Developer and builder says turnover from construction business last year lower than expected
Housing developer and builder Henry Boot said it expects profit to be in line with expectations when it publishes its 2024 results this spring.
In a trading update, the firm said a slower than expected rate of cuts in interest rates and a lag in planning reforms meant that sales volumes across the business would be slower than expected.
“We anticipate slower growth in volumes across the group and, accordingly, we now expect profit for the year to be similar to the 2024 outturn and once again H2 weighted,” it added.
It said its construction business “remained behind schedule for winning work and turnover was lower than targeted”.
In its 2023 results, the construction business posted income of just under £100m.
But it said the division started the new year in a better position with 55% of its order book secured and 16% at preferred bidder stage.
Henry Boot, which is due to release its results on 25 March, said analysts’ consensus for 2024 pre-tax profit was for around £30.7m.
In its 2023 results, the firm posted a turnover of £359m, a rise of 5% on last time, but pre-tax profit was down 18% to £37m.
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