Slide 1: Interim Results
Interim Results September 2023 Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration
Slide 2: Agenda
Agenda ■ Introduction and strategy01 Tim Roberts ■ Financial review06 Darren Littlewood ■ Operational review10 Tim Roberts/Darren Littlewood ■ Outlook19 Tim Roberts Tim Roberts Darren Littlewood Chief Executive Officer Chief Financial Officer Henry Boot PLC | 135 years in the making Our Values | Res
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 through cycles Net Asset Value per share 300p 250p Focus on three key 200p markets driven by Low gearing, and positive long-term track record of 150p structural trends with effectively managing 100p clear approach to balance sheet
Slide 5: Resilient performance
Resilient performance ■ Sold 1,900 plots at an increased average gross profit of £11.4k OPERATING PROFIT per plot, offsetting the volume reduction LAND ■ ■ Land bank increased to c.97,000 plots. c.60% SE/Midlands with c.8,300 plots permitted, HLM is well placed with high £17.0m PROMOTION H1 22: £17.
Slide 6: Clear medium-term objectives set out in 2021
Clear medium-term objectives set out in 2021 Material progress towards targets Measure Medium-term target HY 23 Capital employed £500m £413m1 and on track to grow Return on average capital 10-15% pa 6.3%, FY 23 expected to be in targeted range employed 1,900 in H1 23, five year annual average at 3,1
Slide 7: Responsible Business Strategy
Responsible Business Strategy We have continued to make good progress against our Responsible Business Strategy, including our NZC & EDI targets Supporting our Strategy - Our new Head Office ■ Move to the Isaacs Building, Sheffield City Centre, November ■ Supports growth plans, collaboration and tal
Slide 8: Financial Review
Financial Review Speaker Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 6
Slide 9: Financial highlights
Financial highlights Resilient performance driven by land disposals and development completions HY 23 HY 22 Change ■ Revenue increased 25% reflecting higher land Revenue £179.8m £144.4m +25% disposals and increase in housing completions ■ Gross profit decreased 7% to £40.8m shows Gross profit £40.8m
Slide 10: Balance sheet
Balance sheet Further NAV growth and gearing Jun 23 Dec 22 maintained within optimal range Investment property1 £116.0m £107.1m ■ Completed developments increased investment Property, plant & equipment £24.2m £28.8m property (including share of JVs) to £116.0m Inventories £297.7m £291.8m (Dec 22: £1
Slide 11: Cash generation and change in net debt
Cash generation and change in net debt Continued investment in developments with selective assets retained in investment portfolio £m Operations (£14.0m) 80 70 5.8 60 10.0 6.7 50 5.9 1.8 40 (25.7) 6.0 70.8 Non-cash items £2.1m 30 8.0 48.6 4.0 0.7 0.2 0.7 0.9 20 2.8 10 Investments £30.4m 0 Net Debt 0
Slide 12: 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 10
Slide 13: Land Promotion
Land Promotion Strong sales volume with significant embedded value ■ 1,900 plots sold, with an increased average gross profit per plot of £11.4k, offsetting the volume reduction PLOTS SOLD PROFIT PER PLOT ■ UK greenfield land values decreased by 2.8% in H1 23 ■ Added 3,291 plots into the land bank 1
Slide 14: Land Promotion
Land Promotion Continuing to grow one of the largest strategic land banks in the country Plots Sold Average Gross Profit TOTAL PLOTS Per Plot £'000 97,095 4,000 3,869 3,500 3,427 15 3,008 3,000 3,175 11 SCOTLAND FREEHOLD: 9,485 2,500 p.a. 10 9,584 OPTION: 9,303 2,000 2,000 1,900 8 7 8 1,500 £8,300 6
Slide 15: Land Promotion: Providing new homes in Tonbridge
Land Promotion Providing 125 new homes in Tonbridge What is it? ■ 26-acre site located north of Lower Haysden Lane, Tonbridge ■ Site was originally contracted under option in 2004, with the freehold subsequently purchased in 2021 How we have created value? ■ Achieved full planning consent in 2022 fo
Slide 16: Property Investment & Development
Property Investment & Development Committed development pipeline provides platform for growth OPERATING HBD PIPELINE ■ HBD completed £70m of developments PROFIT GDV £8.5m £1.26bn ■ Committed development programme £186m, 52% pre-let/ pre-sold ■ 98% of development costs fixed on committed programme ■
Slide 17: Committed programme
Committed programme £186m GDV, of which 52% has been pre-let or pre-sold Area HBD GDV Expected Scheme Units HBD Share Status '000 sq ft (£m) Completion Industrial & Logistics Southend, IPECO 2 & CAMA 156 - 100% 20 Pre-sold Q1 24 Preston East, DPD & DHL 150 - 50% 15 Pre-let & forward funded Q4 23 Rai
Slide 18: Strong development programme
Strong development programme Creating value through prime developments with exemplary sustainability Power Park, Nottingham Momentum, Rainham Setl, Birmingham Island, Manchester SOLD • GDV £54m • GDV £120m (HBD • GDV £32m • GDV £66m (HBD • 426,000 sq ft small/ share: £24m) – JV • 102 build-to-sell s
Slide 19: Stonebridge
Stonebridge Delivering high-quality homes ■ Average private selling price £499k (Jun 22: £512k) ■ Achieved an average sales rate of 0.48 over H1 (Jun 22: 0.6) ■ 99 units completed in H1 23 (Jun 22: 39) ■ Build cost inflation started to moderate, reducing from 10% in 2022 to 8% ■ In H1 23, 88% of 202
Slide 20: Construction
Construction Segment impacted by challenging trading conditions ■ Comprises Construction, Plant Hire and Road Link (A69) and accounts for just 2% of Group's capital employed OPERATING TURNOVER PROFIT ■ Despite experiencing challenges, both Sheffield city centre schemes (combined value £82m) completi
Slide 21: Outlook
Outlook Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 19
Slide 22: Outlook
Outlook We remain confident in achieving our medium-term targets ■ Short term rate increases uncertainty and reducing customer demand ■ Focus on high quality real estate offers some resilience ■ Strong orderbook and sales: ● Selective interest remains in Hallam Land's 8,335 plots with planning permi
Slide 23: Well placed for the future
Well placed for the future Investing to support growth Property Land Promotion Development Housebuilding Construction & Investment Multi-Regional Premium c.97,000 Strategic Land c.£1.26bn Development Public Sector Focused Housebuilder - land bank Plots Pipeline Order Book with 997 plots Henry Boot P
Slide 24: Appendices
Appendices ■ Group Structure – Segment Composition ■ Group Structure – Board of Directors ■ Group Structure – Business Segments and Executive Committee ■ Business Model ■ Our Strategy ■ Responsible Business Strategy ■ Investment Property ■ Statement of Financial Position ■ Movement in NAV per Share
Slide 25: 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 26: Group structure: Board of Directors
Group structure Board of Directors Peter Mawson Tim Roberts Darren Littlewood Joanne Lake Chair Chief Executive Officer Chief Financial Officer Senior Independent Director Serena Lang Gerald Jennings James Sykes Non-executive Director Non-executive Director Non-executive Director Henry Boot PLC | 13
Slide 27: Group structure: 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 28: 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 29: Our strategy
Our strategy Clear focus on three key markets with long-term structural trends Long Term Industrial & Logistics Residential Urban Development Markets Value Delivery LAND PROPERTY INVESTMENT HOUSEBUILDING CONSTRUCTION PROMOTION & DEVELOPMENT Returns Grow capital employed to over £500m + ROCE 10-15% p
Slide 30: Responsible Business Strategy
Responsible Business Strategy Our strategy is to embed ESG into our commercial decision making 2025 Target Performance 2025 Target Performance Increase gender The Health and Wellbeing Strategy representation in the Our Develop and deliver a and Programme was launched to the business, aiming for We h
Slide 31: Investment property
Investment property Occupancy increased whilst rent collection rates remain high Jun 2023 Dec 2022 Market values - inc. share of JV's £115.5m £108.6m Number of properties 22 22 Total area – '000 sq ft 850 856 % industrial and alternative 72% 69% Net passing rent £5.7m £5.7m Net initial yield 5.6% 5.
Slide 32: Statement of Financial Position
Statement of Financial Position Jun 23 Dec 22 Jun 23 Dec 22 Cash and cash equivalents 20.5 17.4 Property, plant and equipment 24.2 28.8 Borrowings (85.0) (65.0) Investment properties 102.7 97.1 Investment in joint ventures and associates 10.2 10.0 Lease liabilities (6.3) (1.0) Trade and other receiv
Slide 33: Movement in NAV per share
Movement in NAV per share Operating profit driving further NAV growth 315p (0.5p) (4.3p) 310p (6.0p) 305p 19.2p +2.7% (1.2p) 0.3p 300p 295p 290p 303p 285p 295p 280p 275p Pension scheme 31 Dec 2022 Operating profit Interest Tax Dividends Other items 30 Jun 2023 Henry Boot PLC | 135 years in the makin
Slide 34: Pensions
Financial Pensions ■ Triennial valuation concluded March 2023 130% ■ Recovery contributions now £1.2m pa, 120% previously £3.65m pa 110% ■ 1,317 total membership, 539 deferred and 100% 778 in payment 90% ■ IAS19 surplus £8.1m at 31 December 2022 80% 70% ■ £1.5m surplus on technical provisions 60% va
Slide 35: Shareholding as at August 2023
Shareholding as at 22 August 2023 24.9% 33.3m Main institutional shareholders 8.7m London & Amsterdam Trust Co/Rovida 5.5m Polar Capital 3.0m Dimensional Fund Advisors 2.9m Schroder Investment Management 2.7m Hargreaves Lansdown 2.5m abrdn 2.5m Interactive Investor 45.7% 133m 2.0m BlackRock 1.7m Wes
Slide 36: Strong track record: Five-year Financial Results
Strong track record Five-year Financial Results 2018 – 2022 Dividends per Turnover Operating Profit Profit Before Tax Ordinary Share 2022 £341.4m 2022 £46.5m 2022 £45.6m 2022 6.66p 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
Slide 37: Share price
Share price Henry Boot PLC Share Price vs Benchmark Indices 375 Henry Boot 350 FTSE All Share Real Estate Investment & Services 325 FTSE All Share 300 275 250 225 200 175 150 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 22 22 22 22 22 22 22 22 22 22 22 22 23 23
Slide 38: 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 39: 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