Slide 1: Investor Presentation
Investor Presentation Presented by Jamie Boot Group Managing Director John Sutcliffe Group Finance Director March 2015 0
Slide 2: Key messages
Key messages • A good year that finished strongly, several deals completed PBT EPS 54% 88% towards the end of the year drove profit upgrades. • UK economic recovery well established. to £28.3m to 16.2p • House builder results strong, activity good for 2015 – benefits our strategic land business.
Slide 3: Financial Highlights
Financial Highlights • Higher development site and land sales increased 2014 2013 2012 turnover. 2013 included £20m “one-off” sales at no profit. Turnover £147.2m £153.8m £103.1m • Trading profit higher due to HLM profit of £13m (2013: £11m) and Development trading profits. All Trading Profit £25.6m
Slide 4: Henry Boot PLC - Funding of Assets
Henry Boot PLC - Funding of Assets 2014 2013 Change £’000 £’000 £’000 Investment properties 106,379 107,813 (1,434) Development sites 60,273 48,977 11,296 Strategic land 99,627 83,903 15,724 Road Link investment 6,733 7,994 (1,261) Plant 11,382 10,079 1,303 284,394 284,394 258,766 258,766 25,628 Rec
Slide 5: Land Development
Land Development Land Bank Dec 14 – acres Dec 13 - acres Dec 12 – acres Dec 11 - acres Total 9,985 9,723 9,011 8,051 • Henry Boot PLC’s strategic land business. Acquires land through Owned 1,819 1,791 1,765 1,432 outright purchase, option or as agent (10-20% interest). Operating Agency/Optioned 8,16
Slide 6: Land Development: deals and planning activity
• Eleven deals completed in the year. Profit £13.1m (2013: £11.1m) • Continue to be very busy in planning terms. Sites with planning permission for over 11,500 units. • Planning consent won at 15 sites for over 2,250 units in 2014 (2013: 16 sites, 4,000 units). • Detailed planning submitted and in p
Slide 7: Property Investment and Development
Property Investment and Development • Holds investment property of circa £100m, rent passing £7.0m. Also some 15 development sites with potential, valued at £40m. • We look to achieve a developer’s return based on prudent appraisal yields, pre-lets and conservative construction costs. Hurdle rate of
Slide 8: Property Investment and Development projects
• At Markham over 200,000 sq ft either built or in progress. In legals for a further 400,000 sq ft unit. Also completed 69,000 sq ft extension to existing investment. Also grant assisted development at Thorne 140,000 sq ft in progress. • Two hotels in progress, Malvern (Premier Inn) to be kept, Trav
Slide 9: Construction
Construction • Division consists of Construction, Plant Hire and Road Link (A69). • Divisional turnover as last year at £88m. Trading profit 2014 £10.1m (2013: £9.0m). Workloads are good but pricing very competitive at Construction. • Construction activity £65m (2013: £60m). Mainstay frameworks cent
Slide 10: Outlook: Land Development
Outlook LAND DEVELOPMENT • Options and land available and we continue to be buyers. Now 10,000+ acres. • Competition and pricing for sites is increasing again, especially in the south and south east. Land pricing good in south but gets weaker further north. • Planning costs are increasing as complex
Slide 11: Outlook: Property Investment and Development
Outlook PROPERTY INVESTMENT AND DEVELOPMENT • Yields stable overall, strong at prime level, potential for regional values to improve slightly. Rents beginning to rise in some places. • Offices, budget hotels and prime industrial are where we see best development pricing, residential values improving
Slide 12: Outlook: Construction
Outlook CONSTRUCTION • Solid order book for 2015, activity expected to be similar to 2014. • Central funding for all programmes under pressure. However, repair work/smaller contracts coming through e.g. Amey (Sheffield roads), continued success in Decent Homes. • Stocksbridge regeneration contract £
Slide 13: Outlook: Group
Outlook GROUP • Continued higher capital allocation to land and property development. • High level of planning activity continues. Applications on circa 50 sites either in progress or proposed. Stock of permissioned units and land bank at record highs. • Red tape and bureaucracy stifle deals which m
Slide 14: Top Institutional Shareholders as at 6.3.15
Top 10 Institutional Shareholders as at 6.3.15 • Standard Life 7,808,746 • Fidelity – USA – 4,036,900 5,715,016 – UK – 1,678,116 • Hargreave Hale Stockbrokers 4,383,785 • Schroder Investment Management 3,364,230 • Allianz Global Investors Europe (UK) 3,112,630 • Legal & General Investment Management
Slide 15: Henry Boot vs benchmark indices – Previous 12 months
Henry Boot vs benchmark indices – Previous 12 months 230 220 210 200 190 180 170 160 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Henry Boot FTSE 100 FTSE SmallCap FTSE 250 FTSE Allshare FTSE Construction and Materials Investor Presentation March 2015 14
Slide 16: Group Structure 2015
Group Structure 2015 John Brown Non-executive Chairman Chair of Nomination Property Committee Land Construction and Investment and Development Plant Development Jamie Boot Group Managing Director Henry Boot Hallam Land Henry Boot Developments Management Construction Limited Limited Limited John Sutc
Slide 17: Markham Vale / Derbyshire
Markham Vale / Derbyshire 200 acre business park, in partnership with Derbyshire County Council, to create 5,000 sustainable new jobs Direct access off the M1, Junction 29A The East Midlands most active development site Enterprise Zone status granted Industrial/ Warehouse/Offices Sustainable develop
Slide 18: The Pennine Property Partnership / Huddersfield
The Pennine Property Partnership / Huddersfield An innovative joint venture company set up in partnership with Calderdale & Huddersfield NHS Trust to realise the maximum value of surplus property assets and provide new accommodation for the Trust First phase comprises 56,000 sq ft of new clinical an
Slide 19: The Chocolate Works / York
The Chocolate Works / York Acquisition of a 27 acre site, formerly Terry’s Chocolate Factory The site includes distinctive and iconic listed buildings totalling 236,806 sq ft plus cleared development land Immediately adjacent to York Racecourse Planning consent which secures a variety of uses across
Slide 20: Aberdeen Exhibition and Conference Centre
Aberdeen Exhibition and Conference Centre Since being appointed at the beginning of 2014 we have developed our plans for the 130 acre site of the new Aberdeen Exhibition and Conference Centre at the Rowett Institute, Dyce, and the existing 50 acre AECC site at the Bridge of Don Master plans for both
Slide 21: Teal House / Uxbridge
Teal House / Uxbridge In December 2014 Henry Boot Developments completed the purchase of Teal House on Cowley Business Park in Uxbridge for £3.2 million Cowley Business Park is located five minutes drive from Uxbridge Town Centre which provides fast links to central London via the London Underground
Slide 22: Paradise Road / Richmond upon Thames
Paradise Road / Richmond upon Thames Henry Boot Developments has secured planning permission for a 78 bed hotel on Paradise Road in the centre of Richmond upon Thames The building has been designed by BPR Architects and will make a welcome addition to the town centre Construction of the 20,000 sq ft
Slide 23: Schemes currently in hand
Schemes currently in hand Cranbrook, Devon Burdiehouse Hallam secured its interest in this shared site in 1999 and after A wholly owned site to the south of Edinburgh. An initial 10 acre much preparation work, the development is well underway. land holding was sold to a national house builder in ear
Slide 24: Schemes currently in hand
Schemes currently in hand Edenthorpe, South Yorkshire Haddington, East Lothian Hallam has an option agreement on this 80 acre greenfield site in A planning in principle application was approved on appeal on Edenthorpe, Doncaster, and is currently promoting it for residential part of Hallam's optione
Slide 25: Schemes currently in hand
Schemes currently in hand Biddenham, Bedfordshire Repton, Derbyshire A jointly owned site of approximately 180 acres which has seen A site of 14 acres which has been in Group ownership since the profitable contributions to the Group in previous years. In March 1970s. A planning application was submi
Slide 26: Schemes currently in hand
Schemes currently in hand Blaby, Leicester Kettering, Northamptonshire A minded to grant resolution was secured for 4,250 homes in Hallam has a solely-owned site of 38 acres that forms part of the Spring 2013. We have a joint venture with two other developers East Kettering Urban Extension Area. A r
Slide 27: Construction Projects
Construction Projects Fox Valley, Stocksbridge, South Bifrangi UK Lincoln Yorkshire The award of the contract to Henry Boot Construction is part of Bifrangi’s major investment in their UK facilities, which A new development to transform a 15 acre former industrial site. manufactures and supplies cas
Slide 28: 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