Slide 1: Interim Results Presentation August 2019
Interim Results Presentation August 2019
Slide 2: Agenda
Agenda Investment Proposition page 1 Operational Highlights page 2 Financial Review page 3 Land Promotion page 10 Property Investment page 15 & Development Construction page 18 Investing for the Future page 20 Outlook Summary page 21 Appendices page 22 The Henry Boot Way page 30 Interim Results Pres
Slide 3: Investment Proposition
Investment Proposition Strong financial track record over the long term. Long established with an efficient capital structure. Robust Group structure through diversity of operations. Low gearing allowing opportunistic land and property acquisitions. Incremental shareholder dividends and NAV growth t
Slide 4: Operational Highlights
Operational Highlights Interim Dividend to 3.7p NAV 233p per share Good start to 2019 with a very resilient result, given current uncertainties affecting the UK economy. 16% 2.6% Strategic land portfolio of 14,077 acres,15,427 units permissioned, 10,570 units in planning 2,148 GDV Pipeline process.
Slide 5: Financial Highlights
Turnover Trading Profit Financial 2019 £189.0m 2019 £24.4m 2018 £196.2m 2018 £24.8m Highlights 2017 2016 £107.3m £195.4m 2017 2016 £24.6m £21.6m 2015 £79.2m 2015 £11.8m Turnover remains strong at £189m, Profit Before Tax EPS supported by Aberdeen project. 2019 £24.1m 2019 14.2p Trading profit underp
Slide 6: Financial Segmental Revenue
Financial Segmental Revenue 8 % Land Promotion Land Promotion revenues higher due to increased number of plot disposals. HY 2019 HY 2018 Higher activity levels in Construction as Barnsley £38.7m £35.7m town centre phase 2 commences. Additional works 11 undertaken by Road Link for Highways England to
Slide 7: Financial Segmental PBT
Financial Segmental PBT 26 1 Land Promotion returns maintained from disposing of 2,148 plots, up from % % 32 1,904 in 2018, but at a lower blended gross profit per plot sold as more planning promotion sites sold. % Property Investment and Development Land Promotion Construction As expected, Property
Slide 8: Financial Balance Sheet
Financial 2019 2018 Balance Sheet Half Year (£m) Full Year (£m) Intangible assets 4.9 5.1 Property, Plant and Equipment 28.6 26.2 Investment Properties 79.1 121.0 Investment in joint ventures 6.8 6.7 Trade and other receivables 8.6 11.9 Deferred tax assets 3.7 3.4 2019 2018 Half Year Full Year Fixed
Slide 9: Financial Pensions
Financial Pensions Initial triennial valuation results deficit £19m. Recovery plan contributions £3.25m rising to £3.75m over 5 years. Regulator becoming increasingly formulaic and driving reduction in risk and therefore asset returns. IAS 19 deficit at 30/06/19 £18.3m, asset performance +8.8% in pe
Slide 10: Cash Generation & Movement in Net Debt
Financial Cash Generation & Movement in Net Debt Operating Profit Depreciation, Amortisation & Impairment Inventories Non-cash adjustment for depreciation, amortisation of plant and Road Link investment £3.1m. £24.7m £3.1m £15.3m Inventories increased as we invested in house building land and WIP an
Slide 11: 2019 Guidance
Financial 2019 Guidance Revenue Construction Segment could be up circa 10% as Barnsley Phase 2 commences. Land As always, is a function of site mix, currently expected to be down 20% due to increased agency disposals. Property We could see a 15–20% decrease as Aberdeen concludes in August. Offset by
Slide 12: Land Promotion
Land Promotion Profit £15.3m (2018: £15.5m), 15 deals completed and 2,148 plots sold in period. Strategic land holdings of over 14,077 acres. Investment totalling circa £104m. Sites with planning permission for 15,427 units. Planning consent won over the year 1,086 (HY 2018: 436). Planning submitted
Slide 13: Land Promotion Inventory
Land Promotion Inventory Gross profit of £128m from 11,262 plots over 4.5 years at an average of £11.3k per plot. Land Bank Owned Acres Agency/Optioned Acres Total Jun19 1,412 Jun19 12,665 14,077 Dec18 1,562 Dec18 12,763 14,325 Dec17 1,608 Dec17 11,665 13,273 Dec16 1,749 Dec16 10,139 11,888 Dec15 1,
Slide 14: Land Promotion Average Returns
Land Promotion Average Returns 2,792 Plots Sold Average Gross Profit Per Plot £000 1,484 30 1,500 25 1,025 23 1,186 1,144 1,000 19 19 15 15 13 963 800 15 16 13 781 664 500 11 9 8 8 7 423 7 7 5 0 0 2015 2016 2017 2018 HY 2019 2015 2016 2017 2018 HY 2019 Option/Agency Owned Option/Agency Owned Total I
Slide 15: Land Promotion Inventory June 2019
Land Promotion Inventory 30 June 2019 Interim Company Land Interests Company Land Control (Acres) (Acres) Region Acres Acres South West 2,784 Agency 10,031 South East 1,792 Optioned 2,634 South Midlands 3,840 Purchase 1,412 North Midlands 3,250 14,077 North West 368 North East 756 Scotland 1,287 14,
Slide 16: Land West of Shilton Road Burford
Land West of Shilton Road Burford Land Promotion Current Site The medieval settlement of Burford is located about 18 miles west of Oxford in the Cotswolds. In 2014 HLM secured a Planning Promotion Agreement in relation to 17 acres south west of Shilton Road, and commenced it’s planning promotion wit
Slide 17: Property Investment & Development
Property Investment & Development Investment property portfolio of £79m following transfer of £44m to assets held for sale expected to be disposed of in H2, mainly retail and mixed use. Target hurdle rate of 12%–15%. Lower returns when pre-let and pre-funded, higher value where we take more risk. GD
Slide 18: Project Delivery
Project 5 Years 2017 2018 2019 2020 2021 Delivery Aberdeen £334m £2m Aberdeen £60m Aberdeen, Bridge of Don £25m Bath £5m Contracted Delivery Birmingham, Cornwall House £25m of Projects Bournemouth £15m Between 2017–2021 Bristol £10m Chesterfield £3m Mixed use Chippenham £8m Epsom £32m £5m Leisure Le
Slide 19: Airport Business Park Southend
Airport Business Park Southend Property Investment & Development Joint venture with Southend-on-Sea Borough Council, Airport Business Park extends to some 50 acres and will deliver over 1 million sq ft of commercial business space. We were selected as joint venture partner by Southend Borough Counci
Slide 20: Construction
Construction Division consists of Construction, Plant Hire and Road Link (A69). 11 External turnover up 11% at £54.1m. % Trading profit ahead at £5.2m. Workloads good but taking longer to get on site, due to sorting out planning conditions. Road Link margin down due to design works for two roundabou
Slide 21: The Beacon University of Hull
The Beacon University of Hull Construction Completed The new £8m sports arena, The Beacon, is part of the University of Hull’s £16m scheme to create a world-class sports centre. The Beacon is an innovatively designed 12-court international standard sports hall that makes full use of natural lighting
Slide 22: Investing for the Future
Investing for the Future Strategic Land Property Construction New site Board approvals Stonebridge Homes HY 2019 workload tendered residential land portfolio £129m Commercial/Retail HY 2019 6,490 plots HY 2019 939 plots 84% 2018 13,268 plots 2018 868 plots 2017 10,791 plots 2017 880 plots 2016 6,603
Slide 23: Outlook Summary
Outlook Summary Continued higher capital allocation to land and property development. Strategic land performing well with outline permission on over 50 sites working towards disposal. Housebuilding market continues to be buoyant – good for land trading and Stonebridge Homes. Strong development pipel
Slide 24: Appendices
Appendices Group Structure – Segment Composition Group Structure – Board of Directors Group Structure – Senior Management Corporate Social Responsibility Shareholding as at 29th July 2019 Five-year Track Record of Strong Growth Henry Boot PLC Share Price vs Benchmark Indices The Henry Boot Way Inter
Slide 25: Group Structure
Group Structure Henry Boot PLC, established over 130 years ago, is one of the UK’s leading 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 segments. Land Pro
Slide 26: Group Structure: Board of Directors
Group Structure (from left to right) Peter Mawson Jamie Boot Tim Roberts to take up role of CEO Senior Independent Non-executive Director Chairman from 1st January 2020. and Chairman of the Nomination Committee John Sutcliffe John Sutcliffe to retire from Board Darren Littlewood Chief Executive Offi
Slide 27: Group Structure: Senior Management
Group Structure Senior Management Land Property Construction Promotion Investment & Development Nick Duckworth Edward Hutchinson Darren Stubbs Simon Carr Giles Boot Trevor Walker Hallam Land Henry Boot Stonebridge Henry Boot Banner Road Link (A69) Management Limited Developments Limited Homes Limite
Slide 28: Corporate Social Responsibility
Corporate Social Responsibility People Community Health & Safety Environment Our people are vital to We continue to contribute Henry Boot PLC continues to We recognise that we have a the delivery of our strategic to the social and economic focus on health and safety as responsibility and an obligati
Slide 29: Shareholders
Shareholders 37.1m, 28% Main Institutional Shareholders 9.4m Canaccord Genuity Group Inc. 5.5m Fidelity Management & Research 4.2m Polar Capital Holdings 3.4m Standard Life Aberdeen 63.8m, 48% 133m shares in issue 3.2m Henry Boot Founding Family BlackRock Inc. (across 91 holdings) 2.8m Schroders 2.5
Slide 30: Strong Growth: Five-year Track Record
Strong Growth Five-year Dividends Per Net Asset Value Ordinary Share Net Assets per Share ROCE Profit Before Tax Net Debt Turnover Track Record 2014–2018 2014 5.6p 2014 £200.5m 2014 152p 2014 11.4% 2014 £28.3m 2014 £36.4m 2014 £147.2m 2015 6.1p 2015 £221.5m 2015 168p 2015 12.2% 2015 £32.4m 2015 £38.
Slide 31: Share Price
Share 320 Price 300 Henry Boot PLC Share Price vs Benchmark Indices 280 260 240 Henry Boot PLC 220 FTSE 250 FTSE 100 200 FTSE All Shares FTSE All Share/Construction & Materials – SEC 180 Aug Aug Sep Sep Oct Oct Nov Nov Dec Dec Jan Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun Jul Jul Jul Aug 2018
Slide 32: The Henry Boot Way
The Our Values Henry Boot Way Respect Integrity Purpose, Vision and Values n We treat everyone in n We operate with the the way they wish to utmost professionalism. Henry Boot PLC, has been in business for over 130 years and our financial results be treated. and performance have always been, and wil
Slide 33: 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