Henry Boot expects no profit growth in 2025, but optimism improves
By Benjamin Chiou
Date: Tuesday 28 Jan 2025
(Sharecast News) - Henry Boot has said it has entered 2025 with "a bit more optimism" after a gradual improvement in market conditions helped results in the second half, though a slower expected pace of interest-rate cuts may delay a full-blown recovery.
The land promotion, property development and construction firm said that while a reduction in interest rates has provided a welcome boost, "the trend downwards is now anticipated to be at a slightly slower pace than previously expected".
In a pre-close trading update ahead of its annual results, Henry Boot said 2024 figures would be in line with market expectations.
However, slower expected growth in volumes across the business means that 2025 profits will be similar to last year, with the full-year results once again weighted to the second half.
"Following a gradual pick up in demand over the last 12 months we still anticipate that our markets will continue to steadily improve during 2025. Similarly, even though there are early signs of an improving planning system, we expect there will be a lag before the benefits are realised through increased plot sales," the company said.
As for 2024, chief executive Tim Roberts said the company experienced a "steady increase in demand" across its key sectors.
"The improvements to the planning system we have already seen under the new government also give us confidence, and we therefore intend to ramp up our planning applications, with a further 10,000 plots expected to be made in 2025," Roberts said.
Shares were down 1.4% at 210p by 1054 GMT.
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