Interim Results

Boot(Henry) PLC
22 September 2004



HENRY BOOT PLC


INTERIM RESULTS


Henry Boot PLC, the property and construction group, announces its Interim
Results for the half-year ended 30th June 2004.

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



CHAIRMAN'S STATEMENT

In presenting the results for the first six months of trading for the current
year, I am particularly pleased to report strong underlying growth.  This has
been achieved through robust performances by our main activities following the
completion of our disposals programme last year.

Setting aside the exceptional profit in 2003 arising from the sale of the
housebuilding company and the impact of that sale in accelerating profit within
Hallam Land Management Limited, these results demonstrate a further advancement
in core profitability, especially within our construction operation and
expanding property business.  An increased contribution from our land trading
activity is likely to be seen in the second half of this year.

Overall profit before tax of £5.2m compares with the adjusted profit in 2003 of
£4.4m (excluding profit on the sale of discontinued businesses and accelerated
profit within the land trading operation), an increase of 18%.  At the operating
profit level (excluding discontinued businesses and accelerated profit of the
previous year), the underlying growth in excess of 45% is even more emphatic.

Although the basic earnings per ordinary share figure appears to have decreased
since 2003, at 14.4p it shows a 15% increase when compared on a like-for-like
basis to 12.5p for 2003, a most encouraging result.


Property Development

With average 'all property yields' on UK prime property currently below 6.6%,
the general buoyancy in the market continues to hold firm, led by steady
investor demand and a paucity of willing vendors.  Much of this demand, founded
mainly on disquiet with the equities market, is directed towards the retail
sector which particularly favours some of our larger retail schemes being
developed at Ayr; Nottingham; Bromley, Kent; Blackburn; Frome, Somerset; York;
Walthamstow, London; Doncaster and South Shields.

Sales included land to the de Vere Hotels Group, and a number of industrial
units to various purchasers - all on our Priory Park scheme in Hull.  Rental
levels achieved were ahead of expectations.

A number of major new schemes progressed during the period.  These included
Markham Vale Business Park, a development that is already capturing a lot of
interest, mainly due to its location off the proposed new M1 junction 29a and
its scope to accommodate a variety of units up to 1 million sq.ft and over.  The
distribution and large sheds market remains very active, which enhances the
prospects for a number of our other industrial schemes presently in the
pipeline.


Land Trading

With no significant land sales in the period, this activity continued to
concentrate on increasing its land interests, which now extend to over 6,000
acres, and consolidating its planning allocations across the company's
portfolio.

Recent interest rate increases may have a damping down effect on house price
increases, and although we might expect that this could have some knock-on
effect on land prices, it has not occurred to any meaningful extent to date.  If
and when it does, there are indications that it will be felt more in the south
of the country than in the north.

Similarly, the effects of the recently enacted Planning and Compulsory Purchase
Bill have as yet to be determined.  At the same time, a number of planning
guidelines, which may also ultimately affect land prices, remain under
consultation.  However, as the government continues to promote a reduction in
the present housing shortfall, market demand for land should remain strong.

We look to conclude a number of significant land deals in the coming months,
which should ensure a positive outcome for the year as a whole.


Construction

The construction market remains firm, and our contracting activities produced a
strong performance in the first half of the year.

In securing a satisfactory level of new work to complete during the current
year, we have also carried over significant work into 2005 and beyond.  Our
enviable reputation as a reliable partner to deliver a quality product, within
budget and on time, continues to attract major clients, particularly within the
education, prison, local authority and national health sectors.  The outturn for
the year is likely to show a significant improvement on previous years.


Plant Hire

Following a record result in 2003, the plant hire activity struggled to maintain
growth and profitability, and as a consequence performed below expectations.
With buoyant construction and housing markets, the competition from established
and new plant hire businesses has become intense, with increased pressure on
both utilisation and hire rates.  However, corrective action has been taken to
bring about an improvement for this year.


Financial Position, Dividends and Outlook

Generally, our markets remain strong, and the company's overall gearing position
at less than 4% can only be considered healthy, leaving substantial scope to
achieve further growth in profitability as our property and land trading
activities increase.

In my Interim Statement for 2003, I stated that the Board would hope '....to
clearly communicate its confidence in the immediate financial prospects through
a progressive dividend policy'.  In looking forward to the year end, your Board
is reasonably confident of being able to deliver a favourable result and has,
therefore, again maintained this policy.  Accordingly, an interim dividend of
4.4p is to be paid, a 10% increase over the previous year.

The Balance Sheets at 30th June and 31st December 2003 have been restated to
reflect the adoption of UITF 38 in relation to the accounting treatment of a
company's own shares held by an employee share ownership plan (ESOP) trust.  The
net asset value per share of the company has, nevertheless, increased by 9p per
share from 441p per share to 450p per share.

It is expected that the 10% increase in dividend will be maintained at the year
end, reflecting the Board's anticipation of ongoing potential deals being
successfully concluded and its confidence in the company's future prospects.


John S. Reis, Chairman
22nd September 2004




THE UNAUDITED RESULTS OF THE GROUP INCLUDE:

                                                           Half year           Half year                 Year
                                                               ended               ended                ended
                                                           30th June           30th June        31st December
                                                                2004                2003                 2003
                                                               £'000               £'000                £'000

Turnover - continuing operations
Group and share of associates                                 27,812              49,680               92,927

Less: share of associates                                      1,403               1,501                2,900

                                                            --------            --------             --------
                                                              26,409              48,179               90,027
Discontinued operations                                            -              13,221               15,894

                                                            --------            --------             --------
Group turnover                                                26,409              61,400              105,921

                                                            --------            --------             --------
Operating profit:
Continuing operations                                          4,311               8,345               11,501

Discontinued operations                                            -               1,114                  813
                                                            --------            --------             --------
                                                               4,311               9,459               12,314
Share of associates' operating profits                           869                 867                1,748
                                                            --------            --------             --------
Group operating profit                                         5,180              10,326               14,062

Profit on sale of discontinued operations                          -              15,783               16,209
Interest                                                         150                (85)                 (19)
Interest - share of associates                                 (137)               (147)                (299)
                                                            --------            --------             --------

Profit on ordinary activities before tax                       5,193              25,877               29,953
Tax on profit on ordinary activities                         (1,516)             (2,903)              (4,029)

                                                            --------            --------             --------
Profit for the period                                          3,677              22,974               25,924

                                                            --------            --------             --------



Dealt with as follows:

Dividends:

Cumulative preference shares (non-equity)                         11                  11                   21

Interim of 4.4p (2003: 4.0p)                                   1,127               1,024                3,781

Profit retained                                                2,539              21,939               22,122

                                                            --------            --------             --------
                                                               3,677              22,974               25,924
                                                            --------            --------             --------
Basic earnings per ordinary share                              14.4p               90.7p               102.1p

                                                            --------            --------             --------

Diluted earnings per ordinary share                            14.1p               88.6p                99.8p

                                                            --------            --------             --------

Basic earnings per ordinary share

   excluding profit on sale of
   discontinued operations and
   accelerated profit of the previous
   year                                                        14.4p               12.5p                22.4p
                                                            --------            --------             --------





SUMMARISED GROUP BALANCE SHEET AT 30TH JUNE 2004


                                                                            31st December            30th June
                                                           30th June                 2003                 2003
                                                                2004              Audited            Unaudited
                                                           Unaudited          As restated          As restated
                                                               £'000                £'000                £'000

Fixed assets
Tangible assets                                               30,226               30,913               31,734
Investments                                                    1,683                1,172                1,304
                                                            --------             --------             --------
                                                              31,909               32,085               33,038
                                                            --------             --------             --------
Current assets
Stocks                                                        88,071               73,727               75,028
Debtors                                                       36,639               54,681               53,690
Cash at bank and in hand                                       8,140                6,457                9,653
Creditors: amounts falling due
   within one year                                          (36,649)             (40,571)             (45,227)
                                                            --------             --------             --------
Net current assets                                            96,201               94,294               93,144
                                                            --------             --------             --------
Total assets less current liabilities                        128,110              126,379              126,182
Creditors:  amounts falling due after
   more than one year                                       (10,000)             (10,444)             (10,897)
Provisions for liabilities and charges                         (579)                (579)                (506)
                                                            --------             --------             --------
                                                             117,531              115,356              114,779
                                                            --------             --------             --------
Capital and reserves

Called up share capital                                        3,005                3,005                2,998
Cost of shares held by the ESOP trust                          (989)                (989)              (1,100)
Capital redemption reserve fund                                  271                  271                  271
Share premium account                                          2,563                2,563                2,389
Property revaluation reserve                                  13,547               13,911               13,936
Profit and loss account                                       98,510               95,971               95,590
Other reserves                                                   624                  624                  695
                                                            --------             --------             --------
                                                             117,531              115,356              114,779
                                                            --------             --------             --------
Being:
Non-equity shareholders' funds                                   400                  400                  400
Equity shareholders' funds                                   117,131              114,956              114,379
                                                            --------             --------             --------
                                                             117,531              115,356              114,779
                                                            --------             --------             --------





GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                                           Half year           Half year                 Year
                                                               ended               ended                ended
                                                           30th June           30th June        31st December
                                                                2004                2003                 2003
                                                           Unaudited           Unaudited              Audited
                                                               £'000               £'000                £'000

Profit for the financial period                                3,677              22,974               25,924
Unrealised surplus on property revaluation                         -                   -                  459
Elimination of revaluation surplus                             (362)               (197)                (483)
                                                            --------            --------             --------
Total recognised gains and losses for
   the period                                                  3,315              22,777               25,900
                                                            --------            --------             --------





SUMMARISED GROUP CASH FLOW STATEMENT


Net cash (outflow)/inflow from
   operating activities                                     (12,101)               3,523            (13,106)
Dividends received from associates                                 -                 309                 927
Returns on investment and servicing
   of finance                                                    117                (96)                (16)
Taxation                                                     (1,708)             (2,900)             (4,611)
Capital expenditure and financial
   investment                                                  (816)             (1,165)             (1,592)
Acquisitions and disposals                                    17,585             (1,246)              14,920
Equity dividends paid                                        (2,318)             (2,488)             (3,504)
                                                            --------            --------            --------
Cash inflow/(outflow) before use of
   liquid resources and financing                                759             (4,063)             (6,982)
Financing                                                      (476)               (355)               (764)
                                                            --------            --------            --------
Increase/(decrease) in cash                                      283             (4,418)             (7,746)
                                                            --------            --------            --------







NOTES TO GROUP CASH FLOW STATEMENT


                                                           Half year           Half year                 Year
                                                               ended               ended                ended
                                                           30th June           30th June        31st December
                                                                2004                2003                 2003
                                                           Unaudited           Unaudited              Audited
                                                               £'000               £'000                £'000

Reconciliation of net cash flow to
   movement in net funds

Increase/(decrease) in cash                                      283             (4,418)              (7,746)
Cash outflow from decrease in
   debt and lease financing                                      476                 595                1,185
                                                            --------            --------             --------
Change in net funds                                              759             (3,823)              (6,561)
Net (debt)/funds at 31st December 2003                       (5,026)               1,535                1,535
                                                            --------            --------             --------
Net debt at 30th June 2004                                   (4,267)             (2,288)              (5,026)
                                                            --------            --------             --------

Reconciliation of operating profit
   to operating cash flow

Operating profit                                               4,311               9,459               12,314
Depreciation and amortisation                                  1,788               1,998                3,734
Profit on sale of tangible fixed assets                        (627)               (164)                (295)
(Increase) in stocks                                        (14,366)            (13,282)             (12,193)
Decrease/(increase) in debtors                                   480            (10,098)             (15,899)
(Decrease)/increase in creditors
   and provisions                                            (3,687)              15,610                (767)
                                                            --------            --------             --------
Net cash (outflow)/inflow from
   operating activities                                     (12,101)               3,523             (13,106)
                                                            --------            --------             --------

Analysis of net debt
                                                                  At                Cash                   At
                                                            31.12.03               Flows             30.06.04
                                                               £'000               £'000                £'000

Cash at bank                                                   6,457               1,683                8,140
Creditors (bank overdraft)                                     (173)             (1,400)              (1,573)
Bank loans                                                  (10,000)                   -             (10,000)
Finance leases                                               (1,310)                 476                (834)
                                                            --------            --------             --------
                                                             (5,026)                 759              (4,267)
                                                            --------            --------             --------







NOTES





1.   The 2003 year end results are an abridged version of the unqualified 
     audited accounts filed with the Registrar of Companies.  The financial
     information set out above does not comprise statutory accounts within the
     meaning of Section 240 Companies Act 1985.  The Balance Sheets at 30th June 
     and 31st December 2003 have been restated to reflect the adoption of 
     UITF 38 in relation to the accounting treatment of a company's own shares 
     held by an employee share ownership plan (ESOP) trust.

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

3.   The interim dividend amounting to £1,127,000 (2003: £1,024,000) will be 
     paid on 28th October 2004 to shareholders whose names are on the register 
     at the close of business on 1st October 2004.

4.   At the Board meeting on 21st September 2004 the directors formally approved 
     the issue of these statements which have not been reviewed by the auditors.

5.   The interim financial information has been prepared using accounting 
     policies consistent with those adopted by the group in its accounts for the 
     year ended 31st December 2003.

6.   Property valuations have been brought forward without amendment from
     the previous annual accounts.


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