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Focus on our three core markets

Industrial & Logistics

Residential

Urban Development

2025 Responsible Business Strategy

Pillar 1 - Our People

Pillar 2 - Our Places

Pillar 3 - Our Planet

Pillar 4 - Our Partners

Clear medium-term strategic objectives

Our strategy is guided by medium-term strategic objectives

Focus on our three core long-term markets

The Group operates in three key sustainable markets:

Industrial & Logistics

Long-term drivers

Occupier demand remains robust and low vacancy rates continue to drive rental growth.

Urban Development

Long-term drivers

Dominant centres are still attractive to younger people, whilst there has been a recovery in regional office take-up with occupier focus on high quality agile/green buildings.

Residential

Long-term drivers

Rise in mortgage rates post 'mini-budget' have slowed sales rates but supply of new homes remains low, leaving the Group in a strong position.

2025 Responsible Business Strategy

Henry Boot has always understood and been influenced by the responsibility we have to create sustainable and long-term value for the communities and environments we operate in.

Environmental social, and governance (ESG) factors are becoming an increasingly important focus for investors, customers, our people and the general public intensified by global events and climate change. We are working hard to ensure that our long-term business decisions incorporate the way we protect and collaborate with our people, partners, places and planet. It is essential that we ensure responsibility is at the core of our business and values.

Pillar 1 - Our People

We will support, develop, engage and empower our people to have an exceptional working experience, to be the best versions of themselves and to deliver long-term value for our stakeholders.

Pillar 2 - Our Places

In fulfilling our Purpose, we will support and engage the communities we engage with, and alongside, to create long-lasting social value.

Pillar 3 - Our Planet

We will protect and preserve our planet by reducing our environment impact, consuming responsibly and safe-guarding our environments.

Pillar 4 - Our Partners

We will collaborate with our partners to deliver exceptional results, create value and share knowledge, solutions and creativity to address key issues.

Delivery

Adopt emerging working practices, investing and collaborating to deliver our operational targets

Growth

Grow PBT by increasing capital employed to £500m by investing in our three key markets

People

Open, progressive, high performing business governed by clear objectives which engage diverse range of talent

Safety and the Environment

We aim to be the safest place to work in our markets and be respectful to our environment

2022 Highlights

Financial

Operational

Financial

Group Revenue

£341.4m

Profit Before Tax

£45.6m

ROCE

12.0%

Earnings per Ordinary Share

25.0p

Net Asset Value per Ordinary Share

295p

Dividend per Ordinary Share

6.66p

Operational

£279m of sales led by our land promotion, property development and housebuilding businesses making the most of strong markets in the first half of the year
Selective approach to acquisitions throughout the year, totalling £28.4m, including £27m of strategic investment to grow Hallam Land Management and Stonebridge Homes' land holdings
Continued investment in our £240m high-quality committed development programme where costs are 97% fixed
Land Promotion

A record of 3,869 plots sold (2021: 3,008), driven by a major disposal at Didcot of 2,170 plots
9,431 plots with planning permission (2021: 12,865), leaving Hallam Land Management well positioned against a backdrop of an increasingly constrained planning system

Property Investment & Development

Significant committed development programme of £240m, with 63% pre-sold or pre-let
Over 1m sq ft of Industrial & Logistics development underway (HBD Share: £150m GDV)
£1.5bn development pipeline (Henry Boot share £1.25bn), 65% of which is focused on supply-constrained Industrial & Logistics markets, where occupier demand remains robust
Well timed sales within the investment portfolio of £29.6m, at an average 17% premium to the last reported book value, contributed to total return outperformance of -1.5% versus CBRE Index of -9.1%
Stonebridge Homes completed 175 homes (124 private/51 social) (2021: 120), at an average selling price for private homes of £503k (2021: £509k). Total owned and controlled land bank is now 1,094 plots (2021: 1,157) with detailed or outline planning permission on 872 plots (2021: 912)

Construction

The construction business performed ahead of budget with turnover of £101.5m (52% from public sector) out of £128.6m segment total and has secured 68% of 2023 order book
Banner Plant has seen record levels of trading activity after experiencing strong demand from its customers and Road Link (A69) has performed well as a result of increasing traffic volumes

Responsible Business

Continuing to make good progress against our Responsible Business Strategy targets and objectives, launched in January 2022

NOTES:

This report contains the following alternative performance measures (APM): Underlying profit. Return on Capital Employed. Net Asset Value (NAV) per share. Net (debt)/cash. Total Accounting Return.

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Investment case

Five reasons to invest

Shareholder returns

The Company has a great track record of creating shareholder value through our strategic focus of delivering sustainable growth. The Group has achieved a total shareholder return (TSR) of 10.5% per annum over 20 years, which is significantly ahead of the FTSE All-Share index of 7.9%.

Clear focus on three key markets driven by positive long-term trends

Our focus remains committed to achieving long-term growth within our three key markets - Industrial & Logistics, Residential and Urban Development. There were strong levels of demand across our key markets throughout the majority of 2022, leaving us confident in our ability to achieve our medium-term growth and return targets. However, despite witnessing a marked slowdown in Q4 22, in the early stages of 2023 there have been encouraging signs that demand is recovering with a resumption of activity in our markets.

Significant embedded value in the business

There is significant embedded value across the Group, with all the opportunities sitting within the Group's three key markets. This includes c.96,000 strategic land plots (of which 9,431 have planning permission) and a £1.25bn development pipeline (with 65% focused on Industrial & Logistics). Adding to this, we have a growing housebuilder, with a land bank of 1,094 units which equates to 4.4 years supply based on a one year rolling forward sales forecast for land.

Our culture: the Henry Boot way of doing things

Our people are vital to Henry Boot's long-term success. A positive and inclusive embedded culture enables us to create and maintain long standing relationships with our customers, clients and communities. This is crucial to our sustainability, creating an environment which empowers our people to deliver the Group's strategy, whilst continuing to attract and retain people who support our culture.

Responsible Business approach

We launched the second phase of our Responsible Business Strategy in January 2022. The Strategy outlines forward-looking targets aimed at further embedding our ESG approach into the Group's commercial and strategic decision making, which we continue to work towards.

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Our Strengths

Our diversified businesses

Henry Boot operates across the whole property value chain.

With our uniquely sustainable business model we have built a market-leading Group of Companies that source, develop and deliver across the whole property value-chain.

We manage the combined effort and expertise of six primary subsidiaries, investing in our future to create long-term value and robust returns for all our stakeholders and partners

Our capital structure

We reinvest the cash generated from our investment portfolio and construction business into profitable areas of the business.

Our financial structure allows us to invest in the more profitable areas of the business to ensure we can maximise value, whilst maintaining prudent gearing levels. HBD's property investment portfolio generates rental income each year, allowing us to borrow against the investment portfolio at attractive rates. The construction segment is self-funded and cash generative, resulting in the cash produced from these activities being invested into strategic land and property development.

Our planning and development expertise

The Group has been in business for over 135 years and we are valued for our expertise and forward-thinking approach.

Henry Boot recognises that our people are fundamental to the success and sustainability of the Group. It is their expertise that executes our business model successfully and delivers the value created by the business to our stakeholders.

Our relationships

We have close relationships with landowners', key property advisers to alert us to potential opportunities; and planning consultants and legal advisers for knowledge and guidance.

At Henry Boot we pride ourselves on collaboration. We set clear mutual expectations and strive to achieve them. We promote cross-team working, and work in partnership to make things happen.

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Our performance

The group's best Ever financial Results

Peter Mawson

Chair

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We have confidence in Achieving our medium-term Growth and return targets

Tim Roberts

Chief Executive Officer

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Strong sales significantly Increasing profitability

Darren Littlewood

Chief Financial Officer

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Our purpose

To empower and develop our people to create long-term value and sustainable growth for our stakeholders. Our stakeholders are our shareholders, employees, pensioners, customers and suppliers. More broadly, we recognise our duties to the environment and the communities we operate.

Empowering and developing our people sits at the core of our being. This focus shapes our values and behaviours and is also a key aspect of our strategic priorities. Being purpose-led enables us to create long-term value for our stakeholders and ultimately achieve our vision.