Property investor and developer, Henry Boot, has highlighted a solid balance sheet and high quality opportunities in prime locations across all three of its key markets in a trading update in advance of its AGM today.
The Sheffield-headquartered group says it is well placed to perform in line with full year market expectations of achieving a £30.7m profit before tax.
In order to support the continued growth of the business, the group has agreed terms with existing lenders comprising Barclays, HSBC and NatWest for a new £125m, three-year facility, with the option to extend for a further two years to May 2029.
Tim Roberts, chief executive officer, said: “We have begun the year well, trading in line with market expectations and continuing to crystallise profits from both land sales and delivering prime development and premium homes.
“We have started to see signs that the economy has turned a corner, with inflation falling and interest rates likely to fall, which has improved sentiment in our three key markets.
“Whilst we expect our performance to be heavily weighted to H2 24, as flagged at our results in March, our focus on high quality land and development in prime locations, along with a renewed banking facility, leaves the group in a position to deliver full year performance as expected.”
Henry Boot says its Hallam Land operation has had a positive start to the year, completing the sale of 776 plots across four sites and exchanging on a further 792 for completion during 2024-2026, with another 1,626 under offer.
At 101,251 plots, Hallam’s total land bank has remained stable of which 7,452 plots have planning permission and a further 13,490 plots are awaiting planning determination.
Henry Boot Construction continues to experience tough trading conditions but remains focused on building up its order book. This is now 60% secured for 2024, after it was appointed by Rotherham Council on a £36m contract for the redevelopment of the town centre outdoor market.
Henry Boot Developments – trading as HBD – continues to delivering its committed programme of developments, which currently has a £154m Gross Development Value (GDV).
Finally, Henry Boot’s Stonebridge Homes business Stonebridge Homes (SH) has already reservations for 66% of its 2024 delivery target of 275 homes.