Annual General Meeting Delivery Adaptability 30 June 2020 - - PowerPoint PPT Presentation

Annual General Meeting 24th May 2018

Respect Integrity Loyalty Delivery Adaptability Collaboration

Annual General Meeting 30 June 2020

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Strong position for the future

• Henry Boot remains in a relatively strong position.
• We have an agile plan to respond to COVID-19.
• 2019 was a good year with strategic progress made.
• Early signs of recovery.
• The Group is a long-term business in three key sustainable markets:
• Residential
• Industrial and logistics
• Urban development

Henry Boot PLC Annual General Meeting – 30 June 2020

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Our Plan to COVID-19 is agile and responsive

Henry Boot PLC Annual General Meeting – 30 June 2020

Our response has been driven by three main priorities: Safety and Welfare

• The office network remains closed with most people working effectively remotely.
• Planning to open two offices to employees unable to work from home by early July with strict precautions.

Our Operations

• All Group sites and plant sale centres are now open – activity increasing gradually.
• Furloughed a minority of employees in April – bringing back teams as activity increases.
• Hallam Land and HBD work remotely - although at a reduced capacity.

Financial Stability

• Robust balance sheet - at 29 June net cash position of £45m.
• The Group has reduced discretionary expenditure and revised departmental budgets. Including:
• 50% reduction of all employees’ 2019 bonuses and a 20% reduction in Board salary and fees
• A reduction in full year dividend to 5.0p

Operational Highlights 2019 - Another Strong Year

• Strategic land portfolio of 14,898 acres, 14,713 units permissioned, 10,665 units in planning process.
• Completed £407m GDV, 99% sold or let, and committed to another £315m, 100% pre-sold or pre-let.
• Development pipeline of £1.3bn – 70% in industrial and logistics.
• Our jointly owned house builder, Stonebridge Homes achieved 159 sales.
• Henry Boot Construction had a good year, with profits ahead of expectations and securing 88% of work for 2020.
• Banner Plant competed competitively and Road Link (A69) performed in line with expectations.

Henry Boot PLC Annual General Meeting – 30 June 2020

4%

14,898 Strategic Land Acres

4%

3,427 Strategic Land Plots Sold

£1.3bn

Gross Development Value (GDV) Pipeline

10%

159 Number of plots sold by Stonebridge Homes

£15m

Average construction contract size won

13.9%

ROCE 12% - 15% target

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Financial Highlights

• Revenue remains strong at £379.7m.
• Profit before tax at £49.1m reflects another good year.
• Full year dividend of 5.0p, being 56% of the 9.0p paid for

FY2018, recommended final dividend of 1.3p.

• Earnings per share provide 5.6x dividend cover.
• 5% growth in NAV per share.
• Net cash £27.0m, nil gearing, at year end. As at June 29

net cash is £45m.

£49.1m £48.6m £55.4m £39.5m £32.4m

Profit before tax

28.3p 28.3p 32.1p 21.5p

Earnings Per Share

17.5p 5.0p 9.0p 8.0p 7.0p

Full Year Dividend Per Share

6.1p 2019 2018 2017 2016 £379.7m £397.1m £408.5m £306.8m

Revenue

2015 £176.2m 239p 227p 203p 177p

NAV Per Share

168p £27m (£18.4)m (£29.0)m (£32.9)m

5 Year Net Cash/(Net Debt)

(£38.9)m

Henry Boot PLC Annual General Meeting – 30 June 2020

2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Land Promotion

• A very good 2019 with 22 deals completed and 3,427 plots

sold in the period.

• Strategic land holdings under 15,000 acres.
• Continue to work from home effectively.
• Planning is still progressing, albeit at a reduced capacity.
• Activity in the land market:
• Land sales completed
• Option agreements entered into
• Bids received on land
• Continuing to acquire new schemes to replenish land bank.

Board approval granted for 30 new sites in the year, over 9,000 plots and 800 net acres.

Henry Boot PLC Annual General Meeting – 30 June 2020

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Property Investment & Development

• Completed £407m GDV (1.15m sq ft) across six schemes

– 99% of space pre-sold, pre-let or under offer.

• Remain active on £315m (inc JVs) committed schemes –

all of which pre-sold or pre-let.

• Marginal effects on productivity, all 12 live development

sites open, including sites with infrastructure works.

• Largest scheme 533 unit PRS Kampus scheme,

Manchester which has been pre-sold, set to complete early 2021.

• Strong pipeline c £1.3bn GDV with c70% in industrial or

logistics space, rest dominated by urban office and residential development.

• Stonebridge has all housing sites open and we have 55

reservations secured to date, within budgeted sale pricing.

• Successfully sold £67m of primarily retail investments.

Henry Boot PLC Annual General Meeting – 30 June 2020

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Construction

• All sites and depot sale centres are now active.
• 88% of 2020 construction activity secured 20% secured for

2021.

• We have seen an increase on construction productivity since

resuming and are now on site at 85% of planned activity.

• Banner Plant’s recent weekly sales have been at 80% of that

achieved in 2019.

• Road Link A69 has continued to perform as expected.
• Bias towards public sector work concentrating on health,

education, urban regeneration and affordable housing.

Henry Boot PLC Annual General Meeting – 30 June 2020

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

Summary

• Strong position to deal with the disruption caused by

COVID-19.

• Almost 15,000 acres of land leaves us well positioned to

convert plots through the planning system.

• Development pipeline of c £1.3bn with 70% in

manufacturing and logistics, the rest in urban office and residential.

• Stonebridge has potential to grow into multi-regional

premium house builder with land bank of 1,023 units.

• Construction business has 88% order book for 2020, with

potential to grow public sector work.

• Focused on sustainable markets: residential, industrial and

logistics, and urban development.

Henry Boot PLC Annual General Meeting – 30 June 2020

Respect • Integrity • Loyalty • Delivery • Adaptability • Collaboration

• Thank you to all the team at Henry Boot and the Board for their hard work in 2019.
• Farewell and special thanks to John Sutcliffe, who left the Board at the end of May having spent 14 years on the Board.

Thank You

Henry Boot PLC Annual General Meeting – 30 June 2020