Firm released improved interim results earlier this week
Henry Boot鈥檚 boss has said the firm is well-placed to ride out current economic turbulence, predicting resilience in the industrial market and land sales.
The Sheffield-based contractor and developer released its half-year results earlier this week, reporting 拢144.4m revenue for the six months to 30 June and profits approaching pre-covid levels.
Tim Roberts told 好色先生TV the effect of rising energy prices has mostly been felt in the firm鈥檚 construction business, with the cost of diesel escalating.
鈥淎lthough those cost increases are high, when you then take those cost increases and apply them to our cost base as a group [鈥 it鈥檚 not materially restricting the business,鈥� he said, saying Henry Boot was experiencing cost inflation of roughly 10% across the entire group.
The firm has managed price rises by fixing as much cost as it can, with 96% of the construction businesses order book for this year negotiated at fixed cost or with inflation clauses.
鈥淲e know when we fix our costs, that we鈥檙e fixing them at a rate where we will still make money,鈥� said Roberts.
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He said momentum was growing in the public sector, where Henry Boot gets the majority of its work.
Roberts said he expected strong sales of land to continue, with plots with planning in short supply that was attractive to national housebuilders.
He added that the industrial market had 鈥渄efinitely had a slowdown on the investment side鈥� but that occupier demand remained strong.
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