In This Article:
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Total Land and Property Sales: Nearly GBP350 million, with a share of GBP224 million.
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Land Sales: GBP183 million, with a share of GBP78 million.
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Land Portfolio: Increased to 105,000 plots.
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Development Completions: GBP188 million, 72% pre-let or pre-sold.
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Investment Portfolio Return: 9.9% total return.
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Construction Operating Profit: Nearly GBP5 million.
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Group Operating Profit: GBP34.2 million.
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Capital Employed: Increased to GBP439 million.
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Return on Capital Employed (ROCE): 8%.
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Gross Profit: GBP74.5 million, with a margin of 22.7%.
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Underlying Profit Before Tax: GBP29.4 million.
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Earnings Per Share: Reduced to 17.4p.
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Dividend Increase: 5%.
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Net Debt: Reduced to GBP63 million, with gearing at 15%.
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Net Asset Value Per Share: Increased by 3.6% to 317p.
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Operating Cash Inflows: GBP9 million.
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Plots Sold: 2,661 plots and 97 acres of employment land.
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Average Ungeared IRR: 26% per annum.
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Stonebridge Homes Completions: 270 homes, 8% growth.
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Stonebridge Average Selling Price: GBP402,000.
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Stonebridge Land Bank: Over 1,700 plots.
Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Henry Boot PLC (LSE:BOOT) achieved total land and property sales of nearly GBP350 million, demonstrating resilience in challenging market conditions.
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The company has made strategic progress by taking full ownership of Stonebridge Homes and entering into the Origin Joint Venture to accelerate industrial development.
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The balance sheet remains strong with a net asset value (NAV) of over GBP3 per share, reflecting conservative valuation practices.
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The company increased its full-year dividend by 5%, indicating confidence in its key markets and medium-term targets.
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The land portfolio increased to 105,000 plots, with plans to submit applications for 10,000 plots over the next 12 months, capitalizing on changes to the planning system.
Negative Points
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Operating profit in the construction segment was nearly GBP5 million, below budget due to a challenging environment and a fall in HBC's turnover.
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Return on capital employed (ROCE) reduced to 8%, below the target range of 10% to 15%, due to increased cost base.
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Earnings per share decreased to 17.4p, reflecting challenges in the market.
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The construction segment's performance was impacted by a fall in turnover and Banner Plants trading below budget.
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Net debt stood at GBP63 million, with gearing expected to be towards the top of the 10% to 20% range during 2025 as markets improve.
Q & A Highlights
Q: Can you clarify the ROCE target through the cycle and its implications for different divisions? A: Tim Roberts, CEO, explained that the 10% to 15% ROCE target remains appropriate despite current challenges. Darren Littlewood, CFO, added that Stonebridge is growing and carrying costs for future growth, while the property development segment needs to work hard to achieve desired returns, especially with current market conditions.