Slide 1: Interim Results Presentation August 2017
Cohesive Consistent Confident Henry Boot PLC Interim Results Presentation August 2017
Slide 2: Highlights
Highlights Strong first half, full year guidance upgraded 10% at AGM in May 2017. Good operational progress across the Group. PBT EPS York Chocolate factory scheme ahead of plan. Main factory block sales completed. 9% to 10% to £22.6m 13.1p £333m Aberdeen scheme progressing well. GDV of
Slide 3: Financial Highlights
Financial Highlights Half Year Turnover higher due to all business 2017 2016 2015 2014 activities, notably developments at York and Aberdeen. Turnover £195.4m £107.3m £79.2m £65.8m Profit ahead of 2016 and helped by York residential unit sales ahead of Trading Profit £24.6m £21.6m £11.8m £11.9m
Slide 4: Financials - Segmental Results
Financials - Segmental Results Segmental Revenue (£m) HY 2017 HY 2016 Variance Property Investment and Development 112.6 39.4 186% Property investment and Land promotion 40.2 30.0 34% development results boosted by Aberdeen, York and Markham Vale. Construction 42.6 37.9 12% Total 195.4 107.3 82%
Slide 5: Financials – Balance Sheet
Financials – Balance Sheet 2017 2016 2017 2016 Half year Full Year Half Year Full Year (£m) (£m) (£m) (£m) Intangible assets 5.4 4.9 Property, Plant & Equipment Property, Plant & Equipment 25.3 22.0 Group occupied (Investment) property 6.5 6.5 Investment properties 131.9 123.7 Equipment held for hir
Slide 6: Financials - Cash Generation
Financials - Cash Generation (£m) 21.4 (28.9) 2.0 (0.6) (0.4) (15.7) 3.0 22.6 3.4 Profit Depreciation, Investment Pension Share of property profit Inventories Payables Receivables Operating Cash before amortisation Scheme revaluation of joint Inflow tax and Credit impairment deficit ventures Inven
Slide 7: Financials – Movement in Net Debt
Financials – Movement in Net Debt (£m) 3.4 (0.4) (3.7) (29.2) (18.4) (29.2) (2.7) (7.2) Operating Net Tax Capital Acquisition Dividends Net Cash Cash Interest expenditure (net) of Outflow Inflow expense subsidiary Interim Results Presentation August 2017 6
Slide 8: Financials – 2017 Guidance
Financials – 2017 Guidance Revenue – increase on 2016 from continued high levels of property development. (York, Aberdeen). Previously upgraded outlook at the AGM 2017. Significant cash outflows in the period from new Investment property acquisitions (Nottingham and Manchester). Successful p
Slide 9: Financials - Pensions
Financials - Pensions Triennial valuation at 1 January 2016 settled, deficit £20m. Recovery contributions reduced from £3.75m to £2.5m per annum. IAS 19 deficit £27.6m at 30.6.17 = 17p of NAV – half year asset performance +4%. Discount rate 2.6% (31.12.16: 2.8%). Scheme breakeven return now 3.
Slide 10: Land Promotion - 2017
Land Promotion - 2017 Profit £8.2m (2016: £12.9m), eight deals completed and 960 units sold in period. Strategic land holdings increased to over 12,000 acres. Investment totalling circa £107m. Continue to be very busy in planning terms. Sites with planning permission for nearly 18,000 units.
Slide 11: Land Promotion - Inventory
Land Promotion - Inventory Land Bank Jun 17 Dec 16 Dec 15 Dec 14 Dec 13 acres acres acres acres acres Owned 1,766 1,749 1,804 1,819 1,791 Agency/Optioned 10,365 10,139 9,257 8,166 7,932 Total 12,131 11,888 11,061 9,985 9,732 Investment in Land Holdings Jun 17 Dec 16 Dec 15 Dec 14 Dec 13 Per Per Per
Slide 12: Land Promotion – Current Sites
Land Promotion – Current Sites Biddenham, Bedfordshire Hallam has 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. Site put to market in June 2014
Slide 13: Land Promotion – Current Sites
Land Promotion – Current Sites Bridgwater, Somerset Wm Morrison Supermarkets plc Regional Distribution and 2,000 homes. House sales gone well, expect further land sales through to 2020. 130 plots sold to national developer in January 2017 for circa £1.8m profit. Commercial use likely to be d
Slide 14: Property Investment and Development – 2017
Property Investment and Development – 2017 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 prudent appraisal yields, pre-lets and conservative construction costs. Targ
Slide 15: Property Investment and Development – Current Schemes
Property Investment and Development – Current Schemes 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
Slide 16: Property Investment and Development – Current Schemes
Property Investment and Development – Current Schemes 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 exchange
Slide 17: Construction
Construction Construction - 2016 - 2017 Division consists of Construction, Plant Hire and Road Link (A69). External turnover up 12% at £42.6m. Trading profit stable at circa £4.9m. Workloads good but pricing very competitive at Construction. Segment has very low levels of capital employed, hel
Slide 18: Construction – Completed Schemes
Construction – Completed Schemes Fox Valley, Stocksbridge A new development to transform 15 acre former industrial site. The scheme has created retail, leisure and office space and will deliver 114 houses through our JV, Stonebridge Projects. Sales now in progress and going well. The scheme ha
Slide 19: Outlook Summary
Outlook Summary Continued higher capital allocation to land and property development. Strong development pipeline, strategic land performing well, construction segment stable. Group Group currently trading more actively than ever, but mindful of continued global political and economic uncertai
Slide 20: Appendices
Appendices Group structure – segment composition Group structure – Board of Directors Group structure – Senior Management Top 10 Institutional Shareholders as at 4 August 2017 Five year track record of strong growth Henry Boot PLC share price vs Benchmark Indices Interim Results Presenta
Slide 21: Group Structure – Segment Composition
Group Structure – Segment Composition 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 th
Slide 22: Group Structure – Board of Directors
Group Board of Structure Directors – Board of 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 23: Group Structure – Senior Management
Group Board of Structure Directors – Senior Management Land Property Construction Promotion Investment and Development Hallam Land Henry Boot Henry Boot Stonebridge Banner Plant Road Link (A69) Management Developments Construction Projects Limited Limited Limited Limited Limited Limited Darren Stubb
Slide 24: Top 10 Institutional Shareholders as at 4 August 2017
Top 10 Institutional Shareholders as at 4 August 2017 Shareholding Hargreave Hale Ltd Stockbrokers 8,862,328 Fidelity Management & Research 5,005,800 BlackRock Investment Management 3,549,296 Schroder Investment Management 2,796,355 Ennismore Fund Management 2,717,365 Dimensional Fund Advisors 2,397
Slide 25: Five Year Track Record of Strong Growth
Five Year Track Record of Strong Growth Turnover (£m) 50 Profit Before Tax (£m) Dividends Per 400 39.5 Ordinary Share (p) 306.8 40 32.4 7.00 300 28.3 8.00 6.10 30 5.10 5.60 6.00 4.70 200 153.8 147.2 176.2 18.4 103.1 20 13.4 4.00 100 10 2.00 0 0.00 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Slide 26: Henry Boot PLC Share Price vs Benchmark Indices
Henry Boot PLC Share Price vs Benchmark Indices 320 300 280 260 240 220 200 180 160 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Henry Boot PLC FTSE 100 FTSE Small Cap FTSE 250 FTSE All-Share FTSE All-Share / Construction & Materials - SEC Interim Result
Slide 27: This presentation contains forward looking statements. Although the Group believes that the estimates and
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