LONDON (ShareCast) - (Sharecast News) - Property and construction company Henry Boot reported a 16% rise in first-half pre-tax profit on Friday and said second-half trading has started well.
In the six months to 30 June, pre-tax profit rose to £26.2m from £22.6m in the same period a year ago, while operating profit was up 15.8% to £26.4m and earnings per share increased nearly 20% to 15.7p.

Revenue for the period was pretty much stable at £196.2m, net debt fell to £26m from £62.2m in the first half of last year and the company upped its interim dividend by 14.3% to 3.20p a share.

The group said it has continued to see consistent levels of demand across all of its businesses, but most particularly for housing development land within Hallam Land and housing within Stonebridge Homes.

As expected, 2018 has been quieter than 2017 in its commercial property development business, but it is gradually seeing an increase in expected development activity for 2019. However, it noted that this is subject to stable trading conditions and the uncertain political climate that all businesses in the UK are currently operating under.

Henry Boot said that while there is no evidence that investment decisions are being deferred due to current Brexit negotiations, it is seeing a little more caution and higher levels of due diligence before projects progress.

Chief executive John Sutcliffe said: "We are very pleased to report another impressive performance in the first half of 2018, achieving improved profit, earnings per share, net asset value and dividends, while significantly reducing debt, compared to a year ago.

"So long as market conditions remain stable as we transit through the political and economic uncertainties, we look to the future with confidence. We have a strong pipeline of land, housing and commercial development opportunities to provide our customers with the property assets they require."

Sutcliffe added that following a good start to the second half and given the level of forward contracted business, the company is confident of meeting its expectations for the full year and for 2019.

At 0815 BST, the shares were down 0.6% to 269p.

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