Last checked at 21 May 2015 07:00
Henry Boot PLC
('the Company' or 'the Group')
AGM Trading Update
Henry Boot PLC 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.
The statement covers the period from 1 January 2015 to date and supplements the update given with the 2014 results on 26 March 2015.
Trading and outlook
Trading since the beginning of 2015 has, once again, been encouraging across all the Group's businesses. The three business segments, land, commercial development and construction, are all trading well. A short term lack of decision making around the Election, especially within the public sector, meant that, as expected, concluding transactions in the last couple of months have been a little slower. However, the strengthened position of the governing party leads us to expect a quick return to normalised activity levels. We therefore remain confident of meeting the Board's expectations for the full year.
KEY EVENTS IN THE PERIOD
LAND DEVELOPMENT
Activity levels continue to be high within Hallam Land. We are promoting a land portfolio of over 140 sites amounting to over 10,000 acres.
During the period:
· | We concluded two land sales for over 500 units and received a small uplift from a previous disposal, all at price levels we were anticipating.
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· | We are in discussion to sell a further 13 sites for over 1,800 consented units, some of which will complete in 2015, others will conclude in 2016.
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· | In total, and including the sales in progress above, we have 47 sites with over 12,000 units holding either planning permission or "minded to grant" consent subject to agreeing a S106 with the local authority in question.
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· | We have a further 25 sites for over 10,000 units which are within the planning process but are, as yet, undetermined or are within the appeals system. |
PROPERTY INVESTMENT AND DEVELOPMENT
· | At Markham Vale, our 200 acre business park being developed in partnership with Derbyshire County Council, pre-let agreements have been exchanged with Great Bear Distribution Ltd to take a new 480,000 sq ft distribution warehouse. This scheme is expected to be completed by mid-2016 and terms for the forward funded sale of the development are expected to be finalised shortly. This letting is in addition to 190,000 sq ft of pre-let industrial development that is already expected to complete in 2015.
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· | The development of a new exhibition and conference centre for Aberdeen City Council took a significant step forward in March 2015 when the Council gave unanimous approval to complete legal agreements. This scheme will include three hotels, an energy centre as well as a 400,000 sq ft conference and exhibition centre. Planning applications are expected to be submitted by mid-year and construction is targeted to commence in early 2016.
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· | A ten year development agreement was exchanged with the Crown Estate and Luton Borough Council for the development of Butterfields Business Park, a 45 acre employment site in Luton, which already has planning permission and is partially serviced.
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· | The redevelopment of Terry's Chocolate Factory in York also made significant progress with submission of detailed planning and listed building consent applications and the exchange of contracts for the conversion of the main listed factory building to provide over 150 luxury apartments. Planning permission is expected to be secured mid-year, enabling work to commence by late 2015 with the first apartments being completed in the first half of 2016.
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· | The 22,000 sq ft office development, pre-let to Atkins Ltd, on Westlakes Science Park in Cumbria will be completed imminently, on programme and to budget, terms for the sale of the investment are expected to be agreed shortly.
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· | Our jointly owned house builder, Stonebridge, is on course to grow further this year with completed sales ahead of last year. We achieved planning permission on a 114 unit development in Sheffield and are hopeful of gaining consent for a further 109 units in Leeds mid-2015. We are actively acquiring further sites, predominantly in the north Leeds area, to provide for the anticipated future growth in unit sales. |
CONSTRUCTION DIVISION
· | Our Construction business continues to undertake projects across a wide range of sectors including industrial, residential housing, custodial, health, commercial, education, leisure, renewable energy and civil engineering. We have made a strong start to the year and expect to achieve targeted activity in 2015 and are already building the 2016 order book. Encouragingly, and contrary to press comments regarding parts of the UK construction market, we are seeing improvements in both construction activity and the size of opportunities coming to market. As a consequence, we hope for a small improvement in pricing levels associated with the growing workload in all our operating sectors.
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· | Our plant business is trading well and activity is ahead of the equivalent period last year. At this stage, we are seeing good demand for all parts of the hire fleet from a generally improving construction industry in the north of England.
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· | Road Link (A69) Limited, our PFI contract, continues to trade in line with previous years and management expectations. |
For further information, please contact:
Henry Boot PLC
Jamie Boot, Group Managing Director
John Sutcliffe, Group Finance Director
Tel: 0114 255 5444
www.henryboot.co.uk
Investec Bank plc
Garry Levin
Tel: 020 7597 5000
TooleyStreet Communications
Fiona Tooley
Mobile: 07785 703523
Tel: 0121 309 0099