Henry Boot delivers ‘resilient’ 2025 performance but warns on 2026 profits

Results for the year ended 31 December 2025 were supported by strong demand for residential land and the company’s focus on streamlining its activities, however the developer warned that profits in 2026 will fall significantly below market expectations.

Henry Boot is a Sheffield-based property development and investment group that comprises of developer HBD, strategic land promoter Hallam Land, plant hire company Banner Plant, and housebuilder Stonebridge Homes. The group, particularly Hallam Land, is active throughout the North West with recent projects that include plans for 700 homes in Knowsley, 300 homes in Langho, and a 107,000 sq ft industrial complex in Preston.

In its year-end results, Henry Boot said profit before tax for 2025 is expected to be broadly in line with market consensus of £29.7m, helped in part by the disposal of Henry Boot Construction, which will be reported as a discontinued operation.

The sale was part of a strategy to simplify the business and focus on land, development, and premium homes.

Henry Boot said it had accelerated planning activity ahead of anticipated planning reforms, increased its ownership stake in Stonebridge Homes, and strengthened its land bank to support future growth.

Hallam Land delivered a strong performance, achieving record sales of 3,957 residential plots during the year, up from 2,661 in 2024, and exceeding its full-year financial target.

The business also secured planning consent for 4,159 plots and submitted more than 11,000 plots for planning, positioning it to meet – and potentially exceed – its medium-term target of 3,500 plot sales per year.

Across the wider market, Henry Boot said transaction volumes remained subdued throughout 2025, with deals taking longer to complete, particularly in the second half of the year ahead of November’s Budget.

House prices and land values were broadly flat, while industrial property continued to outperform, delivering rental growth of 4.8%.

Net debt increased to around £108m at year end, up from £62.7m a year earlier, reflecting increased investment in planning activity and land acquisition. This resulted in gearing rising marginally above the group’s preferred range of 10-20%.

Notable schemes

Within its development arm, HBD completed schemes with a total gross development value of £119m in 2025, compared with £188m in 2024.

This included the completion of successful projects through its Feldberg, Origin.

It’s three initial schemes – Spark in Walsall (271,000sq ft), Ark in Markham Vale (107,000 sq ft) and Inter in Welwyn Garden City (71,000sq ft) – are currently on the market with 35,000 sq ft let.

A further three projects have been added for 2026 – another site at Spark of 101,000 sq ft, one at Ark of 54,000 sq ft, and a 107,000 sq ft project at Aptus in Preston. These have a combined £56m GDV, of which Henry Boot’s share is £14m.

Progress continued on major schemes including Golden Valley in Cheltenham, a £1bn mixed-use campus, where the first phase, IDEA – a 160,000 sq ft National Cyber Innovation Centre (£98m GDV) – is expected to commence in the second half of the year, with the company having agreed terms with several occupiers for around half the space.

HBD also secured planning permission for 5.5m sq ft of I&L at Freeport 36 in Goole, which has a GDV of around £130m for phase one.

Stonebridge Homes, meanwhile, only completed 185 homes during the year which was well below expectations, due to softer market conditions and delays in securing detailed planning consents.

The company said it has taken firm control of the business, introducing management changes and cost-saving measures as it integrates SBH into the wider group.

Looking ahead, Henry Boot believes it is well positioned for a market recovery but warned that profits in 2026 will be significantly below current market expectations of £33.6m.

The group cited lower forward sales, ongoing macroeconomic uncertainty, and the expiry of the Road Link PFI contract in March 2026 as key factors weighing on the next year’s performance.

Tim Roberts, chief executive, commented: “Despite the uncertain backdrop, we have delivered a resilient performance in 2025, underpinned by continued demand for our high quality land.

“As a result, we expect full year profits to be broadly in line with market expectations.

“Across the group, we have made good strategic progress, accelerating planning applications for over 11,000 plots within Hallam Land, strengthening our housebuilders’ landbank and simplifying the group through the sale of Henry Boot Construction. All of this activity positions us well for the medium term.

“While market activity remains subdued, the fundamentals of our three key markets remain compelling, and we are well placed to benefit from the significant opportunities we have been building up within our portfolio, supported by a strong balance sheet and a disciplined approach to investment.”