Henry Boot: Shares rise in Sheffield firm as new CEO Edward Hutchinson prepares 'refreshed strategy' after £6.3m loss recorded

The company’s priorities include accelerating planning applications and converting consents into land sales, reducing borrowing and “improving operational efficiency” through simplyfing how the firm operates.

Shares in the company rose by more than 3.5 per cent in early Tuesday trading following the update.

Mr Hutchinson, who was interim managing director of the firm’s Stonebridge Homes division before becoming Henry Boot CEO, said he is optimistic about the company’s prospects.

"Having taken on the leadership of Henry Boot this summer, my conviction in the group's long-term prospects has only strengthened,” he said.

"While challenging market conditions have continued to impact our sector, the quality of our assets, the strength of our pipeline and the significant value embedded across the business underpin a compelling growth opportunity.

"With more than 9,000 consented residential plots within our strategic land portfolio held at cost and a substantial development pipeline, we possess a depth of value not recognised on our balance sheet. Our priority is clear: unlock this value, enhance cash generation and ensure the group is well positioned to capitalise as market liquidity and activity improve.

“Consistent with recent years, we expect 2026 performance to be heavily weighted towards the second half, supported by land transactions, housing completions and leasing activity that is either secured or at an advanced stage of negotiation.

“Since assuming the role of CEO, I have made good progress in undertaking a comprehensive review of the business and look forward to outlining our refreshed strategy in early 2027. Henry Boot is a high-quality business operating in attractive markets with enduring structural demand drivers. Supported by a strong balance sheet, a differentiated land position and proven expertise, we are well placed to create significant long-term value for shareholders.”

Mr Hutchinson blamed low consumer and business confidence linked to “challenging market conditions” after the firm recorded a pre-tax loss of £6.3m in the first half of this year.

The company has posted unaudited interim results for the first six months of the year, which show revenue dropped to £80.7m from £99.4m at the same stage in 2025, with the £6.3m loss comparing to a £9.8m profit in the opening half of last year.

However Henry Boot said it expects an improvement in trading for the remainder of the year and anticipates delivering profit before tax “in line with consensus expectations”. Market consensus is for £9.7m profit.

Mr Hutchinson highlighted the change in Prime Minister and the Iran war as factors affecting results in the opening six months of this year.

He said: “During the first half of 2026, macroeconomic uncertainty remained elevated, with continued domestic political upheaval and the conflict in the Middle East still weighing on consumer and business confidence.

"This backdrop contributed to lower transaction volumes across our markets, particularly for residential land, where a slowdown in new home sales has led a number of home builders to moderate their land acquisition activity.

"Whilst commercial property investment volumes also remained subdued, we have seen continued strong occupier demand for our industrial and logistics (I&L) developments, which delivered robust rental growth during the period.

"As a result of the challenging backdrop, the group reported a loss before tax of £6.3m in the first half, compared with a profit before tax of £9.8m in H1 25. This reflected lower plot sales at Hallam Land, a reduction in the valuation of our wholly owned property investment portfolio, lower completions and cost inflation pressures in Stonebridge Homes and a reduced contribution from the Road Link (A69) contract, which concluded at the end of March 2026.

"Despite these headwinds, we continued to make strategic and operational progress across our core business areas.”