Henry Boot (BOOT)

Sector:

Construction and Building Materials

Index:

FTSE Small Cap

   Trade now with Barclays Stockbrokers   Trade now with Barclays   Sponsored by Barclays Stockbrokers

236.00p
   
  • Change Today:
      2.00p
  • 52 Week High: 300.00
  • 52 Week Low: 230.00
  • Currency: UK Pounds
  • Shares Issued: 133.08m
  • Volume: 264,528
  • Market Cap: £314.07m
  • RiskGrade: 118
  • Beta: 0.00

Henry Boot trading in line but property development business hit by Brexit

By Michele Maatouk

Date: Friday 18 Jan 2019

LONDON (ShareCast) - (Sharecast News) - Construction and property development company Henry Boot said on Friday that its real-estate activities traded in line in 2018, but its property development business was hit by Brexit uncertainty.
In an update for the year to 31 December 2018, the company said that had it not been for a one-off pension provision, it would have exceeded expectations for the year. This was despite a more challenging year in which Brexit negotiations increased uncertainty within the UK real estate market.

Hallam Land Management performed "exceptionally well", it said, helping to replenish the UK housebuilders' land banks following their house sales in 2018, and identifying new site opportunities to replace those sold.

Meanwhile, the company's jointly-owned housebuilder, Stonebridge Homes, achieved 145 sales versus 79 in 2017, producing turnover of £35m.

On the downside, however, the property development business, Henry Boot Developments, was hit by macro uncertainty, with prospective developments held back by client uncertainty or planning delays, which affected the timing of starts on site at certain projects.

The group said its balance sheet remains strong. Gearing at 31 December 2018 was around 7% as Boot positions itself "to be able to react to whatever challenges and opportunities arise through 2019".

Chief executive officer John Sutcliffe said: "2018 proved to be another successful year for Henry Boot. It is always difficult to finalise deals or new developments in a specific financial period and, as noted above, three commercial developments anticipated to start during 2018 will now commence in 2019, and one sale expected to complete in 2018 completed on the 4th January 2019.

"Although we remain mindful of some uncertainty in the UK real estate market, these transactions, added to the already committed and contracted activity for 2019, give us a good start to the year."

At 1015 GMT, the shares were up 1.6% to 254p.

Peel Hunt said this was a "reassuring" trading update.

"As a result of good cash performance we decrease our FY18E net debt forecast to £19.6m (from £25.8m), resulting in gearing of 7%, in line with management guidance," the broker said.

"The business has made a robust start to FY19E, with strong demand for consented land from major UK housebuilders, though ongoing Brexit negotiations may continue to have a softening effect on Property Development. The shares had a tough run in 2018, down 25%, but have bounced back and are up 4% year-to-date. Our sum-of-the parts valuation generates a target price of 290p. We still see this as an attractive entry point."





Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Henry Boot Market Data

Currency UK Pounds
Share Price 236.00p
Change Today 2.00p
% Change 0.85 %
52 Week High 300.00
52 Week Low 230.00
Volume 264,528
Shares Issued 133.08m
Market Cap £314.07m
Beta 0.00
RiskGrade 118

Henry Boot Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
83.02% above the market average83.02% above the market average83.02% above the market average83.02% above the market average83.02% above the market average
47.37% above the sector average47.37% above the sector average47.37% above the sector average47.37% above the sector average47.37% above the sector average
Price Trend
36.09% below the market average36.09% below the market average36.09% below the market average36.09% below the market average36.09% below the market average
17.95% below the sector average17.95% below the sector average17.95% below the sector average17.95% below the sector average17.95% below the sector average
Income
58.91% above the market average58.91% above the market average58.91% above the market average58.91% above the market average58.91% above the market average
3.23% below the sector average3.23% below the sector average3.23% below the sector average3.23% below the sector average3.23% below the sector average
Growth
0.55% below the market average0.55% below the market average0.55% below the market average0.55% below the market average0.55% below the market average
17.95% below the sector average17.95% below the sector average17.95% below the sector average17.95% below the sector average17.95% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 4
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Henry Boot Dividends

  Latest Previous
  Interim Final
Ex-Div 19-Sep-19 25-Apr-19
Paid 18-Oct-19 29-May-19
Amount 3.70p 5.80p

Trades for 23-Aug-2019

Time Volume / Share Price
16:35 2 @ 236.00p
16:29 2 @ 236.00p
16:29 118 @ 236.00p
16:28 83 @ 236.00p
16:28 7,000 @ 240.00p

Henry Boot Key Personnel

Chair Edward Jamie Boot
CEO John T Sutcliffe

Top of Page