Sheffield-based property investment and construction group Henry Boot on Tuesday hailed 2022 performance, saying it was the “best year ever” at an underlying profit level.
The firm also announced the sale of a logistics scheme in Preston.
However, Henry Boot added that a fall in the value of its UK commercial property investment portfolio will lead to pretax profit coming in “slightly” below market consensus of £48.1 million for the year.
“It is too early to predict the outturn for 2023, however overall, the group expects this year to be more challenging than 2022,” the company said.
It expects to continue to invest in growing the business in line with objectives. Full-year results will be announced on March 21.
Henry Boot added that its Hallam Land Management traded strongly in 2022, topping its target of selling 3,500 plots per annum. The total land portfolio increased to 95,407 plots from 92,667 in 2021, of which 9,325 plots have planning.
“Whilst demand for land from the national housebuilders reduced in [second half of 2022] against the backdrop of a slowing economy, the ongoing challenges of the planning system combined with critical housing shortages will ensure that demand for HLM’s stock of permissioned sites remains robust,” the company said.
The firm also said that Henry Boot Developments, alongside Barnside Group, completed the sale of East logistics scheme in Preston, in a £30 million transaction. This represents a premium of 10% to the last reported book value.
Henry Boot CEO Tim Roberts said: “Reflecting a particularly challenging backdrop as the year progressed, during which a noteworthy £30 million 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.”
Reporter: Xindi Wei, Alliance News reporter
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