Slide 1: Full Year Results 2021
Full Year Results 2021 March 2022 Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration
Slide 2: Agenda
Agenda ■ Introduction and strategy01 Tim Roberts ■ Financial review08 Darren Littlewood ■ Operational review12 Tim Roberts/Darren Littlewood ■ Outlook25 Tim Roberts Tim Roberts Darren Littlewood Chief Executive Officer Group Finance Director Henry Boot PLC | 135 years in the making Our Values | Resp
Slide 3: Introduction and Strategy
Introduction and Strategy Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 1
Slide 4: Investment case
Investment case A long track record of generating attractive returns Net Asset Value per share 300p 250p Clear focus on three Low gearing, and 200p key markets driven track record of by positive long-term 150p effectively managing structural trends with balance sheet 100p clear approach to through c
Slide 5: Our strategy
Our strategy Focused on three long-term markets Long Term Industrial & Logistics Residential Urban Development Markets Value Delivery LAND PROPERTY INVESTMENT HOUSEBUILDING CONSTRUCTION PROMOTION & DEVELOPMENT Returns Grow capital employed to over £500m Responsible People Strategy + ESG Approach Hen
Slide 6: Strong operational performance
Strong operational performance ■ Sold 3,008 plots at an average gross profit of £7.8k per plot (2020: £6.5k gross profit per plot) OPERATING PROFIT LAND ■ Land bank increased by 5% to c.92,500 plots with c.60% SE/Midlands £17.5m PROMOTION ■ Contracts exchanged for sale of 1,880 plots for completion
Slide 7: Clear medium-term objectives set out in 2021
Clear medium-term objectives set out in 2021 Material progress towards targets Measure Medium-term target FY21 £376m with scope to exceed Capital employed £500m £400m in FY22 Return on average capital 10-15% pa 9.6% in FY21 employed Land Promotion plot sales c.3,500 pa 3,008 in FY 2021 £69m complete
Slide 8: Significant progress in 2021
Significant progress in 2021 £60m in acquisitions across the Group to drive growth by capturing customer demand Land Developments Asset Acquisitions Construction The Cocoa Works, Latimer by Clarion Housing Group© • Invested £24m in land • £25m invested in new • £11m of income • Won £89m urban both w
Slide 9: Responsible Business Strategy
Responsible Business Strategy Our strategy will embed ESG factors into our commercial decision making Our People Our Places Our Planet Our Partners Empowering our people Supporting our Reducing our impact Sharing knowledge and to work responsibly and communities and safeguarding the addressing key i
Slide 10: Financial Review
Financial Review Speaker Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 8
Slide 11: Financial highlights
Financial highlights Robust performance with increased activity levels across the Group ■ Revenue increased 3.7% as activity and transactions improved across all our operations 2021 2020 Change ■ Operating profit of £35.6m benefited from a £1.3m profit on disposal, £8.0m property revaluation Revenue
Slide 12: Balance sheet
Balance sheet Several strategic investments over the period 2021 2020 ■ NAV per share increased by 14% to 267p NAV per share 267p 235p ■ Gearing 12% within optimal range of 10-20% Gearing 12% nil ■ Capital employed increased 3% to £376m after utilising £10m to repay non-current borrowings Capital em
Slide 13: Cash generation and change in net cash/(debt)
Cash generation and change in net cash/(debt) Several strategic investments over the year £m 70 Investments (59.8) 5.1 (9.3) 60 (8.9) 50 35.6 (0.8) (4.3) 40 (8.4) 30 (10.7) 20 27.0 10 (36.0) 0 -10 Operations 9.0 -20 (7.3) (5.8) (43.5) -30 (19.5) -40 (0.2) -50 1 Jan 2021 Operating profit Depreciation
Slide 14: Operational Review
Operational Review Speakers Tim Roberts and Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 12
Slide 15: Land Promotion
Land Promotion UK greenfield land values increased by 8.8% in 2021 ■ 3,008 plots sold, including key disposals at Burton (950 plots) and Pagham (300 plots) TOTAL PLOTS IN PLOTS SOLD PORTFOLIO ■ Look to build upon the 1,880 plots exchanged for sale in ■ 2022/23 Total plots in portfolio 92,667 (Dec 20
Slide 16: Land Promotion
Land Promotion Growing one of the largest strategic land banks in the country, bringing forward c.14,000 much needed new homes, 30% of which are affordable Plots Sold Average Gross Profit Per Plot £000 3,573 15 3,500 3,427 13 3,000 3,008 2,500 10 SCOTLAND 9 TOTAL PLOTS 2,169 2,000 8 10,170 2,000 8 7
Slide 17: Land Promotion
Land Promotion Key sites with near-term disposal prospects 1. Eastern Green, Coventry ■ 2,400 plots held under PPA ■ Secured a resolution to grant for outline planning permission in 2021 ■ Land sales expected from H2 2022 1 2. Eastern Villages, Swindon ■ 1,000 plots held under option ■ Outline conse
Slide 18: Land Promotion: Burdiehouse, Edinburgh
Land Promotion Bringing forward 449 new homes in Burdiehouse, Edinburgh What is it ■ 75-acre site located on the edge of Edinburgh ■ Originally contracted under option in 2006, before purchasing freehold in 2012 How we have created value ■ Achieved planning consent over three phases: first phase sol
Slide 19: Property Investment & Development
Property Investment & Development Committed development pipeline provides strong platform for growth ■ HBD completed £303m GDV of developments (HBD share £69m) OPERATING HBD PIPELINE PROFIT GDV ■ Committed development pipeline grew to £352m (HBD ■ share £277m), 72% pre-let/pre-sold Developing Island
Slide 20: Committed pipeline
Committed pipeline GDV of current schemes £277m of which 72% has been pre-let or pre-sold Scheme Units Area '000 sq ft HBD Share GDV (£m) Expected Finish Industrial & Logistics Pool, MKM - 15 100% 4 H1 22 Luton, Diploma Nottingham, New Horizon - 426 100% 54 H2 23 ■ GDV £20m Wakefield Hub, Plot 6 - 2
Slide 21: 8m sq ft and over 2,000 units
8m sq ft and over 2,000 units 75% of pipeline focused on Industrial & Logistics Committed Consented Proposed Total Pipeline Big Box 0.3m sq ft 1.9m sq ft c.2.5m sq ft c.4.7m sq ft Ind & Logistics Mid/Small Box 0.6m sq ft 1.2m sq ft c.1.2m sq ft c.3.0m sq ft Ind & Logistics Consented Urban Controlled
Slide 22: Property Investment & Development
Property Investment & Development Over 1.5m sq ft in London and South East, areas of expected high demand for urban logistics development 1. Butterfield Business Park, Luton 1 ■ Partnership with Crown Estate 4. Tewin Road, Welwyn and Luton Council on 83-acre site ■ 3-acre site acquired in July 2021
Slide 23: Bringing Net Zero Carbon to Manchester
Property Investment & Development Bringing Net Zero Carbon to Manchester What is it ■ 0.32-acre site in Central Manchester owned in 50:50 partnership with Greater Manchester Pension Fund (GMPF) What are we doing ■ 91,000 sq ft next generation office development designed to embrace new hybrid model o
Slide 24: Stonebridge
Stonebridge Delivering high-quality homes ■ ointly owned premium housebuilder focused on J Yorkshire, with plans to expand in the North East ■ Average private selling price £509k ■ Achieved a strong sales rate of 120 units in 2021 ■ Price improvement 7% offsetting cost inflation at 6% ■ Plots with p
Slide 25: Construction
Construction Capturing the growth in UK construction output ■ Comprises Construction, Plant Hire and Road Link (A69) and accounts for just 2% of Group's capital employed OPERATING TURNOVER PROFIT ■ Construction traded in line with our expectations ■ Completion of £89m Glass Works leisure-led town ce
Slide 26: Construction: Retrofit of York landmark The Cocoa Works
Construction Retrofit of York landmark The Cocoa Works, Latimer by Clarion Housing Group© What is it ■ A £47m refurbishment of the historic Rowntree Factory in the centre of York, 64% of contract forward procured with supply chain with remainder covered by inflation clause ■ Featuring distinctive ho
Slide 27: Outlook
Outlook Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 25
Slide 28: Outlook
Outlook Strong start to the year and positive future prospects ■ Performed strongly in 2021, with profits ahead of our expectations ■ Strong order book and pre-sales ● Hallam 1,880 plots exchanged for 2022/23 ● HBD committed programme 72% pre-let/sold ● Stonebridge 77% of 2022 sales target secured ●
Slide 29: Well placed for the future
Well placed for the future Investing to support growth Property Land Promotion Development Housebuilding Construction & Investment Feilden Clegg Bradley Studios Multi-Regional Premium c.92,500 Strategic Land c.£1.1bn Development Strong Order Book With Housebuilder - land bank Plots Pipeline Public S
Slide 30: Appendices
Appendices ■ Group Structure – Segment Composition ■ Group Structure – Board of Directors ■ Group Structure – Business Segments and Executive Committee ■ Business Model ■ The Henry Boot Way ■ Statement of Financial Position ■ Investment Property ■ Movement in NAV per share ■ Pensions ■ Shareholding
Slide 31: Group structure
Group structure Henry Boot PLC, established over 135 Office years ago, is one of the UK’s leading Depot 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 segme
Slide 32: Board of Directors
Group structure Board of Directors Back row, left to right Tim Roberts Chief Executive Officer Amy Stanbridge General Counsel and Company Secretary Gerald Jennings Non-executive Director and Chairman of the Remuneration Committee Peter Mawson* Senior Independent Non-executive Director and Chairman o
Slide 33: Business Segments and Executive Committee
Group structure Business Segments Executive Committee Land Promotion Hallam Land Management Limited Nick Duckworth Jonathan Fisher Edward Hutchinson Tony Shaw Hallam Land Banner Plant Henry Boot Henry Boot Property Management Limited Limited Developments Limited (trading as Construction Limited Inve
Slide 34: Business model
Business model Track record of generating attractive returns Land Promotion Property Investment & Development Housebuilding SALE OF LAND SALE OF PROPERTY CONSTRUCTION Construction IDENTIFY OBTAIN PLANNING DEVELOPMENT INVESTMENT OPPORTUNITIES PERMISSION OF SITE PORTFOLIO AND ACQUIRE LAND Henry Boot P
Slide 35: The Henry Boot Way
The Henry Boot Way Purpose, Vision and Values Henry Boot PLC has been in business for over 135 years and our financial results and performance Our Values have always been, and will continue to be, dependent on our people. We often use the phrase ‘The Henry Boot Way’ to explain how we work and to des
Slide 36: Statement of Financial Position
Statement of Intangible assets Property, plant and equipment 3.7 26.3 4.3 23.8 Financial Position Right-of-use assets Investment properties 1.6 104.2 2.1 82.7 Investment in joint ventures and associates 12.2 5.8 Trade and other receivables 13.3 7.2 2021 2020 Deferred tax assets 3.4 7.3 Cash and cash
Slide 37: Investment property
Investment property Rent collection at 98% in 2021 with increased occupancy Dec 2021 Dec 2020 Montagu 406, Enfield ■ Small/Mid Box Valuation - inc. share of logistics £126m £92m JV's1 ■ 55,000 sq ft Number of properties 21 20 ■ HBD share 50% Total area –‘000 sq ft2 843 538 ■ Completed in 2021 % indu
Slide 38: Movement in NAV per share
Movement in NAV per share Growth in profit and unwind of actuarial loss on defined benefit pension scheme driving NAV growth 275p 270p +13.6% 265p 0.9p 260p 13.8p (0.3p) (3.4p) (5.7p) 255p 250p 26.7p 267p 245p 240p 235p 230p 235p 225p Pension scheme 1 Jan 2021 Operating profit Interest Tax Dividends
Slide 39: Pensions
Financial Pensions 130% 120% 110% 100% ■ Triennial valuation commenced 1 January 90% 2022 80% ■ Recovery contributions currently £3.45m 70% pa 60% Cumulative return ■ IAS 19 deficit £12.2m at 31 December 2021, 50% asset performance +7.9%. Discount rate 40% 2.0% (31 December 2020: 1.4%). Scheme 30% b
Slide 40: Shareholding as at February 2022
Shareholding as at 22 February 2022 28.6% 38.0m Main institutional shareholders 8.5m London & Amsterdam Trust Co/Rovida 5.1m Polar Capital 4.5m Unicorn Asset Management 3.7m abrdn 3.3m Artemis Investment Management 2.9m Schroder Investment Management 2.7m Dimensional Fund Advisors 46.1% 133m 2.5m Fi
Slide 41: Five-year Financial Results 2017-2021
Strong track record Five-year Financial Results 2017 – 2021 Dividends per Turnover Operating Profit Profit Before Tax Ordinary Share 2021 £230.6m 2021 £35.6m 2021 £35.1m 2021 6.05p 2020 £222.4m 2020 £17.5m 2020 £17.1m 2020 5.5p 2019 £379.7m 2019 £50.4m 2019 £49.1m 2019 5.0p 2018 £397.1m 2018 £50.0m
Slide 42: Share price vs Benchmark Indices
Share price Henry Boot PLC Share Price vs Benchmark Indices 330 320 310 300 290 280 270 260 Henry Boot FTSE All Share Real Estate 250 Investment & Services FTSE All Share 240 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 21 21 21 21 21 21 21 21 21 21 21 21 22 22 Henry Boot PLC | 135 years
Slide 43: 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