Annual Report and Accounts for the year ended 31 December 2020
Our business model is based on transforming land, property and development activities into sustainable, long-term value. The following key components of our business give us a strong position for the future:
CULTURE
Our people are vital to Henry Boot’s long-term success. By upholding a positive and inclusive culture, which is embedded in our day-to-day operations, it enables us to create and maintain long-standing relationships with our customers and clients, and the communities we operate in.
How this positions us well for the future:
We believe that a strong culture is crucial to the sustainability of the business. It creates an environment which empowers our people to deliver the Group’s strategy, whilst continuing to attract and retain people who support our culture.
46
2020 Employee Net Promoter Score (eNPS)
EXPERTISE
We are focused on sustainable markets: industrial & logistics, residential, and urban development. Despite the short-term implications of the pandemic, we operate in market sectors with strong long-term growth trends. We are involved in multiple sectors which means that we are not overly exposed to one area of the market.
How this positions us well for the future:
We have extensive and embedded operational skills in our key markets, which leaves the business well placed to continue building upon the growing momentum within them.
1,119
plots in Stonebridge Homes land bank, of which 59% have either detailed or outline planning consent
OPPORTUNITY
We have already secured significant opportunities within our three long-term markets and throughout 2020 the Group continued to grow our store of opportunities. After reviewing the Group’s strategy, we also identified key opportunities for development throughout our operations, which will support our strategic focus.
How this positions us well for the future:
Our key markets benefit from structural tailwinds, and with significant opportunities secured and identified, it will support the Group’s strategy and ability to deliver now and in the future.
Our strategic land business is capable of delivering
88,070
residential plots
STABILITY
We have prudent debt levels and a disciplined approach to risk management. Our strong balance sheet has kept Henry Boot in a good position throughout the pandemic.
How this positions us well for the future:
It allows us to make selective investments in our key markets, ensuring we can grow our development pipeline and continue delivering in the long term.
£1.1bn
Henry Boot Developments development pipeline
1. Net Asset Value (NAV) per share is an alternative performance measure (APM) and is defined using the statutory measures net assets / ordinary share capital.
2. Net cash is an APM and is reconciled to statutory measures in note 33 to the financial statements.
After an initial pause at the beginning of the pandemic, we began to rebuild momentum and our businesses made good progress towards recovery in the second half of the year.
Jamie Boot
Chairman
The safety and welfare of our people, customers, supply chain, and the communities in which we operate, have been the key priorities in Henry Boot’s response to the CV-19 outbreak.
Tim Roberts
Chief Executive Officer
Our subsidiaries
Our market sectors
Industrial sector experienced high demand
The demand for industrial and logistic warehouses has increased significantly over the last decade as a result of the rapid growth in online sales. The pandemic has accelerated this demand and it was the only sector to deliver positive capital returns with investors in 2020.
UK housing prices continue to grow
In the second half of 2020 the UK residential market witnessed resilient demand, leading to housing prices rising, as many households have reevaluated their housing needs. Despite price growth, rising house prices have been offset by falling mortgage rates.
People choosing urban centres to live
People are moving to large urban centres for work and the lifestyle on offer. 90% of the UK population is predicted to be living in urban areas exceeding 300,000 population by 2050. This will create demand for good quality schemes for people to work and live in, with build-torent (BTR) playing an important element of supply
Our strategy is focused around three key markets: industrial & logistics, residential and urban development. These markets are driven by positive long-term structural trends which we expect to give momentum to our future operational and financial performance.
Our ability to deliver long-term value for shareholders is underpinned by our business model.
Henry Boot operates across the whole property value chain. We acquire land without planning permission, obtain planning permission, develop sites and maintain an investment portfolio. Our people are at the heart of all that we achieve, we develop skilled employees who deliver profitable schemes with confidence.
