Henry Boot (BOOT)

Henry Boot BOOT Logo

A land development, property investment and development, and construction company which sources and acquires land; promotes planning consents; acquires, develops, manages or sells investment properties and service constructors with plant; runs its Private Finance Initiative (PFI) project, and refurbishes and constructs buildings.

20-Oct-2017 – 307.5p – £406.5m

Trading Update – Confirmation that trading since 25 August 2017 has been “very strong”. The company expects “performance for the year ending 31 December 2017 will be materially ahead of the Board’s existing expectations”.

Although the SP is up 50% YTD, the current PER of 11.9 suggests there’s still value here.

17-Jan-2018 – 332p – £441.6m – PER 12.5

Trading Update For The 12 Months To End December 2017 – Board expects PBT and EPS for the year to be comfortably ahead of the Board’s previous revised expectations as set out in the Group’s October 2017 trading update. Additionally, “with the strong level of committed and contracted activity that we expect to deliver in 2018, we anticipate a trading performance for the current year slightly ahead of management expectations”.

A nice update and can’t see a lot wrong here. It’s going on my Watchlist, 320p.

23-Mar-2018 – 303p – £403.3m – PER 11.1

Results For The 12 Months To End December 2017 – Looks good indeed – Revenue up 33% to £408.5m (2016: £306.8m), PBT up 40% to £55.4m (2016: £39.5m) and EPS up 49% to 32.1p (2016: 21.5p). The FY Dividend will be 8.00p (2016: 7.00p), a 14% increase. NAV is up 15% to 203p (2016: 177p). 2018 has started well.

This is on my Watchlist at 320p and it remains there for now whilst observing how the overall market is heading.

24-May-2018 – 297.5p – £396.0m – PER 10.5

AGM Statement And Trading Update – In-line with FY 2018 expected to be in-line.

Forecasts look quite poor so I am now removing this from my Watchlist – Neutral for now.

24-Aug-2018 – 270.5p – £360.1m – PER 9.59

Unaudited Interim Results For The 6 Months To End June 2018 – PBT, EPS and Interim Dividend all up circa 15% with Net Debt reduced from £62.2m to £26.0m. FY 2018 expected to be in-line.

Forecasts look quite poor (Revenue flat, EPS -13.3% then up 2.87% in 2018E and 2019E respectively). I remain Neutral.

19-Jan-2019 – 250p – £333m – PER 8.7

Trading Update For The 12 Months To End December 2018 – A strange update which I think means it’s in-line, they’ve had a good start to this year but lots of difficult and uncertain type terms thrown in.

I can’t get any more interested here today than I was yesterday.

22-Mar-2019 – 260p – £346m – PER 9.5

Results For The 12 Months To End December 2018 – Revenue down slightly, PBT down -10% or so, EPS the same. The FY Dividend is up 13%, NAV up 12% (to 227p), Net Debt down from £29m to £18.4m.

I remain uninterested here at present.

23-May-2019 – 254p – £339m – PER 8.8

AGM Statement And Trading Update – FY in-line but cautious sounding.

Looks cheap but I am not tempted as growth looks rather pedestrian.

23-Aug-2019 – 234p – £312m – PER 8

Interim Results For The 6 Months To End June 2019 – PBT down -8%, EPS down -9.6%, Net Debt up 93.5% with the Interim Dividend up 15.6%. Confident of meeting FY expectations albeit with some caution regarding Brexit outcome (best be a good H2).

Looks about fairly valued as growth (forecasts) look rather pedestrian, assuming they can catch up in H2!

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