Revenue and profit drop for Henry Boot Construction as the firm lines up in a new director to restore the segment’s orderbook, following its latest half year results.
Turnover for the group’s construction arm for the six months to June 30 2024 decreased 22.6 per cent from £56.2 million in H1 2023 to £43.5 million.
Henry Boot Construction (HBC) generated an operating profit of £2.9 million, down from £4.4 million in H1 2023.
In terms of group results, the company’s revenues fell to £106 million in the first half of this year (H120223: £179.8 million) generating a profit before tax of £3.7 million (H12023: £25.0 million).
Henry Boot cites “lower starting forward sales position” the result of the company’s drop in revenue.
Meanwhile, HBC is behind schedule in winning work for next year, with a secured orderbook of 61 per cent at H1 2024, against a medium term target of 65 per cent secured at the start of the year.
As a result, turnover is expected to be lower this year
In July 2024, it was announced that Lee Powell, currently CEO of GMI Construction, will assume the role of managing director of HBC, joining the business in January 2025.
Powell has been brought with the aim of restoring and growing the HBC’s orderbook.
Tim Roberts, chief executive officer, said: “During the first half of the year we have started to see an improvement in our markets and this together with our focus on prime land and development, plus premium homes has helped us to achieve relatively strong property sales.
“The lower forward sales with which we started the year has affected our first half financial performance and as flagged at the time of our 2023 results, we expect 2024 to be heavily weighted towards the second half.
“With 81% of budgeted sales already completed, exchanged or reserved, we remain on track to perform in line with market expectations for the full year.
“Furthermore, we remain confident in our key markets, and have significant latent value in our development and land portfolio which is held at cost, as well as plenty of opportunity to grow in order to meet our stated medium term targets.
“This together with our rock solid balance sheet underpins our decision to raise the interim dividend by 5%.”
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