Henry Boot: Yorkshire firm completes sale of construction arm
Yorkshire-based Henry Boot has announced that it has now formally completed the sale of its construction division.
In an announcement to the London Stock Exchange, the firm said it had completed the sale of Henry Boot Construction to PWS Construction Limited, a company based in Pontefract and formed by a number of Henry Boot’s former directors.
It comes after Henry Boot announced in late September that it had agreed on the sale for an initial consideration of £4m.
Henry Boot said at the time that it had undertaken the deal to focus on land and property development.
In a statement issued in September, Tim Roberts, CEO at Henry Boot, said: "The sale of Henry Boot Construction which we are announcing today allows Henry Boot to further its strategic focus on high quality land, prime property development and premium homes.
“It also enhances prospects for long term growth with a more focussed portfolio of activities with greater synergies.
“While Henry Boot Construction’s contribution to the group is relatively small, it is a well established business with a strong track record of delivery and an excellent management team and we wish them well for the future."
The company said in September that under its new ownership, Henry Boot Construction would be known as HBC Construction Group.
Henry Boot said that the transaction wwould also offer the new firm’s management “greater autonomy” to diversify and expand its order book than would be possible if the business remained within the group.
Further explaining the move, Henry Boot’s statement in September added: “Henry Boot Construction is not part of the group's medium term growth strategy and has made only a small contribution to group profits.
“Therefore, the group believes that its prospects for long term growth will be enhanced by a portfolio of activities concentrated on high quality projects with greater synergies.
“The transaction will also simplify the group's structure and investment case.
Last month, Henry Boot announced a number of organisational changes made in a bid to “support future growth”.
The firm announced the promotion of Steven Stacey to the newly created role of chief operating officer, while Stonebridge Homes managing director, Steve Errington, announced he would be stepping down.
Jaimie Read, who joined Henry Boot in 2017, was also promoted to the role of company secretary.
Speaking on the changes, Mr Roberts said: "This restructuring represents a significant step in positioning the group for future growth, building on the strength of Henry Boot's long term foundations and track record.”