with the
ability to extend by one more year in May 2026 taking the facility renewal to
21 May 2029 on comparable terms to the existing agreement. The facility
includes an accordion to increase the facility by up to £60m, increasing the
overall facility to £185m. The group increased the facility on 21 March 2025
to £140m, which increased headroom over the going concern period.
The Directors have considered the group's principal risk areas, including the
risk of economic slowdown, that they consider material to the assessment of
going concern.
The Directors have prepared forecasts to 31 December 2026 covering a base case
and severe downside scenario.
Having conducted significant stress testing at the year-end they have further
considered the outcome of our half year position and their latest forecasts,
while taking into account the current trading conditions, the markets in which
the group's businesses operate and associated credit risks together with the
available committed banking facilities and the potential mitigations that can
be taken, to protect operating profits and cash flows.
The severe downside scenario considered includes short-term curtailment in
transactional activity and percentage reductions in other activities mirroring
recent downturn experiences. This is followed by a short to medium-term
recovery, coupled with the ability to manage future expenditure as described
in the 2024 Annual Report.
As reported in the 2024 Annual Report, 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 63% reduction in
profit before tax from our base case for 2025, demonstrates significant
headroom over this covenant throughout the forecast period to the end of
December 2026.
Their review supports the view that 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 half-yearly financial
information.
Estimates and Judgements
The preparation of half-yearly financial information requires management to
make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these half-yearly financial statements, the significant
judgements made by management in applying the group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the Consolidated Financial Statements for the year ended 31 December 2024.
3. 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. Group 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, as detailed above.
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.
Half year ended 30 June 2025 Unaudited
Property
investment
and Home Land Group
development building promotion Construction overheads Eliminations Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue
External sales 30,969 29,968 31,936 33,551 - - 126,424
Inter-segment sales 194 - - 7,474 48 (7,716) -
Total revenue 31,163 29,968 31,936 41,025 48 (7,716) 126,424
Gross profit/(loss) 5,015 1,452 18,980 6,517 10 (4) 31,970
Administrative expenses (5,809) (3,498) (5,214) (4,635) (4,198) 4 (23,350)
Other operating income 1,546 - - - - - 1,546
Operating profit/(loss) 752 (2,046) 13,766 1,882 (4,188) - 10,166
Finance income 651 - 499 364 293 (146) 1,661
Finance costs (34) (2) (491) (203) (3,472) 173 (4,029)
Profit/(loss) before tax 1,369 (2,048) 13,774 2,043 (7,367) 27 7,798
Tax (461) 671 (3,444) (469) 1,832 - (1,871)
Profit/(loss) for the period 908 (1,377) 10,330 1,574 (5,535) 27 5,927
Half year ended 30 June 2024 Unaudited
Property
investment
and Home Land Group
development building promotion Construction overheads Eliminations Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue
External sales 20,709 29,169 13,022 43,147 - - 106,047
Inter-segment sales 204 - - 355 84 (643) -
Total revenue 20,913 29,169 13,022 43,502 84 (643) 106,047
Gross profit 5,876 2,617 8,944 7,223 14 - 24,674
Administrative expenses (4,545) (3,165) (4,745) (4,326) (3,908) - (20,689)
Other operating income/(expense) 1,870 - (1) - - - 1,869
Operating profit/(loss) 3,201 (548) 4,198 2,897 (3,894) - 5,854
Finance income 1,547 - 274 249 173 (127) 2,116
Finance costs (25) - (716) (243) (3,453) 154 (4,283)
Profit/(loss) before tax 4,723 (548) 3,756 2,903 (7,174) 27 3,687
Tax 206 (822) (939) (716) 1,793 - (478)
Profit/(loss) for the year 4,929 (1,370) 2,817 2,187 (5,381) 27 3,209
Year ended 31 December 2024 Audited
Property
investment
and Home Land Group
development building promotion Construction overheads Eliminations Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue
External sales 69,194 100,745 78,036 80,404 - - 328,379
Inter-segment sales 387 - - 777 150 (1,314) -
Total revenue 69,581 100,745 78,036 81,181 150 (1,314) 328,379
Gross profit/(loss) 17,848 9,130 33,747 13,823 4 (9) 74,543
Administrative expenses (9,929) (7,270) (9,456) (8,935) (11,736) 9 (47,317)
Other operating income 6,997 - - - - - 6,997
Operating profit/(loss) 14,916 1,860 24,291 4,888 (11,732) - 34,223
Finance income 5,486 45 1,784 486 36,183 (38,869) 5,115
Finance costs (85) - (1,517) (506) (6,891) 321 (8,678)
Profit/(loss) before tax 20,317 1,905 24,558 4,868 17,560 (38,548) 30,660
Tax (3,681) 1,023 (6,482) (1,479) 3,589 - (7,030)
Profit/(loss) for the year 16,636 2,928 18,076 3,389 21,149 (38,548) 23,630
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Segment assets
Property investment and development 237,301 262,665 246,892
Home building 126,280 109,686 120,770
Land promotion 195,974 192,532 183,539
Construction 37,334 43,209 37,896
Group overheads 6,879 7,897 7,632
603,768 615,989 596,729
Unallocated assets
Retirement benefit assets 6,923 9,800 9,930
Deferred tax assets 219 214 219
Cash and cash equivalents 9,946 14,379 16,764
Total assets 620,856 640,382 623,642
Segment liabilities
Property investment and development 27,413 24,338 24,870
Home building 21,422 17,458 21,948
Land promotion 27,095 34,260 38,767
Construction 23,657 25,222 18,082
Group overheads 4,346 3,461 4,903
103,933 104,739 108,570
Unallocated liabilities
Current tax liabilities 105 3,304 2,909
Deferred tax liabilities 6,720 5,896 7,568
Current lease liabilities 863 898 895
Current borrowings 94,052 111,929 74,443
Non-current lease liabilities 2,592 3,389 3,017
Non-current borrowings 526 2,083 1,092
Total liabilities 208,791 232,238 198,494
Total net assets 412,065 408,144 425,148
4. REVENUE
The group's revenue is derived from contracts with customers. In the following
table, revenue is disaggregated by primary activity, being the group's
operating segments and timing of revenue recognition:
Timing of revenue Timing of revenue
recognition recognition
Activity in the United Kingdom 30 June At a point in time Over 30 June At a point in time Over
2025 time 2024 time
Unaudited Unaudited
£'000 £'000
Construction contracts:
- Construction 19,142 - 19,142 28,632 - 28,632
- Property investment and development 21,169 - 21,169 11,398 - 11,398
Sale of land and properties:
- Property investment and development 6,723 6,723 - 6,186 6,186 -
- Home builder unit sales 29,968 29,968 - 29,156 29,156 -
- Land promotion 31,850 31,850 - 12,926 12,926 -
PFI concession 6,927 6,927 - 6,797 6,797 -
Revenue from contracts with customers 115,779 75,468 40,311 95,095 55,065 40,030
Plant and equipment hire 7,482 7,718
Investment property rental income 3,077 3,126
Other rental income - property development - 12
Other rental income - land promotion 86 96
126,424 106,047
5. Earnings per ordinary share
Earnings per ordinary share is calculated on the weighted average number of
shares in issue being 134,017,794 (30 June 2024: 133,986,686). Diluted
earnings per ordinary share is calculated on the weighted average number of
shares in issue adjusted for the effects of any dilutive potential ordinary
shares.
6. Dividends
Half year Half year Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Amounts recognised as distributions to equity holders in period:
Preference dividend on cumulative preference shares 10 11 21
Interim dividend for the year ended 31 December 2024 of 3.08p per share (2023: - - 4,119
2.93p)
Final dividend for the year ended 31 December 2024 of 4.62p per share (2023: 6,180 5,879 5,879
4.40p)
6,190 5,890 10,019
An interim dividend amounting to £4,325,000 (2024: £4,119,000) will be paid
on 24 October 2025 to shareholders whose names are on the register at the
close of business on 3 October 2025. The proposed interim dividend has not
been approved at the date of the Consolidated Statement of Financial Position
and so has not been included as a liability in these Financial Statements.
7. Tax
Half year Half year Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Current tax:
UK corporation tax on profits for the period 2,239 455 6,207
Adjustment in respect of earlier periods (281) 54 (751)
Total current tax 1,958 509 5,456
Deferred tax:
Origination and reversal of temporary differences (87) (31) 1,574
Total deferred tax (87) (31) 1,574
Total tax 1,871 478 7,030
Corporation tax is calculated at 25% (31 December 2024: 25%) of the estimated
assessable profit for the period being management's estimate of the weighted
average corporation tax rate for the period. The group's effective rate of tax
of
24.0% is lower than the standard rate of corporation tax due to income from
joint ventures and associates which is reported net of tax.
8. Investment properties
Investment
Completed property
investment under
property construction Total
£'000 £'000 £'000
Fair value
At 1 January 2025 (audited) 96,275 - 96,275
Subsequent expenditure on investment property 751 419 1,170
Amortisation of capitalised letting fees (9) - (9)
Disposals (4,517) - (4,517)
Transfer to assets held for sale (2,920) - (2,920)
Transfer from inventory - 272 272
Increase in fair value in period 1,320 - 1,320
At 30 June 2025 (unaudited) 90,900 691 91,591
Adjustment in respect of tenant incentives 2,104 - 2,104
Market value at 30 June 2025 93,004 691 93,695
Fair value
At 1 January 2024 (audited) 100,602 - 100,602
Subsequent expenditure on investment property 43 - 43
Amortisation of capitalised letting fees (10) - (10)
Disposals (139) - (139)
Transfer to assets held for sale - - -
Decrease in fair value in period (28) - (28)
At 30 June 2024 (unaudited) 100,468 - 100,468
Adjustment in respect of tenant incentives 3,017 - 3,017
Market value at 30 June 2024 103,485 - 103,485
Fair value
At 1 January 2024 100,602 - 100,602
Subsequent expenditure on investment property 73 3 76
Capitalised letting fees 20 - 20
Amortisation of capitalised letting fees (34) - (34)
Disposals (523) - (523)
Transfer to assets held for sale - (8,330) (8,330)
Transfers from investment property under construction (5,030) 5,030 -
Increase in fair value in period 1,167 3,297 4,464
At 31 December 2024 (audited) 96,275 - 96,275
Adjustment in respect of tenant incentives 2,867 - 2,867
Market value at 31 December 2024 99,142 - 99,142
At 30 June 2025, the group had entered into contractual commitments for the
acquisition and repair of investment property amounting to £2,300,000 (31
December 2024: £nil).
9. Borrowings
Half year Half year Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Bank loans 92,500 110,000 72,500
Sale and leaseback 2,078 4,012 3,035
94,578 114,012 75,535
Movements in borrowings are analysed as follows:
£'000
At 1 January 2025 75,535
Secured bank loans 60,000
Repayment of secured bank loans (40,000)
New leases of sale and leaseback -
Repayment of sale and leaseback (957)
At 30 June 2025 94,578
Bank loans include the group's revolving loan facility which runs to May 2028
and is drawn for durations of up to six months.
10. Provisions for liabilities and charges
Since 31 December 2024, the following movements on provisions for liabilities
and charges have occurred:
· The road maintenance provision represents management's best estimate of the
group's liability under a five-year rolling programme for the maintenance of
the group's PFI asset. During the period £1,093,000 has been utilised and
additional provisions of £1,477,000 have been made, all of which were due to
normal operating procedures.
· The Land promotion provision represents management's best estimate of the
group's liability to provide infrastructure and service obligations, which
remain with the group following the disposal of land. During the period,
£767,000 has been utilised and additional provisions of £1,262,000 have been
made.
11. Defined benefit pension scheme
The main financial assumptions used in the valuation of the liabilities of the
scheme under IAS 19 are:
30 June 30 June 31 December
2025 2024 2024
% % %
Retail Prices Index (RPI) 2.80 3.20 3.05
Consumer Prices Index (CPI) 2.45 2.65 2.65
Rate in increase to pensions in payment liable for Limited Price Indexation 2.45 2.65 2.65
(LPI)
Revaluation of deferred pensions 2.45 2.65 2.65
Liabilities discount rate 5.65 5.20 5.55
Amounts recognised in the Consolidated Statement of Comprehensive Income in
respect of the scheme are as follows:
Half year Half year Year
Ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Service cost:
Ongoing scheme expenses 358 353 698
Net interest income (273) (174) (347)
Pension Protection Fund 7 22 36
Pension expenses recognised in profit or loss 92 201 387
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense) 4,519 6,794 12,978
Actuarial gains arising from changes in demographic assumptions - - (255)
Actuarial gains arising from experience adjustments (3,614) (9,226) (15,088)
Actuarial losses arising from changes in financial assumptions 2,147 408 169
Actuarial losses/(gains) recognised in other comprehensive income 3,052 (2,024) (2,196)
Total 3,144 (1,823) (1,809)
The amount included in the Statement of Financial Position arising from the
group's obligations in respect of the scheme is as follows:
Half year Half year Year
Ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Present value of scheme obligations (136,175) (145,396) (138,220)
Fair value of scheme assets 143,098 155,196 148,150
6,923 9,800 9,930
12. Related party transactions
There have been no material transactions with related parties during the
period.
There have been no material changes to the related party arrangements as
reported in note 29 to the Annual Report and Financial Statements for the year
ended 31 December 2024.
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
13. SHARE CAPITAL
Half year Half year Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
400,000 5.25% cumulative preference shares of £1 each (31 December 2024: 400 400 400
400,000)
134,026,296 ordinary shares of 10p each (31 December 2024: 134,010,541) 13,403 13,399 13,401
13,803 13,799 13,801
14. Cash generated from operations
Half year Half year Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
Unaudited Unaudited Audited
£'000 £'000 £'000
Profit before tax 7,798 3,687 30,660
Adjustments for:
Amortisation of PFI asset 251 268 522
Goodwill impairment - 102 1,040
Depreciation of property, plant and equipment 1,993 2,325 4,063
Depreciation of right-of-use assets 437 435 857
Revaluation (increase)/decrease in investment properties (1,320) 28 (4,464)
Amortisation of capitalised letting fees 9 10 34
Share-based payment expense 939 875 1,841
Pension scheme debit/(credit) 228 (51) 338
(Profit)/loss on disposal of property, plant and equipment (excluding (105) 36 (151)
equipment held for hire)
Profit on disposal of equipment held for hire (327) (789) (1,156)
Profit on disposal of investment properties (465) (37) (102)
Profit on disposal of assets held for sale (958) - -
Finance income (1,661) (2,116) (5,115)
Finance costs 4,029 4,283 8,678
Share of loss/(profit) of joint ventures and associates 1,197 (1,860) (2,431)
Operating cash flows before movements in equipment held for hire 12,045 7,196 34,614
Purchase of equipment held for hire (1,078) (1,666) (4,183)
Proceeds on disposal of equipment held for hire 509 1,073 1,550
Operating cash flows before movements in working capital 11,476 6,603 31,981
Increase in inventories (10,699) (52,784) (35,253)
(Increase)/decrease in receivables (4,147) 16,961 18,791
(Increase)/decrease in contract assets (801) (192) 966
(Decrease)/increase in payables (4,134) 18,796 22,266
(Decrease)/increase in contract liabilities (1,411) 3,855 3,822
Cash generated from operations (9,716) (6,761) 42,573
Net debt is an alternative performance measure used by the group and comprises
the following:
Analysis of net debt:
Cash and cash equivalents 9,946 14,379 16,764
Bank overdrafts - - -
Net cash and cash equivalents 9,946 14,379 16,764
Bank loans (92,500) (110,000) (72,500)
Other loans - sale and leaseback (2,078) (4,012) (3,035)
Lease liabilities (3,455) (4,287) (3,912)
Net debt (88,087) (103,920) (62,683)
( )
15. GROUP RISKS AND UNCERTAINTIES
The Directors consider that the principal risks and uncertainties which could
have a material impact on Henry Boot's performance over the remaining six
months of 2025 remain consistent with those set out in the Strategic Report on
pages 71 to 78 of the group's Annual Report and Financial Statements. These
risks and uncertainties are:
External markets; Sustainability targets; Underperformance of subsidiaries;
Reputational incident; Loss of critical systems; Business continuity incident,
attract; Retain and develop workforce; Loss of key personnel; Health, safety
and environment; Execution; Failure to adhere to regulations; Adverse changes
in regulations; Funding; Erosion of profits; Fraud.
The Directors remain cautiously optimistic about our markets as the UK
continues on a path of recovery. Interest rates trending downwards and changes
in the national planning policy framework are supportive, yet the geopolitical
environment continues to be volatile and improvement is marginal.
Henry Boot operates a system of internal control and risk management in order
to provide assurance that it is managing risk while achieving our business
objectives. No system can fully eliminate risk and therefore the understanding
of operational risk is central to the management process within Henry Boot.
The long-term success of the Group depends on the continual review, assessment
and control of the key business risks it faces.
16. Approval
The issue of these statements was formally approved by a duly appointed
committee of the Board on 22 September 2025.
RESPONSIBILITY STATEMENTS OF THE DIRECTORS
The Directors confirm that these condensed interim Financial Statements have
been prepared in accordance with International Accounting Standard 34,
'Interim Financial Reporting', as adopted by the European Union and that the
interim management report includes a fair review of the information required
by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
· material related-party transactions in the first six months and any material
changes in the related-party transactions described in the last Annual Report.
The Directors of Henry Boot PLC are listed in the Henry Boot PLC Annual Report
for the year ended 31 December 2024. A list of current Directors is maintained
on the Henry Boot PLC group website: www.henryboot.co.uk
(http://www.henryboot.co.uk) .
On behalf of the Board
T A ROBERTS D L LITTLEWOOD
Director Director
23 September 2025 23 September 2025
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