Slide 1: Interim Results Presentation August 2018
Our Values Respect Integrity Loyalty Delivery Adaptability Collaboration Henry Boot PLC Interim Results Presentation August 2018
Slide 2: Agenda
Agenda Respect Integrity Loyalty Delivery Adaptability Interim Results Presentation Collaboration August 2018 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 Interim
Slide 3: Operational Highlights
Operational 217p Highlights 14 % NAV per share £1bn Interim Dividend Reporting Highlights to 3.2p Strong start to 2018 with land sales advanced from H2 2018. Twelve land disposals for 1,904 plots. GDV Pipeline 98 Strategic land portfolio now over 14,000 acres,17,061 units permissioned, 9,179 units i
Slide 4: Financial Highlights
Financial Five–year Data Turnover Trading Profit 2018 2018 £196.2m £24.8m Highlights 2017 2017 £195.4m £24.6m 2016 2016 £107.3m £21.6m 2015 2015 £79.2m £11.8m 2014 2014 £65.8m £11.9m Interim Results 2018 Profit Before Tax EPS 2018 2018 £26.2m 15.7p Turnover stable at £196m, supported by 2017 2017 Ab
Slide 5: Financial Segmental Revenue
Financial 11 % Segmental Land Promotion Revenue HY 2018 HY 2017 £35.7m £40.2m Segmental Revenue 15 Construction % Land Promotion revenues lower due to optioned land acquired HY 2018 HY 2017 and sold in previous year. £48.9m £42.6m 1 Higher activity in plant coming through from depot acquisitions mad
Slide 6: Financial Segmental PBT
Financial 21 % Property Investment Segmental and Development PBT HY 2017 £10.9m HY 2018 £8.6m 16 % Segmental PBT 89 % Land Promotion returns Construction increased from disposing of 1,904 plots, up from 960 in 2017, but at a Land Promotion lower blended gross profit per plot sold. Property Investmen
Slide 7: Financial Balance Sheet
Financial 2018 Half Year 2017 Full Year Balance (£m) (£m) Intangible assets 5.4 5.4 Property, Plant and Equipment 27.5 26.5 Investment Properties 131.8 132.8 Investment in joint ventures 6.4 5.9 Sheet Trade and other receivables 9.1 2.9 Deferred tax assets 3.8 4.6 Fixed Assets 184.0 178.0 Inventorie
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 £17.0m at 30/06/18, asset performance +1.3%. Discount rate 2.7% (31/12/17: 2.5%). Sche
Slide 9: Financial Cash Generation
Financial £26.2m Cash £0.6m Pre-tax Profit Investment Property £3.0m Revaluation Surplus Generation Depreciation, Amortisation and Impairment £0.7m Pension Scheme Cash Generation Credit Non-cash adjustment for depreciation and £1.6m Inventories £0.5m amortisation of plant and Road Link investment Sh
Slide 10: Financial Movement in Net Debt
Financial £17.4m Movement Operating Cash Inflow £0.6m Net Interest Expense in Net Debt £5.6m Tax Movement in Net Debt £0.6m net interest expense reflects low interest rates and very prudent gearing. £0.2m Net Capital Expenditure Tax paid of £5.6m. Net Capital Expenditure £0.2m. Dividends £7.9m. Resu
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. H2 land disposals unlikely to be as strong as H1 and subject to continuing house-builder perfor
Slide 12: Land Promotion
Land Respect Integrity Promotion Loyalty Delivery Adaptability Collaboration Profit £15.5m (2017: £8.2m), twelve deals completed and 1,904 units sold in period. Strategic Land Holdings increased to over 14,000 acres. Investment totalling circa £105m. Continue to be very busy in planning terms. Sites
Slide 13: Inventory
Inventory Land Bank Land Promotion Owned Acres Agency/Optioned Acres Total Jun18 1,595 Jun18 12,420 14,015 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 Average cost per acre Owned £38k Agency/Optioned £4k Total £8k Plots
Slide 14: Average Land Promotion Returns
Average Land Promotion Returns Plots Sold 1,500 1,438 1,186 1,144 1,025 1,000 934 963 800 570 537 500 423 466 243 0 2013 2014 2015 2016 2017 2018 TD Option/Agency Owned Average Gross Profit Per Plot £000 30 27 25 23 20 18 20 19 15 16 15 15 13 13 11 11 9 8 9 8 7 5 0 2013 2014 2015 2016 2017 2018 TD I
Slide 15: Faversham
Faversham Land Promotion Current Sites 30 hectares of agricultural land sandwiched between the A2 and M2 south of Faversham, secured by Hallam Land in January 2013 under a Planning Promotion Agreement. A resolution to grant planning permission was secured from Planning Committee in January 2017 subj
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 £7.6m. 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 Aberdeen 2016 2017 5 Years 2018 2019 2020 Delivery £236m £113m Markham Vale £92m £21m Southend-on-Sea £7m £56m York Chocolate Factory £56m £11m Epsom £23m £18m Contracted Delivery of Projects Thorne £7m Between 2016–2020 Chesterfield £3m Manchester, Invicta £6m Manchester St. Ann’s £11m Monm
Slide 18: International Advanced Manufacturing Park
International Advanced Manufacturing Park Property Investment and Development Current Sites Henry Boot Developments has secured planning permission for the first phase of the £400m International Advanced Manufacturing Park (IAMP) in Sunderland. This first phase, known as IAMP ONE, covers 150 acres a
Slide 19: Construction
Construction 2 % Construction 10% Division consists of Construction, 15 Plant Hire and Road Link (A69). External turnover up 15% at £48.9m. % Plant 36 % Trading profit slightly behind at £4m. Workloads good but taking longer to get on site at construction. Road Link Road Link margin down due to desi
Slide 20: Sheffield Olympic Legacy Park
Sheffield Olympic Legacy Park Construction Completed Schemes The project has improved access to the Park's facilities for the local community, creating an area available for use by the public, as well as schools and local teams. The infrastructure works included a total of 10,000m of paving, 7,000m
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, to be delivered over the next 5 years and beyond. Strategic land performing well w
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 3rd August 2018 Five-year Track Record of Strong Growth Henry Boot PLC Share
Slide 23: Group Structure: Segment Composition
Group Structure Segment Composition 2018 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 and Chairman of the Nomination Committee Darren Littlewood Group Finance Director Joanne Lake Structure Non-executive Director, Deputy Chairman and Chairman of the Remuneration Committee Gerald Jennings Non-executive D
Slide 25: Group Structure: Senior Management
Group Structure Senior Management Land Property Construction Promotion Investment & 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 C
Slide 26: Top Institutional Shareholders
Top 10 Shareholders Institutional Shareholders as at 3rd August 2018 8,811,508 2,503,089 Canaccord Genuity Group Inc Dimensional Fund Advisor 5,155,841 2,240,511 Fidelity Management & Research Hargreaves Lansdown PLC 4,122,957 2,112,293 Polar Capital Holdings Legal & General Group 2,784,182 2,075,00
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 vs Benchmark Indices
Share 350 Price 340 330 320 Henry Boot PLC Share Price vs Benchmark Indices 310 300 Henry Boot PLC 290 FTSE 250 280 FTSE Small Cap FTSE 100 270 FTSE All Shares 260 FTSE All Share/Construction & Materials – SEC 250 August September October November December January February March April May June July
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