Henry Boot’s profit before tax has dived by 70% to £7.2m from £24.1m the previous comparable year after a “challenging” H1.
The investor and developer said that although its profit dipped, its was ahead of expectations and was supported by its land promotion business, Hallam Land Management, which completed on nine sites in H1.
The company said “all operations were impacted by Covid-19”, and also saw its revenue shrink 42% to £108.7m from circa £189m the year before.
The business continued to invest in opportunities and increased its strategic land holdings by 558 acres, as well as successfully tendering for a £40m build-to-rent scheme in Sheffield city centre.
The company said that while it was “prepared for uncertain times ahead”, it was looking to make more investments.
However, although the developer said activity levels in its operations are increasing, they will not meet pre-Covid levels “for some time”, and as a result, redundancies will be made in its construction division.
The company will pay a 2.2p interim dividend to shareholders on 16 October 2020.
Henry Boot chief executive Tim Roberts said: “While Covid-19 has affected our interim results and led us to make difficult decisions to reshape and protect the business, we have seen clear improvements in our operations.
“As this momentum builds, we have been quick to secure selective long-term opportunities and make progress in our key markets – residential, industrial and urban development. We are prepared for uncertain times ahead but where we see good opportunities to invest, without taking undue risk, we will continue to take them.”
To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette
