Strong construction activity contributes to 55% increase in group revenue but property devaluations hit pre-tax profit
Henry Boot, the property development and construction plant hire firm, has announced a 59% fall in profit in its end-of-year results.
Pre-tax profit fell to 拢19.3m from 拢46.5m in 2007, although trading profits increased 53% to 拢44m, compared with 拢28.8m in 2007. Revaluations took 拢19.6m off pre-tax profit, 拢14.9m of this from the revaluation of a shopping centre at Ayr.
Revenue for the group rose 55% to 拢193.7m from 拢124.8m in 2007, as a result of large land transactions and strong activity in the construction division.
Gearing reduced by one-third to 26%, with net debt of 拢49.3m at the year end. This compares with gearing of 39% and net debt of 拢70.9m a year earlier.
Chairman John Reis said he was pleased with the results given the difficult market conditions, but noted the firm's investment property portfolio had seen falling values throughout the year because of the downturn.
He said: 鈥淕iven the very difficult market conditions that have arisen in the UK property market during 2008, I am pleased to report a further set of solid results, with the exception of our investment property portfolio where we have seen falling values throughout the year.鈥�
鈥淥ur broad mix of businesses and prudently geared balance sheet, allied to a cautious strategy, gives the board confidence that we will manage the next phase of the cycle successfully and deliver growing value to shareholders once again.鈥�
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