Henry Boot sells construction arm, releases H1 results

The management team at Henry Boot Construction is buying the business, taking out a £4m, five-year vendor loan from the Group.

The Sheffield-based developer said it wants to focus on its priority areas of land acquisition, property development, and premium housing, following a ‘solid’ first half to the financial year.

Henry Boot Construction is being sold to PWS Construction, a company formed by the HBC management team, and will be known going forward as HBC Construction Group.

The Group came to this decision having considered alternative exit routes and the option of keeping the construction arm in-house, although in the end it was decided that splitting the two simplifies the Group’s structure, improves the prospects for long-term growth, and reduces risk for both.

HBC accounts for around 21% of the Group’s staff and this year made only a small contribution to the company’s profits – which is still a considerable improvement from the year before, prior to the new management team taking over.

For the year ended 31 December 2024, HBC generated £49.7m of revenue with an operating loss of £2.7m.

It is thought that by operating the businesses separately, HBC will be able to diversify and expand in the construction market more easily.

The transaction is expected to complete by the end of this year.

Tim Roberts, chief executive at Henry Boot, said: “The sale of HBC allows Henry Boot to further its strategic focus on high quality land, prime property development, and premium homes.

“It also enhances prospects for long term growth with a more focused portfolio of activities with greater synergies. While HBC’s contribution
to the group is relatively small, it is a well established business with a strong track record of delivery and an excellent management team and we wish them well for the future.”

Lee Powell, managing director at HBC Construction Group said: ”Today’s Transaction represents a hugely exciting opportunity for everyone at HBC as well as for our valued clients and stakeholders.

“After an extremely long association with Henry Boot, we at PWS have a clear plan for growth as an independent business while ensuring we maintain our focus on excellent customer service and delivery.”

Meanwhile, the H1 results for Henry Boot reported a 19% increase in revenue to £126.4m and a more than doubled profit before tax to £7.8m, driven by strong land and property disposals.

Sales activity remained robust, with £159.6m in total transactions completed or exchanged, reflecting continued demand despite market uncertainty.

Around 80% of budgeted sales for 2025 are already secured or under negotiation, and strategic investments, including the first payment for the Stonebridge Homes acquisition, position it well for future growth.

Hallam Land has had a strong start to 2025, selling 1,222 plots in the first half and exchanging on 410, with a further 1,959 plots under offer, putting the business on track to exceed 3,500 plot sales this year.

Following NPPF reforms and continued investment, planning applications for 10,000 plots are targeted in 2025, with 4,844 submitted to date and 2,782 plots approved so far. The total land bank has grown to 107,173 plots.

Tim Roberts added: “Operationally, we have had a solid first half, which is no mean feat in uncertain markets, but we are also making strong progress strategically.

“In particular, early investment into the resources at Hallam Land, anticipating positive changes to the NPPF, are already bearing fruit in the form of a good first half, both in terms of sales and planning consents.

“Equally, although trading is more subdued, in HBD and Stonebridge Homes, we have grasped the opportunity to build up a store of near-term opportunity, respectively, in the development pipeline and home building landbank.

“The announced sale of HBC also tightens our focus on our chosen areas of land promotion, development, and home building.

“With 80% of budgeted sales achieved, we have confidence of meeting full-year expectations, and we also have conviction that there are clear opportunities within our high quality portfolio to hit our medium term growth and return targets.”