Boot(Henry) PLC (BHY) - Interim Management Statement
RNS Number : 8282Q
12 November 2012
Henry Boot PLC
('the Company' or 'the Group')
Interim Management Statement
Henry Boot PLC (LSE: BHY), a company engaged in land promotion, property
development and investment, construction and plant hire, releases this Interim
Management Statement in respect of the period 1 July 2012 to the date of this
announcement, as required by the UK Listing Authority's Disclosure and
Transparency Rules, together with a Group trading update for the year ending
31 December 2012.
Trading and outlook
Trading conditions within our markets continue to be challenging but
relatively stable. The Group continues to trade in line with management
expectations and our operational management teams continue to be very busy
bringing forward land, construction and development opportunities. There have
been no material events or transactions during the period covered by this
Hallam Land, our strategic land promotion business, has had a very successful
period in terms of planning success. We now have a record number of consented
sites available for disposal at Banbury, Mansfield, Bishopbriggs, Kilmarnock,
Torrance, Edinburgh, Desford, Tillicoultry, Long Buckby, Kegworth, Highbridge,
Winsford and Stratford-upon-Avon. All of these sites are being, or are about
to be marketed, and a number of them are already the subject of agreed terms.
In addition, we have large strategic sites at Bridgwater and Exeter where
already consented land will be sold over a longer time frame.
KEY EVENTS IN THE PERIOD
LAND PROMOTION AND DEVELOPMENT
· Two relatively small land sale transactions at Mansfield and
Peterborough were concluded during the period.
· New sites were acquired into the portfolio at Abingdon, East Thame and
Cambusbarron and we have a number of further site acquisitions in the
· Planning permissions or 'minded to grant' approvals were achieved at
Selby (12.5MW wind farm, granted on appeal), Kegworth (110 plots), Long
Buckby (132 plots granted on appeal), Stratford on Avon (200 plots
granted on appeal), Winsford (180 plots), Torrance (9 plots) and Rugby
· Other applications which are currently at appeal are Bradford (292
plots), Cam (71 plots), and Grimsargh (200 plots).
· We have further undetermined applications at Aylesbury (120 plots),
Bedford (resubmission, 495 plots), Blaby (1,593 plots), Burton Upon
Trent (950 plots), Chatteris (1,000 plots), Irthlingborough (700
plots), Market Harborough (500 plots), Marston Moretaine (125 plots),
Monmouth (145 plots), Retford (8 plots), Ripley (180 plots), Rolleston
(83 plots) and Winsick (160 plots). Nuneaton (324 plots) has permission
although it is the subject of a village green appeal which should be
determined in 2013.
· Additionally, we have recently submitted new applications at Chellaston
(56 plots), Desborough (165 plots), Dunbar (100 plots), Oulton Leeds
(40 plots), Rothwell, Leeds (40 plots), Blackburn, West Lothian (140
plots), East Leake (160 plots) and Abingdon (160 plots).
· As a result of the land trading in the period the current strategic
land portfolio has increased to 9,069 acres. Of this, 1,833 acres are
owned, 3,513 acres are held under option and 3,723 acres are held under
agency agreements. Of this total acreage, 21.4% has either planning
permissions or planning allocations.
PROPERTY DEVELOPMENT & INVESTMENT
· At Markham Vale, the 200 acre business park on junction 29A of the M1
Motorway being developed in partnership with Derbyshire County Council,
we have completed two pre-let developments, a 100,000 sq ft national
distribution centre for automotive parts distributor Andrew Page Ltd
and a drive thru restaurant pre-let to McDonalds. Contracts have also
been exchanged for the sale of the Andrew Page unit and this
transaction is expected to complete before the year end. These projects
follow the completion of a 41,000 sq ft manufacturing and warehouse
unit, pre-sold to an owner occupier earlier in the year; we remain in
detailed negotiations with a number of potential occupiers to take
further space on the business park during 2013.
· The development site with planning consent that we have in partnership
with Royal Bank of Scotland at Thorne, Doncaster, has taken a major
step forward with the exchange of contracts with Tesco who will acquire
a site to develop a 36,000 sq ft foodstore. Once again we are currently
in detailed negotiations with a number of other occupiers to take space
on adjoining plots which will see construction work commence in the
first half of 2013.
· A building contract has been let and contractors are on site,
converting the listed former County Court House on Deansgate,
Manchester, to office, retail and leisure use. Only 6,800 sq ft of the
31,000 sq ft development remains to be let; final completion is
expected to be achieved in late 2013.
· The first development project in the joint venture with Calderdale &
Huddersfield NHS Foundation Trust is close to commencement, following
the grant of detailed planning permission and listed building consent
for the conversion of a 56,000 sq ft listed mill. The scheme will
provide new outpatient and clinical facilities and offices, all of
which have been pre-let to the Trust on a 25 year lease. Construction
work is expected to start next month with the project completing in
· During the period agreements were exchanged with Lloyds TSB Bank plc on
a six acre site in Chesterfield which has considerable development
potential for a range of uses. Negotiations have already commenced with
a number of potential occupiers prior to taking the site through the
· Despite depressed general construction activity, Henry Boot
Construction expects to marginally exceed budgeted turnover for 2012
and it is hopeful of securing approximately 60% of budgeted turnover
for 2013 by the end of 2012. Whilst this is in line with expectations
in the current competitive construction market, we remain cautious
regarding the availability of traditional construction work, at an
· The social housing sector continues to provide a steady workflow under
long-term Frameworks in Scunthorpe, Manchester, and Doncaster. We have
recently been appointed to deliver two new schemes in Hull and
Wakefield under the EN Procure Framework and won our second scheme
under the Yorkshire Housing Framework.
· We have completed industrial schemes for Tata Steel Limited and London
& Scandinavian Metallurgical Co Limited, and have just started major
schemes that will carry forward into 2013 for Bifrangi UK Ltd in
Lincoln and Lytag Limited at the Drax Power Station site.
· In the Health Sector, work continues under a Framework Agreement for
the Sheffield Teaching Hospitals at both the Northern General and
Hallamshire Hospitals in Sheffield and also at the Medical School for
the University of Sheffield.
· Following the Framework award for the Ministry of Justice Strategic
Alliance Agreement we have received an encouraging number of
opportunities for new-build and refurbishment schemes for HM Prison
Service, HM Court and Tribunals Service, National Probation Service and
Forensic Science Service in the North of England, which will continue
over the next six years.
· Civil engineering opportunities are starting to flow from our supply
chain agreement on the 25 year Amey Sheffield Highways PFI scheme.
Seven relatively small contracts are currently being undertaken and it
is hoped this agreement will lead to more opportunities in future. In
addition, we have commenced our first project funded by the Football
Association at Barwell and we anticipate further opportunities from
this source in the future.
· Road Link (A69), our PFI contract, continues to trade in line with the
Board's expectations. Traffic volumes remain slightly lower than last
year however, due to careful cost management, this has not had an
impact on profitability levels.
· Banner Plant has seen a slow recovery in activity levels after a
relatively subdued start to the year. Contract count and turnover are
now in line with our expectations while costs and capital expenditure
remain tightly controlled awaiting a sustained improvement in UK
For further information, please contact:
Henry Boot PLC
Jamie Boot, Group Managing Director
John Sutcliffe, Group Finance Director
Tel: 0114 255 5444
Investec Bank plc
Tel: 020 7597 5717
TooleyStreet Communications Limited
Tel: 0121 309 0099
Mobile: 07785 703523
This information is provided by RNS
The company news service from the London Stock Exchange
IMSFSDFAUFESEFF -0- Nov/12/2012 07:00 GMT
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