Construction and property firm profit edges up to £15.9m despite a fall in turnover caused by more selective bidding.
Henry Boot has increased operational profit despite a fall in turnover caused by restructuring. Pre-tax profit for the year ended 31 December 2004 rose to £15.9m, an increase of 15% if sales of discontinued operations in 2003 were excluded.
Chairman John Reis said that restructuring took place to minimise exposure to high risk markets. Turnover for the year fell from £106m to £84.25m.
Henry Boot said that its construction arm had benefited from a more selective approach to contracts. It said that new work centred on framework agreements and partnering. The company said that turnover fell slightly as there were delays accompanying some new contracts.
Reis said of the construction arm: “Turnover fell a little below expectation as some delays accompanied the award of new work, but this in turn put us in a better position as we entered the current year with a healthy order book.”
In the property development market Henry Boot said its immediate prospects were firm with investor interest remaning strong. In its land management division Henry Boot said planning delays marred an encouraging year, while its hire business picked up in the second half of the year to make a “useful” contribution to results.
