Henry Boot PLC (LSE:BOOT) reported a solid performance for 2025 despite a challenging operating backdrop, with profit before tax expected to come in broadly in line with market consensus, supported by exceptionally strong residential land activity.
The group’s Hallam Land division delivered a record year, selling 3,957 residential plots, comfortably ahead of its long-term target of 3,500 plots per annum. Planning success was also strong, with 4,159 plots securing consent during the year, reinforcing the quality and depth of the land pipeline. Net debt increased to £108m as a result of higher investment in land and planning activity, moving modestly above the group’s target gearing range of 10–20%.
Within the HBD development business, Henry Boot completed schemes with a total gross development value of £119m, of which the group’s share was £33m. Around 32% of these developments were pre-let or pre-sold, providing a degree of income visibility. The company also expanded its Origin joint venture, which now comprises three schemes totalling 449,000 square feet, further strengthening its development platform.
Operational progress was complemented by several significant planning milestones, including advancement at Golden Valley and new consents at Duxford and FREEPORT 36. In contrast, the Stonebridge Homes housebuilding arm completed 185 homes, below expectations, although it continued to invest for the future by expanding its land bank to 2,572 plots.
Looking ahead, Henry Boot struck a more cautious tone, warning that profit before tax in 2026 is expected to be “significantly below current market expectations”. Management cited subdued transaction activity, broader macroeconomic uncertainty, a lower forward sales position and the expiry of the profitable Road Link contract in March as key headwinds.
Chief executive Tim Roberts said that while near-term market conditions remain soft, the fundamentals across the group’s core markets remain attractive. He added that Henry Boot is well positioned to capitalise on opportunities embedded within its portfolio, supported by a strong balance sheet and a disciplined approach to capital allocation.
More about Henry Boot PLC
Henry Boot PLC is a UK-based property and construction group operating across three core segments: land promotion through Hallam Land, property development via HBD, and housebuilding under the Stonebridge Homes brand. The group focuses on long-term value creation through disciplined land investment, development expertise and selective exposure to residential, commercial and industrial property markets across the UK.
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