Welcome to our 2016 Annual Report
years
1886 – 2016
One Henry Boot
Download the PDF of our full Annual Report
2016 Highlights
Established in 1886, we are one of the UK’s leading land promotion, property investment and development, and construction companies.
Profit before tax
+22%
£39.5m
Net debt
-15%
£32.9m
Operating profit
+25%
£39.5m
Net asset value per ordinary share
+5%
177p
Earnings per ordinary share
+23%
21.5p
Dividends per ordinary share
+15%
7.00p
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- Initial construction phase of the Aberdeen Exhibition and Conference Centre, at a cost of £333m, has commenced.
- Completion of £35m Stocksbridge development and commencement of £35m Better Barnsley town centre regeneration project.
- Over 16,000 strategic land plots with planning permission, a further 10,000 plots in the planning process and applications being prepared for another 10,000 plots in 2017.
- 70 properties completed by Stonebridge Projects with an average sales value of circa £266,000 per property.
- Record dividend of 7.00p, a 15% increase.
- Creation of new Operations Board to promote co-operation between all Henry Boot Group companies.
- Commencement of the ‘One Henry Boot’ project examining our culture, purpose, vision and values.
Download the PDF of our One Henry Boot project
Segmental Performance
The strength of the business and our consistent growth is achieved through our Group structure and diverse business segments.
Profit before tax
£39.5m
Group revenue
£306.8m
- Land Promotion
- Property Investment and Development
- Construction
- Group Overheads/Eliminations
Download the PDF of Group at a Glance
Hallam Land Management Limited
The strategic land and planning promotion arm of the Henry Boot Group. The company has been acquiring, promoting, developing and trading in land since 1990. We have established an outstanding record in resolving planning and associated technical problems in order to secure planning permission for a whole range of different land uses.
Key sectors:
- Housing
- Sustainable communities
- Business parks
Download the PDF of the Land Promotion case study
Total revenue
+10%
£51.2m
Profit before tax
-7%
£17.7m
Land bank
(acres)
+8%
11,888
- Owned
- Option and Promotion Agreements
Plots with planning permission
+36%
16,417
Number of plots sold
-9%
1,609
Plots in planning process
-29%
10,452
Download the PDF of the Land Promotion Review
Henry Boot Developments Limited
A major established leading force in the UK with its considerable experience and impressive reputation in all sectors of property development.
The company has also built up an investment portfolio of over £100m in recent years.
Key sectors:
- Retail, industrial, leisure, office space and commercial development
- Development partnerships
- Residential development
Download the PDF of the Property Investment and Development case studies
Stonebridge Projects Limited
A jointly owned company in the north of England which develops family homes that combine care, consideration and attention to detail. The company also provides high specification fully serviced office space to small business occupiers.
Key sectors:
- Residential development
- Serviced office space
Total revenue
+251%
£176.5m
Profit before tax
+220%
£11.2m
Rental income
-7%
£6.7m
Number of plots sold (Stonebridge Projects)
+71%
70 plots £18.4m
- Plots
- £m plot sales
Download the PDF of the Property Investment and Development Review
Henry Boot Construction Limited
Specialising in serving both public and private clients in all construction and civil engineering sectors, we have strong partnering relationships in the education, healthcare and custodial sectors, delivering new build and refurbishment works on a long-term strategic basis.
Download the PDF of the Construction case studies
Banner Plant Limited
Offering a wide range of construction equipment and services for sale and hire – plant, temporary accommodation, power tools, powered access, big air compressors and serviced toilets. The range of products has constantly evolved to meet customer needs and to fulfil the requirements of modern health and safety legislation.
The primary supply area stretches from Yorkshire in the north to the East Midlands and Birmingham in the south, whilst more specialist divisions have national coverage.
Road Link (A69) Limited
Road Link has a 30-year contract (nine years remaining) with Highways England to operate and maintain the A69 trunk road between Carlisle and Newcastle upon Tyne. Works include road resurfacing, bridge repairs, winter preparation and routine maintenance. Highways England pays Road Link (A69) a shadow toll, which is a fee based upon the number of vehicles using the road and the mileage travelled by those vehicles.
Profit before tax
+11%
£11.0m
Total revenue
-7%
£84.4m
Download the PDF of the Construction Review
Delivering Value
Our key strategic aim is to deliver value to shareholders over the longer term.
CHAIRMAN'S STATEMENT
Each of our three business segments performed well, notwithstanding the macroeconomic concerns after the EU referendum result. As always, the annual financial results and the delivery of shareholder value over the longer term is down to the talent, commitment and hard work of all our people.
Jamie Boot
Chairman
Download the PDF of the Chairman's Statement
WATCH OUR BUSINESS MODEL VIDEO
Our ability to deliver long-term value for shareholders is underpinned by our business model.
Download the PDF of theBusiness Model
Our Strategy
In my first business review since taking over as Chief Executive Officer on 1 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.
John Sutcliffe
Chief Executive Officer
Download the PDF of Our Strategy
Purpose
We express our purpose through our key objective which is to maximise long-term shareholder value.
Strategy to achieve our Purpose
We shall promote land, develop and prudently invest in high quality property assets, and provide construction activities for the longer term as explained by our Business Model. Our strategic priorities are flexible and regularly reviewed in order to deal with the vagaries of the economic cycle and with prudent borrowing levels we seek to ensure the long-term security of our asset base and the ability to pay dividends.
| Business Initiative | How we'll measure progress | How our model supports this |
|---|---|---|
| Provide growing long-term shareholder returns |
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| Create regular revenue streams through retained property assets, rental income and construction activities |
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| Achieve long-term funding relationships with financial partners and maintain prudent levels of gearing at less than 50% of net assets |
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| Create long-term cyclical revenue potential and realisation through land promotion and property development |
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| Provide a long-term commitment to high levels of dividend cover |
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| Achieve a return on capital in excess of 10% |
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| Recruit and retain the highest calibre of people to meet our key objective |
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