Henry Boot CEO eyes expansion after doubling profits

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Henry Boot’s main enforcement says the contractor is connected people to scope successful excess of £50m successful pre-tax profits successful the coming years arsenic it plans to grow its improvement business.

Pre-tax profits doubled to £35.1m for the twelvemonth to end-December 2021, up from £17.1m successful the erstwhile twelvemonth connected the backmost of £230.6m successful revenues (compared with £222.4m successful 2020).

The steadfast attributed this maturation to beardown residential onshore sales, municipality developments and logistics projects.

Speaking to Construction News, Henry Boot main enforcement Tim Roberts said the institution had weathered the COVID-19 tempest and placed itself successful a beardown position.

He said: “We’ve got ambitions to turn the concern beyond the £50m nett earlier taxation level. To bash that we’re going to summation the superior employed, truthful we volition go a bigger business.

“We deliberation we volition clasp our margins truthful our returns connected superior employed volition beryllium maintained. Obviously, arsenic we get bigger, we should marque much profit. That’s our ambition and it is casual to accidental that we deliberation we’ll bash it, but harder to do.”

Henry Boot’s operation limb performed “ahead of expectations”, according to the firm’s results. Posting revenues of £81.6m, of which 68 per cent was drawn from public-sector contracts, the contractor stated that the operation part had already secured much than 100 per cent of its 2022 people bid publication and won places connected 11 frameworks.

Recent completed schemes see the £89m Glass Works successful Barnsley. Work is besides nether mode astatine the £42m Heart of City and the £38.9m Build-to-Rent schemes successful Sheffield.

Recent wins see a £80m residential strategy successful York for the improvement limb of Clarion Housing Group, arsenic good arsenic places connected the DfE’s £7bn framework.

Henry Boot’s results pointed to a fig of areas wherever it tin people investment. The steadfast has 1 of the largest onshore banks successful the country, with 92,667 plots available, up from 88,070 successful 2020. Of those, 12,865 person gained readying consent.

The land-management arm, called Hallam Land, sold conscionable implicit 3,000 plots to housebuilders successful 2021, with an mean nett of £7,820 per plot.

Roberts said helium aimed to summation the fig of developments that the operation part would instrumentality up from its ain plans. However, Henry Boot Developments is expecting to proceed to enactment with different contractors.

He added: “There are synergies wrong the businesses, truthful [Henry Boot] Developments tin usage Henry Boot Construction (HBC), but it can’t beryllium a request that they indispensable usage HBC. [Henry Boot] Developments tin besides provender disconnected Hallam Land.

“I’m precise keen for the concern to enactment unneurotic successful 1 Henry Boot mode and carve retired synergies, and similar each businesses, we’re looking for efficiencies arsenic well.”