Respect Integrity Loyalty Annual General Meeting Delivery Adaptability 30 June 2020 Collaboration Annual General Meeting 24 th May 2018
Strong position for the future • Henry Boot remains in a relatively strong position. • We have an agile plan to respond to COVID-19. • 2019 was a good year with strategic progress made. • Early signs of recovery. • The Group is a long-term business in three key sustainable markets: • Residential • Industrial and logistics • Urban development Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
Our Plan to COVID-19 is agile and responsive Our response has been driven by three main priorities: Safety and Welfare • The office network remains closed with most people working effectively remotely. • Planning to open two offices to employees unable to work from home by early July with strict precautions. Our Operations • All Group sites and plant sale centres are now open – activity increasing gradually. • Furloughed a minority of employees in April – bringing back teams as activity increases. • Hallam Land and HBD work remotely - although at a reduced capacity. Financial Stability • Robust balance sheet - at 29 June net cash position of £45m. • The Group has reduced discretionary expenditure and revised departmental budgets. Including: • 50% reduction of all employees’ 2019 bonuses and a 20% reduction in Board salary and fees • A reduction in full year dividend to 5.0p Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
Operational Highlights 2019 - Another Strong Year • Strategic land portfolio of 14,898 acres , 14,713 units permissioned, 10,665 units in planning process. • Completed £407m GDV, 99% sold or let, and committed to another £315m, 100% pre-sold or pre-let. • Development pipeline of £1.3bn – 70% in industrial and logistics. • Our jointly owned house builder, Stonebridge Homes achieved 159 sales. • Henry Boot Construction had a good year, with profits ahead of expectations and securing 88% of work for 2020. • Banner Plant competed competitively and Road Link (A69) performed in line with expectations. 4 % 4 % £1.3 bn 13.9 % £15 m 10 % 14,898 3,427 Gross Development Value Average ROCE 159 Strategic Strategic (GDV) Pipeline 12% - 15% target construction Number of plots Land Acres Land Plots contract size won sold by Sold Stonebridge Homes Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
Financial Highlights Revenue Earnings Per Share 2019 2019 £379.7m 28.3p 2018 2018 £397.1m 28.3p 2017 2017 £408.5m 32.1p • Revenue remains strong at £379.7m. 2016 2016 £306.8m 21.5p 2015 2015 • Profit before tax at £49.1m reflects another good year. £176.2m 17.5p Profit before tax NAV Per Share 2019 • Full year dividend of 5.0p, being 56% of the 9.0p paid for 2019 239p £49.1m FY2018, recommended final dividend of 1.3p. 2018 2018 227p £48.6m 2017 2017 • Earnings per share provide 5.6x dividend cover. 203p £55.4m 2016 2016 177p £39.5m 2015 2015 • 5% growth in NAV per share. 168p £32.4m Full Year Dividend Per Share 5 Year Net Cash/(Net Debt) • Net cash £27.0m, nil gearing, at year end. As at June 29 2019 2019 5.0p £27m net cash is £45m. 2018 2018 9.0p (£18.4)m 2017 2017 8.0p (£29.0)m 2016 2016 7.0p (£32.9)m 2015 2015 6.1p (£38.9)m Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
Land Promotion • A very good 2019 with 22 deals completed and 3,427 plots sold in the period. • Strategic land holdings under 15,000 acres. • Continue to work from home effectively. • Planning is still progressing, albeit at a reduced capacity. • Activity in the land market: • Land sales completed • Option agreements entered into • Bids received on land • Continuing to acquire new schemes to replenish land bank. Board approval granted for 30 new sites in the year, over 9,000 plots and 800 net acres. Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
Property Investment & Development • Completed £407m GDV (1.15m sq ft) across six schemes – 99% of space pre-sold, pre-let or under offer. • Remain active on £315m (inc JVs) committed schemes – all of which pre-sold or pre-let. • Marginal effects on productivity, all 12 live development sites open, including sites with infrastructure works. • Largest scheme 533 unit PRS Kampus scheme, Manchester which has been pre-sold, set to complete early 2021. • Strong pipeline c £1.3bn GDV with c70% in industrial or logistics space, rest dominated by urban office and residential development. • Stonebridge has all housing sites open and we have 55 reservations secured to date, within budgeted sale pricing. • Successfully sold £67m of primarily retail investments. Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
Construction • All sites and depot sale centres are now active. • 88% of 2020 construction activity secured 20% secured for 2021. • We have seen an increase on construction productivity since resuming and are now on site at 85% of planned activity. • Banner Plant’s recent weekly sales have been at 80% of that achieved in 2019. • Road Link A69 has continued to perform as expected. • Bias towards public sector work concentrating on health, education, urban regeneration and affordable housing. Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
Summary • Strong position to deal with the disruption caused by COVID-19. • Almost 15,000 acres of land leaves us well positioned to convert plots through the planning system. • Development pipeline of c £1.3bn with 70% in manufacturing and logistics, the rest in urban office and residential. • Stonebridge has potential to grow into multi-regional premium house builder with land bank of 1,023 units. • Construction business has 88% order book for 2020, with potential to grow public sector work. • Focused on sustainable markets: residential, industrial and logistics, and urban development. Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
Thank You • Thank you to all the team at Henry Boot and the Board for their hard work in 2019. • Farewell and special thanks to John Sutcliffe, who left the Board at the end of May having spent 14 years on the Board. Henry Boot PLC Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration Annual General Meeting – 30 June 2020
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