Henry Boot, the Sheffield-based land promotion and property investment group, reported a 5.3% increase in revenue to £359.4 million for 2023 “driven by land disposals, property development and housing completions.”

However, Henry Boot said profit before tax fell 18% to to £37.3 million — but the firm will pay a total dividend of 7.33p per share, an increase of 10%.

Henry Boot CEO Tim Roberts warned of an “increasingly dysfunctional” UK planning system as he cautioned that the firm is “not immune from the challenges” that the UK economy presents to the near-term trading environment and that Boot expects “a lag in performance” in the year ahead.

Roberts said: “Our focus on high quality land, commercial property development and housebuilding in prime locations meant that demand for our premium products remained resilient and allowed Henry Boot to perform relatively well against a backdrop of a slowing economy, rising interest rates, high inflation and decreasing volumes in our key markets.

“While constraining our ability to bring forward developments in one respect, the government’s consistent failure to make much needed reforms to an increasingly dysfunctional planning system does play to the strengths of our land promotion business while helping underpin demand from national housebuilders, who are still actively acquiring prime strategic sites to shore up their future pipelines.

“This alongside some well timed development disposals and Stonebridge Homes increasing house sales by 43%, helped deliver a resilient performance.

“We are not immune from the challenges that the UK economy presents to the near-term trading environment and as previously reported, we expect a lag in performance in the year ahead.

“However, the outlook for both inflation and interest rates is improving and it’s beginning to feel as though the UK economy has turned a corner, with recent reductions in mortgage rates also pointing towards a hopefully brighter future.

“With this in mind, and given the group’s continued strong financial position, we remain confident in achieving our medium term growth and return targets, as reflected in the 10% dividend increase we have announced today.”