Henry Boot swings to £6.3m loss as land deals fall
The property group has seen a decline in the first half of 2026, as challenging market conditions hit land and property transaction volumes.
The firm, which operates across land promotion, property development, and housebuilding, reported revenue of £80.7m for the six months to 30 June, down from £99.4m in the same period last year.
It completed and exchanged on £104.8m of land and property sales during the period, of which its share was £72.8m. This compares with £159.6m of transactions, or £99.3m on a group share basis, in H1 2025.
Henry Boot said the reduced transaction volumes reflected continued challenging conditions across its core markets.
Its land promotion business, Hallam Land, completed the sale of 556 residential plots during the period, down from 1,222 in H1 2025. A further 465 plots have been exchanged and are due to complete in the second half of the year.
The business is continuing to invest in its strategic land portfolio, spending £10.6m during the first half to accelerate planning applications.
Hallam Land has 9,086 plots with planning permission and a further 21,361 plots awaiting determination, taking its total land bank to 107,924 plots.
The group said the land with planning permission or awaiting determination represents around £305m of estimated future gross profit, based on recently achieved profit per plot.
It remains on track to submit planning applications for more than 10,000 plots during 2026.
Henry Boot’s property investment and development arm, HBD, increased its committed development programme to £161m GDV, up from £128m a year earlier.
The increase follows the addition of Golden Valley Phase One in Cheltenham, a £95m scheme which is fully funded. The wider HBD programme is now 79% pre-let or under offer, compared with 40% at the same point last year.
Meanwhile, the Origin joint venture is progressing across three industrial and logistics schemes, with the developments now 66% leased or under offer, compared with 9% at the start of the year. Henry Boot said rents achieved were ahead of the business plan.
The group also completed the £8.6m sale of its Warminster retail asset, at a 7.5% premium to its December 2025 book value.
Its housebuilding business, Stonebridge Homes, completed 72 homes in H1, compared with 85 in the first half of 2025. Henry Boot expects completions to remain weighted towards the second half, with full-year volumes forecast to show a small increase on the 185 homes completed last year.
Average private sale prices increased to £431,000, compared with £391,000 a year earlier, while the sales rate eased slightly to 0.38 from 0.42. Incentives remained at around 5%.
Stonebridge’s owned land bank has increased to 1,449 plots, compared with 1,414 at the end of 2025.
Meanwhile, Henry Boot’s net debt increased to £132.9m, up from £108m at the end of 2025, with gearing rising from 25.7% to 33%.
The group has agreed terms to increase its existing bank facility to £165m until 31 December 2026, providing additional financial flexibility while it progresses planned land sales. Discussions are continuing with its lenders over amendments to full-year covenant requirements.
New chief executive Ed Hutchinson said the group’s performance for 2026 was expected to be heavily weighted towards the second half, supported by land transactions, housebuilding completions and leasing activity.
He said he had begun a comprehensive review of the business since taking over as chief executive, with a refreshed strategy expected to be outlined in early 2027: “Having taken on the leadership of Henry Boot this summer, my conviction in the Group’s long-term prospects has only strengthened.
“While challenging market conditions have continued to impact our sector, the quality of our assets, the strength of our pipeline, and the significant value embedded across the business underpin a compelling growth opportunity.
“With more than 9,000 consented residential plots within our strategic land portfolio held at cost and a substantial development pipeline, we possess a depth of value not recognised on our balance sheet.
“Our priority is clear: unlock this value, enhance cash generation, and ensure the Group is well positioned to capitalise as market liquidity and activity improve.
“Consistent with recent years, we expect 2026 performance to be heavily weighted towards the second half, supported by land transactions, housing completions and leasing activity that is either secured or at an advanced stage of negotiation.
“Since assuming the role of CEO, I have made good progress in undertaking a comprehensive review of the business and look forward to outlining our refreshed strategy in early 2027.
“Henry Boot is a high-quality business operating in attractive markets with enduring structural demand drivers. Supported by a strong balance sheet, a differentiated land position and proven expertise, we are well placed to create significant long-term value for shareholders.”
