Investing.com -- Henry Boot PLC (LON:BOOT) on Thursday delivered solid performance in 2025 despite challenging market conditions, with profit before tax expected to be broadly in line with consensus.
The company reported record residential plot sales of 3,957 at its Hallam Land division, exceeding its target of 3,500 sales per annum. The division also secured 4,159 planning consents during the period.
Net debt increased to £108 million due to higher planning and land investments, slightly above the company’s target range of 10-20%.
Henry Boot’s HBD division completed £119 million of gross development value (GDV), with the company’s share amounting to £33 million. Approximately 32% of these schemes are pre-let or pre-sold.
The company also expanded its Origin joint venture, which now includes three schemes totaling 449,000 square feet.
The company achieved several major planning milestones, including Golden Valley and new schemes at Duxford and FREEPORT 36. Its Stonebridge Homes division completed 185 homes, below expectations, but expanded its land bank to 2,572 plots.
Despite these positive developments, Henry Boot warned that 2026 profit before tax is expected to be "significantly below current market expectations" due to ongoing subdued transaction activity, wider macroeconomic uncertainty, a lower forward sales position, and the expiry of the profitable Road Link contract in March.
CEO Tim Roberts said: "While market activity remains subdued, the fundamentals of our three key markets remain compelling, and we are well placed to benefit from the significant opportunities we have been building up within our portfolio, supported by a strong balance sheet and a disciplined approach to investment."
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