Henry Boot ‘meeting pre-tax profit expectations’ despite planning delays

Henry Boot says it is pre-tax profit for the calendar year to date is in line with expectations, despite concerns over planning delays.

The housing and property developer said in a trading update this morning that it is trading in line with analysts’ expectations at around £37.8m pre-tax profit for the year to date.

The firm, which turned over £340m last year, said its Stonebridge Homes housebuilding arm has secured 71% of its delivery target for the year of 250 homes. Improved mortgage rate affordability and product availability leave Stonebridge “encouraged” by the start of 2023, it said.

The firm is however relying on “marginally” increasing its sale rates from its current 0.52 houses per week per outlet in the usually busier spring and summer selling season.

It said: “House buyers are returning to the market after a downturn in demand from Q4 22, although the selling season through spring and summer remains important.” It added that cost inflation “remains a challenge” but is beginning to moderate.

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Henry Boot said its land business Hallam Land Management (HLM) “began the year well” selling 1,900 plots.

“ Following a pause from buying land at the end of 2022, there are signs of housebuilders returning to the market, with selective acquisitions and encouraging levels of interest in HLM’s portfolio of prime plots”, it said.

Henry Boot said HLM’s land bank is stable at 95,478 plots, although 12,288 of these are awaiting planning permission.

It said: “Unfortunately, delays within the UK planning system continue, with the business achieving planning permission on 379 plots. Whilst this is frustrating, it does mean our 7,910 plots with planning will be in demand.”

Tim Roberts, chief executive officer, said: “We have started the year well and following the uncertain economic backdrop to the final quarter of 2022, there are growing signs of recovery in our three key markets. We expect this to continue, and for us to have a busy second half of the year. We also continue to make progress against our medium-term strategic targets”.