Shares of Henry Boot, the Sheffield-based property investment and development group, fell as much as 12% after it published a trading update for the year ended December 31, 2025, saying “transaction volumes remain subdued.”
Boot warned: ” … there will be a lag in our performance” going forward.
The firm said: “Across our markets, transaction volumes remain subdued, with deals taking longer to complete, particularly in the second half of the year in the run up to November’s budget.
“House prices and land values across the UK were broadly flat in 2025. Industrial property continues to deliver the highest rental growth of all property sectors at 4.8% over the year.
“Against this backdrop, including initial profit recognition on disposal of HBC, which will be classified as a discontinued operation, we expect profit before tax for 2025 to be broadly in line with market consensus.
“We ended the year with net debt of c.£108m (31 December 2024: £62.7m), reflecting an acceleration of planning applications and the growth in SBH’s land bank. As a result, gearing has risen marginally above our preferred range of 10-20%.”
In its outlook, the Sheffield firm said: “Looking ahead, we remain focused on our three key markets, each supported by positive long-term trends that we expect to improve as inflation and interest rates decline.
“Hallam Land is well positioned, with a high quality portfolio and growing number of consented plots held at cost, with no uplift in value recognised until disposal. HBD has a strong pipeline but will remain selective and therefore, 2026 completions are expected to be broadly in line with 2025.
“Whilst SBH is undergoing a reset, the outlook for premium homes in the markets in which we operate remains positive, and our expanded land bank will support an increase in completions over the medium term as integration progresses.
“This leaves the group well placed for when our markets improve. However, due to the ongoing subdued transaction activity and the wider macroeconomic uncertainty, there will be a lag in our performance. We entered 2026 with a lower forward sales position across the group, and also, as expected, the expiry of the profitable Road Link contract in March will impact results. Taking these factors into consideration, the Board now expects 2026 profit before tax to be significantly below current market expectations.”