Slide 1: Full Year Results Presentation March 2019
Full Year Results Presentation March 2019
Slide 2: Agenda
Agenda Investment Proposition Page 1 Operational Highlights Page 2 Financial Review Page 3 Land Promotion Page 10 Property Investment Page 15 and Development Construction Page 18 Outlook Page 21 Appendices Page 22 The Henry Boot Way Page 30 Full Year Results Presentation March 2019 Respect | Integri
Slide 3: Investment Proposition
page 1 Investment Proposition Strong financial track record over the long term. Long established with an efficient capital structure. Robust Group structure through diversity of operations. Low gearing allowing opportunistic land and property acquisitions. Incremental shareholder dividends. Land por
Slide 4: Operational Highlights
Operational page 2 Highlights Final Dividend to 5.8p NAV 227p per share 2018 was another strong year. 24 land disposals for 3,573 plots. Strategic land portfolio of 14,325 12% 12% acres,16,489 units permissioned, 11,929 units in planning process. 3,573 GDV Pipeline Plot disposals £333m Aberdeen sche
Slide 5: Financial Highlights
page 3 Turnover Trading Profit Financial 2018 £397.1m 2018 £48.0m 2017 £408.5m 2017 £59.8m Highlights 2016 2015 £176.2m £306.8m 2016 2015 £32.4m £40.6m 2014 £147.2m 2014 £25.6m Profit Before Tax EPS 2018 £48.6m 2018 28.3p Turnover remains strong at £397.1m, supported by Aberdeen project. 2017 £55.4m
Slide 6: Financial Segmental Revenue
Financial page 4 Segmental Revenue 2 % Land Promotion Land Promotion revenues lower due to increased proportion of agency agreements. FY 2018 FY 2017 Higher activity levels in Construction as Barnsley £74.8m £76.2m town centre redevelopment gains momentum. 23 Additional works undertaken by Road Link
Slide 7: Financial Segmental PBT
Financial page 5 Segmental PBT Land Promotion returns 39 23 increased from disposing of 3,573 plots, up from 2,169 % % 8 in 2017, but at a lower blended gross profit per plot sold as more planning promotion sites sold. % Property Investment and Development Land Promotion Construction As expected, Pr
Slide 8: Financial Balance Sheet
Financial 2018 2017 page 6 Balance Sheet Full Year (£m) Full Year (£m) Intangible assets 5.1 5.4 Property, Plant and Equipment 26.2 26.5 Investment Properties 121.0 132.8 Investment in joint ventures 6.7 5.9 Trade and other receivables 11.9 2.9 Deferred tax assets 3.4 4.6 2018 2017 Fixed Assets 174.
Slide 9: Financial Pensions
page 7 Financial Pensions Triennial valuation commenced 1st January 2019. Recovery contributions currently £2.5m per annum. IAS 19 deficit £16.7m at 31/12/18, asset performance +1.3%. Discount rate 2.8% (31/12/17: 2.5%). Scheme break-even return now 3.8%. Long-term investment returns since 31/03/10
Slide 10: Cash Generation & Movement in Net Debt
Financial page 8 Cash Generation & Movement in Net Debt Operating Profit Depreciation, Amortisation and Inventories Impairment Non-cash adjustment for depreciation, amortisation of plant and Road Link investment £6.2m. Inventories increased as we paid overage due on owned land to be disposed of in f
Slide 11: Financial 2019 Guidance
page 9 Financial 2019 Guidance Revenue Construction Segment could be up circa 10% as Barnsley Phase 2 commences. Land As always, is a function of site mix, currently expected to be down 20% due to increased agency disposals. Property We could see a 30-40% decrease as Aberdeen concludes in August. Of
Slide 12: Land Promotion
page 10 Land Promotion Profit £28.5m (2017: £23.1m), 24 deals completed and 3,573 units sold in period. Strategic land holdings of over 14,325 acres Investment totalling circa £108m. Sites with planning permission for 16,489 units. Planning consent won over the year 1,533 (FY2017: 4,281). Planning s
Slide 13: Land Promotion Inventory
Land Promotion page 11 Inventory Gross profit of £133m from 10,221 plots over 5 years at an average of £13.0k per plot. Land Bank Owned Acres Agency/Optioned Acres Total Dec18 1,562 Dec18 12,763 14,325 Dec17 1,608 Dec17 11,665 13,273 Dec16 1,749 Dec16 10,139 11,888 Dec15 1,804 Dec15 9,257 11,061 Dec
Slide 14: Land Promotion Average Returns
Land Promotion page 12 Average Returns 2,792 Plots Sold Average Gross Profit Per Plot £000 30 1,500 27 25 1,025 23 1,186 1,144 18 1,000 19 19 800 15 16 15 963 15 13 781 570 537 500 11 9 8 9 8 423 7 7 0 0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Option/Agency Owned Option/Agency Owned Total
Slide 15: Land Promotion Inventory
Land Promotion page 13 Inventory December 2018 Year End Company Land Interests Company Land Control (Acres) (Acres) Region Acres Acres South West 2,797 Agency 10,117 South East 1,792 Optioned 2,646 South Midlands 3,907 Purchase 1,562 North Midlands 3,389 14,325 North West 387 North East 738 Scotland
Slide 16: Airfield Farm Market Harborough
Airfield Farm Market Harborough Land Promotion Current Site Hallam Land purchased the 56 hectacre site in 1999 and started working on the master plan in the early 2000s. After consulting the Local Development Framework, a planning application was submitted: Residential development, up to 924 dwellin
Slide 17: Property Investment & Development
page 15 Property Investment & Development Investment property portfolio of £120m following investment disposal of St. Ann’s, Manchester, rent passing £7.0m. Also, circa 30 development sites with potential or in progress. Target hurdle rate of 12%–15%. Lower returns when pre-let and pre-funded, highe
Slide 18: Project Delivery
Project page 16 5 Years Delivery 2017 2018 2019 2020 2021 Aberdeen (TECA) £278m £47m Markham Vale £46m £30m Southend-on-Sea £9m £30m Contracted Delivery of Projects York Chocolate Factory £26m £10m Between 2016–2020 Epsom £31m £7m Thorne £5m Heritage Delivered Chesterfield £3m Mixed use To deliver M
Slide 19: Butterfield Business Park Luton
Butterfield page17 Business Park Luton Property Investment and Development Current Site A joint venture partnership with a consortium of landowners was secured to deliver the next phase of development at Butterfield, Luton. 45 acres of employment land, which upon completion will deliver a further 65
Slide 20: Construction
Construction page 18 Division consists of Construction, Plant Hire and Road Link (A69). External turnover up 23% at £100.7m. 23 Trading profit slightly behind at £9.2m. Workloads good but taking longer to get on site at construction. Road Link margin down due to % design works for two roundabouts on
Slide 21: The Glass Works Phase 1
The Glass Works page 19 Phase 1 Construction Current Site In partnership with Barnsley Metropolitan Borough Council, The Glass Works Phase 1 is a £42m regeneration scheme. The redevelopment of the town centre will include new retail, leisure and market space, with the new Barnsley Markets, library,
Slide 22: Investing for the future
Investing page 20 for the future Strategic Land Property Construction New Site Board approvals Stonebridge Homes 2018 Workload Tendered Residential Land Portfolio £150m Commercial/Retail 2018 13,343 plots £53m 33% 2018 868 plots Custodial 2017 10,791 plots 12% 2017 880 plots 2016 6,940 plots £27m 20
Slide 23: Outlook Summary
page 21 Outlook Summary Continued higher capital allocation to land and property development. Strategic land performing well with outline permission on over 50 sites working towards disposal. Housebuilding market continues to be buoyant – good for land trading and Stonebridge Homes. Strong developme
Slide 24: Appendices
page 22 Appendices Group Structure – Segment Composition Group Structure – Board of Directors Group Structure – Senior Management Corporate Social Responsibility Shareholding as at 1st March 2019 Five-year Track Record of Strong Growth Henry Boot PLC Share Price vs Benchmark Indices The Henry Boot W
Slide 25: Group Structure
Group page 23 Structure 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 three segments.
Slide 26: Group Structure: Board of Directors
Group page 24 Structure (from left to right) Peter Mawson Jamie Boot Senior Independent Non-executive Director Chairman and Chairman of the Nomination Committee John Sutcliffe Darren Littlewood Chief Executive Officer Group Finance Director James Sykes Joanne Lake Non-executive Director and Non-exec
Slide 27: Group Structure: Senior Management
Group page 25 Structure Senior Management Land Property Construction Promotion Investment & Development Nick Duckworth Edward Hutchinson Darren Stubbs Simon Carr Giles Boot Trevor Walker Hallam Land Henry Boot Stonebridge Henry Boot Banner Road Link (A69) Management Limited Developments Limited Home
Slide 28: Corporate Social Responsibility
Corporate page 26 Social Responsibility People Community Health & Safety Environment Our people are vital to We continue to contribute Henry Boot PLC continues to We recognise that we have a the delivery of our strategic to the social and economic focus on health and safety as responsibility and an
Slide 29: Shareholders
Shareholders page 27 37.4m, 28% Main Institutional Shareholders 9.1m Canaccord Genuity Group Inc. 5.5m Fidelity Management & Research 4.2m Polar Capital Holdings 3.7m BlackRock Inc. 64.1m, 48% 3.4m Henry Boot Founding Family 133m shares in issue Standard Life Aberdeen (across 91 holdings) 2.8m Schro
Slide 30: Strong Growth: Five-year Track Record
Strong page 28 Growth Five-year Dividends Per Net Asset Value Ordinary Share Net Assets per Share ROCE Profit Before Tax Net Debt Turnover Track Record 2014 – 2018 2014 5.6p 2014 £200.5m 2014 152p 2014 11.4% 2014 £28.3m 2014 £36.4m 2014 £147.2m 2015 6.1p 2015 £221.5m 2015 168p 2015 12.2% 2015 £32.4m
Slide 31: Share Price vs Benchmark Indices
Share page 29 360 Price 350 Henry Boot PLC Share Price 340 vs Benchmark Indices 330 320 310 300 290 280 Henry Boot PLC 270 FTSE 250 260 FTSE Small Cap 250 FTSE 100 240 FTSE All Shares 230 FTSE All Share/Construction & Materials – SEC March April May June July August September October November Decemb
Slide 32: The Henry Boot Way
The Our Values Henry Boot Way Respect Integrity Purpose, Vision and Values n We treat everyone in n We operate with the the way they wish to utmost professionalism. Henry Boot PLC, has been in business for over 130 years and our financial results be treated. and performance have always been, and wil
Slide 33: 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