Henry Boot dismisses election jitters as trading beats forecasts
Strong start to 2017 with lots of deals progressing
CONSTRUCTION AND property firm Henry Boot reported “very encouraging” trading in 2017 and brushed aside any fall-out from the General Election, saying that this year’s trading should be “comfortably ahead” of expectations.
The Sheffield-based firm said property trading and development have been very encouraging since the beginning of 2017 and the group’s three businesses – land promotion, property investment and development and construction – are trading strongly.
Chairman Jamie Boot said: “Henry Boot is, fundamentally, a transactions-driven business and there is always a degree of uncertainty with regard to the timing of these deals within a particular financial period.
“We are pleased to report that any uncertainty created by the current UK General Election process is not having an impact on our business.
“Given the strong start we have made in 2017, and anticipating no major changes to the underlying economic conditions in which we operate, we now anticipate the group’s performance for the current financial year ending 31 December 2017 will be comfortably ahead of the board’s existing expectations.”
The firm said its strategic land business, Hallam Land Management, made a very solid start to the year.
“Transactions expected to complete in 2017 are progressing as anticipated and the UK’s major house builders are reporting slightly higher levels of activity and strong demand for new houses,” said Mr Boot.
“So far this year we have concluded land sales totalling over 900 units on seven sites.
“In addition, we have unconditionally exchanged on two other sites and are in detailed discussions regarding the sales of a further nine schemes.”
The firm has won planning permission on six sites for 1,965 units and now has 50 sites for sale. It has a further 11,000 units on 32 sites which are currently undetermined planning applications or at appeal.
The total portfolio of land promotion sites is now 163 covering 11,900 acres with a further 28 sites expected to be brought into the portfolio.
In the property investment division, the 200-acre business park at Markham Vale has over 650,000 sq ft of industrial and distribution space in progress.
“We have been on site at the Aberdeen Exhibition and Conference Centre for almost a year now and construction is progressing to plan, with a target completion date of mid-2019,” said Mr Boot.
“We expect that the remaining 76 of the original 163 apartments within the main factory building at the former Terry’s Chocolate Factory in York will be sold during 2017, completing this phase of work.
“We will then turn our attention to the smaller Clock Tower redevelopment and the final three-acre site which is likely to be a further residential opportunity, subject to planning,” he added.
In Manchester city centre, the group said a 539-unit private rented apartment development should see the completion of the strip-out and demolition contract by mid-2017, and then the main redevelopment will begin.
Henry Boot said its jointly-owned house builder Stonebridge Projects is trading well and is targeting sales of 100 units in 2017, up from 70 units in 2016. Reservations and sales are on track. In the construction arm, the group said it is working across a wide range of sectors, including industrial, residential, custodial, health, commercial, education, leisure and civil engineering.
“We have made a good start to the year,” said Mr Boot.