Interim Results

Boot(Henry) PLC
21 September 2005


HENRY BOOT PLC

INTERIM RESULTS

Henry Boot PLC, the property and construction group, announces its Interim
Results for the half year ended 30th June 2005.

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


CHAIRMAN'S STATEMENT

I am pleased to present the trading results for the first six months of 2005,
and to report that these continue to show further improvement over previous
years.  The momentum gained in 2004 has continued strongly into the current year
and, whilst competition remains intense, significant successes have been
achieved on all fronts.  This applies particularly to our Property and Land
activity.

Compared with last year's interim results restated under International Financial
Reporting Standards (IFRS), turnover was £42.4m (2004: £26.4m) and pre-tax
profit was £7.7m (2004: £8.9m).  The 2004 pre-tax profit figure benefited by £5m
from the investment property revaluation undertaken under IFRS.  The revaluation
position at 30 June 2005 is not considered to have moved further to any material
extent (£0.9m).

At the trading level, therefore, prior to taking this uplift in investment
property value into account, the £2.9m increase in profitability over 2004
reflects a significant 75% increase.  After discounting the fair value increases
in investment properties, the adjusted earnings per share shows a rise of 45%
from 11.0p in 2004 to 16.0p in 2005.

Presentation of this year's interim results is the first to be dealt with by the
Group under the new IFRS, the adoption of which commenced on 1 January 2005.  In
line with the requirements on interim reporting for UK listed entities, the
company has chosen to comply with International Accounting Standard (IAS) 34 and
has not presented full IFRS Financial Statements.  However, comparative
information for the current interim period and the preceding year ended 31
December 2004 is also provided.

There are a number of differences in respect of certain accounting treatments
that arise from the adoption of IFRS, and a statement as to the effects of these
was published on Wednesday, 7 September 2005, and sent to shareholders.  A copy
of the statement can be downloaded from the Henry Boot website at
www.henryboot.co.uk, and is also available from the company's registered office.
That statement is in the form of a reconciliation of the opening position, the
interim position and the year end position for 2004 under UK Generally Accepted
Accounting Principles (UK GAAP) and IFRS, with appropriate explanations of the
movements therein.

PROPERTY

Our Property Development, Property Investment and Land Trading activity produced
a solid result in the first six months of trading.

The Property Development and Investment companies had an encouraging period.
Major schemes were progressed further at the Ayr Central retail complex; The
Axis mixed-use development, Nottingham; The Mall shopping complex, Bromley;
Waterloo Square retail development, South Shields; and Markham Vale business
park, north Derbyshire.  Principal Development sales completed in the period
included a retail scheme in Doncaster; a further land sale to Toyota on Priory
Park, Hull; and a final phase land sale at Wentworth Business Park, Sheffield.
Further new schemes were identified as the market showed little, if any, signs
of slowing down.

A strategic move during the early part of the year to retain some of our schemes
for future rental and capital growth saw a number of developments move into our
property portfolio, resulting in an increase in retained rentals.  Overall,
investment yields have remained keen and, with the possible introduction of real
estate investment trusts (REITs) in the near future, the general consensus is
that the sector should remain strong.

Hallam Land Management Limited started the year with a further tranche of land
sales at Prestonpans and other major transactions at Bathgate, Blackpool and
Cleland.  A number of further opportunities for increasing its contribution to
Group results have been identified for the second half of the year.  The present
fairly flat housing market appears to have had very little impact in dampening
demand for land.  Moreover, a recent consultation paper has been published by
the Office of the Deputy Prime Minister setting out the Government's objectives
for delivering a better supply of land for housing, and points to the
reintroduction of the requirement for local planning authorities to identify a
five-year supply of developable land sufficient to cover their requirements as
set out in regional spatial strategies.  It will hopefully lead to a more market
responsive planning system.  We await the publication of a revised 'Planning
Policy Guidance 3: Housing' due later this year, but continue to be wary of the
possible introduction of a development land tax.

CONSTRUCTION

The turnover of our Construction company fell below expectation, although
profitability was maintained for the period.  The 2004 result benefited from
settlement of some long outstanding accounts which were not repeated in 2005.
There was a slower release of prison alliance work and framework contracts to us
than anticipated, but this was largely compensated for by general local
authority work and existing prison, school and hospital workloads.  Of
particular note was the presentation of a top UK environmental award to our
visitor centre project at Water's Edge Country Park, Barton-upon-Humber.
Looking ahead, 50% of the order book for 2006 has already been secured.

Road Link (A69) Holdings Limited, our construction PFI company, achieved robust
returns despite inclement weather early in the year that brought about severe
flood damage and road disruption in the Carlisle area.

Banner Plant Limited traded well in the period, with both utilisation and hire
rates ahead of the previous year.  The regional power tool centres were all in
profit, and the principal access and accommodation outlets put in strong
performances.

FINANCIAL POSITION, DIVIDENDS AND OUTLOOK

The Consolidated Balance Sheet now incorporates the pension scheme liabilities
under IAS 19 (Employee Benefits), but remains healthy.  Net total group
borrowings remain minimal and, with those relating to our PFI operation (£8.1m)
being ring-fenced, we are ideally placed to take advantage of the property and
land opportunities that have been created.

The situation is most encouraging and in the light of this, and their confidence
in the year end outturn, your Directors are recommending an increase of just
over 10% in the interim dividend from 4.4p per share to 4.9p per share.  We look
forward to another highly successful year end.

John S Reis, Chairman
21 September 2005

Consolidated Income Statement (unaudited)
for half year ended 30th June 2005
                                                              Half year ended     Half year ended        Year ended
                                                                    30th June           30th June     31st December
                                                                         2005                2004              2004
                                                                        £'000               £'000             £'000

Revenue                                                                42,408              26,411            84,346

Cost of sales                                                        (29,827)            (18,054)          (60,872)
Gross profit                                                           12,581               8,357            23,474

Other income                                                               12                 542               121

Administrative expenses                                               (4,685)             (4,574)           (7,664)

Pension expenses                                                      (1,240)             (1,104)           (2,064)
                                                                        6,668               3,221            13,867

Increase in fair value of investment properties                           919               4,984             9,448
Profit from operations                                                  7,587               8,205            23,315

Investment income                                                         875                 421             1,270

Finance costs                                                           (745)               (271)           (2,050)

Share of profit of associate                                                -                 512               670
Profit before tax                                                       7,717               8,867            23,205

Taxation                                                              (2,319)             (2,589)           (6,213)
Profit for the period from continuing operations                        5,398               6,278            16,992

Attributable to:

Equity holders of the parent                                            4,752               6,278            16,507

Minority interest                                                         646                   -               485
                                                                        5,398               6,278            16,992
Basic earnings per ordinary share                                       18.5p               24.6p             64.6p

Diluted earnings per ordinary share                                     18.2p               24.1p             63.3p

Note: Dividend                                                           4.9p                4.4p             16.4p


Consolidated Balance Sheet (unaudited)
at 30th June 2005
                                                                    30th June       31st December         30th June
                                                                         2005                2004              2004
                                                                        £'000               £'000             £'000
ASSETS
Non-current assets
Goodwill                                                                3,900               4,002                 -
Property, plant and equipment                                          56,305              32,398            16,390
Investment property                                                    38,822              23,868            19,940
Investments                                                                 -                   1             1,683
Deferred tax assets                                                    10,013              10,097             7,174
                                                                      109,040              70,366            45,187
Current assets
Inventories                                                            73,512              98,647            88,056
Trade and other receivables                                            10,991              10,309            36,641
Cash and cash equivalents                                              20,871              32,878             8,140
                                                                      105,374             141,834           132,837
Total assets                                                          214,414             212,200           178,024

EQUITY AND LIABILITIES
Equity
Share capital                                                           3,005               3,005             3,005
Revaluation reserve                                                     3,673               3,673             2,239
Retained earnings                                                     101,861              99,991            96,320
Other reserves                                                          2,057               2,136             3,463
Cost of shares held by ESOP trust                                       (765)               (849)             (989)
                                                                      109,831             107,956           104,038
Minority interests                                                      1,090               1,220                 -
Total equity                                                          110,921             109,176           104,038

LIABILITIES
Non-current liabilities
Borrowings                                                             10,463              11,044            10,000
Employee benefits                                                      32,884              32,437            23,912
Deferred tax liabilities                                                5,550               5,274             3,975
Provisions                                                              1,125                 958               519
Total non-current liabilities                                          50,022              49,713            38,406

Current liabilities
Trade and other payables                                               38,893              38,811            32,132
Current tax liability                                                   1,984               2,610               981
Obligations under finance leases                                          119                 446               834
Borrowings                                                             12,205              11,216             1,573
Provisions                                                                270                 228                60
Total current liabilities                                              53,471              53,311            35,580
Total liabilities                                                     103,493             103,024            73,986
Total equity and liabilities                                          214,414             212,200           178,024


Business Segments (unaudited)
for half year ended 30th June 2005

                                     Half year ended 30th June 2005            Half year ended 30th June 2004
                                                     Inter-                            Inter-     Share of
                                      External      segment               External    segment  associate's
                                         sales        sales Total            sales      sales     turnover      Total
                                         £'000        £'000       £'000      £'000      £'000        £'000      £'000
Revenue
Property and land development           17,444           32      17,476      5,781        139            -      5,920
Construction                            24,798          290      25,088     21,698        621      (1,403)     20,916
Other                                      166          313         479        335        299            -        634

                                        42,408          635      43,043     27,814      1,059      (1,403)     27,470
Eliminations                                 -        (635)       (635)          -    (1,059)            -    (1,059)
Group turnover                          42,408            -      42,408     27,814          -      (1,403)     26,411


                                                                  Total                                         Total
Result                                                            £'000                                         £'000
Property and land development                                     7,054                                         5,735
Construction                                                      2,986                                         4,953
Other                                                           (2,453)                                       (2,483)
Segment result                                                    7,587                                         8,025
Share of profit of associate                                          -                                           512

                                                                  7,587                                         8,717
Investment income                                                   875                                           421
Finance costs                                                     (745)                                         (271)
Profit before tax                                                 7,717                                         8,867
Taxation                                                        (2,319)                                       (2,589)
Profit for the period                                             5,398                                         6,278


Business Segments (cont'd)
for half year ended 30th June 2005

                                                                               Year ended 31st December 2004
                                                                                        Inter-     Share of
                                                                          External     segment  associate's
                                                                             sales       sales     turnover     Total
                                                                             £'000       £'000        £'000     £'000
Revenue
Property and land development                                               34,883         196            -    35,079
Construction                                                                50,757       1,207      (1,878)    50,086
Other                                                                          584         386            -       970

                                                                            86,224       1,789      (1,878)    86,135
Eliminations                                                                     -     (1,789)            -   (1,789)
Group turnover                                                              86,224           -      (1,878)    84,346



                                                                                                                Total
Result                                                                                                          £'000
Property and land development                                                                                  17,292
Construction                                                                                                    7,472
Other                                                                                                         (1,449)
Segment result                                                                                                 23,315
Share of profit of associate                                                                                      670

                                                                                                               23,985

Investment income                                                                                               1,270
Finance costs                                                                                                 (2,050)
Profit before tax                                                                                              23,205
Taxation                                                                                                      (6,213)
Profit for the period                                                                                          16,992


For management purposes, the Group is currently organised into three business
segments - Property and Land Development, Construction and Other.

As operations are carried out entirely within the UK, there is no secondary
segmental information.

Consolidated Cash Flow Statement (unaudited)
for half year ended 30th June 2005

                                                                   Half year ended    Half year ended       Year ended
                                                                         30th June          30th June    31st December
                                                                              2005               2004             2004
                                                                             £'000              £'000            £'000
Cash flows from operating activities
Profit from operations                                                       7,587              8,205           23,315
Depreciation of property, plant and equipment                                2,345              1,788            3,967
Amortisation of intangible assets                                              102                  -               68
Revaluation increase in investment properties                                (919)            (4,984)          (9,448)
Gain on disposal of property, plant and equipment                            (502)              (627)            (877)

Operating cash flows before movements in working capital                     8,613              4,382           17,025
Increase in inventories                                                   (13,559)           (13,955)         (19,078)
(Increase) decrease in receivables                                           (514)                601            3,665
Increase (decrease) in payables                                                273            (2,690)            3,442

Cash generated from operations                                             (5,187)           (11,662)            5,054
Interest received                                                              875                398            1,301
Interest paid                                                                (734)              (270)          (2,155)
Taxation                                                                   (2,086)            (1,708)          (3,959)

Net cash from operating activities                                         (7,132)           (13,242)              241

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                                                             -             17,585           32,946
Sale of investments                                                              1                  -                -
Purchase of property, plant and equipment                                  (2,572)            (2,456)          (4,405)
Proceeds on disposal of property, plant and equipment                        1,482              1,640            2,493
Dividends received from associate                                                -                  -              270
Interest paid on finance leases                                               (11)                  -             (41)
Preference dividends paid                                                     (11)               (11)             (21)
                                                                           (1,111)             16,758           18,841
Cash flows from financing activities
Dividends paid: ordinary shares                                            (3,069)            (2,757)          (3,884)
                minorities                                                   (776)                  -                -

Repayments of obligations under finance leases                               (327)              (476)            (864)
                                                                           (4,172)            (3,233)          (4,748)

Net increase in cash and cash equivalents                                 (12,415)                283           14,334
Opening net funds (debt)                                                    10,172            (5,026)          (5,026)
Cash outflow from decrease in lease financing                                  327                476              864
Closing net (debt) funds                                                   (1,916)            (4,267)           10,172


Consolidated Statement of Changes in Equity (unaudited)
at 30th June 2005

                                                                         30th June      31st December        30th June
                                                                              2005               2004             2004
                                                                             £'000              £'000            £'000

Profit for financial period                                                  4,752             16,507            6,278
Equity dividends                                                           (3,076)            (3,905)          (2,767)
Revaluation of group occupied properties                                         -              1,824              773
Actuarial gains (losses) on defined benefit pension scheme                     195            (4,845)              761
Movements in fair value of cash flow hedges                                  (131)              (971)                -
Share-based payments                                                           135                160                -
Adjustment re properties transferred to stock                                    -               (23)             (86)
Arising on employee share schemes                                                -                130                -
Movement in equity                                                           1,875              8,877            4,959
Equity at start of period                                                  107,956             99,079           99,079
Equity at end of period                                                    109,831            107,956          104,038


NOTES
     
1.   The interim financial information has been prepared in accordance with IAS
     34 (Interim Financial Reporting) using accounting policies that are 
     believed will apply when the company issues its first complete report of 
     IFRS financial statements for the year ending 31st December 2005.  These 
     were addressed in the document accompanying the letter sent to shareholders 
     dated 7th September 2005.

2.   The financial information set out above does not comprise statutory 
     accounts within the meaning of section 240, Companies Act 1985, and is 
     unaudited.  The results for the half year ended 30th June 2004 and the year 
     ended 31st December 2004 have been extracted from the unaudited restatement 
     of the Group's results set out in the document accompanying the letter sent 
     to shareholders dated 7th September 2005.

3.   Earnings per ordinary share are calculated on the weighted average number 
     of shares in issue.

4.   The interim dividend amounting to £1,253,000 (2004: £1,127,000) will be 
     paid on 27th October 2005 to shareholders whose names are on the register 
     at the close of business on 14th October 2005.  The proposed interim 
     dividend has not been approved at the balance sheet date and so has not 
     been included as a liability in these financial statements.

5.   At the Board Meeting on 20th September 2005 the directors formally approved
     the issue of these statements which have not been reviewed by the auditors.


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