Henry Boot Slides to £6.3m Loss as Land Sales Dry Up

Henry Boot posted a £6.3m pre-tax loss for the first half of the year, swinging from a £9.8m profit a year earlier, as falling land sales and weak housing demand hit revenue and pushed net debt higher.

Revenue fell 19% to £81m in the six months to June. Net debt climbed to £133m from £108m at the end of 2025, lifting gearing from 26% to 33%.

The Sheffield-based property and land group has agreed terms to increase its bank facility to £165m until the end of the year. It is also in talks with lenders over changes to its full-year banking covenants.

Hallam Land, the group's land promotion arm, sold just 556 plots during the half, down from 1,222 a year earlier. A further 465 plots have been exchanged for completion before the year-end.

Stonebridge Homes, the housebuilding arm, also slowed. Completions fell to 72 homes from 85. Average private selling prices moved the other way, rising to £431,000 from £391,000.

The results put pressure on Henry Boot to unlock value from its land holdings at a moment when subdued market conditions continue to hold back transactions.

Construction exit has yet to pay off

Henry Boot agreed to offload its construction arm in a £4m management buyout in September last year. The sale completed on 31 December 2025.

The disposal was designed to simplify the group and sharpen its focus on land promotion, property development and premium housebuilding. The construction business had generated £49.7m of revenue but lost £2.7m in 2024.

Almost a year after announcing that strategic shift, the remaining businesses are struggling to generate the sales needed to deliver their promised returns.

New chief executive Ed Hutchinson is reviewing the business, with a refreshed strategy due in early 2027.

The group sits on a land bank of nearly 108,000 plots, including more than 9,000 with planning permission. It estimates that consented sites and those awaiting decisions could generate £305m in future gross profit.

Hutchinson set out his priorities in the results statement. He said: "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."

Development programme expands

HBD, the property development arm, has expanded its committed development programme to £161m. That includes the £95m first phase of the Golden Valley scheme. The programme is 79% pre-let or under offer.

Despite the first-half loss, Henry Boot still expects a second-half recovery. The group has maintained its forecast for full-year pre-tax profit in line with the latest market consensus of £9.7m — a figure that leaves little margin for error if plot completions and housing sales slip again before December.