Henry Boot PLC (LSE:BOOT) shares fell 5.1% after the property development and land promotion group warned that profit before tax for the year ending 31 December 2026 is expected to come in significantly below current market expectations, reflecting weaker trading conditions and reduced transaction activity across its core markets.
Land sales decline amid cautious market conditions
The company said its Hallam Land division completed the sale of 556 plots during the first half of 2026, compared with 1,222 plots in the same period last year. Management now expects total plot sales for the full year to be materially lower than the 3,957 plots achieved in 2025.
Henry Boot attributed the slowdown to reduced land acquisition activity by housebuilders, as ongoing political uncertainty in the UK and conflict in the Middle East have weakened confidence across the residential development market.
“Market conditions remain challenging and the group’s financial performance for the first half of the year is expected to be below the equivalent period in the prior year,” the company stated in its trading update.
Housebuilding division faces cost pressures
Stonebridge Homes completed 72 properties during the first six months of the year, down from 85 completions in the corresponding period of 2025. The business is now expected to record an operating loss for 2026, with profitability affected by the cost of extending site programmes due to slower sales and build cost inflation of around 5%, largely driven by higher energy prices.
The average sales rate also weakened, falling to 0.38 homes per outlet per week from 0.42 a year earlier.
Debt rises while commercial developments perform well
Net debt increased to £132.9 million at 30 June 2026, compared with £108.0 million at the end of 2025. During June, the company agreed amendments to its £155 million secured loan facility, revising interest cover covenant requirements for June and September 2026.
Despite the weaker residential market, Henry Boot reported continued strength within its HBD development business. Demand for industrial and logistics space remained robust, with 75% of the Origin joint venture developments now either let or under offer, compared with just 9% at the beginning of the year.
About Henry Boot
Henry Boot PLC is a UK property development and investment company with operations spanning land promotion, commercial property development, homebuilding and construction. Through businesses including Hallam Land, HBD and Stonebridge Homes, the group develops residential, industrial, logistics and mixed-use projects across the UK.
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