Slide 1: Investor Presentation: 2020 Interim Results
Investor Presentation 2020 Interim Results August 2020
Slide 2: Agenda
Agenda Investment Proposition3 Operational Update4 Financial Update5 Land Promotion9 Property Investment & Development11 Construction 15 Summary 17 Appendices18 The Henry Boot Way30 2020 Interim Results Presentation | August 2020 Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability |
Slide 3: Investment Proposition
Investment Proposition Total shareholder return over 20 years, up to H1 2020, is 14% p.a. vs an average 4% p.a. for the ‘All Share Index’. Efficient capital structure with robust return on capital employed with a target of 12–15% p.a. (2019 13.9%). History of managing gearing, and the balance sheet,
Slide 4: Operational Update
Operational Update 15,456 2,000 £296m 24 £1.4bn £7.1m Strategic Land acres Strategic Land Committed Gross Number of Gross Development Average construction plots sold Development Value plots sold by Value (GDV) Pipeline contract size won Pipeline (GDV) Stonebridge Schemes Homes CV-19 has materially i
Slide 5: Financial Update
Financial Update Dividend Per Share Earnings NAV Per 5 Year Net Revenue Profit Before Tax HY FY Per Share Share Cash/(Net Debt) 2020 £108.7m 2020 £7.2m 2020 2.2p 2020 4.1p 2020 232p 2020 £42.3m 2019 £189.0m 2019 £24.1m 2019 3.7p 1.3p 5.0p 2019 14.2p 2019 233p 2019 (£50.3)m 2018 £196.2m 2018 £26.2m 2
Slide 6: Financial: Segmental Revenue & PBT
Financial Segmental Revenue & PBT Property Property Investment Investment Land Promotion & Development Construction Land Promotion & Development Construction HY2020 £19.8m HY2020 £33.7m HY2020 £55.7m HY2020 £11.4m HY2020 (£0.8)m HY2020 (£0.7)m HY2019 £38.7m HY2019 £96.3m HY2019 £60.9m HY2019 £15.3m
Slide 7: Financial: Balance Sheet
Financial 2020 Half Year 2019 Full Year Balance Sheet (£m) (£m) Intangible assets 5.0 6.8 Property, Plant and Equipment 21.6 22.0 Right-of-use assets 4.8 6.1 Investment Properties 70.2 70.0 Investment in joint ventures 6.5 6.6 Trade and other receivables 19.2 17.3 2020 2019 Deferred tax assets 7.5 4
Slide 8: Financial: Cash Generation & Movement in Net Debt
Financial Cash Generation & Movement in Net Debt Operating Depreciation, Inventories Profit Amortisation & Impairment Non-cash adjustment for depreciation of plant, amortisation of Road Link investment and goodwill impairment £4.8m. Inventories increased reflecting further investment in £5.3m £4.8m
Slide 9: Land Promotion
Land Promotion Profit £11.4m (HY19: £15.3m), having opened the year in a strong position. 9 deals completed and 2,000 units sold (HY19: 2,148) at an average £7k per plot (HY19: £7k). Strategic land holdings increased to 15,456 acres (FY19: 14,898) with investment totalling circa £108m (FY19: £102m).
Slide 10: Strategic Land Progress
Strategic Land Progress Pagham West Sussex Scalby 45.5 acres of agricultural land located 6 miles 20.6 acres of garden and agricultural land south of Chichester secured by HLM under a located to the north-west of Scalby, in Planning Promotion Agreement in July 2015. Scarborough District The site was
Slide 11: Property Investment & Development
Property Investment & Development oss £0.8m (2019: profit £6.4m), impacted by £2.1m fall in L valuation of investment properties. Investment portfolio fell by 3.0% compared to industry average of 6.9%. H1 80% rent collection expected by end of current quarter. C ompleted GDV of £42m (377,878 sq ft),
Slide 12: Project Delivery
Project Completed Schemes Delivery HBD Share Commercial Residential Scheme GDV (£m) of GDV (£m) Size (sq ft) Size (Units) Status at 30 June Industrial Southend, IPECO 13 13 121,815 - Sold under forward funding contract Sunderland, Faltec 12 12 124,441 - Sold under forward funding contract Sunderland
Slide 13: Industrial Land Capability
Industrial Land Capability Henry Boot have control over 900 acres of manufacturing, commercial and industrial land capable of delivering more than 20 million sq ft. Butterfield Business JV with landowners JV with Local International Advanced Park, Luton with potential to authorities with Manufacturi
Slide 14: Urban Development Capability
Urban Development Capability Kampus Manchester City Centre £216m forward sold 533 build to rent apartments, two new public squares and 40,000 sq ft of F & B. PC Q1 2021. Henry Boot to retain 5% equity stake and PM role. Cornwall House Birmingham City Centre Existing site and office building. Plan to
Slide 15: Construction
Construction 9 % C V-19 has had a material effect on Construction division: loss in the period of £0.7m (HY19: profit £5.4m). R ecent Starfish acquisition has been materially impacted by CV-19. Turnover Return on Sales in 2020 P roductivity on construction sites is nearly 90% of pre- -9% CV-19 plann
Slide 16: Royce Discovery Centre
Royce Discovery Centre Construction Completed Site Henry Boot Construction completed on the new £11m state-of-the-art materials science research laboratory, Royce Discovery Centre, for the University of Sheffield in July 2020. The new 3,000 sq m facility was built on Sheffield University’s City Camp
Slide 17: Summary
Summary P riority remains the welfare of our stakeholders, liquidity and maintaining our strong financial position. R obust balance sheet, net cash of £42.3m, plus £7.2m profit in H1 is a creditable performance. E nabled us to make selective investments in our key markets. 1 5,456 acres of strategic
Slide 18: Appendices
Appendices Group Structure – Segment Composition Group Structure – Board of Directors Group Structure – Senior Management Investing for the Future Corporate Social Responsibility Land Promotion Inventory Shareholding as at 1 August 2020 Five-year Track Record of Strong Growth Henry Boot PLC Share Pr
Slide 19: 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 comprises three segments. Land Promotion
Slide 20: Group Structure: Board of Directors
Group Structure Board of Directors Back row, left to right Tim Roberts Chief Executive Officer Amy Stanbridge Company Secretary Gerald Jennings Non-executive Director and Chairman of the Remuneration Committee Peter Mawson Senior Independent Non-executive Director and Chairman of the Nomination Comm
Slide 21: 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 Plant Road Link (A69) Management Limited Developments Homes Limited
Slide 22: Investing for the Future
Investing for the Future Strategic Land Property Construction £4m Industrial, 2% £42m Commercial/Retail, 18% £4m Civil Engineering, 2% £229m 12,572 plots 9,022 plots 6,433 plots 3,485 plots 8,702 plots 1,060 plots 1,023 plots £7m Custodial, 3% 880 plots 868 plots 679 plots 2020 workload tendered £36
Slide 23: Corporate Social Responsibility
Corporate Social Responsibility People Community Health & Safety Environment Our people are vital to the delivery We continue to contribute social Henry Boot PLC continues to focus We recognise that we have a of our strategic priorities. and economic impacts to the on health and safety as our primar
Slide 24: Land Promotion Inventory
Land Promotion Inventory Of Which Gross Profit per Plots Permissioned Plots Sold in Period Plot Sold £000s Profit Before Tax Jun20 23,450 Jun20 12,939 Jun20 2,000 Jun20 £6.5 Jun20 £11.4m Dec19 25,378 Dec19 14,713 Dec19 3,427 Dec19 £10.0 Dec19 £31.8m Dec18 28,418 Dec18 16,489 Dec18 3,573 Dec18 £9.4 D
Slide 25: Land Promotion Inventory: Average Returns
Land Promotion Inventory Average Returns June 2020 Half Year Average Gross Profit per Plot £000 30 23 19 19 16 15 16 15 13 12 11 9 10 8 7 7 8 6 6 0 2016 2017 2018 2019 HY2020 Company Land Company Land Plots Sold 3,573 3,427 3,000 Interests (Acres) Control (Acres) 2,792 2,500 South West 3,235 Agency
Slide 26: Shareholders
Shareholders 28% 37.3m 24% 31.9m Main Institutional Shareholders 7.2m Unicorn Asset Management 5.5m London & Amsterdam Trust Company 4.2m Polar Capital Other Shareholdings 3.4m Aberdeen Standard Investments 2.9m Schroder Investment Management 133m 2.7m Artemis Investment Management 2.7m Dimensional
Slide 27: Strong Growth: Five-year Track Record
Strong Growth Five-year Track Record 2015–2019 Dividends per Net Asset Value Turnover Profit Before Tax Ordinary Share Net Assets per Share ROCE Net Cash (Debt) 2019 £379.7m 2019 £49.1m 2019 5.0p 2019 £318.5m 2019 239p 2019 13.9% 2019 £27.0m 2018 £397.1m 2018 £48.6m 2018 9.0p 2018 £302.3m 2018 227p
Slide 28: Financial: Pensions
Financial Pensions Triennial valuation at 1 January 2019 concluded 120% showing a deficit of £19.8m. 100% Recovery contributions agreed at £3.25m rising by £0.1m per annum. 80% IAS 19 deficit £36.2m at 30/06/20, asset performance 1.6%, Discount rate 1.5% (31/12/19 Cumulative return 60% 2.0%). Scheme
Slide 29: Share Price vs Benchmark Indices
Share Price Henry Boot PLC Share Price 370 vs Benchmark Indices 320 Henry Boot PLC 270 FTSE 250 FTSE 100 220 FTSE All Shares FTSE All Share/Construction & Materials – SEC 170 120 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2019 2020 Page 29 2020 Interim Results Presentation | August 2020 Our
Slide 30: The Henry Boot Way
The Henry Boot Way Our Values Purpose, Vision and Values Henry Boot PLC has been in business for over 130 years and our financial results and performance have always been, and Respect Integrity will continue to be, dependent on our people. We often use e treat everyone in the way W We operate with t
Slide 31: 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