Slide 1: Full Year Results 2023
Full Year Results 2023 March 2024 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 ■ Outlook21 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 Prime portfolio focussed on high quality premium projects with sustainability ■ Focus and deep knowledge of three key markets that are Return on capital employed 25% driven by positive long-term structural trends 19.7% ■ Delivered attractive returns through the cycle with 10- 20% 10y
Slide 5: Resilient operational performance
Resilient operational performance ■ Sold 1,944 plots at an increased average gross profit of £15.5k per plot, due to significant freehold sale of land at Tonbridge OPERATING PROFIT LAND ■ Land bank increased to c.101,000 plots, with c.8,500 permitted and c.60% SE/Midlands £21.4m PROMOTION ■ Sales co
Slide 6: Clear medium-term objectives set out in 2021
Clear medium-term objectives set out in 2021 Good progress towards targets Measure Medium-term target FY 23 Capital employed £500m £417m1 and on track to grow Return on average capital 9.9%, rounded at the lower end of stated 10-15% pa range, with goal of 10-15% through the cycle employed maintained
Slide 7: High demand for our premium product
High demand for our premium product £249m of land, property and house sales, with continued focus on strategic growth Land Property Housebuilding • HLM completed on £65m of • HBD sold £96m of property • SH sold over £87m of new homes, residential land sales, including a split between completed with
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 Land disposals, housing completions and delivery of committed developments drive performance FY 23 FY 22 Change ■ Revenue increased 5% reflecting continued Revenue £359.4m £341.4m +5% demand for prime, high quality assets ■ Gross profit remained resilient at £76.8m Gross profit
Slide 10: Balance sheet
Balance sheet Further NAV growth with gearing Dec 23 Dec 22 maintained within optimal range Investment property1 £110.0m £106.4m ■ Retained developments following tactical disposals Property, plant & equipment £29.2m £28.7m increased investment property (inc. share of JVs and Inventories £297.6m £29
Slide 11: Cash generation and change in net debt
Cash generation and change in net debt Investment continues to deliver committed development programme £m 90 80 Operations (£18.9m) 70 23.6 60 50 12.5 40 4.0 77.8 3.3 30 (40.2) 9.1 (4.5) 48.6 12.7 Non-cash items £1.1m 20 3.8 0.4 3.7 10 2.6 Net Investments £48.0m (6.1) 4.2 0 Gain on investment proper
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 Robust sales volume with significant embedded value ■ 1,944 plots sold, with an increased average gross profit per plot of £15.5k, offsetting volume reductions PLOTS SOLD PROFIT PER PLOT ■ UK greenfield land values decreased by 6.5% in FY 23 ■ according to Savills Added 7,212 plots ac
Slide 14: Land Promotion
Land Promotion Continuing to deliver despite a challenging market ■ and promotion segment has delivered significant returns L Return on capital employed over the long-term with ROCE of 16.7% pa over the last 10 30% 10yr average: 16.7% years 25% 24.0% 23.4% 20.1% 20% 18.7% ■ Scale of portfolio and fo
Slide 15: Land Promotion
Land Promotion Continuing to grow one of the largest strategic land banks in the country Plots Sold 4,000 3,869 3,573 3,500 3,427 3,000 3,008 5 yr rolling 2,500 average 2,169 PLOTS INVESTMENT 2,000 1,944 2,000 FREEHOLD: 10,279 £46.8M 1,500 SCOTLAND OPTION: 9,096 £11.1M 9,584 AGENCY: 81,497 £66.1M 1,
Slide 16: Property Investment & Development
Property Investment & Development Development pipeline provides strong platform for growth ■ Comprises HBD and Stonebridge our JV housebuilder OPERATING HBD PIPELINE ■ HBD completed £111m of developments, 100% pre-let/pre- PROFIT GDV sold ■ Committed development programme £159m, 50% pre-let/ pre-sol
Slide 17: Committed programme
Committed programme £159m GDV, of which 50% has been pre-let or pre-sold Area 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 Leicester, TMS 29 - 100% 10 Pre-sold Q3 24 Rainham, Momentum 380 - 20% 24
Slide 18: Strong development programme
Strong development programme Creating value through prime developments with exemplary sustainability Power Park, Nottingham Momentum, Rainham Island, Manchester SOLD • GDV £54m • GDV £120m (HBD share: • GDV £66m (HBD share: £24m) – JV with Barings £33m) – JV with GMPF • 426,000 sq ft small/mid box i
Slide 19: Setl, Birmingham
Setl, Birmingham Premium city centre 1 & 2 bedroom apartments ■ GDV £32m ■ 102 build-to-sell premium apartments in the Jewellery Quarter ■ Residents lounge, gym studio and private rooftop garden ■ Completion Q1 24, potential profit on cost c.15% ■ 30% of units pre-sold / reserved secured Henry Boot
Slide 20: Property Investment & Development
Property Investment & Development Consistent market outperformance Total Property Return 25% 19.5% 19.9% 20% HB Investment Portfolio 15% CBRE UK Monthly Index 10% 7.9% 6.7% 5% 3.5% 1.7% 0% -1.5% -5% -10% -9.1% -15% 2021 2022 2023 3yrs pa Dec 2023 Dec 2022 Market valuation - inc. share of JV's £112.9
Slide 21: Stonebridge
Stonebridge Delivering high-quality homes ■ 251 units completed in 2023, an increase of 43% ■ Average private selling price £461k (Dec 22: £503k) reflecting expansion into second region and blended house pricing ■ Average sales rate of 0.45 (2022: 0.51) ■ As of 1 March 24, 50% reservations secured a
Slide 22: Construction
Construction Segment impacted by challenging trading conditions ■ Comprises HBC, Banner Plant and Road Link (A69) and accounts for just 2% of Group's capital employed OPERATING TURNOVER PROFIT ■ In tough trading conditions the construction segment ■ remained profitable Despite experiencing challenge
Slide 23: Outlook
Outlook Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 21
Slide 24: Outlook
Outlook We have confidence in our key markets and growth aspirations ■ Economy beginning to improve, inflation under control and interest rates likely to fall ■ Well positioned to meet demand for land as the planning system remains challenging ■ Strong orderbook and sales: ● HLM have exchanged on 79
Slide 25: 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.101,000 Strategic Land c.£1.3bn Development Public Sector Focused Housebuilder - land bank Plots Pipeline Order Book with c.1,500 plots Henry Bo
Slide 26: 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 27: 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 28: 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 Talita Ferreira Non-executive Director Non-executive Director Non-executive Director Non
Slide 29: 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 30: 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 31: Our strategy
Our strategy Creating great places today, to build a better tomorrow Our People Partners Places Planet Priorities Long Term Industrial & Logistics Residential Urban Development Markets Value Delivery LAND PROPERTY INVESTMENT HOUSEBUILDING CONSTRUCTION PROMOTION & DEVELOPMENT Returns Grow capital emp
Slide 32: 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 launched. On top business, aiming for We have
Slide 33: Investment property
Investment property Occupancy increased whilst rent collection rates remains high Shoal Group, Luton Dec 2023 Dec 2022 ■ Small/Mid Box logistics Valuation - inc. share of JV's £112.9m £108.6m ■ 85,000 sq ft Number of properties 21 22 ■ HBD share 100% Total area – '000 sq ft 795 856 ■ Completed in 20
Slide 34: Statement of Financial Position
Statement of Financial Position Dec 23 Dec 22 Dec 23 Dec 22 Cash and cash equivalents 13.0 17.4 Property, plant and equipment 29.2 28.8 Borrowings (86.5) (65.0) Investment properties 100.6 97.1 Investment in joint ventures and associates 10.5 10.0 Lease liabilities (4.3) (1.0) Trade and other receiv
Slide 35: Movement in NAV per share
Movement in NAV per share Operating profit driving further NAV growth 330p 320p 2.2p 6.8p 9.6p +3.7% 310p 30.1p 0.9p 1.7p 300p 290p 306p 295p 280p 270p 1 Jan 2023 Operating profit Interest Tax Dividends Pension scheme Other items 31 Dec 2023 Henry Boot PLC | 135 years in the making Our Values | Resp
Slide 36: Shareholding as at February 2024
Shareholding as at 27 February 2024 23.3% 31m Main institutional shareholders 8.7m London & Amsterdam Trust Co/Rovida 3.0m Dimensional Fund Advisors 2.9m Schroder Investment Management 2.9m Hargreaves Lansdown 2.5m Interactive Investor 2.5m Artemis Investment Management 2.4m GAM 45.7% 133m 2.1m Pola
Slide 37: Strong track record
Strong track record Five-year Financial Results 2019 – 2023 Dividends per Turnover Operating Profit Profit Before Tax Ordinary Share 2023 £359.4m 2023 £40.2m 2023 £37.3m 2023 7.33p 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 £17.5
Slide 38: 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