Construction division performing ahead of expectations
Developer Henry Boot鈥檚 construction arm has secured all its budgeted orders for 2012 in six months.
In a statement to the City, the firm reported that the construction business was 鈥渟lightly ahead of expectations鈥� and was now taking orders for 2013.
The division turned over 拢36.5m in the six months to 30 June 2012, down from 拢38.9m in the first half of 2011. But pre-tax profit rose from 拢3m to 拢3.8m over the period.
The firm said it expected construction activity to remain 鈥渟ubdued鈥� and margins would continue to be 鈥渢ight鈥�.
The group鈥檚 results also showed a drop in revenue from 拢66.8m in the first half of 2011 to 拢43.3m in the first six months of 2012.
Profit over the period also dropped from 拢9m to 拢5.8m.
John Brown, chair of Henry Boot, said the fall was mostly because the group had not concluded any major land sales and instead had invested heavily in the first half of 2012 adding 700 acres to its portfolio. 鈥淥ver the next year we are in a position to market several consented sites which, given the slightly improving outlook for the housing market, should see good demand,鈥� he said.
He added: 鈥淥ur balance sheet strength and ability to commit funding to land and property development without recourse to specific external funding, is resulting in a significant uplift in competitively priced opportunities arising. These sites will serve to increase our profit generation capability through the next few years but more so if markets improve more quickly than we currently anticipate.鈥�
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