Henry Boot hails strong year as profits soar by 22%

Plans for the new Aberdeen Exhibition and Conference Centre
Plans for the new Aberdeen Exhibition and Conference Centre

Property and construction group Henry Boot has shrugged off concerns surrounding the EU referendum result with a surge in profits and turnover.

In the year to 31 December 2016, pre-tax profit at the business climbed by 22% to £39.5 million with each of the group’s three divisions performing well.

Several larger commercial developments started during the year for Henry Boot and major schemes, including the new £333m Aberdeen Exhibition & Conference Centre, have progressed well.

Pre-tax profit from construction in 2016 increased to £11.0m (2015: £9.9m) although construction revenues declined to £84.4m (2015: £90.6m).

Revenue from property investment and development, by contrast was up more than threefold to £176.5m (2015: £50.3m) and pre-tax profit in this division rose proportionately to £11.2m (2015: £3.5m).

Jamie Boot
Jamie Boot

Chairman Jamie Boot said the Hallam Land business had seen an uplift in land sales after a post-Brexit vote slowdown in land acquisition by housebuilders.

“Each of our three business segments performed well, notwithstanding the macroeconomic concerns after the EU referendum result, and we have built a strong pipeline of schemes to be delivered over 2017-2019,” he said.

“The construction segment once again performed solidly, being underpinned by the stable PFI income stream.

“Plant hire traded consistently well over the year and although we saw slightly lower activity from the construction business, secured contracts for 2017 will see activity move forward once again.”

Chief executive John Sutcliffe added: “In my first business review since taking over as chief executive officer on 1st January 2016, I am very pleased to report that Henry Boot plc has delivered yet another strong operational performance, financial result and earnings per share growth of 23%. Our strategy and the company organisation remains unchanged, as do the key metrics by which we manage and monitor our business segments. 2017 has started well in all our businesses and we confidently look forward to a year of further progress.”

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