Henry Boot 'performed well' against backdrop of a slowing economy in 2023

Aside from the small increase in inflation in December, the outlook for both inflation and interest rates are improving, the company added.

The statement added: “With mortgage rates falling, it feels as though the UK economy has turned a corner. With this in mind, plus cautious signs of recovery in our three key markets, there is optionality to grow our commitments and sales.”

Tim Roberts, Chief Executive Officer commented: "Despite challenging market conditions for our three key markets, our ongoing focus on high quality land and development in prime locations resulted in a resilient performance in 2023.

"We therefore expect profit before tax for the year to be in line with current market consensus. Furthermore, we have maintained a strong financial position and continued to invest in the business to ensure we are well placed as our markets begin to recover.

He added: “While the housebuilding sector has seen slowing sales rates, our land business is experiencing continued demand for strategic sites with planning in premium locations, as highlighted by the recently announced sale in Swindon, and we continue to selectively grow our land bank.

"Our development business has performed ahead of expectations, while the investment portfolio is on track to outperform the wider market, helped by the sale of five properties, at an average premium of 23 per cent to December 2022 valuations.

"The Group's premium housebuilder has also grown, having increased its output by 43 per cent during the year.

“With a path to lower inflation and improved interest rates, whilst there will undoubtedly be bumps along the way, the economy and our markets have turned a corner, but we expect our results for 2024 to be impacted by these factors.

"We continue to firmly believe that Henry Boot remains well placed to achieve its medium term growth and return objectives."