Slide 1: Investor Presentation September 2016
Cohesive Consistent Confident “As we progress and evolve our key objective remains consistent… to maximise shareholder value in the long term” Henry Boot PLC Investor Presentation September 2016
Slide 2: 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
Slide 3: Key messages
Key messages Strong first half, forecast upgraded in June before EU vote reiterated. £333m Aberdeen scheme unconditional and on site. PBT EPS No deal lost after EU vote. All progressing as 49% to 53% to anticipated. £20.8m 11.9p GDV of development schemes in pipeline over £700m. Strate
Slide 4: Financial Highlights
Financial Highlights Turnover higher as we sold land at Half Year Marston Moretaine in advance of our September forecast. 2016 2015 2014 2013 Profitability in the period significantly ahead as Marston Moretaine was Turnover £107.3m £79.2m £65.8m £81.8m disposed of in two lots over 2016/17 rather
Slide 5: Henry Boot PLC – Funding of Assets
Henry Boot PLC – Funding of Assets 2016 2015 Half Year Full Year Change £’000 £’000 £’000 Investment properties 105,303 110,579 (5,276) Development sites 72,471 53,739 18,732 Strategic land 111,688 106,819 4,869 Road Link investment 5,551 5,757 (206) Plant 15,381 13,005 2,376 310,394 310,394 289,899
Slide 6: Land Development
Land Development Land Bank Henry Boot PLC’s strategic land Jun 16 acres Dec 15 acres Dec 14 acres Dec 13 acres business. Acquires land through outright purchase, option or as Total 11,416 11,061 9,985 9,723 agent (10-20% interest). Owned 1,740 1,804 1,819 1,791 Operating nationwide through seven o
Slide 7: Land Development
Land Development Turnover £30.0m (2015: £21.6m), PBT & Interest £13.4m (2015: £6.9m). 741 units sold in period. Six deals completed in the period. Largest Marston Moretaine circa £7m gross profit. Continue to be very busy in planning terms. Sites with planning permission now over 15,000 units,
Slide 8: Property Investment and Development
Property Investment and Development Holds investment property of circa £105m, rent passing £6.0m. Also, over 20 development sites in progress or at due diligence phase. GDV over £700m with 10% return. We look to achieve a developer’s return based on prudent appraisal yields, pre-lets and conserv
Slide 9: Construction
Construction Division consists of Construction, Plant Hire and Road Link (A69). Divisional turnover £40m (2015: £52m). Trading profit £4.9m (2015: £4.9m). Workloads are good but pricing competitive at Construction, expect activity to catch up in second half, profit will be in line with 2015. C
Slide 10: Pensions
Pensions Triennial valuation due 1 January 2016 now agreed. Company contributing £2.5m (previously £3.7m) per annum in recovery contributions. IAS 19 deficit £25m (31 December 2015: £20m) after the discount rate increased by 80bps – low interest rates after Brexit. Scheme break even return now
Slide 11: Outlook
Outlook Land Development Property Construction Investment and Development Post Brexit housing market so far No deals lost post Brexit vote – ongoing Outlook steady, pricing tight but stable. unchanged. discussions maintained. 50% 2017 work already secured. House builders financially strong
Slide 12: Outlook
Outlook Group Land Development Continue high capital allocation to land and developments. Looking to de risk 2017-2019 profit forecasts via forward land sales matching house builder requirements. Longer term developments pre-sold. Therefore, profits spread across future years. Aberdeen 2016-20
Slide 13: Top Institutional Shareholders as at August 2016
Top 10 Institutional Shareholders as at 4 August 2016 Shareholding Hargreave Hale Ltd Stockbrokers 8,452,751 Standard Life 5,939,312 Miton Group plc 4,030,694 Fidelity Management & Research 3,900,000 BlackRock Inc 3,418,337 Schroder Investment Management 2,784,182 Legal & General Group 2,621,947 Dim
Slide 14: Henry Boot PLC vs Benchmark Indices
Henry Boot PLC vs Benchmark Indices Investor Presentation September 2016 12
Slide 15: Group Structure – Board of Directors
Board of Group Structure – Board of Directors Directors Jamie Boot Chairman John Sutcliffe Chief Executive Officer Joanne Lake Darren Littlewood Non-executive Director, Deputy Group Finance Director Chairman & Chairman of the Remuneration Committee James Sykes Peter Mawson Non-executive Director & S
Slide 16: Group Structure – Senior Management
Board of Group Structure – Senior Management Directors Property Land Investment and Construction Development Development Hallam Land Henry Boot Henry Boot Management Developments Construction Limited Limited Limited Nick Duckworth David Anderson Simon Carr Stonebridge Banner Plant Projects Limited L
Slide 17: Biddenham, Bedfordshire
Land Development Biddenham, Bedfordshire HLM had an interest in this jointly owned site of approximately 180 acres since the late 1990s. In March 2014 we secured an outline planning permission for 700 plots, 500 plots on land owned by Hallam. The site was put to market in June 2014 and a sale ha
Slide 18: Marston Moretaine
Land Development Marston Moretaine Site acquired 2007/8 with 50% overage back to landowner. Initial phase sold three years ago. Re planned initial industrial consent to housing. Sold in June 2016 in two parts (second 2017). Profit circa £15m across the two years. Investor Presentation Septem
Slide 19: Cranbrook, Devon
Land Development Cranbrook, Devon HLM secured its interest in this shared site in 1999 and after much preparation work, the development is well underway. Currently we have planning permission for 3,500 homes. 1,150 properties now occupied, floor slabs laid for a further 350 plots. Cranbrook Se
Slide 20: Bridgwater, Somerset
Land Development Bridgwater, Somerset Wm Morrison Supermarkets plc Regional Distribution and 2,000 homes. House sales have gone well, expect further land sales through to 2020. Commercial use likely to be delivered by Henry Boot Developments. Site at bottom of photo possible Hinkley Point ke
Slide 21: Markham Vale, Derbyshire
Property Investment and Development Markham Vale, Derbyshire 200 acre business park, in partnership with Derbyshire County Council, to create 5,000 sustainable new jobs. The East Midlands most active development site. 490,000 sq ft distribution warehouse pre-let to Great Bear Distribution Limi
Slide 22: AECC, Aberdeen
Property Investment and Development AECC, Aberdeen Appointed in 2014. Full planning in place for 130 acre site and 50 acre redevelopment site of former AECC. Funding agreements signed with Aberdeen. Construction agreements signed and on site. Completion 2019. 400,000 sq ft business park
Slide 23: The Chocolate Works, York
Property Investment and Development The Chocolate Works, York Acquired the 27 acre site, in 2013. Planning consent which secures a variety of uses across the site. David Wilson Homes purchased 13.5 acres with plans for a 270 unit high quality residential scheme. JV exchanged with P J Livesey
Slide 24: Headingley, Leeds
Property Investment and Development Headingley, Leeds Our jointly owned house builder, Stonebridge Projects, has purchased this historic site of 5.97 acres in a popular area of North Leeds. We have recently achieved planning permission for 101 new homes to be built with works starting August 2015.
Slide 25: Fox Valley, Stocksbridge
Construction Fox Valley, Stocksbridge A new development to transform a 15 acre former industrial site. The scheme will create retail, leisure and office space and 114 houses which our JV, Stonebridge Projects, will develop. Sales now in progress and going well. The first phase of the developme