Slide 1: Full Year Results Presentation March 2017
Cohesive Consistent Confident “Our strategy and the Company organisation remains unchanged. 2017 has started well in all our businesses and we confidently look forward to a year of further progress.” Henry Boot PLC Full Year Results Presentation March 2017
Slide 2: Key Highlights
Key Highlights Operati Operational Financial Strong performance with profit and EPS growth of over PBT EPS 20%. 22% to 23% to House builders doing well and buying land to replenish £39.5m 21.5p land banks. Major Aberdeen contract progressing well – on time and on budget. A number of deal
Slide 3: Financials – Profit & Loss
Financials – Profit & Loss Full Year 2016 2015 Turnover £306.8m £176.2m Higher development activity increased sales to over £300m. York and Aberdeen. Trading Profit £40.6m £32.4m Revaluation (£1.8m) (£1.1m) Higher trading profits from developments, as above. Profit on sale of IP £0.6m £1.2m Re
Slide 4: Financials - Segmental Results
Financials - Segmental Results Segmental Revenue (£m) FY 2016 FY 2015 Variance Property Investment and Development 176.2 49.9 253.1% Land promotion 51.2 46.7 9.6% Construction 79.4 79.5 - Total 306.8 176.1 74.2% Segmental PBT (£m) FY 2016 FY 2015 Variance Property Investment and Development 11.2 3.5
Slide 5: Financials – Balance Sheet
Financials – Balance Sheet 2016 2015 2016 2015 (£m) (£m) (£m) (£m) Intangible assets (Road Link) 4.9 5.8 Property, Plant & Equipment Property, Plant & Equipment 22.0 21.0 Group occupied (Investment) property 6.5 6.9 Investment properties 123.7 125.3 Equipment held for hire 11.5 10.4 Investment in jo
Slide 6: Financials - Pensions
Financials - Pensions Triennial valuation at 1 January 2016 settled, deficit £20m. Recovery contributions reduced from £3.75m to £2.5m per annum. IAS 19 deficit at 31.12.16 = 16p of NAV – asset performance +11%. Discount rate 2.8%. Scheme breakeven return 4.05%. Long term investment returns
Slide 7: Financials - Cash Generation
Financials - Cash Generation (£m) 1.8 0.5 5.5 1.5 39.5 (2.1) (1.5) (7.7) 33.2 31,584 (4.3) Profit before Depreciation, Investment Share-based Pension Share of Inventories Receivables Payables Operating tax amortisation property payment scheme profit of joint Cash inflow and impairment revaluation ex
Slide 8: Financials - Movement in Net Debt
Financials - Movement in Net Debt (£m) 33.2 (1.0) (7.4) (8.1) (0.9) 6.1 (9.7) Operating Net Interest Tax Capital Purchase of Dividends Net cash cash inflow Expense Expenditure own shares (net) inflow (net) (net) Investor Presentation March 2017 8
Slide 9: Financials – 2017 Guidance
Financials – 2017 Guidance Revenue – marginal increase on 2016 from continued high levels of property development. PBT – even weighting due to apartment sales at York in H1 and land disposals in H2. Potential significant cash outflows from new Investment property acquisitions (Nottingham – Imp
Slide 10: Land Promotion - 2016
Land Promotion - 2016 Profit £17.7m (2015: £19.1m), nine deals completed in the year. Continue to be very busy in planning terms. Sites with planning permission for over 16,000 units (end Q1 2017 18,000). Planning consent won for 5,900 units in 2016 (2014: 2,200 units, 2015: 2,300 units). De
Slide 11: Land Promotion - Inventory
Land Promotion - Inventory Land Bank Dec 16 acres Dec 15 acres Dec 14 acres Dec 13 acres Henry Boot PLC’s strategic land business acquires land through Agency/Optioned 10,139 9,257 8,166 7,932 outright purchase, option or as Owned 1,749 1,804 1,819 1,791 agent (10-20% interest). Total 11,888 11,06
Slide 12: Land Promotion – current sites
Land Promotion – current sites Biddenham, Bedfordshire Hallam has had an interest in this jointly owned site of approximately 180 acres since the late 1990s. In March 2014 we secured an outline planning permission for 700 plots, 500 plots on land owned by Hallam. The site was put to market in Ju
Slide 13: Land Promotion – current sites
Land Promotion – current sites Bridgwater, Somerset Wm Morrison Supermarkets plc Regional Distribution and 2,000 homes. House sales have gone well, expect further land sales through to 2020. 130 plots sold to a national developer in January 2017 for circa £1.8m profit. Commercial use likely to
Slide 14: Land Promotion - Outlook
Outlook Land Promotion - Outlook Options and land available and we remain buyers. Competition and pricing for sites increasing again, especially in the south and south east. Land pricing still better in south, weaker further north. Site location crucial to value achieved. Planning costs are in
Slide 15: Property Investment and Development – 2016
Property Investment and Development – 2016 Holds investment property of circa £101m, rent passing £6.7m. Also, over 15-20 development sites with potential or in progress. We look to achieve developer’s return based on prudent appraisal yields, pre-lets and conservative construction costs. Target
Slide 16: Property Investment and Development – Current Schemes
Property Investment and Development – Current Schemes Markham Vale, Derbyshire 200 acre business park, in partnership with Derbyshire County Council, to create 5,000 sustainable new jobs. The East Midlands most active development site. 490,000 sq ft distribution warehouse pre-let to Great Bear
Slide 17: Property Investment and Development – Current Schemes
Property Investment and Development – Current Schemes The Chocolate Works, York Acquired the 27 acre site, in 2013. Planning consent which secures a variety of uses across the site. David Wilson Homes purchased 13.5 acres with plans for a 270 unit high quality residential scheme. JV exchange
Slide 18: Property Investment and Development - Outlook
Property Investment and Development - Outlook Largest ever value of schemes in progress over 2017-2020. 90% pre-sold, pre-let and pre-funded, therefore de-risked other than construction. Yields stable overall, strong at prime level, potential for regional values to improve slightly. Rents begi
Slide 19: Construction - 2016
Construction Construction - 2016 - 2016 Division consists of Construction, Plant Hire and Road Link (A69). External turnover flat at £79m. Trading profit circa £11.0m (2015: £9.9m). Workloads good but pricing very competitive at Construction. Segment has very low levels of capital employed, he
Slide 20: Construction – Current Schemes
Construction – Current Schemes Fox Valley, Stocksbridge A new development to transform 15 acre former industrial site. The scheme has created retail, leisure and office space and will deliver 114 houses through our JV, Stonebridge Projects. Sales now in progress and going well. The scheme has
Slide 21: Construction - Outlook
Outlook Construction - Outlook Solid order book for 2017, activity expected to be higher in 2017 than 2016. Central funding for all programmes still tight. However, Brexit rhetoric encouraging for frameworks. £35m scheme in Barnsley, good underpin for next three years. Strong balance sheet c
Slide 22: Summary
Summary Group Continued higher capital allocation to land and property development Strong development pipeline Full year dividend of 7p up 15%, covered three times 2017 has started well in line with expectations Full year outlook unchanged Full Year Results Presentation March 2017 22 10
Slide 23: Appendices
Appendices Group structure – Board of Directors Group structure – Senior Management Top 10 Institutional Shareholders as at 3 March 2017 Five year track record of strong growth Henry Boot PLC share price vs Benchmark Indices Full Year Results Presentation March 2017 23
Slide 24: Group Structure – Board of Directors
Group Board of Structure Directors – Board of Directors Jamie Boot Chairman John Sutcliffe Chief Executive Officer Joanne Lake Darren Littlewood Non-executive Director, Deputy Group Finance Director Chairman & Chairman of the Remuneration Committee James Sykes Peter Mawson Non-executive Director & S
Slide 25: Group Structure – Senior Management
Group Board of Structure Directors – Senior Management Land Property Construction Promotion Investment and Development Hallam Land Henry Boot Henry Boot Stonebridge Banner Plant Road Link (A69) Management Developments Construction Projects Limited Limited Limited Limited Limited Limited Darren Stubb
Slide 26: Top Institutional Shareholders as at March 2017
Top 10 Institutional Shareholders as at 3 March 2017 Shareholding Hargreave Hale Ltd Stockbrokers 8,727,439 Fidelity Management & Research 3,900,000 Ennismore Fund Management 3,106,027 Schroder Investment Management 2,796,355 Legal & General Investment Management 2,631,962 BlackRock Investment Manag
Slide 27: Five Year Track Record of Strong Growth
Five Year Track Record of Strong Growth Turnover (£m) Profit Before Tax (£m) 350 45 306.8 39.5 40 300 35 32.4 250 28.3 30 200 176.2 25 153.8 147.2 18.4 150 20 103.1 13.4 100 15 10 50 5 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Net Before Profit Assests (£m) Tax (£m) Net Debt (£m) 45250 2
Slide 28: Henry Boot PLC Share Price vs Benchmark Indices
Henry Boot PLC Share Price vs Benchmark Indices Pence Full Year Results Presentation March 2017 28 12
Slide 29: 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