Final Results

Boot(Henry) PLC
05 April 2006



HENRY BOOT PLC



PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 31st DECEMBER 2005



Henry Boot PLC, the property development, land trading, construction and plant
hire group, announces its results for the year ended 31st December 2005.




HIGHLIGHTS


PROFIT BEFORE TAXATION UP 30%


BASIC EARNINGS PER SHARE UP 21%


NET ASSETS PER SHARE UP 12%


DIVIDEND UP 15%



John Reis, Chairman, comments:



'Our company continued to grow from strength to strength in 2005...'



'...our Property Development operation was able to benefit from some outstanding
    sale opportunities.'



'...our Land Trading company achieving a record trading performance.'



'Our Construction business exceeded its profit before tax target ...'



'A record performance was achieved by our Plant Hire activity...'





Enquiries: Jamie Boot, Group Managing Director - Tel: [phone]





CHAIRMAN'S STATEMENT



Our company continued to go from strength to strength in 2005, and I again take
pride in announcing another set of record trading results.



Profit before tax for the year came in at £30.2m, compared with the restated
£23.2m International Financial Reporting Standard figure for 2004.  This £7.0m
increase in profit before tax was achieved on a £16.9m increase in revenue, with
total revenue for the year amounting to £101.2m (2004: £84.3m).  After stripping
out property revaluations from the overall £30.2m profit before tax, a £25.4m
profit before tax figure was achieved compared with £13.8m for 2004.



Basic earnings per share rose to 78.2p (2004: 64.6p), a 21% increase of 13.6p
per share.  The return on average capital employed in the year exceeded 26%
compared with 22% in 2004, an increase of 18%.  The increase in total
shareholder returns over the five year period to 31st December 2005 has
approached the 200% mark, compared with a rise of 72% in the performance of the
FTSE Small Cap Index during the same time.



All in all, a very creditable and solid performance that has culminated in a
further outstanding year's result for 2005.



TRADING SUMMARY



PROPERTY



Our Property Development, Property Investment and Land Trading activity produced
record results in the year.



Property Development and Investment



With demand for quality schemes outstripping supply, yield compression continued
during the year.  This helped to sustain a healthy market, and our Property
Development operation was able to benefit from some outstanding sale
opportunities.



Ongoing schemes proving to be of particular interest to the investment market
are our projects at - Ayr Central, a 220,000 sq.ft retail development anchored
by major retailers including Debenhams, Next and Primark - Markham Vale, a 200
acre industrial warehouse, distribution and office scheme due to commence
shortly off the M1 in Derbyshire - Smithdown Retail Centre, a smaller retail
scheme in Liverpool including Tesco and Carphone Warehouse as tenants - a
further phase at Clifton Moor Retail park, York - Wharf Retail Park in Grimsby
town centre - and Priory Park, a leading commercial, industrial and speciality
retail centre in Hull.



The reduction in yields has benefited our growing investment portfolio which, on
an internal valuation, contributed in excess of £4.0m to our annual results.
Investment properties in the course of construction, and hence included at cost,
include The Axis in Nottingham, Waterloo Square in South Shields and The Mall in
Bromley.  Each of these projects is nearing completion, and offers significant
growth prospects.



Whilst the market generally shows little sign of easing at present, the board is
mindful that current yields may be unsustainable in the medium to long term, and
remain alert for any early indication of a slowdown in order to take appropriate
action.



Land Trading



A number of successful land sales were concluded during the year which made a
major contribution towards our Land Trading company achieving a record trading
performance.  The most notable of these disposals were at Aylesbury, Bathgate,
Nafferton, Prestonpans and Wellingborough.



Although we disposed of a substantial number of acres during the year, our land
holdings remain very significant as we still maintain control over approximately
6,500 acres through direct ownership, options or agency agreements.  This
demonstrates our ability to continue to bring forward new schemes for future
development.



The company's reputation in promoting land through the planning process
continues to grow, and this is bringing in an increasing number of enquiries and
opportunities from land owners and their agents.



We are participating in and closely following the consultation process relating
to the proposed introduction of the Government's Planning-Gain Supplement, and
its possible impact on future Section 106 Agreements with local authorities.
Contribution is also being made to the follow-up of the Kate Barker Review of
Housing Supply, and to the Office of the Deputy Prime Minister's regional
spatial strategies debate.



If enforced in their present form, these policies will undoubtedly bring
problems in the Government's attempts to deal with the present housing shortage,
particularly if, as a result, land owners are dissuaded from releasing land due
to penal tax consequences.  Our hope is that Government will take some note of
what the industry is telling them, and act accordingly.



CONSTRUCTION



Building & Civil Engineering



Our Construction business exceeded its profit before tax target for the year
despite a shortfall in revenue.  Having secured a number of framework contracts
with the public sector and quality private clients, both income and profit
levels are projected to increase during the current year.  This increase will be
achieved principally through a concentration of work for the prison and
probation services, local authority education departments, social housing and
estate regeneration programmes as well as new and refurbished healthcare
facilities for the NHS and private health organisations.  Civil engineering
opportunities continue to be secured in the industrial and water sectors for our
general works division.



PFI Road Project



Road Link (A69) Holdings Limited continued to profitably undertake the running
of the A69 Carlisle to Newcastle trunk road, particularly after introducing
operational and maintenance efficiencies during the year.  These were achieved
despite very poor weather conditions experienced early in 2005 which brought
about severe flood damage and road disruption in the Carlisle area.  Prospects
for future profits remain firm for the remaining 20 years of the concessionary
period.



Plant Hire



A record performance was achieved by our Plant Hire activity with both sales
revenue and pre-tax profits exceeding expectations.  Continuing capital
investment in an already modern range of plant, equipment and vehicles was
justified by strong utilisation levels and hire rates which remained buoyant
throughout the year.  This particularly applied to the expanding compressed air
equipment, accommodation and toilet hire and service operations.



INTERNATIONAL FINANCIAL REPORTING STANDARDS



Our 2005 results are the first to be presented under International Financial
Reporting Standards (IFRS), the adoption of which we were obliged under the
Listing Rules to comply with from 1st January 2005.



The process of adopting IFRS involves the restatement of the previous year's
results and balance sheet, and a reconciliation of those results to the
previously reported figures under UK Generally Accepted Accounting Principles
(UK GAAP).



A copy of the statement dealing with the move from UK GAAP to IFRS was published
in my letter to shareholders dated 7th September 2005.  A copy of this letter
can be downloaded from the Henry Boot website at www.henryboot.co.uk, with hard
copies also available from the company's registered office.



Segmental Reporting



We are obliged under IFRS to report our results in business segments that follow
internal reporting lines for management accounting purposes.  Hitherto, our
group has always considered its activities as a single business, but in order to
comply with IFRS we now present our results under three business segments.



Our three business segments are - Property: incorporating our property
development and investment activities, together with our land trading business -
Construction: incorporating building, civil engineering, PFI road project and
plant hire, and - Other: incorporating the parent company, the internal leasing
company, and other service companies representing central administration and
other central management functions, including pension costs.



FINANCIAL PERFORMANCE, DIVIDENDS AND OUTLOOK



Following such excellent results for 2005, and in keeping with the board's wish
that its dividend policy should reflect its confidence with regard to the near
future, your directors are proposing a final dividend of 14.1p per share.  This
will bring the total dividend payable for year ended 2005 to 19.0p, representing
an increase of some 15% over the 16.4p dividend for 2004.



Net assets per ordinary share of £4.69 compare with the previous year's figure
of £4.19, a 12% increase.  The figures fully incorporate the Pension Scheme
liabilities which, despite the prominent recovery in equities worldwide, have
continued to increase due to the prolonged decline in bond yields and the
extension of mortality rate assumptions.



In looking ahead, I can confirm that the new year has started well and, with a
number of profitable transactions having already been identified, we are very
much on course to meet our 2006 targets.  Our company is in a strong position to
meet the challenges likely to be encountered during the coming year and, with
gearing levels at the end of 2005 well below 20%, we have the resources to
pursue existing and new business through to a successful conclusion.



BOARD CHANGES AND CORPORATE GOVERNANCE



As announced in December 2005, Tony Cooper, our Group Finance Director and
Company Secretary for the past 20 years, is to take early retirement at the end
of June 2006.  He joined the group at a key period in its history and, in
demonstrating his financial skills, has proved to be far more than just a safe
pair of hands in advising on the group's strategy and controlling its financial
resources.  We wish Tony all the very best in his future endeavours.



Following a distinguished career during his 50 years association with the group,
David Boot chose to step down in March 2006.  He joined the group in 1956 as an
engineer before taking a main board position in 1960 and going on to become
Joint Managing Director and Joint Chairman in 1978.  David subsequently assumed
non-executive roles in 1987, including that of non-executive Chairman which he
held until 1996.  My board colleagues and I would like to thank him for all his
loyal and dedicated service over such a formative period for the group, and wish
him well.



I can also advise that another of our non-executive directors, John Redgrave,
has decided to retire from the board at the conclusion of our forthcoming Annual
General Meeting.  He joined the company in a non-executive capacity in 1991 and
has consistently remained an invaluable source of expertise and wisdom since
that time.  We offer John our thanks and sincere best wishes for the future.



At this point, I am delighted to welcome John Brown to the board.  He was
appointed on 6th March 2006, and will initially take on David Boot's previous
responsibility as Chairman of the Remuneration Committee as well as assuming the
role of senior independent non-executive director.  John recently retired as
Chief Executive of Speedy Hire Plc, a company he founded in 1977 and which is
today the leader in its field.  He is also Chairman of two AIM listed companies,
and a non-executive director of Lookers plc where he chairs its Audit Committee.



Successors to Tony Cooper and John Redgrave are being actively sought, and
announcements will be made in due course.



With the appointment of two independent non-executive directors, it is to be
expected that many of the perceived 'problems' associated with our company's
statement on compliance with The Combined Code on Corporate Governance will be
resolved.  Other items requiring shareholders' consideration include some
proposed amendments to the company's Articles of Association to bring a number
of governance issues into line with current best practice.



EMPLOYEES



The greatest asset our company employs is never recorded on the balance sheet,
yet without it the company would not be able to function.  That is, of course,
its employees.  Their contribution to ensuring that our company achieves its
objectives is outstanding, and on behalf of my fellow directors I thank them
unreservedly for their loyalty and commitment during the past year.  In doing
so, I also look forward to working with them towards another successful year in
2006.





John S Reis

5th April 2006




Group Income Statement                                                            2005       2004

for the year ended 31st December 2005                                            £'000      £'000

Revenue                                                                        101,188     84,346

Cost of sales                                                                 (64,348)   (60,872)
Gross profit                                                                    36,840     23,474
Other income                                                                        54        121
Administrative expenses                                                        (9,042)    (7,664)
Pension expenses                                                               (2,283)    (2,064)
                                                                                25,569     13,867
Increase in fair value of investment properties                                  4,724      9,448
Profit from operations                                                          30,293     23,315
Investment income                                                                1,311      1,270
Finance costs                                                                  (1,448)    (2,050)
Share of profit of associate                                                         -        670
Profit before tax                                                               30,156     23,205

Taxation                                                                       (8,652)    (6,213)
Profit for the year from continuing operations                                  21,504     16,992
Attributable to:
Equity holders of the parent                                                    20,021     16,507
Minority interest                                                                1,483        485
                                                                                21,504     16,992
Basic earnings per ordinary share                                                78.2p      64.6p

Diluted earnings per ordinary share                                              76.8p      63.3p

Dividend                                                                         19.0p      16.4p



Group Balance Sheet                                                               2005       2004
at 31st December 2005                                                            £'000      £'000

ASSETS

Non-current assets

Goodwill                                                                         3,799      4,002
Property, plant and equipment                                                   68,304     32,398
Investment property                                                             40,566     23,868
Investments                                                                          -          1
Trade and other receivables                                                      3,244          -
Deferred tax assets                                                             13,012     10,097
                                                                               128,925     70,366

Current assets

Inventories                                                                     88,156     98,647
Trade and other receivables                                                     19,135     10,309
Cash and cash equivalents                                                        3,458     32,878
                                                                               110,749    141,834

LIABILITIES
Current liabilities

Trade and other payables                                                        42,474     38,811
Current tax liability                                                            7,758      2,610
Obligations under finance leases                                                     -        446
Borrowings                                                                       3,634     11,216
Provisions                                                                         690        228
                                                                                54,556     53,311
Net current assets                                                              56,193     88,523
Non-current liabilities

Borrowings                                                                      19,882     11,044
Employee benefits                                                               36,799     32,437
Deferred tax liabilities                                                         6,000      5,274
Provisions                                                                         184        958
                                                                                62,865     49,713
Net assets                                                                     122,253    109,176

SHAREHOLDERS' EQUITY

Share capital                                                                    3,005      3,005
Revaluation reserve                                                              2,916      3,753
Retained earnings                                                              113,775     99,931
Other reserves                                                                   2,104      2,116
Cost of shares held by ESOP trust                                                (795)      (849)
Equity shareholders' funds                                                     121,005    107,956
Equity minority interests                                                        1,248      1,220
                                                                               122,253    109,176


Group Statement of Changes in Equity                                              2005       2004
at 31st December 2005                                                            £'000      £'000

Profit for the year                                                             20,021     16,507
Equity dividends                                                               (4,343)    (3,905)
Dividends from subsidiaries                                                          -          -
Revaluation of group occupied property                                           (285)      2,605
Deferred tax on property revaluations                                                -      (781)
Actuarial loss on defined benefit pension scheme                               (3,315)    (6,921)
Deferred tax on actuarial loss                                                     995      2,076
Movement in fair value of cash flow hedges                                        (12)      (971)
Share based payments                                                                54        140
Adjustments re properties transferred to stock                                       1       (23)
Arising on employee share schemes                                                   64        150
Adjustment to deferred tax recognised in equity                                  (131)          -
Movement in equity                                                              13,049      8,877
Equity at 31st December 2004                                                   107,956     99,079
Equity at 31st December 2005                                                   121,005    107,956


Group Cash Flow Statement                                                         2005       2004
for the year ended 31st December 2005                                            £'000      £'000

Cash flows from operating activities

Profit from operations                                                          30,293     23,315
Adjustments for non-cash items:
Depreciation of property, plant and equipment                                    4,635      3,967
Goodwill impairment                                                                203         68
Revaluation increase in investment properties                                  (4,724)    (9,448)
Gain on disposal of property, plant and equipment                                (159)      (877)
Operating cash flows before movements in working capital                        30,248     17,025
(Increase) in inventories                                                     (26,523)   (19,078)
(Increase) decrease in receivables                                            (12,017)      3,665
Increase in payables                                                             4,500      3,442
Cash generated from operations                                                 (3,792)      5,054
Interest received                                                                1,312      1,301
Interest paid                                                                  (1,494)    (2,155)
Interest paid on finance leases                                                    (6)       (41)
Taxation                                                                       (4,827)    (3,959)
Net cash from operating activities                                             (8,807)        200

Cash flows from investing activities

Acquisition of subsidiary                                                            -    (5,001)
Cash at bank acquired with subsidiary                                                -      5,388
Loans acquired with subsidiary                                                       -   (12,788)
Sale of subsidiaries                                                                 -     32,946
Sale of investments                                                                  1          -
Purchase of property, plant and equipment                                     (17,679)    (4,405)
Proceeds on disposal of property, plant and equipment                            2,053      2,493
Dividends received from associate                                                    -        270
                                                                              (15,625)     18,903

Cash flows from financing activities
Dividends paid:
Ordinary shares                                                                (4,322)    (3,884)
Minorities                                                                     (1,455)          -
Preference                                                                        (21)       (21)
Repayments of obligations under finance leases                                   (446)      (864)
                                                                               (6,244)    (4,769)
Net increase in cash and cash equivalents                                     (30,676)     14,334
Opening net funds (debt)                                                        10,172    (5,026)
Cash outflow from decrease in lease financing                                      446        864
Closing net (debt) funds                                                      (20,058)     10,172





NOTES



1.  The financial information above has been extracted from the group's
statutory accounts for the years ended 31st December 2004 (as restated to
conform with IFRS) and 2005.  Statutory accounts for the year ended 31st
December 2004 under UK GAAP have been delivered, and those for the year ended
31st December 2005 under IFRS will be delivered, to the Registrar of Companies.
The auditors of the Company have given unqualified reports on those accounts and
such reports did not contain a statement under Section 237(2) or (3) of the
Companies Act 1985.



2.  The financial statements were approved by the Board of Directors on 4th
April 2006 and authorised for issue.



3.  The financial information has been prepared using accounting policies
consistent with those adopted by the group in its restated IFRS accounts for the
year ended 31st December 2004.



4.  The Annual Report 2005 is to be published and sent to shareholders on
18th April 2006.  Copies will be available from The Company Secretary, Henry
Boot PLC, Banner Cross Hall, Sheffield, S11 9PD.



5.  The Annual General Meeting of the Company is to be held at the Sheffield
Park Hotel, Chesterfield Road South, Sheffield, S8 8BW on Friday 19th May 2006
at 11.30 a.m.



6.  The final dividend will be paid on 25th May 2006, with a record date of
12th May 2006.




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