Henry Boot sees annual profits ahead of hopes

22nd Aug 2014 08:41

Strong first-half trading and land sales have helped house-builder Henry Boot to predict forecast-topping annual profits.Boot said commercial development activity had hit its highest level since 2007 and it had well over 10,800 housing units with planning permission available for future sale.Revenue in the six months to 30 June fell to £65.8m from £81.8m a year ago as a £15m one-off sale of land at a former chocolate factory site in York a year earlier was not repeated.But operating profit climbed 79% to £14m following several land sales and combined development property sale profit and valuation gains of £2.1m, compared to a combined deficit of £300,000 in 2013. Pre-tax profit rose 81% to £13.4m.The group has several strategic land sites and development schemes progressing to completion in the next two years."This portfolio of "work in progress" is larger than at any time in the last five years and is the result of the acquisition of opportunities throughout the bottom of the property cycle. Now the market is recovering more strongly, this portfolio is expected to offer solid returns," it said.Earnings per share rose 106% to 7.4p and Boot increased its half-year dividend to 2.1p from 1.95p a year ago.Chairman John Brown said: "We currently anticipate trading profits including revaluation gains to exceed the board's initial expectations for the year."Shares rose 11.5p or 6.13% to 199p at 08.34 in London.PW