Henry Boot: Sheffield-based developer warns profits set to land ‘significantly’ below expectations

Henry Boot said in an announcement to the London Stock Exchange: “Market conditions remain challenging and the group's financial performance for the first half of the year is expected to be below the equivalent period in the prior year.

“Whilst we expect an improvement in second half performance, supported by higher home completions, growth in our committed development pipeline, further I&L lettings and the completion of land sales delayed from the first half, transaction volumes are anticipated to remain subdued for the remainder of the year.

“As a result, the board now expects profit before tax for the year ending 31 December 2026 to be significantly below current market expectations.”

The company was previously expected to post a pre-tax profit of around £20.4m for the year.

During the first half of the year, the firm’s Hallam Land arm sold 556 plots, down from 1,222 a year prior. The company said it expects a further 465 sales in the second half of the year, a slight improvement on last year’s figure of 410.

Hallam Land said this came after a number of home builders changed their land strategy in a move that saw them slow their acquisition activity.

The firm said this had resulted in delays to transactions and an increased use of deferred payment terms.

Hallam Land said that given current market dynamics, it expects 2026 plot sales to be “materially below” the prior year.

Henry Boot also announced that its Stonebridge Homes housebuilding segment is now expected to make an operating loss during 2026.

The firm said this came after higher mortgage rates impacted demand, resulting in site extension costs, while higher energy prices also contributed to build cost inflation of around five per cent.

The company added that delays in securing detailed planning consents had also continued to impact new outlet openings.

Stonebridge completed 72 homes in the first half of the year, down from 85 a year prior, with the firm expecting to build a total of 185 homes in the full year, a slight increase on 2025.

Henry Boot,s HBD arm, which is focussed on industrial and logistics solutions, said it had continued to experience “good occupier demand” for its developments during the period.

The company said that while rental growth had “remained positive” the value of its wholly owned investment portfolio had “decreased modestly” in the period, reflecting some outward yield shift on certain assets.

In July HBD commenced work on the first phase of Golden Valley, a £95m GDV innovation centre forward funded by Cheltenham Borough Council.

Henry Boot added that its Banner Plant arm was also “trading in line with management's expectations”.

The wider group is expected to announce its interim results for the six months ended 30 June 2026 on 22 September.

The company added in its statement: “The group remains focused on cash generation and disciplined cost control; however, the board will not prioritise short-term performance at the expense of future returns.”