Interim Results
Boot(Henry) PLC
27 September 2001
HENRY BOOT PLC
INTERIM RESULTS
Henry Boot PLC, the housebuilding, property and construction group, announces
its Interim Results for the half-year ended 30th June 2001.
Highlights
OPERATING PROFIT UP 23%
PRE-TAX PROFIT UP 14%
EARNINGS PER SHARE UP 11%
INTERIM DIVIDEND UP 10%
Chairman's Statement
It is with much pleasure that I am able to report at this 2001 interim stage,
a 23% increase in operating profit leading to a 14% increase in pre-tax profit
compared with the previous year's corresponding period. Our trading strategy
continues to concentrate on business areas which offer higher, more
sustainable margins and on greater selectivity in less rewarding sectors. This
policy continues to bring about increased profitability, which in this period
has been achieved in spite of a 7% reduction in turnover and the need to
retain a moderate gearing level. With interest rates remaining low and strong
general demand for our services evident in the market place, your Board
continues to actively pursue profitable opportunities. At the same time, we
are closely monitoring the situation for any signs of over-exposure to a
sudden downturn.
In building on the strengths of its increasing national presence, our Property
Development and Investment activities successfully completed on major schemes
at Blackpool and Bridlington. Other schemes brought forward during the period
have attracted significant interest from prospective tenants and institutions
alike which augurs well for the year-end.
The Housebuilding business has continued to flourish, enjoying an excellent
start to the year in a market where a quality product range in a good location
still attracts keen interest. With its independently-operating regions now
extending from Scotland to the South West of England, completions for the
half-year have exceeded targets. We have a strong order book taking us into
the second half of the year and continuing demand in the market should again
enable the operation to achieve record completions by the year-end. The need
to secure quality replacement land at acceptable prices remains high on our
agenda as increasing demand for land is progressively raising land values and
vendors' expectations.
Hallam Land Management, our land trading company, functions in an
ever-demanding and complex operating framework that offers little respite from
present planning constraints. However, our success on a number of sites in
different parts of the country has lead to a profitable half-year result.
Further progress is anticipated on a number of land holdings under the
company's control as it extends its sphere of influence and reputation to the
benefit of our housebuilding and property development operations.
Our Construction undertakings again encountered extremely competitive and
challenging trading conditions which brought about considerably reduced
activity, particularly in select tender building and civil engineering
operations. The specialist construction company performed to plan in
extending the fast track fitting-out, facilities management and rail track
businesses. The pursuit and resolution of final accounts continues on a
number of long-outstanding contracts and we remain confident of achieving our
ultimate expectations.
Consolidation of the Plant Hire businesses of Banner Plant and Quicklift was
progressed, bringing with it synergies and economies that have made the
operations much more competitive. This has resulted in increased turnover and
profits for the period, and an improved performance for the year as a whole is
expected.
Elsewhere in the group, the Training and Inner City activities have performed
satisfactorily, although recruitment for the Construction Apprenticeship
Scheme remains slow.
Earnings per share reflect the improved profitability achieved, increasing by
over 11% from 11.8p to 13.2p, and net assets per share advanced to 298p (30
June 2000 265p).
Encouraged by this first half-year performance and by the prospects for the
year-end, your Directors have declared an interim dividend of 3.3p per
ordinary share, up 10% on the previous year.
The appalling events of recent days and the effects these may have on the
economy and, in turn, on our own business are as yet unclear. Notwithstanding
therefore the confidence expressed above, we shall proceed cautiously as the
situation develops.
27th September 2001
JOHN S REIS
Chairman
The UNAUDITED results of the Group include:
Half year ended Half year ended Year ended 31
30 June 2001 30 June 2000 December 2000
£000 £000 £000
Turnover - continuing
operations
Group and share of 99,969 107,876 226,787
associates
Less: Share of 1,155 - 1,871
associates
98,814 107,876 224,916
Operating profit 4,652 4,133 11,991
Share of operating profit 465 - 483
of associates
Total operating profit 5,117 4,133 12,474
Investment income - - 197
Interest (305) (43) (290)
Share of interest of (131) - (143)
associates
Profit on ordinary 4,681 4,090 12,238
activities before tax
Tax on profit on ordinary (1,400) (1,143) (3,332)
activities
Profit for the period 3,281 2,947 8,906
Dealt with as follows:
Dividends:
Cumulative preference 11 11 21
shares (non-equity)
Proposed interim of 3.3p 823 738 2,717
(2000 3.0p)
Profit retained 2,447 2,198 6,168
3,281 2,947 8,906
Earnings per ordinary 13.2p 11.8p 36.0p
share
Diluted earnings per 12.8p 11.4p 34.7p
ordinary share
Summarised Group Balance Sheet at 30 June 2001
30 June 2001 31 December 30 June 2000
Unaudited 2000 Audited Unaudited
£000 £000 £000
Fixed assets
Goodwill - - 1,114
Tangible assets 31,358 31,543 28,049
Investments 2,368 1,951 2,047
33,726 33,494 31,210
Current assets
Stocks 112,175 107,833 83,481
Debtors 20,670 21,221 19,999
Cash at bank and in hand 80 80 488
Creditors: amount falling due (71,392) (70,543) (63,924)
within one year
Net current assets 61,533 58,591 40,044
Total assets less current 95,259 92,085 71,254
liabilities
Creditors: amounts falling due (16,327) (15,933) (1,483)
after more than one year
Provisions for liabilities and (2,037) (2,134) (1,750)
charges
76,895 74,018 68,021
Capital and reserves
Called up share capital 2,967 2,936 2,949
Capital redemption reserve 271 271 257
Share premium account 1,678 1,131 1,119
Property revaluation reserve 11,569 11,732 9,600
Profit and loss account 59,884 57,422 53,572
Other reserves 526 526 524
76,895 74,018 68,021
Being:
Non-equity shareholders' funds 400 400 400
Equity shareholders' funds 76,495 73,618 67,621
76,895 74,018 68,021
Group statement of total recognised gains and losses
Half year ended Half year ended Year ended 31
30 June 2001 30 June 2000 December 2000
Unaudited Unaudited Audited
£000 £000 £000
Profit for the financial 3,281 2,947 8,906
period
Cost of own shares purchased - (1,356) (1,633)
Unrealised surplus on - - 2,438
property revaluation
Elimination of revaluation (148) (79) (228)
surplus on transfer of
properties to stocks
Foreign currency translation - - 2
differences
Total recognised gains and 3,133 1,512 9,485
losses for the period
Summarised group cash flow statement
Half year ended Half year ended Year ended 31
30 June 2001 30 June 2000 December 2000
Unaudited Unaudited Audited
£000 £000 £000
Net cash inflow (outflow) 3,614 7,012 (8,000)
from operating activities
Dividends received from 201 - 599
associates
Returns on investment and (289) 53 (62)
servicing of finance
Taxation (1,107) (194) (2,529)
Capital expenditure and (3,386) (3,215) (4,793)
financial investment
Additional investment in (431) (206) (810)
associates
Equity dividends paid (1,986) (1,805) (2,543)
Cash (outflow)/inflow (3,384) 1,645 (18,138)
before use of liquid
resources and financing
Financing 283 (1,623) (2,458)
(Decrease)/increase in cash (3,101) 22 (20,596)
Notes to group cash flow statement
Half year ended Half year ended Year ended 31
30 June 2001 30 June 2000 December 2000
Unaudited Unaudited Audited
£000 £000 £000
Reconciliation of net
cash flow to movement in
net funds
(Decrease)/increase in (3,101) 22 (20,596)
cash
Cash outflow from 295 267 853
decrease in debt and
lease financing
New finance leases (1,502) - (453)
Change in net debt (4,308) 289 (20,196)
Net debt at 31 December (22,290) (2,094) (2,094)
2000
Net debt at 30 June 2001 (26,598) (1,805) (22,290)
Reconciliation of operating profit to operating cash flow
Half year ended Half year ended Year ended 31
30 June 2001 30 June 2000 December 2000
Unaudited Unaudited Audited
£000 £000 £000
Operating profit 4,652 4,133 11,991
Depreciation and 2,057 1,889 4,828
amortisation
Profit on tangible (67) (65) (108)
fixed assets
(Increase)/decrease in (4,340) 814 (23,536)
stocks
Decrease in debtors 551 1,492 286
Increase/(decrease) in 761 (1,251) (1,461)
creditors and
provisions
Net cash inflow 3,614 7,012 (8,000)
(outflow) from
operating activities
Analysis of net debt
At 31 December 2000 Cash flows At 30 June 2001
£000 £000 £000
Cash at bank 80 - 80
Overdraft (6,177) (3,101) (9,278)
Loans (15,000) - (15,000)
Finance leases (1,193) (1,207) (2,400)
(22,290) (4,308) (26,598)
Notes
1. The 2000 year-end results are an abridged version of the
unqualified audited accounts filed with the Registrar of Companies. The
financial information set out above does not comprise statutory accounts
within the meaning of Section 240 Companies Act 1985.
2. Earnings per ordinary share are calculated on the weighted average
number of shares in issue.
3. The interim dividend amounting to £823,017 (2000 £738,612) will be
paid on 1st November 2001 to shareholders whose names are on the register at
the close of business on 5th October 2001.
4. At the Board meeting on 26th September 2001 the directors formally
approved the issue of these statements which have not been reviewed by the
auditors.
5. The interim financial information has been prepared using
accounting policies consistent with those adopted by the Group in its accounts
for the year ended 31st December 2000.
6. Property valuations have been brought forward without amendment
from the previous annual accounts.
Enquiries:
Jamie Boot 0114 255 5444
Group Managing Director
END