Final Results

Boot(Henry) PLC
21 March 2007


HENRY BOOT PLC

PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

Henry Boot PLC, the land promotion, property development and investment, 
construction and plant hire business, today announces its preliminary results 
for the year ended 31 December 2006.

HIGHLIGHTS

Turnover increased 41% to £142.3m (2005: £101.2m) after a significant increase 
in the value of land sales

Profit before tax increased 35% to £40.8m (2005: £30.2m)

Basic earnings per share increased 27% to 99.2p (2005: 78.2p)

Final dividend proposed of 16.6p (2005: 14.1p), an increase of 18% making a 
total for the year of 22.0p (2005: 19.0p), an increase of 16%

Return on average capital employed increased to 30% (2005: 26%)

Net asset value per share increased 25% to 584p (2005: 469p)

4 for 1 bonus share issue to be proposed at an EGM in May



Commenting on the results, Chairman John Reis, said:

'I am very pleased to be able to report on a further set of outstanding results 
that are, in terms of profit, earnings, return on assets and dividends, a record 
for the Group.

We have continued to invest in all our business streams but in particular in the
land promotion and development portfolios creating future profitable
opportunities.

Moving into 2007 the Group remains very well positioned to capitalise on these
opportunities which, allied to our robust financial position, give me great
confidence in our future prospects and the delivery of increasing value to
shareholders.'


For further information, please contact:
Henry Boot PLC
Jamie Boot, Group Managing Director
John Sutcliffe, Group Finance Director
www.henryboot.co.uk
0114 255 5444

Evolution Securities Limited
Joanne Lake
0113 243 1619

Citigate Dewe Rogerson
Fiona Tooley
0121 455 8370



CHAIRMAN'S STATEMENT


This has been another very successful year and I am very pleased to be able to
report on a further set of outstanding results that are, in terms of profit,
earnings, return on assets and dividends, a record for the Group.

We have continued to invest in all our business streams but in particular in the
land promotion and development portfolios creating future profitable
opportunities. We retain a nationwide focus, through eight regional offices, on
land promotion and property development whilst taking a regional view in the
North and Midlands to construction and plant hire activities. It is the in-depth
local knowledge of the teams around the country that has enabled us to create
opportunities and deliver shareholder value.

The property market in general appears to remain robust. The residential house
building sector is forecast to grow, in both volume and value, and continues to
consolidate. The Barker Review indicates a new-build requirement of up to
200,000 units per annum well into the future. In the commercial market we
anticipate that investment yields are levelling out. Our focus, however, will
remain on the higher returns offered by developing out our portfolio and
retaining those assets offering the best opportunities for rental and capital
growth and recycling capital where the market offers better value. The
construction business saw a reasonable level of demand during 2006 but much of
the work undertaken in winning contracts will pay dividends in 2007 through
higher turnover. Within plant hire, we relocated two of our seven regional
centres to larger, better situated premises and this inevitably had an impact on
the business performance in 2006. We now look forward to achieving a better
result from this business in 2007.

Results

Turnover increased 41% to £142.3m (2005: £101.2m) after a significant increase
in the value of land sales in the period. Profit before tax increased 35% to
£40.8m (2005: £30.2m). Included within pre-tax profit our investment portfolio
showed a revaluation surplus of £3.0m (2005: £4.7m) and disposal profits were
£1.4m (2005: £Nil). Basic earnings per share increased 27% to 99.2p (2005:
78.2p). Net assets increased 24% to £152.2m (2005: £122.3m), representing an
increase, on a per share basis, of 25% to 584p (2005: 469p).

Dividends

These excellent results enable the continuation of our progressive dividend
policy. The Directors recommend a final dividend of 16.6p per share which,
together with the interim dividend of 5.4p paid in October 2006, make a total
for the year of 22.0p, a 16% increase on the 19.0p paid for 2005. The final
dividend will be paid on 24 May 2007 to shareholders on the register on 11 May
2007.

Performance benchmarking and returns

We achieved a Total Shareholder Return (TSR) in the period of £4.24 per share, a
63% return on the opening price on 1 January 2006 of £6.73.  TSR is calculated
as the increase in share price plus dividends per share. Total shareholder
value, calculated as the increase in net asset value per share, plus dividends
per share, created in the year ended 31 December 2006 was 137p per share, a 29%
return on opening net assets. To help shareholders understand the quality of the
earnings stream that we are developing, these returns compare to an average TSR
return of 35% on the FTSE Construction sector, 48% on the Real Estate sector and
21% on the FTSE Small Cap Index. These sectors have been chosen as the most
appropriate benchmarks against which to monitor our Company.

Directors and employees

As I announced last year, Tony Cooper signalled his intention to retire during
the year and on 1 October 2006 John Sutcliffe joined us as Tony's replacement as
Finance Director and Company Secretary. John has extensive property industry
experience, having previously worked for Town Centre Securities PLC. I am
pleased to say that Michael Gunston FRICS was appointed as a Non-executive
Director on 1 December 2006. Michael retired in 2006 from the position of Chief
Surveyor to The British Land Company PLC after nearly 32 years with that
company. Michael's experience in asset management, investment and development
will be very beneficial to us in the future. These appointments, along with the
retirement of David Boot and John Redgrave and John Brown's appointment, all of
which I covered in my statement last year, have been achieved seamlessly and
bring the Board back to full strength to continue our successful development. I
would like to take this opportunity to wish all three appointees well in their
new roles whilst, at the same time, thanking the three retirees for their
invaluable contribution to the Group over their combined careers with Henry Boot
of some 86 years.

On behalf of my fellow Directors, I would like to express my sincere thanks to
all the Group's employees for their contribution towards achieving another
record performance. It is their commitment, skill and effort that enable us to
improve upon our outstanding record of achievements and I look forward to
chairing the team to further success in 2007.

Bonus issue

The Henry Boot PLC share price now consistently trades at over £10.00 and, as a
result, the directors are proposing a bonus issue of four ordinary shares for
every one held, to be approved at an Extraordinary General Meeting to be held on
the same day as the Annual General Meeting. A Circular will be sent to
shareholders together with the Annual Report. We believe that the increase in
the number of shares in issue and the corresponding adjustment to the market
price will increase the liquidity and marketability of the Company's ordinary
shares. The new bonus shares will rank pari-passu with the existing ordinary
shares, with the exception that they are ineligible for the final dividend of
16.6p to be paid on 24 May 2007 for the year ended 31 December 2006, which is
payable on the ordinary share capital prior to the bonus issue. The bonus issue
will result in a transfer of £10.4m from distributable retained earnings to
share capital.

REITS

Legislation has now been passed which provides for a UK tax transparent property
investment vehicle, a REIT. This form of investment vehicle has been a feature
of other jurisdictions for some years now and its introduction in the UK is
welcome. The business activities within the Henry Boot Group are largely defined
as trading within the REIT legislation and, therefore, a REIT is not currently
an appropriate structure for the Group.

Strategy

The Group is focused on land management and promotion, property development,
construction and plant hire activities. We recognise that the timing of profits
from land promotion and property development is uncertain, which can lead to
volatility in our income stream. As these activities create funds surplus to
their requirements we intend to invest in those assets we are developing
ourselves and which have the best growth potential. This will, when added to our
construction sector income streams, increase the proportion of core annually
recurring profits.

Outlook

I believe that the results we have achieved are justification of our strategy of
substantial, long-term investment in a strategic land portfolio, part pre-let
development and the retention of those schemes we consider to have the best
prospects for rental and capital growth. Allied to this, we continue to see the
benefits of our construction, PFI and plant hire businesses in terms of return
on capital employed and cash generation.

As we move into 2007 the Group remains very well positioned to continue to
capitalise on this broadly based portfolio of assets and opportunities. We have
a land portfolio of the highest quality, which is steadily moving through the
planning process and an excellent range of property developments in progress.
These opportunities allied, to our robust financial position, give me great
confidence in our future prospects and the delivery of increasing value to
shareholders.

John S Reis
21 March 2007


BUSINESS REVIEW

A. OPERATIONS REVIEW

PROPERTY

Our property development and investment business activities again enjoyed a
successful and profitable year. We invested £27m in the development of a number
of schemes during the year and when complete we intend to review each one as
appropriate, in line with our stated policy of growing our investment portfolio.

Investment property yields continued to harden throughout the year and this
resulted in a revaluation surplus of £3.0m (2005 £4.7m) arising at the year end.
There is little doubt that average interest rates will be higher in 2007 and,
whilst it is not anticipated that this will have a detrimental impact on yields,
it is likely that they will consolidate around the current levels.

Although we continued our policy of retaining developments as investments, we
sold our M54 Telford Motorway Service Area, let to Welcome Break, for £13m
realising a profit of £0.8m and a revaluation surplus of £2.3m. We also took
profit from the disposal of retail developments at Liverpool and Skegness.

Construction work was largely completed by the year end on the retail scheme in
Ayr. Work continued through the year on our 220,000 sq.ft mixed-use scheme in
Nottingham and the 100,000 sq.ft mixed use re-development in Bromley.
Development commenced mid-way through 2006 on our much-awaited M20 Motorway
Service Area near Folkestone, and on a further phase of development at Priory
Park, Hull.

Ayr Central Shopping Complex

After two years of site preparation and construction work, this 220,000 sq.ft
retail scheme along with its award-winning 495 space car park was completed in
June 2006 and was substantially let and trading prior to Christmas. With
retailers such as Debenhams, H&M, Next and Primark now attracting the public,
strong interest in the remaining units is being actively progressed.

The Mall, Bromley

The Mall is a part redevelopment/part refurbishment of an existing shopping
centre which will provide 100,000 sq.ft of retail and office accommodation.
Following completion of phase one in 2005, work on the final phase took place
through the year and will be completed in 2007. The retail space in this phase
has been taken by Sportsworld and the office accommodation is about to be fitted
out with completion by mid-year. We plan to retain this asset within our
investment portfolio as it has good, long-term income and capital growth
prospects.

Markham Vale Business Park, M1

Markham Vale is a major regeneration of the ex-Markham Main Colliery site where
we are working in partnership with Derbyshire County Council to create a 200-
acre business park. Located almost in the centre of the country and adjacent to
the M1, it is ideally located and expected to be a major development project for
the foreseeable future. The agreement with Derbyshire County Council is now
unconditional and in early 2007 we drew down the first 60 acres on which to
commence development. Infrastructure works have already commenced and a new M1
motorway junction 29A is scheduled to be open at the end of 2007. A wide range
of properties is planned for the park, some of which are in the design phase and
terms and conditions are being progressed with leading occupiers. We feel so
confident in this location that some industrial units will be built on a
speculative basis.

Stop 24 Motorway Service Area, M20

Situated on Junction 11 of the M20, this new motorway service area, one of the
largest on the UK motorway network, will service traffic heading for the Channel
ports and tunnel. Construction commenced in mid 2006 and is programmed for
completion and trading later in 2007. Contracts have already been exchanged for
the sale of the hotel and petrol station sites and tenants have been secured for
the retail and restaurant units within the 25,000 sq.ft amenity building.

The Axis Mixed Use Scheme, Nottingham

All aspects of this 220,000 sq.ft redevelopment scheme in Nottingham city centre
progressed satisfactorily with the main elements of the construction work
completed by the early part of 2007. Fit-out is now in progress on the first
52,000 sq.ft of offices and terms are agreed on the bulk of this space. There is
also strong interest in the remaining 22,000 sq.ft of the offices. All the
retail space is fully let and the 80,000 sq.ft casino, taken by London Clubs
International, is being fitted out and expected to be open in 2007.

In addition to the key schemes noted above, we continue to have a growing
investment in developments under construction with many being successfully
progressed through the various stages of acquisition and development.

New developments added to our portfolio included an existing 32,000 sq.ft town
centre retail scheme in Tamworth which we acquired for £6.0m with the medium-
term intention of redeveloping and expanding it.

We also purchased a 2.5-acre site in Bodmin with planning consent for 37,000
sq.ft of retail warehouse development. A revised planning application to vary
the scheme's layout has been submitted and it is proposed to commence work on
site in the second half of 2007.

Plans for the development of 37,000 sq.ft of retail warehousing in Bromborough
progressed with all necessary consents obtained. Work commenced on site in 2007
on a phased construction programme which is expected to complete in spring 2008.
The scheme has been pre-let in full to Magnet and Homebase.

With detailed planning permission already secured and tenders now received,
construction work will start in mid-2007 on the Ripon Gateway retail and
business park. Phase one will include 37,000 sq.ft of retail and 20,000 sq.ft of
industrial space. Phase two will consist of a combination of design/build and
speculatively built industrial and office units.

Outline planning consent was secured for our shopping and business park scheme
in Rotherham. The park will provide 100,000 sq.ft of retail accommodation, some
of which is already pre-let to Wickes DIY, and a further seven acres for
employment use. We expect to start the construction phase of this project in
late 2007.

Road infrastructure works at Priory Park, Hull, are currently under construction
to service a further 30 acres of our industrial park which sits to the side of
the A63, linking Hull to the M62. Once completed, we intend developing a further
60,000 sq.ft of industrial units on a phased basis, a 28,000 sq.ft joint venture
development of office units and a number of owner occupied design and build
units. In addition to these developments, we have concluded negotiations for a
land sale on the site which will take place in 2007.

Contracts for a 60,000 sq.ft Asda store on the Waterloo Square retail scheme in
South Shields are unconditional and enabling works have started. The main
contract for construction of the store is likely to commence in late 2007 with
completion in 2008.

At The Square Shopping Centre in Beeston, we have agreed to exchange space to
accommodate the new Nottingham Tramway extension for an area currently in the
control of the council. This will permit the development of a 60,000 sq.ft
scheme extension to provide at least 50% more space than is available at
present. We expect to receive planning permission during 2007 so that
construction work can commence in 2008.

Detailed planning permission has been granted for our retail and leisure scheme
at Worksop. This will permit construction work to start on the 70,000 sq.ft
leisure park and 60,000 sq.ft food store development with completion programmed
for late 2008. All the principal operators have been secured, including Tesco,
KFC and Apollo Cinemas.

LAND

This was a record year, in terms of both sales and profit, for Hallam Land
Management Limited and real progress in planning was achieved on a significant
number of land holdings. Key transactions in the year were at Bathgate,
Kettering, Liverpool, Mansfield, Prestonpans, Sheffield, Stotfold and Syston,
with all making a significant contribution to the result.

The last few years have seen us pursue numerous land deals nationally on both
brownfield and greenfield sites and this policy is now set to pay significant
dividends as we see more sustainable urban extensions on greenfield land being
released for residential development. Although faced with the probable
introduction of the Government's Planning Gain Supplement (PGS) in 2009, we
believe that the scale of housing requirements will underpin the market well
into the future. The Group has made representations to the Government urging it
not to introduce PGS, as we firmly believe it to be against its best interests
and its ambitions to bring forward an increasing supply of land for development.

We are presently progressing significantly more opportunities and have more land
in which we have a secured an interest, than was the case last year end. We now
own close to 1,450 acres out of a total holding of 6,500 acres.

Syston, Leicestershire

We moved towards concluding our long-term interest at Syston with the sale of
eight acres of land to a national housebuilder and a smaller sale to our
development partner during the year.   Together these sales totalled £10.9m. Our
progress with the land at Syston, some of which we bought in the mid-1970s, has
been most difficult at times. We have promoted the land jointly with a partner
since 1990 and it was not until 2004 that a Section 106 agreement was cleared on
our application and planning permission was granted for our 340 dwelling scheme.
Even then further planning conditions delayed the marketing of the site until
2006.

Stotfold, Bedfordshire

The sale of our Stotfold site with permission for 650 dwellings was successfully
achieved. This brought about the conclusion to another long-term investment,
which started with the acquisition of our first tranche of land under option in
1994. Following the promotion of this and additional land through the Local Plan
Inquiry in 1998/9, we successfully defended the scheme against counter proposals
and its development was recommended in the Inspector's Report in 2001. Upon
subsequently submitting an outline planning application for 650 dwellings, we
were then delayed for a further three years by third party objections. A
successful outcome was eventually achieved with planning consent being granted
in 2006 and the site was sold to a consortium of national housebuilders in
September last year.

Milton Keynes, Buckinghamshire

We expect that planning proposals for our long-term land investments in the
eastern expansion area of Milton Keynes will receive consent in 2007. We signed
our first option agreement with local landowners in 1996 and expanded our
interest through further options and purchases. The land progressed through the
2000 Deposit Local Plan as a strategic reserve site for post-2011 development,
to identification in 2003 as an expansion area for pre-2011 development and then
to a recommendation in the 2004 Local Plan Inspector's Report that it be brought
forward as an allocation. Following this decision, we submitted a planning
application for 2,500 dwellings, a district centre and three schools with
supporting infrastructure. The anticipated permission will permit land sales to
commence by the second half of the year.

Bognor Regis, West Sussex

Following an inquiry into the planning consent for the 700-dwelling site at
Bognor Regis, the Secretary of State confirmed a positive decision in November
2006. The land is currently being marketed and should be sold in the first half
of 2007.

A number of land purchases took place during the year in keeping with our on-
going trading strategy. At Market Harborough we acquired a small piece of land
that, added to our existing holding, will enable us to bring forward our 23-acre
employment scheme. We also purchased a five and a half acre site at Bishopbriggs
allocated for residential development in the East Dunbartonshire Local Plan.

In addition, we acquired our first wind farm site under option at Easington, Co.
Durham and obtained planning permission for a wind speed monitoring mast in
October. The mast is now in place and we expect to submit a planning application
for the 180-acre wind farm in the near future.

An amended planning application has been submitted for residential development
on 18 acres in Ampthill, Bedfordshire. We are hopeful of a favourable result in
2007 and to achieve a land sale later in the year. Outline planning consent is
also anticipated later this year for our 1,200-dwelling scheme at Biddenham,
Bedford and we hope to bring the site through to sale in due course. If we are
successful with our planning application for residential development on a 34-
acre site at Biggar, South Lanarkshire, this will enable us to effect a disposal
during 2008.

We expect to agree a significant interest in land allocated for a scheme of up
to 2,900 homes at Exeter. The necessary permissions and agreements are
progressing well, as are negotiations with the various landowners involved. The
first part disposals within this major site may occur as early as 2008, with
others following in future years. Further allocations are anticipated in this
location and we intend to maintain a major interest as the new settlement
expands.

There is increasing interest from retailers and fast food operators to locate to
our district centre site at Rushpool Farm, Mansfield. We are now looking to
promote the larger part of our land for residential development through to a
detailed application in the near future. The land is capable of accommodating
over 300 dwellings.

We have submitted a reserved matters application for our jointly-owned 90-acre
employment site at Penniment Farm, Mansfield and anticipate that the application
will go to committee with a recommendation for approval in the early part of
2007.

We await the completion of a Section 106 Agreement to enable us to dispose of
our 30% interest in an 84-acre site at Melksham, Wiltshire. It is anticipated
that we will be in a position to achieve a sale later this year.

We intend to submit a planning application early in 2007 for a first phase of
187 dwellings on our site in Worcester. If matters progress smoothly, the sale
could occur prior to the 2007 year end.

Planning permission has been received to convert the farm house and outbuildings
on our 53-acre Mill Farm site at Ashby-de-la-Zouch into eight dwellings and
3,000 sq.ft of office accommodation and this element of our land holding is
currently being marketed for sale. We will retain the rest of the site awaiting
a residential development allocation in due course.

With 92 acres of land in our ownership and 480 acres jointly optioned at
Kilmarnock, a Consultative Draft Local Plan has allocated an initial release of
50 acres from each holding for residential development. Given this positive
move, we anticipate being in a position to sell some of these land interests
late in 2008.

CONSTRUCTION

Henry Boot Construction (UK) Limited continued to make good progress by meeting
profit expectation in what remained an extremely competitive market place which
impacted on our level of activity.

In line with the company's business plan, our performance again benefited from
the development of partnership, negotiated and framework contracts. Such
arrangements accounted for an increased proportion of our workload for the year
as well as contributing to our future order book.

Our Preferred Alliance Contractor arrangement with the National Offenders
Management Service advanced satisfactorily with work being undertaken on several
prisons and other major new projects should come on stream during 2007. This,
together with the completion of Newark Police Station for Nottinghamshire Police
Authority, maintained the company's prominence in the 'secure' sector.

At the same time, on-going framework agreements with Rotherham Metropolitan
Borough, Derby City and Cheshire County Councils progressed with the completion
of a number of educational construction projects.

Completed contracts in the commercial sector included The Axis, a major 220,000
sq.ft property redevelopment scheme in Nottingham, undertaken for Henry Boot
Developments.

New projects commenced in the year included a garden centre and retail unit
scheme at Barlborough, Sheffield for Dobbies Garden Centres PLC and
refurbishment works at Drakehouse Retail Park, Sheffield for Hammerson Property
Limited.

In addition to successfully carrying out an increasing number of smaller value
building contracts and repeat civil engineering work in the industrial and water
sectors, our General Works Division secured additional extended contract
agreements with a growing core of major clients.

The company's position as a major partnering contractor was strengthened with
our selection by Rotherham 2010 Limited to help deliver its £272m Decent Homes
programme to refurbish 22,500 houses over the next four years.

We were also appointed as a partnering contractor on Sheffield City Council's
four-year Decent Homes scheme, the largest of its type in the country, and
improvement works commenced on the refurbishment of 224 flats within two tower
blocks for Hull City Council.

National property company Places for People confirmed our four-year appointment
as a framework contractor for housing work in the North East region. Other
notable residential contract awards included the renovation of 225 homes for
North East Derbyshire District Council, whilst the two-year refurbishment of
dwellings in the village of Creswell for Bolsover District Council was completed
in early 2007.

Within our service to clients, and as a Lloyds Quality and Environmental
Approved Contractor, we constantly review and update our procedures and policies
to ensure we adhere to best practice standards. Approved BREEAM environmental
assessments are being increasingly called for on contracts, and we are well
placed to demonstrate our skill and experience in this specialist area. In
addition, we were the construction sector winners in the prestigious Yorkshire
and Humberside Business in the Environment Awards for the third year running.

Health and safety is of paramount importance in all our operations and we again
reduced the number of reportable incidents on our sites. Although pleased with
this achievement, and with our continuing accreditation under the demanding
Contractors Health and Safety Assessment Scheme, we vigorously strive to further
improve our record.

As part of our commitment to accident prevention, our dedicated in-house safety
team made some 230 visits to our construction sites during the year and on-site
and office-based safety training courses were held regularly.

Our strategy remains focused towards delivering high levels of customer service
and satisfaction whilst operating within identified sectors and geographical
regions of the construction market. The combination of our increasing number of
long-term framework agreements, repeat work for clients and improving new
opportunities, is producing an encouraging forward order book. This will allow
us to be more selective in the type of work we undertake and the clients we work
for and further reduce our exposure to operational risk.

Road Link (A69) Holdings Limited

Road Link is now in the 11th year of a 30-year PFI contract to operate and
maintain the A69 Trunk Road for the Highways Agency. Payments to Road Link are
based on the number of vehicles using the route, which comprises 53km of single
carriageway and 30km of dual carriageway. In 2006, our maintenance programme
included the resurfacing of over 13-lane km and the refurbishment of three
concrete bridges. We continue to believe that the planned maintenance programme
we have put in place is a very cost effective whole life solution.

PLANT

Competition within the plant hire industry remains strong and we believe the key
to our success is maintaining a broad range of modern plant to meet the needs of
our customers. At the same time it is crucial to ensure that we obtain a
satisfactory return on these assets to enable us to achieve our target return on
turnover.

During 2006 we re-located our Derby and Wakefield hire centres to improved,
larger premises, providing the opportunity to grow the product range, turnover
and profit into the future.  Both moves were completed by the year end, and the
two former sites are to be disposed of in 2007. All costs to date associated
with the moves have been charged against profits in 2006.

Following high levels of capital investment over the past two years, limited
investment was required within the plant and access equipment hire fleets.
However, investment in power tools was concentrated on our new Leeds centre,
which opened in early 2006, and on developing its range to meet increasing
customer demand. We also continued to maintain a high standard of customer
service by proactively replacing items reaching the end of their useful lives.
Continued strong demand for accommodation units highlighted this division for
further investment. This was focused on anti-vandal office, storage and toilet
units, which maintained high levels of utilisation throughout the year.

New operational and financial systems were introduced during 2006 to provide
better management information, particularly with respect to plant utilisation
rates. Overall, a satisfactory trading performance was achieved in 2006 despite
the impact of the two re-locations and site development and we aim to capitalise
on these new opportunities in 2007.

B. FINANCIAL REVIEW

RESULTS

Profit and loss

Net revenue for the year was 41% higher than last year at £142.3m (2005:
£101.2m) derived primarily from higher land sales. Profit from operations
increased 38% to £41.9m (2005: £30.3m) after inclusion of the property
revaluation surplus of £3.0m (2005: £4.7m) and profit on the sale of investment
properties of £1.4m (2005: £Nil). Administrative expenses were £2.4m higher at
£11.4m (2005: £9.0m) primarily resulting from the investment in additional
headcount and the under-recovery of overhead costs into contract work in
progress within the construction company. Profit before tax was 35% higher at
£40.8m (2005: £30.2m).

Comparing the segmental profit analysis shows that the Property and Land
Development profits increased by 40% to £38.6m (2005: £27.5m). Construction
profits were stable at £7.6m (2005: £7.8m) and central costs slightly lower at
£4.3m (2005: £5.0m).

Basic earnings per share were 27% higher at 99.2p (2005: 78.2p). Total dividend
payable for the year rises 16% to 22.0p (2005: 19.0p) with dividend cover rising
to 4.5 times (2005: 4.1 times).

Financing and gearing

Net interest costs increased to £1.1m (2005: £0.1m). Net interest cover,
expressed as the ratio of profit from operations (excluding the valuation
movement on investment properties and disposal profits) to net interest was 34
times. Although slightly higher than last year, the modest charge reflects the
Group's prudent financial position. No interest, incurred during the year or the
previous year, has been capitalised into development costs. It is anticipated
that interest charges will increase in 2007 as we fund the development portfolio
in progress, towards completion.

Year-end net borrowings were 21% lower at £15.9m (2005: £20.0m) following a year
of very strong operational cash inflows offset by investment in the development
programme and land and property acquisitions.  Gearing, on net assets of £152.2m
was 10% (2005: net assets £122.3m; gearing 16%). Of these borrowings, £9.9m
(2005: £11.0m) are on fixed rate, term commitments until March 2015, the
remainder are at floating rates or short-term fixed commitments. The need for
alternative, longer-term funding is constantly under review. However, it is not
currently considered necessary given the strong operational cash inflows
generated across the Group. The Group has agreed facilities in place of £75m.

Taxation

The tax charge for the year is £14.0m (2005: £8.7m) representing a charge of
34.3% (2005: 28.7%). The higher percentage charge relates in part to
construction expenses not allowable for tax. The deferred tax asset has reduced
by £3.1m to £9.9m primarily resulting from the reduction in the pension scheme
deficit. Deferred tax liabilities have also decreased after the sale of Telford
during the year realised part of the provision.

Cash flow

A net cash inflow of £4.2m during the year reduced net borrowings to £15.9m. 
Operating cash inflow was £26.2m (2005: cash outflow £8.8m) after the completion
of large land sales at Stotfold, Syston and Prestonpans and significantly lower
net investment in working capital of £4.0m (2005: £34.0m). Taxation payments
increased to £11.0m (2005: £4.8m) arising from timing differences between the
income statement charge and payments on account.  Property investments were
£32.2m (2005: £17.7m) largely in relation to the ongoing development portfolio
and an acquisition of a retail investment with future redevelopment potential in
Tamworth. These outflows were offset by fixed asset disposals of £16.3m (2005:
£2.1m) as we took advantage of strong demand and sold Telford motorway service
area for £13.0m. Dividends paid, including those to minorities, totalled £6.1m
(2005: £5.8m).

Balance sheet

The policy of progressive investment in the development portfolio underlies the
£31.3m increase in property, plant and equipment. It is anticipated that this
outlay will continue during 2007 as we complete developments at Bromley,
Nottingham and Saltwood and commence sites at Stoke-on-Trent, Markham Vale and
Rotherham. The aforementioned sale of Telford reduced investment property to
£30.1m (2005: £40.6m). The total investment in non-current assets stood at
£143.3m (2005: £128.9m). Net current assets increased £12.4m to £68.6m (2005:
£56.2m) largely due to the increase in current cash balances, though non-current
borrowings increased £8.3m to offset this change.

Pension deficit

The annual valuation of the defined benefit pension scheme resulted in a reduced
deficit of £25.8m in 2006 (2005: £36.8m). The deferred tax asset associated with
this deficit has also fallen from £11.0m to £7.7m. Adding back this net deficit
of £18.1m (2005: £25.8m) to net assets, the 2006 deficit equates to 10.6% of net
assets (2005: 17.4%). The improvement in the position is largely down to a
strong performance from the scheme's investments and a slightly higher, long-
term interest rate assumption. The scheme actuaries are currently undertaking
the tri-annual valuation and a further report to shareholders will be made on
the results after completion. The defined benefit scheme is closed to new
entrants, with all new employees being offered a defined contribution scheme.




Group Income Statement                                                            2006       2005
for the year ended 31 December 2006                                              £'000      £'000

Revenue                                                                        142,284    101,188

Cost of sales                                                                 (91,496)   (64,348)
Gross profit                                                                    50,788     36,840
Other income                                                                        27         54
Administrative expenses                                                       (11,479)    (9,042)
Pension expenses                                                               (1,855)    (2,283)
                                                                                37,481     25,569
Increase in fair value of investment properties                                  3,032      4,724
Profit on sale of investment property                                            1,381          -
Profit from operations                                                          41,894     30,293
Investment income                                                                  641      1,311
Finance costs                                                                  (1,740)    (1,448)
Profit before tax                                                               40,795     30,156

Taxation                                                                      (14,008)    (8,652)
Profit for the year from continuing operations                                  26,787     21,504
Attributable to:
Equity holders of the parent                                                    25,415     20,021
Minority interest                                                                1,372      1,483
                                                                                26,787     21,504
Basic earnings per ordinary share                                                99.2p      78.2p

Diluted earnings per ordinary share                                              97.4p      76.8p

Dividend                                                                         22.0p      19.0p



Group Balance Sheet                                                               2006       2005
at 31 December 2006                                                              £'000      £'000

ASSETS

Non-current assets

Goodwill                                                                         3,595      3,799
Property, plant and equipment                                                   99,595     68,304
Investment property                                                             30,130     40,566
Trade and other receivables                                                          -      3,244
Deferred tax assets                                                              9,941     13,012
                                                                               143,261    128,925

Current assets

Inventories                                                                     94,736     88,156
Trade and other receivables                                                     17,592     19,135
Cash and cash equivalents                                                       15,044      3,458
                                                                               127,372    110,749

LIABILITIES

Current liabilities

Trade and other payables                                                        31,830     33,586
Current tax liability                                                           11,739      7,758
Borrowings                                                                       2,801      3,634
Provisions                                                                      12,401      9,578
                                                                                58,771     54,556
Net current assets                                                              68,601     56,193

Non-current liabilities

Borrowings                                                                      28,141     19,882
Employee benefits                                                               25,813     36,799
Deferred tax liabilities                                                         5,585      6,000
Provisions                                                                         144        184
                                                                                59,683     62,865
Net assets                                                                     152,179    122,253

SHAREHOLDERS' EQUITY

Share capital                                                                    3,005      3,005
Revaluation reserve                                                              2,908      2,916
Retained earnings                                                              142,843    113,775
Other reserves                                                                   2,610      2,104
Cost of shares held by ESOP trust                                                (740)      (795)
Equity shareholders' funds                                                     150,626    121,005
Equity minority interests                                                        1,553      1,248
TOTAL EQUITY                                                                   152,179    122,253


Group Statement of Changes in Equity                                              2006       2005
at 31 December 2006                                                              £'000      £'000

Profit for the year                                                             25,415     20,021
Equity dividends                                                               (5,016)    (4,343)
Revaluation of group occupied property                                             140      (285)
Deferred tax on property revaluations                                             (28)          -
Actuarial gain (loss) on defined benefit pension scheme                         11,918    (3,315)
Deferred tax on actuarial (gain) loss                                          (3,575)        995
Movement in fair value of cash flow hedges                                         506       (12)
Share based payments                                                                55         54
Adjustments re properties transferred to stock                                       -          1
Arising on employee share schemes                                                  206         64
Adjustment to deferred tax recognised in equity                                      -      (131)
Movement in equity                                                              29,621     13,049
Equity at 1 January                                                            121,005    107,956
Equity at 31 December                                                          150,626    121,005


Group Cash Flow Statement                                                         2006       2005
for the year ended 31 December 2006                                              £'000      £'000

Cash flows from operating activities

Profit from operations                                                          41,894     30,293
Adjustments for non-cash items:
Depreciation of property, plant and equipment                                    4,701      4,635
Goodwill impairment                                                                204        203
Revaluation increase in investment properties                                  (3,032)    (4,724)
Gain on disposal of property, plant and equipment                                (263)      (159)
Gain on disposal of investment properties                                      (1,381)          -
Operating cash flows before movements in working capital                        42,123     30,248
Increase in inventories                                                       (11,355)   (26,523)
Decrease (increase) in receivables                                               4,847   (12,017)
Increase in payables                                                             2,532      4,500
Cash generated from operations                                                  38,147    (3,792)
Interest received                                                                  636      1,312
Interest paid                                                                  (1,599)    (1,494)
Interest paid on finance leases                                                      -        (6)
Taxation                                                                      (10,976)    (4,827)
Net cash from operating activities                                              26,208    (8,807)

Cash flows from investing activities

Sale of investments                                                                  -          1
Purchase of property, plant and equipment                                     (32,228)   (17,679)
Proceeds on disposal of property, plant and equipment                            1,391      2,053
Proceeds on disposal of investment properties                                   14,872          -
Cash flows from investing activities                                          (15,965)   (15,625)

Cash flows from financing activities

Dividends paid:
Ordinary shares                                                                (4,995)    (4,322)
Minorities                                                                     (1,067)    (1,455)
Preference                                                                        (21)       (21)
Repayments of obligations under finance leases                                       -      (446)
Cash flows from financing activities                                           (6,083)    (6,244)
Net increase (decrease) in cash and cash equivalents                             4,160   (30,676)
Opening net (debt) funds                                                      (20,058)     10,172
Cash outflow from decrease in lease financing                                        -        446
Closing net debt                                                              (15,898)   (20,058)


NOTES

1. Business and geographical segments

                    Year ended 31 December 2006            Year ended 31 December 2005
                                   Inter-                                      Inter-
                      External    segment                       External      segment
                         sales      sales        Total             sales        sales        Total
                         £'000      £'000        £'000             £'000        £'000        £'000
Revenue
Property and land
development             80,938        241       81,179            43,115          241       43,356
Construction            61,285      4,950       66,235            57,805        4,389       62,194
Group overheads and
other                       61        528          589               268          464          732
                       142,284      5,719      148,003           101,188        5,094      106,282
Eliminations                 -    (5,719)      (5,719)                 -      (5,094)      (5,094)
                       142,284          -      142,284           101,188            -      101,188


                                                                  2006                               2005
                                                                 Total                              Total
Result                                                           £'000                              £'000
Property and land development                                   38,586                             27,468
Construction                                                     7,610                              7,833
Group overheads and other                                      (4,302)                            (5,008)
Segment result                                                  41,894                             30,293
Investment income                                                  641                              1,311
Finance costs                                                  (1,740)                            (1,448)
Profit before tax                                               40,795                             30,156
Taxation                                                      (14,008)                            (8,652)
Profit for the year                                             26,787                             21,504


For management purposes, the group is currently organised into three business
segments: Property and land development, Construction and Group overheads and
other. As operations are carried out entirely within the UK, there is no
secondary segmental information. Inter segmental pricing is done on an arms
length open market basis.

2. Dividends

                                                                                      2006             2005
                                                                                     £'000            £'000
Amounts recognised as distributions to equity holders in year:
Preference dividend on cumulative preference shares                                     21               21
Final dividend for the year ended 31 December 2005 of 14.1p per share
(2004: 12.0p)                                                                        3,612            3,069
Interim dividend for the year ended 31 December 2006 of 5.4p per share
(2005: 4.9p)                                                                         1,383            1,253
                                                                                     5,016            4,343


The proposed final dividend for the year ended 31 December 2006 of 16.6p per
share (2005: 14.1p) makes a total dividend for the year of 22.0p (2005: 19.0p).
The proposed final dividend is subject to approval by shareholders at the Annual
General Meeting and has not been included as a liability in these financial
statements. The total estimated dividend to be paid is £4,251,000. The final
dividend will be paid on 24 May 2007, with a record date of 11 May 2007.

3.  The financial information above has been extracted from the group's
statutory accounts for the years ended 31 December 2005 and 2006. Statutory
accounts for the year ended 31 December 2005 have been delivered, and those for
the year ended 31 December 2006 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.

4.  The financial statements were approved by the Board of Directors on 20 March 
2007 and authorised for issue.

5.  The Annual Report 2006 and the Circular referred to in the Chairman's
Statement are to be published and sent to shareholders on 12 April 2007. Copies
will be available from The Company Secretary, Henry Boot PLC, Banner Cross Hall,
Sheffield, S11 9PD and on the Company's website www.henryboot.co.uk.

6. The financial information has been prepared using accounting policies
consistent with those adopted by the Group in its financial statements for the
year ended 31 December 2005.

7.  The Annual General Meeting of the Company and the Extraordinary General
Meeting are to be held at the Sheffield Park Hotel, Chesterfield Road South,
Sheffield, S8 8BW on Thursday 17 May 2007 with the Annual General Meeting
commencing at 11.30 a.m.



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