Slide 1: Henry Boot PLC Investor Presentation September 2015
Henry Boot PLC Investor Presentation September 2015
Slide 2: reasonable, they are inherently uncertain and involve a number of risks and uncertainties that
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 • Very satisfactory first half trading performance. • Election delayed completion of transactions during the period. Planning, in particular, was affected. • Activity levels have recovered since. Confidence quickly returned to markets. • Commercial development activity really strong. Mo
Slide 4: Henry Boot PLC – Financial Highlights
Henry Boot PLC – Financial Highlights HALF YEAR 2015 2014 2013 2012 • Turnover higher as we sold land at Exeter as owner. Turnover £79.2 £65.8 £81.8m £43.3m • Profitability in the period similar in all segments to 2014. Trading Profit £11.8m £11.9m £8.1m £3.9m • PBT: 4% higher at £14m. EPS: 7.8p ( 5
Slide 5: Land Development
Land Development Land Bank • Interest in land through purchase, June 15 acres Dec 14 acres Dec 13 acres Dec 12 acres option or as agent (10-20%) operating nationwide through Total 10,547 9,985 9,723 9,011 seven offices. Owned 1,810 1,819 1,791 1,765 Agency/Optioned 8,737 8,166 7,932 7,246 • Good sup
Slide 6: Land Development
Land Development KEY EVENTS IN THE PERIOD • Completed four land sales, 747 units. Gross profit £12k per plot on sales made. • Exchanged on two other sites for 2015 completion, on 30 June 2015. • In discussion on 11 other site sales with several close to agreed terms. A total of 2,000+ units. • Furth
Slide 7: Property Investment and Development
Property Investment and Development KEY EVENTS IN THE PERIOD • Industrial - Completed and agreed sale on 150,000 sq ft at Markham August £13m. Agreed development and pre-funding terms for 470,000 sq ft and very close to another 220,000 sq ft agreement. Thorne 130,000 sq ft grant assisted in progress
Slide 8: Construction
Construction KEY EVENTS IN THE PERIOD • Workloads are good. Pricing continues to be competitive. Activity in the period, £52m (2014: £45m). • No material contract issues as our contracts are smaller value (£1m-£5m typically) and short term. Prudent profit taken up to contract completion. Watching ra
Slide 9: Pensions
Pensions • Triennial valuation due 1 January 2016. Company currently contributing £3.7m per annum in recovery contributions. Aim will be to reduce this. • IAS 19 deficit reduced to £20m (31 December 2014: £28m) after the discount rate increased by 20bps – volatility high. • Scheme break even return
Slide 10: Outlook
Outlook LAND DEVELOPMENT • Buoyant end markets, house builders very profitable and cash generative. • Very strong interest in sites for sale in good locations. Sale process protracted. • Now 188 sites in hand, approximately 50% of which are either permissioned (12,500 units), in planning process (14
Slide 11: Outlook
Outlook GROUP • Continued high capital allocation to land and particularly property development (including residential development). • Pre-sale and funding arrangements in place for certain larger schemes. Interest in this type of arrangement very strong. • £60m facilities recently renewed. Introduc
Slide 12: Changes in Board Structure wef 31.12.15
Changes in Board Structure wef 31.12.15 We have also announced today: • John Brown and Mike Gunston to retire after nine years on the Board at 31 December 2015 • Jamie Boot – CEO for 30+ years to move to Non-executive Chairman • John Sutcliffe – GFD for nine years to move to CEO • Darren Littlewood
Slide 13: Appendices
Appendices • Top 10 Institutional Shareholders as at 7 August 2015 • Share price - benchmark indices graph covering the previous 12 months • Current Projects: • Henry Boot Developments • Stonebridge Homes • Hallam Land Management • Henry Boot Constructions 12
Slide 14: Top 10 Institutional Shareholders as at 7.8.15
Top 10 Institutional Shareholders as at 7.8.15 Shareholding • Standard Life 7,619,886 • Hargreave Hale Stockbrokers 5,130,000 • Fidelity Management & Research 4,036,900 • Miton Asset Management 3,057,018 • Legal & General Investment Management 2,573,652 • Schroder Investment Management 2,565,620 • A
Slide 15: Henry Boot vs benchmark indices - previous 12 months
Henry Boot vs benchmark indices - previous 12 months 250 240 230 220 210 200 190 180 170 160 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Henry Boot PLC FTSE 100 FTSE Small Cap FTSE 250 FTSE All-Share FTSE All-Share / Construction & Materials - SEC 14
Slide 16: Markham Vale, Derbyshire
Markham Vale, Derbyshire 200 acre business park, in partnership with Derbyshire County Council, to create 5,000 sustainable new jobs Direct access off the M1, Junction 29A The East Midlands most active development site Enterprise Zone status granted Industrial / Warehouse / Offices Sustainable devel
Slide 17: Meir Park – Recticel (UK) Ltd - Stoke on Trent
Meir Park – Recticel (UK) Ltd - Stoke on Trent 18 acre business park adjacent to A50 Highway Recticel (UK) Ltd 123,519 sq ft purpose built production and warehouse facility 64,067 sq ft production hall 56,059 sq ft warehouse 69,000 sq ft warehouse extension completed Regeared Lease to a new 20 year
Slide 18: The Pennine Property Partnership, Huddersfield
The Pennine Property Partnership, Huddersfield An innovative joint venture company set up in partnership with Calderdale & Huddersfield NHS Trust to realise the maximum value of surplus property assets and provide new accommodation for the Trust First phase comprises 56,000 sq ft of new clinical and
Slide 19: The Chocolate Works, York
The Chocolate Works, York Acquired the 27 acre site, formerly Terry’s Chocolate Factory, in 2013. The site includes distinctive and iconic listed buildings totalling 236,806 sq ft plus cleared development land Immediately adjacent to York Racecourse Planning consent which secures a variety of uses a
Slide 20: Paradise Road, Richmond Upon Thames
Paradise Road, Richmond Upon Thames Henry Boot Developments has secured planning permission for a 78 bed hotel on Paradise Road in the centre of Richmond upon Thames Construction of the 20,000 sq ft new build development is underway and is due to be completed in November 2015 with a pre-let in place
Slide 21: Livingston Town Centre, Scotland
Livingston Town Centre, Scotland We acquired this 6.8 acre site in Livingston Town Centre to undertake a leisure and retail development We are now in detailed negotiations with a number of occupiers and will be submitting an application for Planning Permission in early 2015 Our proposal for this sit
Slide 22: Aberdeen Exhibition and Conference Centre, Aberdeen
Aberdeen Exhibition and Conference Centre, Aberdeen Since being appointed at the beginning of 2014 we have developed our plans for the 130 acre site of the new Aberdeen Exhibition and Conference Centre at the Rowett Institute, Dyce, and the existing 50 acre AECC site at the Bridge of Don Masterplans
Slide 23: Townsend Way, Malvern
Townsend Way, Malvern This one acre site has excellent frontage on to Townsend Way a major through route and forms part of the very successful Enigma Business Park Whitbread Plc were attracted to the site due to its location and HBDL were able to secure a subject to planning pre-let agreement for a
Slide 24: Former Leeds Girls’ High School Headingley, North Leeds
Former Leeds Girls’ High School Headingley, North 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: Schemes currently in hand
Schemes currently in hand Biddenham, Bedfordshire Repton, Derbyshire Hallam have had an interest in this jointly owned site of A site of 14 acres which has been in Group ownership since the approximately 180 acres since the late 1990s. In March 2014 we 1970s. A planning application was submitted in
Slide 26: Schemes currently in hand
Schemes currently in hand Blaby, Leicester Cranbrook, Devon A minded to grant resolution was secured for 4,250 homes in Hallam secured its interest in this shared site in 1999 and after Spring 2013. We have a joint venture with two other developers much preparation work, the development is well unde
Slide 27: Schemes currently in hand
Schemes currently in hand Haddington, East Lothian Alton, Hampshire A planning in principle application was approved on appeal on part Hallam signed a planning promotion agreement for this site of 29 of Hallam's optioned site. The approved scheme is for 113 units acres in December 2013. A planning a
Slide 28: Construction Projects
Construction Projects Fox Valley, Stocksbridge, South Bifrangi UK Lincoln Yorkshire The award of the contract to Henry Boot Construction is part of Bifrangi’s major investment in their UK facilities, which A new development to transform a 15 acre former industrial site. manufactures and supplies cas