(Sharecast News) - UK-listed property developer Henry Boot has said that, while it expects macro conditions to improve this year, the company will see a "lag" in performance with results likely to be weighted to the second half.
Chief executive Tim Roberts said "it's beginning to feel as though the UK economy has turned a corner" as recent reductions in mortgage rates precede a fall in the Bank Rate, "pointing towards a hopefully brighter future" as the demand for houses, residential land and commercial property picks up.
"Not surprisingly, we do not have clear visibility on how all of this will unfold and, with key transactions to execute and complete this year in both land promotion and development, we expect 2024 results will be heavily second half weighted," he said. Meanwhile, the time it takes for projects and sales to complete means Henry Boot will see a "lag in performance in the year ahead", he added.
The comments came as the company reported an 18% fall in pre-tax profit as expected to £37.3m. Return on capital employed slumped to 9.9% from 12% and slightly below the medium-term target range of 10-15%.
Revenues, however, increased by 5.3% to £359.4m, driven by land disposals, property development and housing completions.
The company, which reiterated its confidence in achieving medium-term growth and return targets, proposed a final dividend of 4.4p, up 10% on the year before, taking the total dividend to 7.33p, up from 6.66p.
The stock was down 0.7 at 182.75p by 0942 GMT.
Henry Boot (BOOT)