Henry Boot Reports Weak First-Half Performance Amid Market Challenges
Henry Boot PLC (LON:BOOT) reported a weak first-half performance in its latest earnings update, with revenue declining by 19% to just under £81 million and an operating loss of £3.9 million. The company's net debt increased to £133 million, prompting the board to suspend the interim dividend until sales improve, cash is recovered, and debts are reduced. New CEO Edward Hutchinson outlined a strategy focused on value realization, deleveraging, and operational efficiency as part of an ongoing business review expected to culminate in a refreshed strategic plan by early 2027. Stonebridge Homes, Henry Boot's housebuilding division, faces challenges including weak sales volumes, cost inflation, and higher mortgage rates. However, management anticipates stronger performance in the second half due to delayed land and property sales completing. As of now, 71% of full-year sales targets have been completed or reserved, with further progress expected from Hallam Land and HBD through ongoing planning and development opportunities. The company's underlying asset value per share fell by 4%, reflecting the acquisition of an additional interest in a property portfolio.
Topics: CEO strategy debt increase dividend suspension operating loss revenue decline