Henry Boot has announced the “regrettable” decision to restructure both its construction and plant hire businesses to address commercial challenges in both.
The news comes as the group’s construction division, which includes Henry Boot Construction (HBC) and Banner Plant (BP), reported an operating profit of £4.9 million for the year ended 31 December 2024, down from £6.5 million the year prior.
During the period, HBC was “trading below expectations” and turned over £49.7 million, down from £70.1 million in 2023, while BP is tightening costs and efficiencies after it too traded below budget.
“As HBC and BP review and explore all the options to deal with the current commercial challenges, the difficult decision has been made to make operational changes which has resulted in a restructuring within both businesses,” a trading statement reads.
“While this is regrettable, it is being carried out to protect the long-term future of HBC and BP.”
A new management team has been recruited, including new managing director Lee Powell, who joined from GMI Construction in January.
The team’s immediate focus will be to grow a diversified order book of private sector projects to complement existing public sector work.
Henry Boot added: “HBC has started 2025 in a better position, with 55 per cent of its order book contracted and a further 16 per cent secured at the time of the group trading update on 28 January.
“This includes the company being awarded a £16 million contract in Sheffield with the National Centre for Child Health Technology to deliver a new world-class research and technology centre for children and young people.
“The 2025 order book has continued to progress, with 70 per cent secured as at 3 March.”
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