Henry Boot Reports First-Half Profit Decline
Henry Boot Reports First-Half Profit Decline, but Expects to Meet Market Expectations
Construction and property development company, Henry Boot, announced a decline in its first-half pretax profit due to higher costs. However, the company remains optimistic about meeting full-year market expectations.
During the first half of the year, Henry Boot's pretax profit fell to £25.0 million ($31.0 million), compared to £38.8 million during the same period in 2022. This decrease can be attributed to a significant increase in the cost of sales, which rose to £138.9 million from £100.5 million. Additionally, there was a reduced share of profit from joint ventures and associates.
Despite these challenges, the company experienced a rise in revenue, increasing from £144.4 million to £179.8 million. This growth was driven by land disposals and property development completions. Furthermore, the net asset value per share rose by 2.6% to 303 pence.
Henry Boot maintains that its full-year expectations are in line with market consensus, which predicts a pretax profit of £37.8 million.
Chief Executive Tim Roberts commented on the company's performance, stating, "The first half of the year has seen our markets slow as interest rates have continued to rise, but, as these results show, our focus on prime strategic sites, high-quality development, and premium homes has provided us with a degree of resilience."
The company's board has declared an interim dividend of 2.93 pence per share, representing an increase from 2.66 pence.
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