Henry Boot PLC Annual Report and Financial Statements 2009
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Henry Boot PLC annual report and financial statements 2009 over 120 years in property and construction Further copies of the 2009 Annual Report and Financial Statements may be obtained Henry Boot PLC from the Company Secretary. annual report and financial statements 2009 HENRY BOOT PLC Registered office: Banner Cross Hall Ecclesall Road South Sheffield S11 9PD Registered in England No. 160996 t: 0114 255 5444 f: 0114 258 5548 e: [email protected] www.henryboot.co.uk _1_cover.indd 1 12/04/2010 10:15:05 The Henry Boot Group operates in the UK property and construction sectors Our key objective is to maximise long-term shareholder value through construction and plant hire activities, the development of and investment in high quality property assets and the promotion of new land development opportunities www.henryboot.co.uk Review of the year Corporate responsibility Financial statements 01 2009 highlights 18 Corporate social responsibility 41 Independent auditors’ report 02 Henry Boot at a glance Health and safety 42 Consolidated statement of 04 Chairman’s statement Our employees comprehensive income 06 Business review Corporate governance 43 Statements of financial position Operations review Charity work and community involvement 44 Statements of changes in equity Financial review Our environmental responsibilities 45 Statements of cash flows 46 Principal accounting policies Corporate governance 52 Notes to the financial statements 24 Board of directors 25 Subsidiary company managing directors Shareholder information 25 Company advisers 72 Property valuers’ report 25 Financial calendar 73 Notice of annual general meeting 26 Directors’ report 34 Directors’ responsibilities 35 Corporate governance statement 38 Directors’ remuneration report Front cover photographs: from top clockwise Land at Burton-on-Trent, part of our total UK land interests of nearly 8,000 acres Henry Boot Developments’ Bridge View office scheme at Priory Park, Hull Plant hire is a long established and well regarded part of the of the Group’s business Another building contract in the education sector was carried out for Sheffield Hallam University Hallam Land Management’s original land acquisition in Mansfield continues to be developed Banner Plant’s many services include the supply of accommodation units for a variety of uses Prison refurbishment work is a key speciality of Henry Boot Construction (UK) The large distribution warehouse in Stoke-on-Trent occupied by the Co-op we sold in the year _1_cover.indd 2 12/04/2010 10:15:05 Review of the year Corporate responsibility Corporate governance 01 Financial statements Henry Boot PLC Shareholder information annual report and financial statements 2009 2009 highlights Trading profits of £11.5m (2008: £44.0m) Property impairments and revaluation deficit of £22.4m (2008: deficit £22.4m) Result before tax: loss of £11.9m (2008: profit £19.3m) Earnings per share: loss 5.7p (2008: earnings 10.8p) Second interim dividend of 1.25p, giving a total for the year of 2.5p (2008: 5.0p) Net asset value per share decreased by 8% to 135p (2008: 146p) Debt reduced to £32.1m (2008: £49.3m) Further reduction in gearing to 18% (2008: 26%) Underlying* Group profit before tax (£m) 31 December Net asset value per ordinary share (p) 31 December £10.5m (2008: £38.9m) 135p (2008: 146p) 05 06 07 08 09 05 06 07 08 09 25.5 94 37.8 116 28.4 139 38.9 146 10.5 135 Underlying* earnings per ordinary share (p) 31 December Dividends per ordinary share (p) 31 December 6.8p (2008: 21.7p) 2.5p (2008: 5.0p) 05 06 07 08 09 05 06 07 08 09 13.0 3.8 18.2 4.4 14.6 5.0 21.7 5.0 6.8 2.5 * Underlying figures exclude movements in fair value of investment properties. _1_BHY_ar09_Front.indd 1 12/04/2010 10:13:40 02 Henry Boot PLC annual report and financial statements 2009 Henry Boot at a glance The Sheffield-based Henry Boot Group is one of the UK’s leading property and construction organisations, with its four principal trading subsidiary companies operating in the property development and investment, land management, construction and plant hire sectors. The Group’s main objective is to maximise shareholder value in PROPERTY the longer term through active commercial development and land management, allied to recurring income from investment property, PFI, construction and plant hire activities. Each Group company is managed autonomously and has set objectives to maximise short-term profits and create valuable long-term asset backed opportunities in the property sector. annualreports.henryboot.co.uk/group LAND GRoUP HEaD oFFicE SHEFFIELD 12 REGioNal oFFicES BRISTOL CONSTRUCTION CHESTERFIELD DERBY DRONFIELD GLASGOW LEEDS LONDON MANCHESTER NEwcasTlE-uPoN-TyNE NORTHAMPTON ROTHERHAM WAKEFIELD PLANT _1_BHY_ar09_Front.indd 2 12/04/2010 10:13:43 Review of the year Corporate responsibility Corporate governance 03 Financial statements Henry Boot PLC Shareholder information annual report and financial statements 2009 HENRY BOOT DEVELOPMENTS LIMITED Head Office: Regional Offices: Henry Boot Developments is a major force in the UK Banner cross Hall south East – london t: 020 7495 6419 property development market, operating nationally from Ecclesall Road south south west – Bristol t: 01454 275 261 its head office in sheffield and regional offices in Bristol, sheffield s11 9PD North west – Manchester t: 0161 830 8000 Glasgow, london and Manchester. t: 0114 255 5444 North East – sheffield t: 0114 255 5444 e: [email protected] scotland – Glasgow t: 0141 223 9090 with its considerable experience and impressive reputation www.henrybootdevelopments.co.uk in all sectors of property development, the company has built up a substantial investment portfolio in recent years. at the Managing Director: same time, many schemes have been sold-on to financial David anderson institutions looking to add to their own quality portfolio. annualreports.henryboot.co.uk/property HALLAM LAND MANAGEMENT LIMITED Head Office: Regional Offices: Hallam land Management is the strategic land Banner cross Hall south East – london t: 020 7495 6419 and planning promotion arm of the Henry Boot Group Ecclesall Road south south west – Bristol t: 01454 625 532 of companies. The company’s key role is to promote sheffield s11 9PD south Midlands – Northampton t: 01604 646 588 and deliver land opportunities through the complexities t: 0114 255 5444 North East – sheffield t: 0114 255 5444 of the uK Planning system. e: [email protected] North west – sheffield t: 0114 255 5444 www.hallamland.co.uk scotland – Glasgow t: 01698 464 320 Experienced land and planning promotion teams cover the uK, operating from regional offices in Bristol, Glasgow, Managing Director: london and Northampton, as well as from the Sheffield Keran Power head office. annualreports.henryboot.co.uk/land HENRY BOOT CONSTRUCTION (UK) LIMITED Head Office: Regional Offices: Henry Boot construction specialises in serving the needs Dronfield North East – Dronfield t: 01246 410 111 of commerce and industry in the North of England from Derbyshire s18 6XN North west – Manchester t: 0161 273 5302 its operational centres in Dronfield and Manchester, and t: 01246 410 111 Road link – stocksfield t: 01661 842 842 enjoys an enviable reputation for the delivery of high quality e: [email protected] construction work, on-time and within agreed cost parameters. www.henrybootconstruction.co.uk Road link (a69) limited, a 61% owned subsidiary, with Managing Director: two other shareholders holding the remaining 39%, operates simon carr and maintains the A69 Newcastle-carlisle trunk road for the Highways Agency under a PFI contract. The contract was initially for 30 years and has 16 years still to run. annualreports.henryboot.co.uk/construction BANNER PLANT LIMITED Head Office: Regional Hire Centres: Banner Plant is a long established plant hire company Dronfield chesterfield t: 01246 268 593 offering a wide range of products and services for sale Derbyshire s18 2Xs Derby t: 01332 752 035/751 762 and hire. The Company’s head office is in Dronfield, with t: 01246 299 400 leeds t: 0113 240 6350 hire centres located in Dronfield, chesterfield, Derby, e: [email protected] Rotherham t: 01709 515 655/511 500 leeds, Rotherham and wakefield. www.bannerplant.co.uk Dronfield t: 01246 299 400 wakefield t: 01924 283 487 continuing investment is made in providing new Managing Director: equipment, transport and service facilities to meet Giles Boot the increasing needs of its many varied customers in commerce, industry and the general public. annualreports.henryboot.co.uk/plant _1_BHY_ar09_Front.indd 3 12/04/2010 10:13:46 04 Henry Boot PLC annual report and financial statements 2009 chairman’s statement JoHN REiS cHaiRmaN I am pleased to report a further solid set of We continue to operate through our UK‑wide I am pleased to results for the year ended 31 December 2009, network of offices, creating future land, planning report a further particularly given the difficult conditions in the and development opportunities in a cost‑effective UK property market during the period. way and as prudent cash management allows. solid set of results The construction and property investment income The first half of 2009 was characterised by streams provide steady profits and cash flows, for the year ended decreasing investment yields, however, the which underpin our performance, despite the second half has seen some stabilisation, with 31 December 2009, reduction in the more cyclical development and yields even firming up slightly towards the end land profits. Our strategic focus during this particularly given the of the year. Commercial property development recessionary period has been to preserve our remains difficult; the combination of construction, difficult conditions asset values and reduce our debt. We have made tenant and valuation risk means that it is still very further progress during 2009 on debt reduction in the uK property hard to generate development profits.