Revenues rise at Henry Boot

For the six months to June 30, revenue increased to £66.9m, up from £55.1m and pre-tax profit remained stable at £9.1m from £9m in the same period last year.

Trading profits rose 90 per cent from £5.8m to £11m.

Chairman John Brown said: “The house building sector has continued to trade at about the same level as over the last two years and indications are that over the next year activity will not increase substantially.

“We remain of the view that, as and when the recovery gathers momentum, our established portfolio of greenfield land sites will stand the company in good stead and we continue to actively grow our site portfolio.

“Whilst profitable property development remains a challenging business in the current environment, the stabilisation of market conditions, combined with the more realistic expectations of landowners and prospective occupiers, has resulted in development projects becoming more attractive.

“The group is well placed to progress the profitable development of existing projects and secure a flow of profitable new opportunities into the foreseeable future.”

The group said government spending cuts would have increase competition in the market and have an impact on the level of work available.

Mr Brown said: “We are still seeing opportunities within both the private and public sectors, although it is anticipated that margins will have to be competitive to win this type of work. The newly formed renewable energy operation is beginning to identify good opportunities and is starting to secure new work. We believe the foothold we have established in this expanding sector provides impetus for future growth.

The group said its portfolio of development opportunities has seen “significant progress” in the period, including its joint venture in Doncaster with Royal Bank of Scotland for the redevelopment of this 23 acre site on the edge of Thorne town centre for a 45,000 sq ft mixed-use scheme.

Its investment property in Rotherham, the 50,000 sq ft B&Q, has continued to trade well, while in York - an 18,000 sq ft former nightclub under its portfolio, which has been vacant for some time, is now the subject of an agreement for lease with an outdoor and camping equipment retailer and is expected to open in the autumn.

In Bradford, the development of a small neighbourhood store pre-let to Tesco has been completed and sold to a private investor.

Henry Boot said the initial planning phase of a development for around 50,000 sq ft of additional office and clinical accommodation in its joint venture with Calderdale & Huddersfield NHS Foundation Trust is also in progress and aims to start on site next year.