Final Results - Year Ended 31 December 1999

Boot(Henry) PLC
17 April 2000

 
HENRY BOOT PLC 
 
PRELIMINARY STATEMENT OF RESULTS 
FOR THE YEAR ENDED 31ST DECEMBER 1999 
 
Henry Boot PLC, the Sheffield based construction and property group,
announces its results for the year ended 31st December 1999. 
 
 
HIGHLIGHTS 
 
 
-    TURNOVER TOPS £200m - UP 19% 
           
-    OPERATING PROFIT UP 14.5% 
 
-    FINAL DIVIDEND UP 10.6% 
 
-    NET ASSETS UP TO 256p PER SHARE 
 
 
John Reis, Chairman, states: 
 
'Property Development and Investment had an excellent year' 
 
'Another quality performance from our Land Management  
     operations .....' 
 
'The New Homes business ...... reservations into the year 2000 reached an all
time high.....' 
 

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

CHAIRMAN'S STATEMENT 
 
Following a strong second half-year performance your company has produced
record profit and growth for a fourteenth successive year. With confidence
and stability returning to the markets and a strong forward order book, not
only can we look back upon a very satisfactory performance in 1999, but we
can look forward to the results for the year 2000 with some optimism. 
 
Pre-tax profit of £11.2m was 6% ahead of the previous year and operating
profit showed an increase of 14.5% at £11.5m, this was due in part to
increased turnover which for the first time in the company's history exceeded
£200m, another record. 


TRADING SUMMARY

The New Homes business recorded in excess of 500 completions and remains on
course to exceed this number in the current year following a return of house
purchaser confidence. All the key objectives set for the regionalisation of
our housebuilding activities were met in the year, resulting in a significant
increase in the number of points of sale. Also the average selling price
increased to £89,200. The carry over of reservations into the year 2000
reached an all time high and providing 'affordability' is not affected by any
overheating of land prices, long term interest rates and planning issues,
then we should be able to look forward to sustainable growth.  
 
Property Development and Investment had an excellent year. Specifically, two
major non-food retail schemes totalling in excess of 250,000 sq. ft. were
commenced and sold on in the year, whilst work on other schemes also made
good progress. The spectre of rising interest rates will, however, adversely
impact on yields, which in turn will inevitably reduce the expectations of
further capital growth in this sector in the short term. As a result, we
remain cautious and vigilant for signs of any downturn in the market place,
though the immediate prospects for our current developments remain good. 
 
Another quality performance from our Land Management operations made a
positive contribution to the year's results, as well as providing some
excellent opportunities for our housing and property businesses. With over
4,500 acres of land within our control, held either directly through
ownership or indirectly through options or agency agreements, coupled with a
number of recently awarded planning consents and plan allocations, we have a
secure base from which to operate in the years to come. The fickle nature and
complexities of the planning process, however, continue to test our skills
and patience.  
 
The Construction businesses, principally comprising Henry Boot Construction
(UK) Limited and Henry Boot Management Limited, improved upon the previous
year's performance. The latter achieved record profits despite the intense
competition that envelops the industry as a whole. The forward order book
remains satisfactory and it is gratifying to see our reputation within the
water industry resulting in further repeat business, particularly in
Scotland. The health sector remains another valued area with work continuing
on five large hospital projects. Further progress was made in the pursuit of
overdue monies but significant sums still remain outstanding and their
recovery is a high priority. Generally, the prospects for the current year
remain encouraging. 
 
Our Plant Hire activities, including the recently acquired powered access
equipment hire specialists Quicklift (UK) Limited, suffered increased
competition in the year. This affected utilisation rates and margins, both of
which declined and resulted in a reduced contribution to profit. However,
following further investment in key areas and a concerted drive to improve
market penetration, the business confidently looks forward to improving its
profitability in the current year. 
 
The Training company continues to build on its reputation as one of the main
providers of training services to the construction industry. It is beginning
to reap the benefits of the restructuring undertaken in the previous year as
it responds to the needs of both the public and private markets it services,
whilst maintaining a satisfactory level of profitability. 
 

FINANCIAL POSITION, DIVIDENDS AND OUTLOOK
 
Regardless of the vagaries of the Stock Market, your Board remains confident
in the abilities of the management within the business to continue to return
value to long-term shareholders. The weakness in the company's share price
will continue to be exploited to meet these aims through further share
buy-backs and enhanced dividend payments. In addition to the one million
shares bought in and cancelled between November 1998 and January 1999, a
further 500,000 were bought in and cancelled in February this year. It is
your Directors' intention to continue to buy in and cancel the company's
shares when the quoted price falls to an unacceptable discount on net asset
value. This practice not only increases the company's earnings per share, but
also enables the Board to propose a higher level of dividend than would
otherwise be the case. As a result, the dividend proposals for the year
include a final dividend of 7.3p per share (1998 6.6p), a 10.6% increase. 
 
Looking ahead, your company has entered the year 2000 in a strong financial
position with minimal gearing, clear profit objectives and commitment. The
prospects and ingredients for another successful year are hopefully all in
place. 

17th April 2000                                                 John S Reis 
 
 
 
Summarised Group Profit & Loss Account 
for the year ended 31st December 1999 

                                                             1999       1998 
                                                            £'000      £'000 
 Turnover - continuing operations                         204,810    172,120 
 Operating profit                                          11,461     10,010 
 Investment Income                                            141          - 
 Interest                                                   (370)        582 
 Profit on ordinary activities before taxation             11,232     10,592 
 Tax on profit on ordinary activities                       3,146      2,966 
 Profit for the financial year after taxation               8,086      7,626 
 Dealt with as follows:                                                      
 Dividends paid and proposed                                                 
      Cumulative preference shares (non-equity) 5.25%                        
      (1998:5.25%)                                             21         21 
      Ordinary shares 10.0p (1998:9.1p)                     2,502      2,306 
 Profit retained                                            5,563      5,299 
                                                            8,086      7,626 
 Basic earnings per ordinary share                          32.0p      29.1p 
 Diluted earnings per ordinary share                        30.8p      28.0p 
 
 There were no discontinued operations. 
 
The total figures for continuing operations in 1999 include the following
amounts in respect of Quicklift (UK) Limited, the acquired subsidiary:
turnover £1,327,000; operating profit £334,000 
 
 
 
Summarised Group Balance Sheet at 31st December 1999 
                                                                            
                                                           1999        1998 
                                                          £'000       £'000 
    Fixed assets                                         29,936      24,759 
    Current assets                                                          
    Stocks                                               84,292      71,889 
    Debtors                                              21,496      13,022 
    Cash at bank and in hand                              6,552       8,401 
    Creditors: amounts falling due within                                   
    one year                                           (71,319)    (52,976) 
    Net current assets                                   41,021      40,336 
    Total assets less current liabilities                70,957      65,095 
    Creditors: amounts falling due after more than                          
    one year                                            (1,847)       (280) 
    Provisions for liabilities and charges              (1,852)     (2,382) 
    Net assets employed                                  67,258      62,433 
    Capital and reserves                                                    
    Called up share capital                               3,011       3,061 
    Capital redemption reserve                              195         145 
    Share premium account                                 1,119       1,105 
    Property revaluation reserve                          9,680       9,616 
    Profit and loss account                              52,729      47,982 
    Other reserves                                          524         524 
    Shareholders' funds                                  67,258      62,433 
    Being:                                                                  
    Non-equity shareholders' funds                          400         400 
    Equity shareholders' funds                           66,858      62,033 
                                                         67,258      62,433 


 
Group Statement of Total Recognised Gains and Losses 
for the year ended 31st December 1999 
                                                                           
                                                           1999       1998 
                                                          £'000      £'000 
    Profit for the financial year                         8,086      7,626 
    Cost of own shares purchased                          (824)      (907) 
    Unrealised surplus on property revaluation              422        419 
    Elimination of revaluation surplus on transfer of                      
    properties to stocks                                  (350)    (2,953) 
    Foreign currency translation differences                  -         12 
    Total recognised gains and losses for the year        7,334      4,197 
 

 
Summarised Group Cash Flow Statement 
for the year ended 31st December 1999 
                                                                           
                                                           1999       1998 
                                                          £'000      £'000 
     Net cash inflow from operating activities            3,046      6,355 
     Returns on investment and servicing of finance       (150)        574 
     Taxation                                           (2,305)    (2,748) 
     Capital expenditure and financial investment       (4,124)    (2,990) 
     Acquisition                                        (1,713)          - 
     Equity dividends paid                              (2,348)    (2,279) 
     Cash (outflow) before use of liquid                                   
     resources and financing                            (7,594)    (1,088) 
     Financing                                          (1,308)      (907) 
     (Decrease) in cash                                 (8,902)    (1,995) 



Notes to Group Cash Flow Statement 
                                                                              
                                                             1999        1998 
                                                            £'000       £'000 
 Reconciliation of net cash flow to                                          
 movement in net funds                                                       
 (Decrease) in cash in the year                           (8,902)     (1,995) 
 Loans and finance leases on acquisition of               (1,864)           - 
 subsidiary                                                                   
 Cash outflow from decrease in debt and lease                 498           - 
 financing                                                                    
 New finance leases                                         (227)           - 
 Change in net debt in year                              (10,495)     (1,995) 
 Net funds at 31st December 1998                            8,401      10,396 
 Net (debt) funds at 31st December 1999                   (2,094)       8,401 
 Reconciliation of operating profit to                                        
 operating cash flow                                                          
 Operating profit                                          11,461      10,010 
 Depreciation and amortisation                              3,115       2,619 
 Profit on sale of tangible fixed assets and investments    (287)       (241) 
 (Increase) in stocks                                    (12,393)    (13,131) 
 (Increase) decrease in debtors                           (7,355)      15,312 
 Increase (decrease) in creditors and provisions            8,505     (8,214) 
 Net cash inflow from operating activities                  3,046       6,355 
 

 Analysis of net debt
                                                                              
                                                Finance                     
                                             leases and       New            
                          At                   loans on   finance         At 
                    31.12.98   Cash flows   acquisition    leases   31.12.99 
                       £'000        £'000         £'000     £'000      £'000 
            
 Cash at bank          8,401      (1,849)             -         -      6,552
 Overdraft                 -      (7,053)             -         -    (7,053) 
 (Decrease) in cash               (8,902)                                    
 Finance leases            -          420       (1,786)     (227)    (1,593) 
 Loans                     -           78          (78)         -          - 
                       8,401      (8,404)       (1,864)     (227)    (2,094) 

Notes 

1.     The financial information above does not comprise statutory accounts  
within the meaning of Section 240 Companies Act 1985.  The financial
information has been extracted from the company's statutory accounts for the
years ended 31st December 1998 and 1999. Statutory accounts for the year ended
31st December 1998 have been delivered, and those for the year ended 31st
December 1999 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) Companies Act
1985.
 
2.     At the Board meeting on 14th April 2000 the Directors formally
approved the issue of these statements. 
 
3.     The financial information has been prepared using accounting policies
consistent with those adopted by the group in its accounts for the year ended
31st December 1998. 
 
4.     The Annual Report 1999 is to be published and sent to shareholders on
25th April 2000. Copies are 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 Moat House, Chesterfield Road South, Sheffield S8 8BW on Friday
26th May 2000 at 11.30 am. 
 
6.     The final dividend will be paid on 2nd June 2000, with a record date
of 2nd May 2000.