Henry Boot Swings to H1 Loss as Debt Rises

Henry Boot reported first-half revenue of £80.7 million, down 19% from a year earlier, and a £6.3 million loss before tax. At its September 22 earnings call, the UK property group said weaker transactions weighed on results across its businesses.

Operating loss reached £3.9 million, partly reflecting lower property values. Net debt rose to £132.9 million from £108 million at the end of 2025, while gearing climbed to 33% from 25.7%.

The company will not pay an interim dividend, citing higher debt and uncertainty over second-half performance. It agreed to lift its bank facility to £165 million through December 31 and said discussions with lenders over full-year covenant requirements were continuing.

Land promoter Hallam Land sold 556 plots in the half, compared with 1,222 a year earlier, as major homebuilders shifted their land strategies. More than 2,000 plots are exchanged or under offer for expected second-half completion, while the group estimates its permitted and pending sites hold about £305 million in potential gross profit.

Homebuilder Stonebridge Homes is expected to post an operating loss in 2026. Henry Boot cited slower sales, around 4% build-cost inflation and legacy site costs; Stonebridge completed 72 homes in the first half, and its average private selling price was £431,000.

Property arm HBD’s committed development programme grew to £161 million, with 79% pre-let or under offer. That includes the fully funded first phase of Golden Valley, a £95 million addition to the programme.

Management expects a stronger second half, supported by land sales, home completions and leasing activity. But it cautioned that market transactions are likely to remain subdued and said reducing borrowings is a priority; a refreshed group strategy is due in early 2027.