Final Results
Boot(Henry) PLC
14 April 2004
HENRY BOOT PLC
PRELIMINARY STATEMENT OF RESULTS FOR THE YEAR ENDED 31st DECEMBER 2003
Henry Boot PLC, the property development, land management, construction and
plant hire group, announces its results for the year ended 31st December 2003.
HIGHLIGHTS
18th SUCCESSIVE YEAR OF PROFIT GROWTH
DIVIDEND UP 10%
NET ASSETS PER ORDINARY SHARE UP 23%
John Reis, Chairman, comments:
' .... another year's exceptional results, culminating in an 18th successive
year of profit growth'
'.... our property development and land management companies recorded excellent
results in the year ....'
'The construction business took advantage of some buoyancy in the sector ....'
'The plant hire company posted a record profit before tax for the year ....'
Enquiries: Jamie Boot, Group Managing Director - Tel: 0114 255 5444
CHAIRMAN'S STATEMENT
Continuing our outstanding performance of recent years, it again gives me great
pleasure to report on another year's exceptional results, culminating in an 18th
successive year of profit growth. The year was also notable for a number of
strategic changes to the group's business structure with the successful disposal
of the housebuilding, training and Scottish construction companies. This
completed the risk reduction programme which we commenced in 2002, and now
enables us to concentrate on the group's core activity of property development,
land management, construction and plant hire.
The headline profit before tax was £30.0m, an overall increase of £12.8m over
2002. Group operating profit totalled £14.1m, made up from continuing
operations (£11.5m), discontinued operations (£0.9m) and our share of an
associate company profit (£1.7m). These compare with an operating profit of
£15.3m for the previous year. Profit on the sale of the discontinued operations
amounted to £16.2m, compared with £2.0m for 2002.
Group turnover inevitably fell away during the year and at £106m was £111m below
that for the comparative period. This fall in turnover was due to the effect of
discontinued operations, as shown by the restated 2002 figures, although the
increase in continuing operations was most encouraging.
The disposals have made our company a more focussed organisation, with a much
reduced personnel count and group net assets in excess of £116m. This position
enables us to direct increased resources to the property development and land
management operations where the scope for improving overall profit margins
remains greater. However, as referred to in the Interim Report, due to the
deferred consideration for the disposals, the full benefit arising from the
reinvestment of the proceeds may take a little longer to come through.
Basic earnings per ordinary share increased by 100% to 102.1p from 51.0p in
2002. Prior to the inclusion of profit on the sale of discontinued businesses,
earnings amounted to 38.2p (2002: 43.0p), an understandable decrease of
approximately 11% due to the disposals. Interest payable, excluding the group's
share of the associate company's interest, netted down to £19,000. This
compares with net interest receivable of £56,000 in 2002, and reflects the
continued low level of borrowings experienced by the company throughout the
year.
Trading Summary
I am pleased to report that our property development and land management
companies recorded excellent results in the year, but with much of the group's
business now dependent on the planning regime, the recently published findings
of Kate Barker's Review of Housing Supply are important to us and raise a number
of concerns about the future of the planning process. We trust that the
government will engage with the industry to bring about some simplification and
consistency.
The Property Development operation put in another strong performance,
significantly expanding the number of opportunities under its control and
contributing to the group's results with the major sale of Hailsham Retail Park
in East Sussex. Our portfolio of schemes extends from a prominent retail
complex in Ayr, Scotland and through the North East and North West of England,
with a town centre retail outlet in South Shields and substantial schemes in
Blackburn and Warrington. It also encompasses the Midlands, South East and
South West with developments in Doncaster, Nottingham, Worksop and
Stoke-on-Trent, and extending down to Walthamstow in London, Bromley in Kent and
Frome in Somerset. With a representative mix of projects across all sectors and
with new opportunities continuing to be identified, further successes are
anticipated.
Our Land Management company benefited greatly from the sale of Henry Boot Homes
Limited through the crystallisation of intra group profits. A land sale at
Oxclose Park, Sheffield, also made a meaningful contribution to the year's
performance which resulted in record pre-tax profits. The increasing demand for
new homes should ensure that land prices remain high for at least the
foreseeable future, and with interests in some 6,000 acres of land nationwide we
are well placed to continue trading successfully in what promises to be a
healthy forward market.
The Construction business took advantage of some buoyancy in the sector to
consolidate its reputation as a high quality contractor in both the public and
private arenas. Our market share continued to grow, particularly in the
education, prison and health sectors, with work in the latter being enhanced by
our inclusion in an alliance for the government's NHS ProCure 21 initiative.
Although competition remained strong, the securing of a number of partnering
projects and a further improvement in performance contributed positively to
group results.
The Plant Hire company posted a record profit before tax for the year, meeting
the expectations referred to in my interim statement. The new business strategy
adopted in 2002 continues to deliver sound results, and with plans to open new
power tool centres and to introduce a new product line in the accommodation
division, further growth is anticipated.
Financial Position, Dividends and Outlook
Group net assets now exceed £116m, and net assets per ordinary share stand at
445p, an increase of 84p (23%) during the period. Net borrowings are some £5m,
giving a gearing level of less than 5%. This means that our company is in a
strong position to face the challenges of 2004 and beyond, and is well placed to
pursue and exploit the various opportunities that have been identified.
Whilst volatility in profits remains an important factor for us, the overall
prospects for our business remain sound and your directors feel comfortable in
proposing a final dividend of 10.8p (2002: 9.8p) which, when added to the
interim dividend of 4.0p (2002: 3.6p), gives a total for the year of 14.8p.
This compares with the total dividend for 2002 of 13.4p, an increase in excess
of 10%, which reflects the continuing confidence of your directors in the future
progress of the business.
J.S. Reis
14th April 2004
Summarised Group Profit & Loss Account for the year ended 31st December 2003
2003 2002
As restated
£'000 £'000
Turnover
Group and share of associates 108,821 220,743
Less: share of associates' turnover 2,900 3,416
-------- --------
Continuing operations 90,027 81,190
Discontinued operations 15,894 136,137
-------- --------
Group turnover 105,921 217,327
Cost of sales 83,765 186,505
-------- --------
Gross profit 22,156 30,822
Administrative expenses 9,879 16,957
-------- --------
12,277 13,865
Other operating income 37 38
-------- --------
Operating profit:
Continuing operations 11,501 4,001
Discontinued operations 813 9,902
12,314 13,903
Share of associates' operating profits 1,748 1,445
-------- --------
Group operating profit 14,062 15,348
Profit on sale of discontinued operations 16,209 2,039
Interest (19) 56
Interest - share of associates (299) (303)
-------- --------
Profit on ordinary activities before
taxation 29,953 17,140
Tax on profit on ordinary activities 4,029 4,256
-------- --------
Profit for the financial year after taxation 25,924 12,884
-------- --------
Dealt with as follows:
Dividends paid and proposed
Cumulative preference shares (non-equity)
5.25% (2002: 5.25%) 21 21
Ordinary shares 14.8p (2002 13.4p) 3,781 3,395
Profit retained 22,122 9,468
-------- --------
25,924 12,884
-------- --------
Basic earnings per ordinary share 102.1p 51.0p
-------- --------
Diluted earnings per ordinary share 99.8p 49.7p
-------- --------
Summarised Group Balance Sheet at 31st December 2003
2003 2002
£'000 £'000
Fixed assets 33,074 35,289
-------- --------
Current assets
Stocks 73,727 99,473
Debtors 54,681 17,883
Cash at bank and in hand 6,457 14,030
Creditors: amounts falling due within one
year (40,571) (59,438)
-------- --------
Net current assets 94,294 71,948
-------- --------
Total assets less current liabilities 127,368 107,237
Creditors: amounts falling due after
more than one year (10,444) (11,442)
Provisions for liabilities and charges (579) (1,898)
-------- --------
Net assets employed 116,345 93,897
-------- --------
Capital and reserves
Called up share capital 3,005 2,989
Capital redemption reserve fund 271 271
Share premium account 2,563 2,158
Property revaluation reserve 13,911 14,136
Profit and loss account 95,971 73,648
Other reserves 624 695
-------- --------
Shareholders' funds 116,345 93,897
-------- --------
Being:
Non-equity shareholders' funds 400 400
Equity shareholders' funds 115,945 93,497
-------- --------
116,345 93,897
-------- --------
Group Statement of Total Recognised Gains and Losses for the year ended 31st
December 2003
2003 2002
£'000 £'000
Profit for the financial period 25,924 12,884
Unrealised surplus on property revaluation 459 2,471
Elimination of revaluation surplus on
transfer of properties to stocks (483) (339)
-------- --------
Total recognised gains and losses for
the year 25,900 15,016
-------- --------
Summarised Group Cash Flow Statement for the year ended 31st December 2003
2003 2002
£'000 £'000
Net cash outflow (inflow) from
operating activities (13,106) 12,347
Dividends received from associates 927 695
Returns on investment and servicing
of finance (16) (34)
Taxation (4,611) (3,809)
Capital expenditure and financial
investment (1,592) (3,678)
Acquisitions and disposals 14,920 (6,335)
Equity dividends paid (3,504) (3,130)
-------- --------
Cash (outflow) before use of
liquid resources and financing (6,982) (3,944)
Financing (764) (679)
-------- --------
(Decrease) in cash (7,746) (4,623)
-------- --------
Notes to Group Cash Flow Statement
2003 2002
£'000 £'000
Reconciliation of net cash flow to
movement in net funds
(Decrease) in cash (7,746) (4,623)
Cash outflow from decrease in
lease financing 1,185 1,160
New finance leases - -
-------- --------
Net cash flow in year (6,561) (3,463)
Net funds at 31st December 2002 1,535 4,998
-------- --------
Net (debt) funds at 31st December 2003 (5,026) 1,535
-------- --------
Reconciliation of operating profit
to operating cash flow 2003 2002
£'000 £'000
Operating profit 12,314 13,903
Depreciation and amortisation 3,734 4,224
Profit on sale of tangible fixed assets (295) (208)
(Increase) in stocks (12,193) (5,048)
(Increase) in debtors (15,899) (8,462)
(Decrease) increase in creditors and
provisions (767) 7,938
-------- --------
Net cash (outflow) inflow from
operating activities (13,106) 12,347
-------- --------
Analysis of net funds
At Cash At
31.12.02 flows 31.12.03
£'000 £'000 £'000
Cash at bank 14,030 (7,573) 6,457
Bank loans (10,000) (173) (10,173)
--------
Decrease in cash (7,746)
Finance leases (2,495) 1,185 (1,310)
-------- -------- --------
1,535 (6,561) (5,026)
-------- -------- --------
Notes
1. The financial information above has been extracted from the Company's
statutory accounts for the years ended 31st December 2002 and 2003.
Statutory accounts for the year ended 31st December 2002 have been
delivered, and those for the year ended 31st December 2003 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) of the Companies Act 1985.
2. At the Board Meeting held on 13th April 2004 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 2002.
4. The Annual Report 2003 is to be published and sent to shareholders on 27th
April 2004. Copies will be 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
Park Hotel, Chesterfield Road South, Sheffield, S8 8BW on Friday 28th
May 2004 at 11.30 a.m.
6. The final dividend will be paid on 3rd June 2004, with a record date of
21st May 2004.
EDITORS' NOTES
Henry Boot is currently involved in a number of major property development
schemes throughout the country, including:
AYR CENTRAL SHOPPING COMPLEX
Work is to start soon on construction of the 196,000 sq.ft Ayr Central Shopping
Complex where Debenhams have already taken the 80,000 sq.ft anchor tenancy.
Other retailers are also signing up to take space, and negotiations are ongoing
with more. Project completion is programmed for late in 2005.
***
BEESTON, THE SQUARE SHOPPING CENTRE
This recently acquired retail complex in Nottingham is trading up to
expectations, and plans are in hand to redevelop surrounding land and property
to form an additional 50,000 sq.ft of retail space. It is intended to refurbish
the existing 80,000 sq.ft centre.
***
BLACKBURN, NOVA SCOTIA RETAIL PARK
Construction work started in September on a 140,000 sq.ft B&Q store with garden
centre which has already been pre-sold. An additional 40,000 sq.ft of retail
space is being constructed in three units, all of which are currently under
offer to national retailers. A further phase of development is planned on the
12 acre site.
***
BROMLEY, THE MALL
Phase one of this £18 million redevelopment of The Mall mixed-use scheme is
underway and due to open in summer 2004, and phase two by the end of 2004/early
2005. Some 100,000 sq.ft of retail and health & fitness accommodation will be
provided, and includes Argos remaining as a key anchor tenant.
***
DERBYSHIRE, M1, MARKHAM VALE BUSINESS PARK
This business park is to be developed on the 200 acre employment growth zone of
the former Markham Colliery, and will involve the provision of a new junction
29a on the M1. The scheme will offer plots from 0.5 to 50 acres in size, and be
able to accommodate units of over 1,000,000 sq.ft. Although the land will be
available immediately, the new junction will not be ready until autumn, 2005.
***
FROME, WESSEX FIELDS RETAIL PARK
More than 50% of the 21,500 sq.ft retail space available at Wessex Fields Retail
Park in Somerset has been pre-let. The scheme will be available for occupation
in 2005.
***
HULL, PRIORY PARK
The latest development on Priory Park was the sale of 4.3 acres to De Vere
Hotels for a 120-bed hotel and conference centre. The speculative construction
of 20,000 sq.ft of industrial and 17,000 sq.ft of office accommodation is
presently in hand, and further land sales are being negotiated. An additional
30 acres of employment land is expected to be made available in the near future.
***
LIVERPOOL, SMITHDOWN RETAIL CENTRE
Pre-lets have already been agreed with Tesco Express and Carphone Warehouse at
this 12,500 sq.ft district retail centre which is planned for completion in
2004. There is a strong level of interest in the remaining space.
***
NOTTINGHAM, DEPARTMENT STORE REDEVELOPMENT
Following the recent acquisition of the 220,000 sq.ft former Co-op department
store in Nottingham city centre, redevelopment plans are in hand to provide a
mixed-use leisure, retail and office scheme. Preliminary works are to be
undertaken in 2004.
***
RIPON BUSINESS PARK
It is hoped to make a start shortly on construction at our 11 acre land holding
at Ripon, North Yorkshire. Many enquiries have been received from potential
users, and contractual arrangements have already been entered into with
Homebase.
***
ROCHDALE, MELLOR STREET RETAIL SCHEME
Progress is being made with the intended start of work on a 25,000 sq.ft
non-food retail scheme later in 2004. A full pre-letting is already in place.
***
SKEGNESS RETAIL PARK
Completion of the final 12.500 sq.ft phase of development is expected during
2004, with all the new space pre-let to Carpetright and Pizza Hut.
***
SOUTH SHIELDS, WATERLOO SQUARE RETAIL SCHEME
Planning permissions have been obtained for this 108,000 sq.ft food and non-food
development. Conditional contracts have been exchanged with Asda, and
negotiations are proceeding with other interested parties.
***
SOUTH YORKSHIRE, M1, WENTWORTH BUSINESS PARK
Our long-term 150 acre development at Wentworth is reaching its conclusion, and
one or two modest land sales will complete our involvement in the scheme.
***
STOKE-ON-TRENT, MEIR PARK
Following the opening of a new 162,000 B&Q Warehouse on Meir Park, a further 18
acres have been made available for mixed-use development
***
WALTHAMSTOW, THE ARCADE
The £15 million redevelopment of The Arcade to provide 160,000 sq.ft of modern
mixed-use accommodation (retail, residential, leisure, health) has started with
the initial demolition phase. The residential element of the scheme has been
sold, and agreements for some of the retail units have already been concluded.
It is proposed to announce the start of construction work later this year.
***
WARRINGTON, BIG APPLE DISTRIBUTION PARK
Construction work is expected to start this year in providing 375,000 sq.ft of
high bay warehousing close to M6 junction 20. An agreement is at the legal
stage with one major user, and negotiations are underway with two other
potential users.
***
WORKSOP, RETAIL & LEISURE SCHEMES
Detailed planning applications have been submitted for a 120,000 sq.ft two-site
retail and leisure scheme. All anchor tenants are contracted on the leisure
park site, and Tesco are to relocate their existing Worksop store to new 70,000
sq.ft premises on the second site.
***
YORK, CLIFTON MOOR RETAIL PARK
Offers have now been received from a number of quality retailers for our final
25,000 sq.ft of retail space on this highly successful development.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 17th May 2024
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