Developer increased revenue 74%, and enjoyed strong performance across all three divisions
Companies: Henry Boot PLC
Property developer Henry Boot published solid final results on Friday, reporting 22% pre-tax profit growth and a 15% rise in its full-year dividend after increased property activity boosted performance.
Thanks to strong performance across three divisions, the small-cap developer reported 74% revenue growth to £306m, 22% PBT growth to nearly £40m, and a £0.90p hike for its dividend to 7p.
The firm said there had been increased activity in the UK property market despite macroeconomic concerns relating to Brexit. It generated most of its revenue from its Property Investment & Development division, but Hallam Land, the land promotion business, also delivered well.
Commenting on the results, Chairman Jamie Boot said he was delighted that each of the three business segments had performed well and that Brexit hadn't impacted results:
"I am delighted to report a 22% increase in profit before tax to £39.5m for the year ended 31 December 2016. Each of our three business segments performed well, notwithstanding the macroeconomic concerns after the EU referendum result, and we have built a strong pipeline of schemes to be delivered over 2017-2019."
Whilst CEO John Sutcliffe added that he was very pleased with the results in his first business review since taking over in January 2016.
"Our strategy and the Company organisation remains unchanged, as do the key metrics by which we manage and monitor our business segments. 2017 has started well in all our businesses and we confidently look forward to a year of further progress."
Shares in Henry Boot were down marginally on Friday morning, trading at a p/e of 11 times. The company is forecasting a more modest 4.5% growth in revenue next year, with 8% EPS growth expected.
