Why Shares In Henry Boot plc Soared Today

Henry Boot plc (LON:BHY) anticipates full-year trading profits to exceed initial expectations.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Although we don’t believe in timing the market or panicking over every stock fluctuation, understanding how a business is performing, competing and changing is vital to sensible investment.

The share price of Henry Boot (LSE: BHY) — the property, land development and construction company — lifted over 10% earlier today, following release of its half-year results for 2014. 

Revenue was lower than in H1 2013, down 20% to £65,8m, due primarily to the £15m one-off sale of land at Chocolate Factory site in York in the prior period.

henrybootBut the company reported that operating profit up 79%, at £14m — attributed to several land sales and combined development property sale profits and valuation gains — and pre-tax profit increased by 81%, to £13.4m. 

The company’s net asset value per share remains much the same as in the prior period, at 149p (it was 148p at the end of December 2013).

Earnings per share more than doubled, rising 106% to 7.4p, and the board is recommending increasing the interim dividend by 7.7%, to 2.1p per share, payable on 24 October this year. 

Looking ahead, the company says it has a number of strategic land sites and development schemes progressing to completion over the next 24 months, and that its portfolio of work-in-progress is larger than at any time in the last five years.

Commenting on the results, the Chairman, John Brown, said:

“I am pleased to report another strong set of results for Henry Boot for the half year ended 30 June 2014.

“Commercial development activity is now at its highest level since 2007 with new, pre-let developments achieving hurdle rates of return, expected to commence in the second half of the year.

“We currently anticipate trading profits including revaluation gains to exceed the Board’s initial expectations for the year.” 

At 205p, Henry Boot’s share price is up 10.6% on this time last year, compared with a FTSE All-Share Index that’s gained 5.4%. And over the past five years, Henry Boot has left the All-Share trailing, rising by 164% to the index’s 45%.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Jon Wallis has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Company Comment

Hand of person putting wood cube block with word VALUE on wooden table
Company Comment

Value has been building behind the Diageo share price

Despite the business growing, the Diageo share price first reached its current level just over 19 months ago and hasn't…

Read more »

Older couple walking in park
Investing Articles

5 stocks to buy for high and rising dividend income

I can see a host of shares to buy on the FTSE 100 offering me exceptional levels of income. Here…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

I don’t care if FTSE 100 shares fall further, I’m buying them today

I'm happy to go shopping for FTSE 100 shares today, even though I accept that they could have further to…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

Rolls-Royce shares are down 18% in a month and I’m finally going to buy them

Investors who bought Rolls-Royce shares have been repeatedly disappointed, but I'm willing to take a chance on them before they…

Read more »

Storytelling image of a multiethnic senior couple in love - Elderly married couple dating outdoors, love emotions and feelings
Investing Articles

How I’d invest £10k in a Stocks and Shares ISA today

Now looks like a good time to buy cheap FTSE 100 shares inside a Stocks and Shares ISA. These are…

Read more »

Black father holding daughter in a field of cows
Investing Articles

Today’s financial crisis is the perfect moment to buy cheap shares

I'm building a portfolio of FTSE 100 stocks by purchasing cheap shares whenever I see an opportunity. There's a good…

Read more »

Long-term vs short-term investing concept on a staircase
Investing Articles

I’d buy Tesco shares in October to bag their 5.4% yield 

Tesco shares have fallen lately but I think this makes them attractively valued for a dividend stock I would aim…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

I would do anything to hold Diageo in my portfolio (but I won’t do that)

Diageo is one of my favourite stocks on the entire FTSE 100 and I'd love to hold it, but one…

Read more »