Boot(Henry) PLC AGM Trading Update (0945G)
May 25 2017 - 2:00AM
UK Regulatory
TIDMBOOT
RNS Number : 0945G
Boot(Henry) PLC
25 May 2017
25 May 2017
HENRY BOOT PLC
('Henry Boot', 'the Company' or 'the Group')
AGM TRADING UPDATE
Henry Boot PLC, a company engaged in land promotion, property
investment and development, and construction, will hold its Annual
General Meeting at 12.30 p.m. today at which the Chairman will make
the following statement regarding current trading and the outlook
for the current financial year.
Trading and outlook
Property trading and development activity levels since the
beginning of 2017 have been very encouraging and the Group's three
business segments; land promotion, property investment and
development and construction are trading strongly. Henry Boot is,
fundamentally, a transactions driven business and there is always a
degree of uncertainty with regard to the timing of these deals
within a particular financial period. We are pleased to report that
any uncertainty created by the current UK general election process
is not having an impact on our business.
Given the strong start we have made in 2017, and anticipating no
major changes to the underlying economic conditions in which we
operate, we now anticipate the Group's performance for the current
financial year ending 31 December 2017 will be comfortably ahead of
the Board's existing expectations.
KEY EVENTS IN THE PERIOD
LAND PROMOTION
Hallam Land Management, our strategic land business, has made a
very solid start to the year. Transactions expected to complete in
2017 are progressing as anticipated and the UK's major house
builders are reporting slightly higher levels of activity and
strong demand for new houses.
-- So far this year we have concluded land
sales totalling over 900 units on seven
sites. In addition, we have unconditionally
exchanged on two other sites and are in
detailed discussions regarding the sales
of a further nine schemes.
-- We have also obtained planning permission
on six sites for 1,965 units and now have
50 sites for sale comprising over 17,600
units. We have a further 11,000 units
on 32 sites which are currently undetermined
planning applications or at appeal.
-- The total portfolio of land promotion
sites is now 163 covering 11,900 acres
with a further 28 sites, over 2,100 acres,
expected to be brought into the portfolio
subject to the completion of due diligence
and legal agreement.
PROPERTY INVESTMENT AND DEVELOPMENT
-- The 200-acre business park at Markham
Vale will once again see a number of developments
delivered in 2017 with over 650,000 sq
ft of industrial and distribution space
in progress.
-- We have been on site at the Aberdeen Exhibition
and Conference Centre for almost a year
now and construction is progressing to
plan, with a target completion date of
mid-2019.
-- We expect that the remaining 76 of the
original 163 apartments within the main
factory building at the former Terry's
Chocolate Factory in York will be sold
during 2017, completing this phase of
work. We will then turn our attention
to the smaller Clock Tower redevelopment
and the final three-acre site which is
likely to be a further residential opportunity,
subject to planning.
-- In Manchester city centre, the jointly
developed and forward funded 539-unit
private rented apartment development should
see the completion of the strip out and
demolition contract by mid-2017, with
the main redevelopment beginning on the
conclusion of that work.
-- Our jointly owned house builder, Stonebridge
Projects, is trading well and is targeting
sales of 100 units in 2017, up from 70
units in 2016. Reservations and sales
at this stage of the year are on track
to achieve our targets.
CONSTRUCTION
-- Our construction business continues to
work across a wide range of sectors, including
industrial, residential, custodial, health,
commercial, education, leisure and civil
engineering. We have made a good start
to the year and expect to achieve targeted
activity in 2017, whilst also building
our 2018 order book. The level of contract
opportunities coming to the market is
similar to the previous two years and
we continue to win work at broadly the
same rate.
-- Our plant hire business, Banner Plant,
completed the acquisition of Premier Plant
Tool Hire & Sales Limited in Leicester
for GBP2.8m in the period; taking our
activities a little further south down
the M1 motorway corridor. The integration
of the new business is progressing well
and both the existing and new depots are
trading in line with our expectations.
-- Road Link (A69) Limited, our PFI contract,
continues to trade well and in line with
previous years and management expectations.
For further information, please contact:
Henry Boot PLC
John Sutcliffe, Chief Executive Officer
Darren Littlewood, Group Finance Director
Tel: 0114 255 5444
www.henryboot.co.uk
Investec Bank plc
Stockbrokers
Garry Levin/Carlton Nelson/David Anderson
Tel: 020 7597 5970
Hudson Sandler LLP
Financial PR
Nick Lyon/Wendy Baker
Tel: 020 7796 4133
This information is provided by RNS
The company news service from the London Stock Exchange
END
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