Henry Boot says balance sheet 'robust'

The Sheffield company said its balance sheet was "robust", having

renewed its banking facilities for three years from 2009.

In a trading update for the year to December 31 Henry Boot said the disclosed trading profit was set to be higher than underlying profit following the release of provisions no longer required in the construction division after a lower than expected fine over its part in collusion over price-fixing.

The revaluation deficit of its property is expected to be unchanged from the first half of the year, it said, with an improvement in investment values generally being offset by making provisions against certain sites in its portfolio.

"In the short term, we remain focused on maximising the returns from our businesses and continuing to manage debt levels prudently.

"In the longer term, we believe the group will benefit from its store of assets and opportunities that are capable of generating excellent returns as markets improve and we therefore remain optimistic about the group's future prospects."

Annual results are due to be announced on March 23. The firm said it intended to pay a second interim dividend in March in place of a final dividend in May.

It said it gearing at the year-end was approximately 19 per cent, compared to 26 per cent in 2008.

In August Henry Boot reported half-year losses and falling revenues, but insisted it was a "satisfactory" performance given the market turmoil. The 20.3m pre-tax loss in the first six months of the year compared to 20.4m profits a year earlier. Trading profits of 3.7m compared to last year's 30.2m, and turnover was 44 per cent down at 67m.

The group was founded when Henry Boot started a one-man construction business in 1886 to carry out work in and around Sheffield. The firm was behind Pinewood film studios in Buckinghamshire in 1936.

The company subsequently rationalised and now focuses on its core divisions of property development, land, construction and plant hire.