Slide 1: Investor Presentation
Investor Presentation Presented by Jamie Boot Group Managing Director John Sutcliffe Group Finance Director March 2014 0
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 • A good year that finished strongly, several deals completed in December (previously anticipated in PBT EPS early 2014). • UK economic recovery well established. 37% to £18.4m 23% to 8.6p • House builder activity growing strongly - benefits our strategic land business. Dividend NAV
Slide 4: Financial Highlights
Financial Highlights 2013 2012 • Higher development site and land sales increased turnover. Turnover £153.8m £103.1m • Trading profit higher due to HLM profit of £11m (2012: £2m). Trading Profit £20.3m £11.8m • Revaluation loss made, no tax benefit until capital losses position recovered. Revaluatio
Slide 5: Henry Boot PLC - Funding of Assets
Henry Boot PLC - Funding of Assets 2013 2012 Change £’000 £’000 £’000 Investment properties 107,813 104,604 3,209 Development sites 48,977 47,880 1,097 Strategic land 83,903 78,260 5,643 Road Link investment 7,994 9,152 (1,158) Plant 10,079 9,303 776 258,766 258,766 249,199 249,199 9,567 Receivables
Slide 6: Land Development
Land Development Land Bank • Henry Boot PLC’s strategic land Dec 13 - acres Dec 12 – acres Dec 11 - acres business. Total 9,723 9,011 8,051 Owned 1,791 1,765 1,432 • The interest in land it acquires may Agency/Optioned 7,932 7,246 6,619 be through outright purchase, option or as agent (10-20% intere
Slide 7: Land Development progress
• Nine deals completed in the year. Profit £11.1m (2012: £2m) • Continue to be very busy in planning terms. Sites with planning permission for over 9,000 units. • Planning consent won at 16 sites for over 4,000 units in 2013 (2012: 14 sites, 3,500 units). • Detailed planning submitted and in progres
Slide 8: Property Investment and Development
Property Investment and Development • Holds investment property of £108m, rent passing £7.5m. Also circa 15 development sites with potential, valued at £49m. • We look to achieve a developer’s return based on prudent appraisal yields, pre-lets and conservative construction costs. Hurdle rate of retu
Slide 9: Property Investment and Development activity
• Completed lorry park extension at M20, Motorway Service Area, in Kent, this park is working at full capacity and looking to expand further. • Acquired, let and sold 25,000 sq ft of offices in Bromley. • Completion of Manchester and Drive-thru McDonalds at Markham. Huddersfield WIP at end 2013, wil
Slide 10: Construction
Construction • Division consists of Construction, Plant Hire and Road Link A69. • Divisional turnover as last year at £80m. Trading profit 2013 £9m (2012: £8.6m). Workloads are better but pricing very competitive at Construction. • Construction activity £60m (2012: £63m). Mainstay frameworks central
Slide 11: Outlook: Land Development
Outlook LAND DEVELOPMENT • Options and land available and we continue to be buyers. • Competition and pricing for sites is increasing again, especially in the south and south east. Land pricing good in south but gets weaker further north. • Planning costs are increasing as complexity grows. Planners
Slide 12: Outlook: Property Investment and Development
Outlook PROPERTY INVESTMENT AND DEVELOPMENT • Yields stable overall, strong at prime level, potential for regional values to improve. Rents beginning to rise. • Foodstores, budget hotels and prime industrial continue to be where we see best development pricing, residential values improving. • Foodst
Slide 13: Outlook: Construction
Outlook CONSTRUCTION • Solid order book for 2014, activity expected to be slightly ahead of 2013. • Central funding for all programmes under pressure. However, repair work/smaller contracts coming through e.g. Amey (Sheffield roads), continued success in Decent Homes. • Stocksbridge regeneration con
Slide 14: Outlook: Group
Outlook GROUP • Continued higher capital allocation to land and property development. • Highest level of planning activity for many years. Applications on circa 50 sites either in progress or proposed. Stock of permissioned units and land bank at record high. • Red tape and bureaucracy stifle deals
Slide 15: Top Institutional Shareholders as at 7.3.14
Top 10 Institutional Shareholders as at 7.3.14 • Fidelity 8,469,781 • Standard Life 7,131,253 • Schroder Investment Management 4,450,230 • Allianz Global Investors Europe (UK) 3,004,065 • Legal & General Investment Management 2,977,117 • Hermes Pensions Management 2,665,882 • Moore Street Securities
Slide 16: Henry Boot vs benchmark indices – Previous 12 months
Henry Boot vs benchmark indices – Previous 12 months Investor Presentation March 2014 15
Slide 17: Group Structure 2014
Group Structure 2014 John Brown Property Non-executive Chairman Land Construction and Chair of Nomination Investment and Development Plant Committee Development Jamie Boot Group Managing Director Henry Boot Hallam Land Henry Boot Developments Management Construction Limited Limited Limited David And
Slide 18: Markham Vale / Derbyshire
Markham ValeMarkham / Derbyshire Vale / Derbyshire RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS 200 acre business 200 acre park, business park, in partnership in partnership with Derbyshire County Council, to create with Derbyshire 5,000County sustainable Council, tonew createjobs 5,000 sust
Slide 19: The Axis / Nottinghamshire
The Axis / Nottinghamshire The Axis / Nottinghamshire RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS 220,000 sq ft220,000 townsq ft town centre centre redevelopment scheme redevelopment scheme Property Week Midlands Awards 2007 Mixed-Use Property Week Midlands AwardsDevelopment 2007 Mixed-Use
Slide 20: The Courthouse, Deansgate – Mixed Use Development / Manchester
The Courthouse, Deansgate – Mixed Use The Courthouse, Deansgate - Mixed Use Development / Manchester Development / Manchester RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS 35,000 sq ft Grade II listed building 35,000 sq ft Grade II listed building Prime city centre location 2 x units let to H
Slide 21: The Pennine Property Partnership / Huddersfield
The Pennine TheProperty Partnership Pennine Property Partnership / / Huddersfield Huddersfield RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS An innovative joint venture company set up in An innovative joint venture company partnership with Calderdale & Huddersfield NHS Trust set to uprealise
Slide 22: The Chocolate Works / York
The Chocolate WorksWorks The Chocolate / York / York RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS Acquisition of a 27 acre site, formerly Terry’s Acquisition of a 27 acre site, formerly Chocolate Factory Terry’s Chocolate Factory The site includes distinctive and iconic listed buildings tota
Slide 23: Daventry Town Centre / Northamptonshire
Daventry TownDaventry Centre Town/ Northamptonshire Centre / Northamptonshire RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS Multi site Multi site town towncentre centre regeneration regenerationproject in project partnership with Daventry in partnership withDistrict DaventryCouncil District C
Slide 24: Meir Park - Recticel (UK) Ltd / Stoke on Trent
Meir Park - Recticel (UK)(UK) Meir Park - Recticel Ltd Ltd / / Stoke Stoke on Trenton Trent RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS 18 acre business park adjacent to A50 Highway 18 acre business park adjacent to A50 Highway Recticel (UK) Ltd 123,519 sq ft purpose built production Rectic
Slide 25: Thorne Park / Thorne
Thorne Park /Park Thorne Thorne / Thorne RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS Joint venture with the Royal Bank of Scotland Redevelopment Joint venture with the of 23 acres of Royal land located Bank of at Junction 6 of the M18 Scotland Planning consent gained for 45,000 sq ft of foo
Slide 26: Spire Walk / Chesterfield
Spire Walk / Chesterfield Spire Walk /Spire Chesterfield Walk / Chesterfield RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS Joint Venture with Lloyds Bank Joint Venture with Lloyds Bank 6 acre gateway site to Chesterfield Terms agreed for a new car showroom 6 acre gateway site and to Chesterfi
Slide 27: Wyvern Park / Skipton
Wyvern ParkWyvern / Skipton Park / Skipton RETAIL COMMERCIAL MIXED USE DEVELOPMENT PARTNERSHIPS 50 acre mixed use development site 50 acre mixed-use development site acquired from HSBC acquired from HSBC Strategically located on the bypass south west of Skipton Strategically located on280,000 the by
Slide 28: Schemes currently in hand
Schemes currently in hand Blaby, Leicester Warton, Lancashire A minded to grant resolution was secured for 4,250 homes in the Hallam have two joint land interests in Warton, Fylde with another Spring 2013. We have a joint venture with two other developers developer which total some 78 acres split be
Slide 29: Schemes currently in hand
Schemes currently in hand Abingdon, Oxfordshire Edenthorpe, South Yorkshire Hallam took an interest in a 15 acre property at Drayton Road, Hallam have an option agreement on this site and is currently Abingdon in the summer of 2012, and submitted an application for promoting the greenfield site of 8
Slide 30: Schemes currently in hand
Schemes currently in hand Cranbrook, Devon Nuneaton, Warwickshire Hallam secured its interest in this shared site in 1999 and after An outline planning application has been approved on appeal on much preparation work, the development is well underway. our optioned site of over 35 acres with over 27
Slide 31: Schemes currently in hand
Schemes currently in hand Rothwell, West Yorkshire Haddington, East Lothian A site of 9 acres was acquired, with another site in Leeds at Oulton, A planning in principle application was approved on appeal on by Hallam and a development partner in December 2011. Hallam part of Hallam's optioned site.
Slide 32: Schemes currently in hand
Schemes currently in hand Stone, Staffordshire East Leake, Nottinghamshire A planning promotion agreement was agreed in partnership with A planning promotion agreement was completed in April 2012. Davidsons on this land in 2009. A planning application for 500 Planning permission was granted for 170
Slide 33: Schemes currently in hand
Schemes currently in hand Hailsham, East Sussex Kettering, Northamptonshire We have a planning promotion agreement on 43 acres of land. Hallam has a solely-owned site of 38 acres that forms part of the An outline planning application for 240 units, a network of green East Kettering Urban Extension a