Having taken on the leadership of Henry Boot this summer, my conviction in the Group's long-term prospects has only strengthened. While challenging market conditions have continued to impact our sector, the quality of our assets, the strength of our pipeline and the significant value embedded across the business underpin a compelling growth opportunity. With more than 9,000 consented residential plots within our strategic land portfolio held at cost and a substantial development pipeline, we possess a depth of value not recognised on our balance sheet. Our priority is clear: unlock this value, enhance cash generation and ensure the Group is well positioned to capitalise as market liquidity and activity improve. Consistent with recent years, we expect 2026 performance to be heavily weighted towards the second half, supported by land transactions, housing completions and leasing activity that is either secured or at an advanced stage of negotiation. Since assuming the role of CEO, I have made good progress in undertaking a comprehensive review of the business and look forward to outlining our refreshed strategy in early 2027. Henry Boot is a high-quality business operating in attractive markets with enduring structural demand drivers. Supported by a strong balance sheet, a differentiated land position and proven expertise, we are well placed to create significant long-term value for shareholders.
Ed Hutchinson, CEO of Henry BootFinancial summary
- Revenue of £80.7m (HY25: £99.4m). Completed and exchanged on total land and property sales of £104.8m, our share at £72.8m (HY25: £159.6m: £99.3m our share), with a loss before tax of £6.3m (HY25 profit: £9.8m) and return on capital employed (ROCE) of (0.9)% (HY25: 2.8%), reflecting challenging market conditions and reduced transaction volumes across the Group's core markets
- Net Asset Value (NAV) per share, excluding the defined benefit scheme, was 298p (2025: 312p), after completion of the second tranche of the Stonebridge Homes (SBH) acquisition
- Net debt of £132.9m (2025: £108.0m) with gearing at 33.0% (2025: 25.7%) as we invested £10.6m in accelerating planning applications on existing Hallam Land sites and an increase in house builder deferred payments
- We have agreed terms to increase our existing bank facility to £165.0m until 31 December 2026, providing additional financial flexibility as we progress targeted sales. Our lending group remains supportive, and discussions are continuing regarding amendments to the full-year covenant requirements
Operational summary
Land promotion
- Hallam Land completed the sale of 556 plots in H1 26 (HY25: 1,222), with a further 465 plots exchanged for completion in the second half, reflecting more subdued residential land transaction volumes
- Further investment in accelerating planning applications and remain on track to submit over 10,000 plots in 2026, with 9,086 plots (HY25: 8,837) within the portfolio with planning permission and a further 21,361 plots awaiting determination (HY25: 19,580)
- Based on recently achieved profit per plot, our land holdings with planning and awaiting determination comprise an estimated c.£305m (HY25: c.£234m) of future gross profit
- Total land bank increased to 107,924 plots at 30 June 2026 (2025: 105,854)
Property investment & development
- HBD's committed development programme increased to £161m GDV (HY25: £128m), following the £95m addition of Golden Valley Phase One, which is fully funded. The programme is 79% pre-let or under offer (HY25: 40%)
- The Origin JV is progressing on schedule and to budget across three I&L schemes, with strong leasing momentum and is 66% leased or under offer, up from 9% at the start of the year, achieving rents ahead of business plan
- Completed the £8.6m sale of the Warminster retail asset at a 7.5% premium to December 2025 book value. Despite outward yield movements, the investment portfolio contains high-quality assets with strong rental growth potential
Home building
- SBH completed 72 home sales in H1 26 (HY25: 85 homes), with completions expected to remain second-half weighted and full-year volumes anticipated to show a small increase on the prior year (FY25: 185)
- Private sales prices were higher on average than those achieved in the corresponding period last year at £431k (HY25: £391k), in line with expectations. The sales rate for the period was slightly lower year on year at 0.38 (HY25: 0.42), with incentives stable at around 5%
- Progress made in reshaping SBH's land bank, which now includes 1,449 owned plots (2025: 1,414), and strengthening financial discipline