Henry Boot PLC · LSE:BOOT
Henry Boot — Investor Presentation (March 2009)
19 slides from Henry Boot's investor presentation, March 2009
Slide 1: Investor Presentation March 2009
Investor Presentation March 2009
Slide 2: Financial Highlights
Financial Highlights Full Year 2008 2007 COMPARATIVE YEARS Turnover increased due to sale of Milton Turnover £193.7m £124.8m Keynes and increased construction activity. Trading profits up 53% to £44m – Milton Trading Profit £44.0m £28.8m Keynes and other land deals. Revaluation (£22.4m) £18.1m
Slide 3: Hallam Land
Hallam Land Hallam Land Management acquires interests in land (primarily greenfield) and promotes that land through the planning process to obtain residential planning consents. The interest in land it acquires may be through outright purchase, option or as agent (8-20% interest). Operates nationw
Slide 4: Key Events in the Period
Key Events in the Period Encouraging Regional Spatial Strategy Report at Exeter (7,500 units) and Swindon (12,000 units). Supports long term land holdings. Kilmarnock – 90 acres allocated in local plan for 650 homes, 20 acres industrial and a district retail centre. Planning applications submi
Slide 5: Henry Boot Developments
Henry Boot Developments Henry Boot Developments identifies and promotes commercial opportunities throughout the country. We look to achieve a developer’s return based on prudent appraisal yields. However, in the current market acquisition is probably better than development. Commercial property
Slide 6: Key Events in the Period
Key Events in the Period PROPERTY INVESTMENT/DEVELOPMENT Two small properties disposed of, plus land sales at Priory Park circa £2.2m and Asda site in South Shields total circa £15.6m. Two sites acquired. Longwell Green, Bristol, for 25,000 sq.ft of small unit offices and 7.5 acres for industria
Slide 7: Henry Boot Construction Division
Henry Boot Construction Division Division consists of Construction, Plant Hire and Road Link A69. Divisional turnover increased 27% to £97.6m. Profit increased 28% to £9.4m. Turnover increased largely in construction. Profit better in Construction and Road Link. Similar in Plant Hire. Decent
Slide 8: Outlook
Outlook LAND Housebuilders’ land banks have doubled as new house completions halve. As consented land becomes available, we anticipate that making sales will be difficult. Prices are falling and so is demand. Smaller sites are more acceptable to the market. We only expect to add selectively to
Slide 9: Opportunities
Opportunities Land portfolio – 7,140 acres - well located – long term shortfall in housing being built – nationwide presence still creating lots of opportunities despite difficult market in the short term. Take the opportunity to improve planning position of sites. Development portfolio – broadl
Slide 10: Challenges
Challenges Credit crunch impacting on demand for housing and development. Housebuilders’ land banks doubled. Demand for and value of land falling in the short term. Valuation of property seems very low, therefore, only selling when prices fair. Not reached the bottom yet. Key profit drivers ar
Slide 11: Strategy – Long Term
Strategy – Long Term To continue to invest in land acquisition and promotion, replenishing our strategic land bank of in excess of 7,140 acres. To grow the development portfolio but only on prudent appraisals and pre-let position, retaining those which provide the best opportunity for longer ter
Slide 12: Strategy - Tactical
Strategy - Tactical Aim to manage gearing to 0–20%. But – Don’t panic sell at unrealistic long term prices. Only develop where pre-lets exceed 75% and return on cost exceeds completion yield. If not, warehouse and wait. Focus on lettings/voids and rental growth/returns. Take low cost land op
Slide 13: Profit & Loss
Profit & Loss £’000 £’000 £’000 £’000 £’000 £’000 2008 2007 2006 2005 2004 2003 Operating Profit Net Profit 43.9 46.5 40.7 Turnover 193,679 124,782 142,284 101,188 84,247 105,921 37.4 30.1 29.9 28.8 25.5 Operating Profit 43,989 28,819 37,481 25,569 16,825 14,062 19.2 16.8 15.8 14.0 Revaluations (22,
Slide 14: Balance Sheet
Balance Sheet As at £’000 £’000 £’000 £’000 £’000 £’000 31 December 2008 2008 2007 2006 2005 2004 2003 Ave Return on Capital % 30 Cash (Debt) (49,278) (70,932) (15,898) (20,058) 10,172 (5,026) 28 26 22 Land 53,908 75,401 50,317 38,157 22,991 19,978 13 10 Property 230,418 233,173 164,044 148,518 120,
Slide 15: Henry Boot vs FTSE Real Estate
Henry Boot vs FTSE Real Estate 16/3/09 110 100 90 80 70 60 50 40 30 20 M A M J J A S O N D J F M BOOT (H EN R Y) FTSE ALL SH AR E R EAL ESTATE £ - PR IC E IN D EX Sour c e: Thoms on D atas tr eam
Slide 16: Henry Boot vs FTSE Construction & Materials
Henry Boot vs FTSE Construction & Materials 16/3/09 110 100 90 80 70 60 50 40 30 20 M A M J J A S O N D J F M BOOT (H EN R Y) FTSE ALL SH AR E C ON & MAT £ - PR IC E IN D EX Sourc e: Thoms on D atas tr eam
Slide 17: Top 10 Beneficial Shareholders as at 20.02.09
Top 10 Beneficial Shareholders as at 20.02.09 FMR Corp/Fidelity 11,447,342 Hermes Focus Asset Management 9,331,720 JP Morgan Asset Management 7,038,787 Moore Street Securities Limited (ESOP & Pension Scheme combined) 3,871,007 NCL Smith & Williamson Investments 2,540,025 Hermes Pensions
Slide 18: Henry Boot – An Overview
Henry Boot – An Overview Henry Boot PLC Jamie Boot (MD) John Sutcliffe (FD Co Sec) Doug Greaves (Property) New Land Property Construction Plant Hire Property Management Management Investment Hallam Land Henry Boot Henry Boot Banner Plant Henry Boot Developments Construction Estates Bob Brown David A
Slide 19: Disclaimer
Disclaimer Important Notice This presentation has been compiled by Henry Boot PLC (“the Company”) for information purposes only and it is not advice upon which it is intended that recipients should rely in deciding whether or not to invest in the Company. It is provided solely for use by recipient