Henry Boot Plc, the Sheffield -based developer and contractor has announced it swung pre-tax loss for FY 2009 ended 31st December, of £11.9 million, after a revaluation deficit of £22.4 million was taken into account. In 2008 it made a pre-tax profit of £19.3 million.
Turnover was 40% down at £116.5million (2008: £193.7million) arising from fewer land transactions and weaker construction division and development activity during the period. It's NAV was down 8% to 135p as a result, but debt was not a problem, it was reduced by £17 million to £32 million and the gearing reduced from 26% to 18% as a result.
Chairman, John Reis, said:
"Our strategic focus during this recessionary period has been to preserve our asset values and reduce our debt."
"I am pleased to report a further solid set of results for the year ended 31 December 2009, particularly given the difficult market conditions in the UK property market during the period. The first half of 2009 was characterised by decreasing investment yields, however, the second half has seen some stabilisation, with yields even firming up slightly towards the end of the year."
"We continue to operate through our UK-wide network of offices, creating future land, planning and development opportunities in a cost effective way and as prudent cash management allows. The construction and property investment income streams provide steady profits and cashflows, which underpin our performance, despite the reduction in the more cyclical development and land profits."
"Whilst the general economic background and the property market, in particular, remains tough, I believe that the market is beginning to recover from its low point. I also believe, however, that the recovery will be patchy and relatively long drawn out. Therefore, our prudent strategy is the correct one until we can see clear evidence of a sustained recovery."
"We retain significant headroom in our three year debt facilities and this, along with the support of our long term banking partners, will allow us to gear up again as the recovery takes hold, using the potential we already have in our portfolio to generate healthy shareholder returns once again."
Henry Boot also announced that it has completed the sale of Waterloo Square retail investment in South Shields town centre to Royal London Mutual Insurance Society Limited.
This retail development, originally undertaken in partnership with South Tyneside Council as part of a large regeneration scheme which also includes a 60,000 sq ft Asda foodstore, comprises over 70,000 sq ft of non food retail space let to quality fashion retailers Next, Debenhams, BHS and River Island.
The sale price was £11.5million which achieved an investment yield of 5.8% and was 28% above the 2009 year end valuation of £9million, reflecting the strong recovery in investment values for well-let property investments.
![[Valid RSS feed]](http://articlepile.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites