Henry Boot delivered major residential schemes in York and Skipton during 2022

During the year, Henry Boot Developments completed a 23-unit residential scheme at the Clocktower in York and a 184-unit residential scheme in Skipton, which was pre-sold to Bellway.

Throughout 2022, Henry Boot said it continued to recycle capital, and achieve profitable sales, while continuing to invest in the group’s development programme.

Tim Roberts, chief executive officer, commented: “Having seen strong sales across the group, we have had our best year ever at an underlying profit level.

"Reflecting a particularly challenging backdrop as the year progressed, during which a noteworthy £30m of accretive sales was achieved in a weak market, the year-end valuation movements in our investment portfolio have had an impact on our 2022 profit before tax.

"While it’s too early to predict the outturn for 2023 at this stage, the group expects this year to be more challenging than 2022.

"We remain convinced, however, that in the medium term our three key markets, and the resilience of our business model, will allow us to continue to meet our strategic growth and return ambitions.”

Henry Boot said Hallam Land Management (HLM) traded strongly in 2022, exceeding its strategic target of selling 3,500 plots per year, with sales materially higher than in the prior year primarily due to a major disposal of 2,170 plots to Taylor Wimpey and Persimmon Homes at Didcot. The site’s community benefits include a total of 54 acres of public open space, within which 15 acres of new woodland will be planted, Henry Boot said.

The statement added: “In 2022, HLM continued to source new opportunities to grow its land bank, securing 21 sites which have the potential to deliver around 6,900 plots. The total land portfolio has increased to 95,407 plots of which 9,325 plots have planning.

"While demand for land from the national housebuilders reduced in H2 (the second half) of 2022 against the backdrop of a slowing economy, the ongoing challenges of the planning system combined with critical housing shortages will ensure that demand for HLM’s stock of permissioned sites remains robust.”

"Henry Boot Developments (HBD) has performed well, completing developments with a Gross Development Value (GDV) of £117m of which 92 per cent have been pre-let or pre-sold.”

In a note, Adrian Kearsey of Panmure Gordon, said: “Henry Boot, one of the UK’s leading property investment, development, and construction companies, delivered an impressive performance in FY22 (full year 2022). Underlying profits were a record, helped by £30m of asset disposals in the second half. Inevitably, the year-end revaluation of the investment portfolio took the shine off profit growth. However, we still expect FY22 (full year 2022) PBT (profit before tax) to be 30 per cent up on FY21 (full year 2021).”