Henry Boot delivers “solid performance” as it faces challenges of UK property and construction markets

Chairman John Brown said that given the “continued challenging conditions in the UK property and construction markets”, Sheffield-based Henry Boot delivered “a solid performance”.

Profit before tax was £16.1m, according to the unaudited preliminary results for the firm for the year to the end of December, 2011. This was down from £18.9m in 2010.

Turnover reduced to £114.6m from £131.9m, “primarily due to lower construction division turnover and less land development turnover during the period”, the company said.

Meanwhile, trading profit increased to £20.8m from £18m, with an improved contribution from land trading activities this year.

Mr Brown said: “We continue to invest significant time and resource to secure planning consents on our greenfield land portfolio, in order to be able to supply the recovering housebuilding market. We retain, and will continue to add to, a strong portfolio of land opportunities which we are working through the challenges of the new planning regime and will bring forward commercial developments on the basis of pre-letting and where the expected financial returns are commensurate with the associated development risk.

“Whilst still challenging, we have worked hard to adapt and improve our land and development sites so that they deliver acceptable returns for the group in the more competitively priced market in which we now operate.

“I believe we are adapting well to the issues that affect our sector and, though it is likely that the recovery will be patchy and protracted, our strategy will allow us to make further strides as a business.”

The board has set a target of building the dividend back to the pre-recession level of 5p per share, as market conditions allow. Subject to shareholder approval, the board recommends a 21 per cent increase in the 2011 final dividend to 2.60p. This gives a total dividend for the year of 4.25p, also an increase of 21 per cent.