REG - Boot(Henry) PLC - Trading Statement

Henry BootAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260129:nRSc8112Qa&default-theme=true

RNS Number : 8112Q  Boot(Henry) PLC  29 January 2026

 

 

 

HENRY BOOT PLC

('Henry Boot' or the 'group')

 

TRADING UPDATE FOR THE YEAR ENDED 31 DECEMBER 2025

 

Henry Boot, a company engaged in land promotion, property investment and
development, and home building, is today issuing a trading update for the year
ended 31 December 2025 ahead of the announcement of its full year results on
24 March 2026.

 

Tim Roberts, Chief Executive Officer, commented:

 

"Despite the uncertain backdrop, we have delivered a resilient performance in
2025, underpinned by continued demand for our high quality land. As a result,
we expect full year profits to be broadly in line with market expectations.
Across the group, we have made good strategic progress, accelerating planning
applications for over 11,000 plots within Hallam Land, strengthening our
housebuilders' landbank and simplifying the group through the sale of Henry
Boot Construction. All of this activity positions us well for the medium term.

 

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."

 

Trading update for the year ended 31 December 2025

 

Henry Boot delivered a resilient performance in 2025, despite ongoing global
political and economic uncertainty, with particularly strong demand for our
high quality residential land.

 

We have made good strategic progress across the group, including building on
our attractive pipeline of opportunities:

 * Fast‑tracked several planning applications ahead of anticipated favourable
policy changes, growing our consented plots within Hallam Land;

 * Increased our ownership of Stonebridge Homes (SBH) and strengthened its
landbank to support future growth;

 * Introduced organisational and management changes through our Future Ways of
Working programme to improve agility, resilience, responsiveness and
efficiency; and

 * Completed the sale of Henry Boot Construction (HBC), a significant step in
simplifying the group and sharpening our focus on high quality land, prime
property development and premium homes.

 

Across our markets, 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. House prices and land values across the UK were broadly
flat in 2025. Industrial property continues to deliver the highest rental
growth of all property sectors at 4.8% over the year. Against this backdrop,
including initial profit recognition on disposal of HBC, which will be
classified as a discontinued operation, we expect profit before tax for 2025
to be broadly in line with market consensus¹.

 

We ended the year with net debt of c.£108m (31 December 2024: £62.7m),
reflecting an acceleration of planning applications and the growth in SBH's
land bank. As a result, gearing has risen marginally above our preferred range
of 10-20%.

 

Hallam Land saw strong demand for its prime deliverable sites, achieving a
record 3,957 residential plot sales in 2025 (2024: 2,661 plots), which
resulted in the business exceeding its full year financial target. Following
positive changes to the planning system, we secured consent for 4,159 plots
(2024: 2,982 plots). We submitted 11,083 plots for planning in 2025, and we
expect a similar level of submissions over the next 12 months. This not only
positions the group well to meet its medium term target of selling 3,500 plots
per annum, but also to grow output beyond that level. At the same time, Hallam
Land continues to selectively grow its total land bank.

 

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. This included three schemes totalling 449,000 sq
ft within Origin, our Industrial and logistics (I&L) JV with Feldberg
Capital. They are all attracting good occupier interest with 35,000 sq ft let.
In line with our ambition to scale up the JV, a further three schemes were
added into Origin in December 2025 with a combined GDV of £56m (Our share:
£14m). HBD also benefits from development management fees with the potential
for performance fees.

 

We continue to progress our near-term pipeline, securing outline planning for
Golden Valley, a £1bn flagship mixed-use campus in Cheltenham. The first
phase, IDEA, the 160,000 sq ft National Cyber Innovation Centre (£98m GDV),
is expected to commence in H2 2026, having now agreed terms with several
occupiers for around half the space. We have also added to our pipeline,
including being appointed development partner for Duxford AvTech (£120m GDV)
and securing planning for 5.5m sq ft of I&L at FREEPORT 36, Goole (Phase
one c.£130m GDV).

 

The investment portfolio has yet again outperformed the wider market, with a
total property return ahead of the CBRE UK Monthly Index.

 

SBH 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 of c.240-250
units. SBH operated from an average of nine outlets during the year, against a
budgeted 12. In addition, around 30 sales slipped into Q1 2026 as build
schedules were delayed by utility connections and changes in planning
conditions.

 

The net private reservation rate per active outlet per week was 0.37 (2024:
0.45). Whilst many of our customers remain cautious, our sales rate has also
been impacted by several sites nearing the end of their sales programme and
therefore not offering the full product range. In 2025, we added 1,031 plots
to SBH's total owned and controlled land bank, which now stands at 2,572 plots
(31 December 2024: 1,726 plots) in line with our ambitions to grow this
business.

 

As the recent majority owner of SBH, we have taken firm control of the
business and are professionalising its operations and processes, including
replacing the Managing Director and implementing cost savings, as we integrate
it into the group.

 

HBC performed in line with budget, and with 100% of its 2026 turnover secured,
is well placed to start repayment of the vendor loan. Banner Plant and Road
Link (A69) both traded in line with management expectations. Road Link has
entered the final three months of the PFI contract.

 

Outlook

 

Looking ahead, we remain focused on our three key markets, each supported by
positive long-term trends that we expect to improve as inflation and interest
rates decline. Hallam Land is well positioned, with a high quality portfolio
and growing number of consented plots held at cost, with no uplift in value
recognised until disposal. HBD has a strong pipeline but will remain selective
and therefore, 2026 completions are expected to be broadly in line with 2025.
Whilst SBH is undergoing a reset, the outlook for premium homes in the markets
in which we operate remains positive, and our expanded land bank will support
an increase in completions over the medium term as integration progresses.

 

This leaves the group well placed for when our markets improve. However, due
to the ongoing subdued transaction activity and the wider macroeconomic
uncertainty, there will be a lag in our performance. We entered 2026 with a
lower forward sales position across the group, and also, as expected, the
expiry of the profitable Road Link contract in March will impact results.
Taking these factors into consideration, the Board now expects 2026 profit
before tax to be significantly below current market expectations².

 

¹ Company compiled market consensus for 2025 profit before tax is £29.7m.

² Company compiled market consensus for 2026 profit before tax is £33.6m.

 

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014),
as it forms part of domestic law by virtue of the European Union (Withdrawal)
Act 2018) ("MAR") prior to its release as part of this announcement and is
disclosed in accordance with the Company's obligations under Article 17 of
those Regulations.

ENDS

 

Notes to editors

 

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
100,000 homes.

HBD manages a development pipeline of £1.3bn, the equivalent of 7m sq ft of
developments across our key markets, while maintaining a c.£113m investment
portfolio, of which 73% 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 2,700 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, property development and investment to home building and
plant hire, Henry Boot is where great places start. henryboot.co.uk.

henryboot.co.uk (http://www.henryboot.co.uk/)

 

Enquiries

FTI Consulting

Richard Sunderland/Giles Barrie

07894 797067 / 07798 926814

henryboot@fticonsulting.com

 

Henry Boot PLC

Tim Roberts, Chief Executive Officer

Darren Littlewood, Chief Financial Officer

Daniel Boot, Senior Corporate Communications Manager

07825 088807

dboot@henryboot.co.uk

henryboot.co.uk

 

Deutsche Numis

Joint Corporate Broker

Oliver Hardy

0207 260 1000

 

Peel Hunt LLP

Joint Corporate Broker

Ed Allsopp / Tom Graham

0207 418 8900

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTAKFBQCBKDDDB



            Copyright 2019 Regulatory News Service, all rights reserved