Henry Boot (LON:BOOT) told investors its focus on “high-quality land, prime developments, and premium homes” helped drive total land and property sales of more than £350 million in the latest period, or £193 million on the group’s share basis, as management pointed to a more supportive planning backdrop and continued demand from housebuilders for prime residential land.
Management said the year’s overall performance was “in line with market expectations” despite what it described as a challenging environment, while also acknowledging weaker-than-expected results at its Stonebridge homebuilding business. The company also highlighted steps taken to simplify the group structure, including completing the first tranche of the Stonebridge acquisition to become majority owner and the disposal of Henry Boot Construction on the final day of the year.
Group results and balance sheet
Operating profit was “marginally lower” at £33 million, while underlying profit was £28 million, excluding valuation movements on completed investment properties. Earnings per share increased 1% to 17.6 pence. The company increased the dividend by 2% by holding the final dividend at the prior year’s level, which it said aligned with its policy of investing selectively while maintaining an income return for shareholders.
On the balance sheet, management said net debt rose to £108 million after investment in land and developments and the construction disposal, with gearing at 20%, “slightly above” the group’s 10%–20% target range. The company said it expects gearing to move back toward the top end of that target range as it completes disposals, though management cautioned that timing—particularly for Hallam land disposals—could affect interim gearing levels. Underlying net asset value per share, excluding the pension surplus, was flat at 312 pence after Henry Boot increased its ownership in Stonebridge and paid dividends.
Tim, the chief executive, reiterated that group NAV was “just over £3 per share” and described it as conservatively assessed because land and developments are held at cost.
Land promotion: record plot sales and improved planning environment
The company’s Hallam land promotion business delivered a record 3,957 plot sales. At an average gross profit per plot of £11,400, Hallam generated operating profit of £32.9 million, up 34% year-on-year. Management said the sites sold took an average of 13 years to deliver and achieved an average ungeared internal rate of return of 27%.
Executives pointed to a more favorable planning environment following revisions to the National Planning Policy Framework (NPPF). Hallam secured planning for nearly 4,200 plots in 2025, a 39% increase versus the prior year. The company also said it won appeals on nearly 3,000 plots across seven sites, including a 1,000-plot site in Ashford, Kent, which management said is currently under offer.
Henry Boot submitted just over 11,000 plots into planning during the year and said it expects a similar submission level this year. Plots with planning increased to more than 9,000, with roughly 19,000 plots awaiting determination. The strategic land portfolio was described as more than 105,000 plots, with 76% in the Midlands and South.
Looking ahead, management said it has “pretty good visibility” on land sales for the year, citing 15 anticipated site sales. However, it expects profitability per plot to be lower due to mix. Tim said profit per plot is likely to be about 20% below the long-term average, while Darren referenced prior years with heavier promotion-agreement weighting and suggested the group is likely to be “around” £8,000 gross profit per plot rather than the typical £10,000 level.
Property development and investment: Origin growth and pipeline
In property development, the group said it completed £119 million of development (its share £33 million), with 32% of schemes pre-let or pre-sold. Committed schemes totaled £66 million (group share £18 million), with Henry Boot’s share of estimated total profit of £4 million, or 28% profit on cost, and 30% of that profit already recognized.
The company highlighted progress at Origin, its industrial-focused joint venture. The initial JV included three sites with a combined £100 million gross development value, or nearly 450,000 square feet, which management said completed on time and on budget. A further three schemes were added at the end of 2025 totaling about 260,000 square feet and £56 million GDV. Across the 700,000 square feet either completed or committed, Henry Boot said 134,000 square feet is let or under offer, with lettings “ahead of business plan.”
Management also outlined near-term development opportunities within a broader pipeline it valued at £1.4 billion, including:
- Golden Valley: working with Cheltenham Borough Council, expecting detailed consent shortly on phase one; terms agreed with an anchor tenant and other occupiers in cybersecurity; fully funded by the public sector; start on site targeted for late summer.
- Freeport 36: planning secured for a 5.5 million square foot industrial and manufacturing park in partnership with St John’s College, Cambridge; occupier interest reported; start on site targeted later in the year.
- Duxford AvTech: planning submitted for a 430,000 square foot campus near Cambridge with the Imperial War Museum, focused on low- and zero-carbon aircraft technology.
Henry Boot’s investment portfolio generated a total return of 11.1% in 2025, compared with 7.1% for the index cited by management. During the period, the company agreed £17.7 million of sales at an average 12% premium to book value, including the £9.5 million sale of Scamous Down after securing planning for a 245,000 square foot industrial development, which management said delivered a 25% per annum IRR. After the period, Henry Boot completed the sale of a supermarket in Warminster for £8.6 million at a 7% premium to valuation.
Stonebridge: shortfall in completions and a “reset” plan
Stonebridge completed 185 homes in 2025, materially below management’s expectations of 240–250. Average private selling price was £403,000, and management said selling prices were in line with budget, but trading was soft and the shortfall in completions drove the operating loss.
The company cited several factors behind the underperformance, including subdued housing market conditions, a lower net reservation rate due to being late in the sales cycle at certain outlets, delays in securing detailed planning that reduced outlet openings, and cost overruns tied to unusual ground conditions and extended site durations. Management also noted that around 30 completions slipped into 2026 due to utility connections and changes in planning conditions. In response, the group said it has increased contingency in schemes to better reflect per-project delivery time.
Since becoming majority owner, Henry Boot said it has made “major changes” to Stonebridge’s senior management, including replacing the managing director with interim appointee Ed Hutchinson (Henry Boot Developments’ managing director) and replacing the finance director with an experienced internal finance leader. The company also said it does not plan to appoint an overall operations director, reducing the senior management team from 11 to seven roles to improve efficiency.
Management said Stonebridge added nearly 1,000 plots to its land bank and described the business as having long-term growth potential, reiterating an ambition to reach 600 homes per annum across three regions in a “stable market.” For 2026, guidance was given for completions of 200–220 homes, with an expectation that Stonebridge will return to a small profit. The company also reported an improved sales rate for the 11 weeks to March 15 of 0.43, up 25% year-on-year, and noted that a subsequent week—described as one of the best ever—would lift year-to-date sales rate to 0.5.
Outlook and targets
Management said it has been encouraged by continued demand for high-quality land, early signs of letting activity at Henry Boot Developments, and improving sales rates at Stonebridge, while noting uncertainty around the potential impact of conflict in Iran on the 2026 outlook. The company reiterated expectations that performance will be weighted toward the second half of the year.
Henry Boot also said it plans to refresh its medium-term targets during 2026, citing persistent economic and political uncertainty and the reclassification of its main borrowing facility, which increased the capital employed measurement. Management indicated it will reassess capital employed and return targets and said it also expects to increase land promotion plot sales targets in the medium term.
In discussion, executives said Hallam’s planning environment for outline consent is “as favorable as it’s been in many generations,” and while the company historically has not often relied on appeals, it expects to continue using appeals where it believes it can win. On interest rates, management said current levels appear manageable for households based on recent trading, but acknowledged that future rate moves remain uncertain.
On pensions, Darren said the latest valuation showed a £9 million surplus at year-end, which has since moved to roughly a £3 million surplus amid market conditions. He added that 90% of liabilities are hedged, reducing sensitivity to market movements, and said the company still shows a deficit on an exit valuation of about £89 million, with a longer-term aim to potentially exit the scheme in “the next four or five years.”
About Henry Boot (LON:BOOT)
Henry Boot is one of the UK’s leading land, property development, home building and construction businesses – and we’ve been transforming land and spaces since 1886. Listed on the London Stock Exchange since 1919, we’re renowned for quality, expertise, delivery and a partnership approach across the group – which comprises, Hallam Land, HBD, Stonebridge, Henry Boot Construction, Banner Plant and Road Link.
Operating across the UK, and employing over 500 people, we focus on three key markets: urban development, industrial and logistics and residential.
