Construction and plant hire group Henry Boot has released preliminary results showing a 15% rise in pre-tax profit, despite a £22m drop in turnover.

The company posted a pre-tax profit of £15.9m for the year ended 31 December 2004, compared with £13.7m in 2003 after discounting profit made on sales of discontinued operations. Turnover fell from £90m to £84.2m during the same period.

The company attributed the fall in turnover to a restructuring in 2003 but said it had also been hit by delays in projects. In his statement chairman John Reis said that Henry Boot was in a strong position but voiced concern about the impact of local and central government.

He said: “We continue to be affected by the vagaries of the planning system, which continue to frustrate by creating delays and reducing land availability.

“In addition we still await the government’s reaction to the Kate Barker review of housing supply proposals and are braced for the possible introduction of a form of development land tax.”