Developer and housebuilder Henry Boot said it has started 2025 with “a bit more optimism”, despite lower than expected turnover for its construction arm.
Henry Boot Construction (HBC) remained behind schedule for winning work and turnover was lower than targeted, in its latest trading update.
Project starts in 2025 for Henry Boot’s construction division are in a “better position”, with 55 per cent of its order book secured and a further 16 per cent at the preferred bidder stage.
In terms of the division’s outlook, under HBC’s new management team, “the focus for 2025 will be on growing and diversifying the order book by developing a balanced portfolio of private sector projects, to complement the existing public sector work.”
Meanwhile, the group said it saw gradual improvement in market conditions which translated into a steady increase in demand across its key sectors.
Last month, the group agreed to take full ownership of housebuilder Stonebridge Homes (SH) through the acquisition of the 50 per cent from its joint venture (JV) partner.
As a result, it anticipates slower growth in volumes across the group, for profit in 2025 to be similar to the 2024 outturn and similarly H2 weighted.
Henry Boot’s land promotion and planning business, Hallam Land achieved its 2024 financial target with sales of 2,800 plots last year, slightly below its sales target of 3,000 plots for 2024.
Meanwhile, HBD completed schemes with a total gross development value (GDV) of £331 million (HBD share: £188 million GDV), up from £126 million last year (2023: HBD share: £112 million GDV).
SH continued to grow its output completing 270 homes (2023: 251) “in a relatively subdued market.”
Tim Roberts, Henry Boot CEO said: “Our focus on high quality land, prime property development and premium homes means we expect year end profits to be in line with market expectations.
“Late last year we agreed two transactions which we see as being important steps in achieving our medium term growth and return objectives.
“Looking forward, we have started 2025 with a bit more optimism, albeit while the reduction in interest rates provided a welcome boost to the economy, the trend downwards is now anticipated to be at a slightly slower pace than previously expected.
“The improvements to the planning system we have already seen under the new government also give us confidence.”
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