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(Sharecast News) - Construction group Henry Boot reported record underlying profits on Tuesday despite trading amid a "challenging backdrop" and experiencing a drop in its investment portfolio.
Henry Boot said strong sales within its property development and strategic land units had resulted in its best-ever financial results on an underlying profit basis. However, the group noted that due to a fall in UK property values impacting its investment portfolio, pre-tax profits would be marginally below the £48.0m figure expected by analysts.
Henry Boot said its Hallam Land Management subsidiary exceeded its strategic target of selling 3,500 plots in 2023, boosted by the disposal of 2,170 plots to Taylor Wimpey and Persimmon Homes at Didcot.
Henry Boot Developments completed schemes with a gross development value of £117.0m, with £83.0m set to be received by the group, of which 92% have already been pre-let or pre-sold.
Chief executive Tim Roberts said: "Having seen strong sales across the group, we have had our best year ever at an underlying profit level. Reflecting a particularly challenging backdrop as the year progressed, during which a noteworthy £30.0m of accretive sales was achieved in a weak market, the year-end valuation movements in our investment portfolio have had an impact on our 2022 profit before tax.
"Whilst it's too early to predict the outturn for 2023 at this stage, the group expects this year to be more challenging than 2022. We remain convinced, however, that in the medium term our three key markets, and the resilience of our business model, will allow us to continue to meet our strategic growth and return ambitions."
As of 1020 GMT, Henry Boot shares were down 3.89% at 236.43p.
Reporting by Iain Gilbert at Sharecast.com
