Over the first six months of 2024, the housebuilder generated pre-tax profits of £3.7m whereas this had been £25m in the first half of 2023.

Commenting on its interim results, Henry Boot attributed this to a “lower starting forward sales position.”

This also impacted revenues which were £106m in the first half of 2024, down from £179.8m in the first six months of 2023.

Despite this weakness, the firm has made stronger progress in terms of land and property sales.

In the first half of 2024 Henry Boot completed and exchanged sales of £150.8m, up from the £129.3m achieved a year before.

This meant 843 plots had been sold in the first half of 2024 with a further 1,695 having been exchanged. Of the latter, 1,246 plots are due to complete by the end of the year.

Currently, 1,070 Henry Boot plots are under offer with the firm on target to sell 3,000 by the end of the year.

Henry Boot management is also confident the firm remains on track for the full year, with 81% of budgeted sales already completed, exchanged or reserved.

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“The lower forward sales with which we started the year has affected our first half financial performance and as flagged at the time of our 2023 results, we expect 2024 to be heavily weighted towards the second half,” said Tim Roberts, CEO of Henry Boot.

“With 81% of budgeted sales already completed, exchanged or reserved, we remain on track to perform in line with market expectations for the full year. Furthermore, we remain confident in our key markets, and have significant latent value in our development and land portfolio which is held at cost, as well as plenty of opportunity to grow in order to meet our stated medium term targets. This together with our rock solid balance sheet underpins our decision to raise the interim dividend by 5%.”

Elsewhere, the Henry Boot has improved its debt level.

Net debt had increased to £103.9m, up from £77.8m at the end of December 2023 as Henry Boot continued to fund infrastructure works to unlock our prime strategic land sites.

Gearing was 25.5% over the first half of the year but this has already reduced to c.18% as of 16 September, and is back within the “optimal range” of 10–20%.