Slide 1: Henry Boot PLC Full Year Results Presentation
Respect Integrity Loyalty Delivery Adaptability Collaboration Henry Boot PLC Full Year Results Presentation March 2018
Slide 2: Agenda
Agenda Respect Integrity Loyalty Delivery Adaptability Full Year Results Presentation March 2018 Collaboration Page Operational Highlights 1 Financial Review 2-9 Land Promotion 10-13 Property Investment and Development 14-16 Construction 17-18 Outlook 19 Appendices 20-26 The Henry Boot Way 27 Full Y
Slide 3: Operational Highlights
Operational Highlights 203p NAV per share 62 % Shareholder Return Reporting Highlights 14 2017 was another very successful year, with record results achieved. York Chocolate Factory scheme % 29 delivered in 18 months, ahead of the 3 year estimation. £333m Aberdeen scheme progressing well, estimated
Slide 4: Financial Highlights
Financial Five Year Data Turnover Trading Profit Highlights 2017 2017 £408.5m £59.8m 2016 2016 £306.8m £40.6m 2015 2015 £176.2m £32.4m 2014 2014 £147.2m £25.6m 2013 2013 £153.8m £20.3m Full Year Results 2017 Profit before tax EPS 2017 2017 Turnover exceeded £400m this year, 32.1p £55.4m which has mo
Slide 5: Financial Segmental Revenue
Financial 49 % Segmental Land promotion Revenue FY 2017 FY 2016 £76.2m £51.2m Segmental Revenue 3 Construction % Land Promotion revenues increased from higher FY 2017 FY 2016 number of plot disposals. £81.9m £79.4m 42 Delayed turnover in Construction offset by increased activity in plant hire follow
Slide 6: Financial Segmental PBT
Financial 234 % Segmental Property Investment and Development PBT FY 2016 £11.2m FY 2017 £26.2m 9 % Segmental PBT Property Investment and 31 Development returns increased Construction by Aberdeen, York and Markham Vale. % Construction returns lower Land Promotion due to delayed activity and overall
Slide 7: Financial Balance Sheet
Financial 2017 Full Year 2016 Full Year Balance (£m) (£m) Intangible assets 5.4 4.9 Property, Plant & Equipment 26.5 22.0 Investment properties 132.8 123.7 Investment in joint ventures 5.9 5.1 Sheet Trade and other receivables 2.9 5.6 Deferred tax assets 4.6 5.2 Fixed assets 178.0 166.5 Inventories
Slide 8: Financial Pensions
Financial Respect Integrity Pensions Loyalty Delivery Adaptability Collaboration Triennial valuation next due 1st January 2019. Recovery contributions reduced from £3.75m to £2.5m per annum in 2017. IAS 19 deficit £22.8m at 31/12/17- asset performance +9%. Discount rate 2.5% (31/12/17: 2.8%). Scheme
Slide 9: Financial Cash Generation
Financial £55.4m Cash £3.6m Pre Tax Profit Investment property £6.1m revaluation defecit Generation Depreciation, amortisation and impairment £1.3m Pension scheme Cash Generation credit Inventories increased as we further invested £6.5m Inventories £0.7m in our house building operations and property
Slide 10: Financial Movement in Net Debt
Financial £47.9m Movement Operating cash inflow £0.9m Net interest expense in Net Debt £8.6m Tax Movement in Net Debt £19.9m Net Capital Tax paid of £8.6m expenditure £2.7m Net Capital expenditure £19.9m Dividends £12.0m Acquisition of subsidiary Subsidiary acquisition £2.7m Resulting in net cash in
Slide 11: Financial 2018 Guidance
Financial Respect Integrity 2018 Loyalty Delivery Adaptability Collaboration Guidance Revenue – marginal increase on 2017 from continued high levels of property development and mix of land disposal sites. PBT – H1 weighting due to anticipated land disposals, subject to continuing house-builder perfo
Slide 12: Land Promotion
Land Respect Integrity Promotion Loyalty Delivery Adaptability Collaboration Profit £23m (2016: £17.7m), 15 deals completed and 2,169 units sold in period. Strategic Land Holdings increased to over 13,000 acres. Investment totalling circa £101m. Continue to be very busy in planning terms. Sites with
Slide 13: Inventory
Inventory Land Bank Land Promotion Owned Acres Agency/Optioned Acres Total Dec17 1,608 Dec17 11,665 13,273 Dec16 1,749 Dec16 10,139 11,888 Dec15 1,804 Dec15 9,257 11,061 Dec14 1,819 Dec14 8,166 9,985 Dec13 1,791 Dec13 7,932 9,733 Average cost per acre Owned £37k Agency/Optioned £4k Total £8k Plots O
Slide 14: Inventory
Inventory Land Promotion Company Land Interests (Acres) Region Acres South West 2,631 South East 1,688 South Midlands 3,514 North Midlands 2,981 North West 415 North East 752 Scotland 1,292 13,273 Company Land Ownership (Acres) Acres Agency 8,844 Optioned 2,821 Purchase 1,608 13,273 Full Year Result
Slide 15: Haverhill
Haverhill Land Promotion Current Sites Involved with the site since 2012 via a planning promotion agreement. Now in final discussions on the s106 agreement prior to permission being issued and the site is currently being marketed for sale to a developer. The site contains: 2,500 homes 2 primary scho
Slide 16: Property Investment & Development
Property £1bn Respect Integrity Investment & Loyalty Delivery Development Adaptability opportunity pipeline Collaboration Investment property portfolio of circa £130m, rent passing £8.2m. Also, circa 30 development sites with potential or in progress. We look to achieve developer’s return based on p
Slide 17: Project delivery
Project 2016 2017 2018 2019 2020 delivery Aberdeen £147m £190m Markham Vale £87m £25m Southend on Sea £5m £58m York Chocolate Factory £56m £4m Epsom £13m Contracted delivery of projects Thorne £5m Between 2016-2020 Chesterfield £3m Manchester £6m Manchester St. Ann's £11m Monmouth £2m Luton £34m Bel
Slide 18: Kampus
Kampus Current Property Investment & Development Schemes Henry Boot Developments, in partnership with local developer Capital & Centric. Construction on the £230m project commenced in mid 2017. Works will include the conversion of the historic Minto & Turner listed warehouse and the retention of the
Slide 19: Construction
Construction 4 % Construction 10% Division consists of Construction, 3 Plant Hire and Road Link (A69). External turnover up 3% at £81.9m. % Plant 48 % Trading profit stable at circa £10m. Workloads good but pricing very competitive at Construction. Road Link Segment has very low levels of capital em
Slide 20: Rudding Park Hotel Harrogate
Rudding Park Hotel Harrogate Construction Completed Schemes Henry Boot Construction delivered a £9m luxury state of the art spa facility. The project included the construction of a multi-level extension to the Grade 1 listed Rudding Park Hotel, situated within the historic Humphry Repton landscape.
Slide 21: Outlook Summary
Outlook Respect Integrity Summary Loyalty Delivery Adaptability Collaboration Continued higher capital allocation to land and property development. Strong development pipeline, especially industrials and distribution. Strategic land performing well with outline permission on over 40 sites working to
Slide 22: Appendices
Appendices Respect Integrity Loyalty Delivery Group structure – segment composition Adaptability Collaboration Group structure – Board of Directors Group structure – Senior Management Top 10 Institutional Shareholders as at 2nd March 2018 Five year track record of strong growth Henry Boot PLC share
Slide 23: Group Structure
Group Structure Segment Composition 2017 Henry Boot PLC, established over 130 years ago, is one of the UK’s leading and long-standing property investment and development, land promotion and construction companies. Based in Sheffield, with regional offices throughout the UK, the Group is comprised of
Slide 24: Group Structure – Board of Directors
Group (from left to right) Peter Mawson Senior Independent Non-executive Director & Chairman of the Nomination Committee Darren Littlewood Group Finance Director Joanne Lake Structure Non-executive Director, Deputy Chairman & Chairman of the Remuneration Committee Gerald Jennings Non-executive Direc
Slide 25: Group Structure – Senior Management
Group Structure Senior Management Land Property Construction Promotion Investment and Development Nick Duckworth David Anderson Darren Stubbs Simon Carr Giles Boot Trevor Walker Hallam Land Henry Boot Stonebridge Henry Boot Banner Road Link (A69) Management Limited Developments Limited Homes Limited
Slide 26: Top 10 Shareholders
Top 10 Shareholders Institutional Shareholders as at 2nd March 2018 8,963,419 2,795,735 Canaccord Genuity Group Inc Schroder Investment Management 5,277,270 2,687,398 Fidelity Management & Research Hargreaves Lansdown PLC 3,551,889 2,439,104 BlackRock Inc Dimensional Fund Advisor 3,298,412 2,184,649
Slide 27: Strong Growth: Five Year Track Record
Strong Dividends Per Ordinary Share Profit Before Tax 2013 5.1p 2013 £18.4m 2014 5.6p 2014 £28.3m 2015 6.1p 2015 £32.4m Growth 2016 7.0p 2016 £39.5m 2017 8.0p 2017 £55.4m Net Assets Net Debt 2013 £193.5m 2013 £36.1m Five Year Track Record 2014 £200.5m 2014 £36.4m 2013-2017 2015 £221.5m 2015 £38.9m 2
Slide 28: Share Price
Share 360 Price 340 320 Henry Boot PLC Share Price 300 vs Benchmark Indices 280 260 Henry Boot PLC FTSE 250 240 FTSE Small Cap 220 FTSE 100 FTSE All Shares 200 FTSE All Share/Construction & Materials – SEC 180 March April May June July August September October November December January February Marc
Slide 29: The Henry Boot Way
The Henry Our Values Respect Boot Way Integrity Loyalty Delivery Adaptability Collaboration Purpose, Vision and Values Henry Boot PLC, has been in business for over 130 years and our financial results and performance have always been, and will continue to be, dependent on our people. We often use th
Slide 30: Forward looking statements
This presentation contains forward looking statements. Although the Group believes that the estimates and assumptions on which such statements are based are reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond the Group’s control. The Group does n