Henry Boot FY profits rise on housing market recovery

27th Mar 2014 09:31

Property developer and builder Henry Boot said a recovery in house-building and construction markets had helped it to boost annual profits.Boot said its recovery from the recession of 2008-2011 began in the second half of 2012 and continued more strongly through 2013.It said it had more sites with planning permission, to market into a strongly recovering housing market, than ever before at the start of 2014."We have more profitable development schemes to begin than at any stage over the last five years, including encouraging levels of activity in our nascent house building venture," the group said in results for the year to December 31st."Our construction division has a good order base for 2014 and into 2015 and, after its best year since 2005, we are confident that our plant hire business will have another good year in 2014."Boot's pre-tax profit rose 37% to £18.4m and trading profit increased 72% to £20.3m on a 49% rise in revenue to £153.8m.It proposed a final dividend of 3.15p against 2.9p in 2012, giving a total for the year of 5.1p against 4.7p a year ago, up 8.5%.The group said risks to the continued recovery included possible interest rate rises and higher debt costs, banks' willingness to lend to home-buyers, government cuts and planning policy upheavals.But Chairman John Brown said: "The new financial year has started well and house builders reporting so far in 2014 are painting an encouraging picture of increasing activity, good land availability and slowly rising prices."Add to that a stronger market for new property development and improving construction and plant activity levels and, provided these trends continue, we remain confident we can do well in 2014 and beyond."Shares rose 9.75p or 4.7% to 218p at 09:36 in London. PW