First-half results show 拢20m loss driven by property devalution, but construction revenue holds up
Henry Boot swung into the red in the first half of 2009, it revealed today in results for the six months ended 30 June, with a loss of 拢20.3m following a profit of 拢20.4m a year earlier.
The construction, development and plant hire firm posted a turnover down by 44% to 拢67.0m compared with 拢119.3m in the first half of 2008.
The loss was partly driven by a 拢23.6m revaluation deficit on investment properties. The firm also cited 鈥渟ubstantially reduced land sales鈥� but said this was offset by higher property trading income and a 鈥済ood contribution鈥� from the construction sector.
Construction revenue fell only slightly, from 拢51.1m to 拢49.8m, while income from the property division rose from 拢11.3m to 拢12.7m and land development revenue plunged from 拢57.8m to 拢1.6m compared with the first half of 2008. Group operating profit fell 88% from 拢30.2m to 拢3.7m.
Net debt rose slightly to 拢53.3m during the half year, up from 拢49.3m at 31 December 2008. However, a reduction in net debt of around 拢20m has been achieved since the half-year point.
John Reis, chairman of Henry Boot, said: "Looking ahead, our banking facilities have been put onto a three-year term and asset sales achieved after the period end have reduced net debt by some 拢20m.
鈥淚n the short term, we will maximise returns in this difficult market whilst carefully managing debt levels, cash flow and our net asset position. In the longer term, as economic recovery takes hold, Henry Boot has a good mix of property-related businesses, which are well funded and possess opportunities that are capable of generating excellent profits as conditions in our markets improve.鈥�
The net asset value per share fell to 129p, from 146p at the end of 2008, and the interim divident was maintained at 1.25p.
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