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Boot(Henry) PLC BHY Interim Management Statement

  Boot(Henry) PLC (BHY) - Interim Management Statement

RNS Number : 8282Q
Boot(Henry) PLC
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 
statement.



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 
       pipeline.
· 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 
       (183 plots).
· 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 
       2014.
· 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 
       planning process.



CONSTRUCTION DIVISION



· 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 
       acceptable margin.
· 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 
       construction activity.



For further information, please contact:



Henry Boot PLC

Jamie Boot, Group Managing Director

John Sutcliffe, Group Finance Director

Tel: 0114 255 5444

www.henryboot.co.uk



Investec Bank plc

Garry Levin

Tel: 020 7597 5717



TooleyStreet Communications Limited

Fiona Tooley

Tel: 0121 309 0099

Mobile: 07785 703523

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


IMSFSDFAUFESEFF -0- Nov/12/2012 07:00 GMT