Henry Boot plc (BHY) 2020年年度報告「LSE」.pdf

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1、30368 8 April 2021 11:30 am V030368 8 April 2021 11:30 am V0Henry Boot PLCRegistered office:Banner Cross Hall,Ecclesall Road South Sheffield,S11 9PD United KingdomRegistered in England and Wales no.160996 Tel:0114 2555444 Email:cosec-irhenryboot.co.ukStock Code:BOOT.LFOCUSED ON KEY MARKETS AND SUSTA

2、INABLE GROWTHHenry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2020Welcome to the Henry Boot Annual Report 2020OUR PURPOSETo empower and develop our people to create long-term v

3、alue and sustainable growth for our stakeholders*.ABOUT USWe manage the combined effort and expertise of six primary businesses across three key markets,investing in our future to create long-term value and robust returns for all our stakeholders and partners.With our uniquely sustainable business m

4、odel we have built a market-leading Group of Companies that source,develop and deliver across the whole property value-chain.We have been in business for over 135 years and we are valued for our expertise and forward-thinking approach.Read more on pages 08 to 09*Our stakeholders are our shareholders

5、,employees,pensioners,customers and suppliers.More broadly,we recognise our duties to the environment and the communities in which we operate.Operations during CV-19Throughout the pandemic the Groups key priorities have been the safety and welfare of our people,our customers,our supply chain,and the

6、 communities in which we operate.In March 2020,the Group paused activity on construction sites and in plant hire depots to ensure the correct safety procedures were installed.Since then,all of the Groups businesses have remained operational,collaborating closely with industry bodies such as the CLC,

7、NFB,CBI and UK Government Ministers to ensure that our services continue safely.Read more on pages 44 to 45CONTENTSBUSINESS OVERVIEWWelcome and IntroductionIFCLiving our Vision04Chairmans Statement06Group at a Glance08Our Key Differentiators102020 Highlights11STRATEGIC REPORTChief Executive Officer

8、Update14Business Model18 Our Competitive Advantages21Market Context22Strategy Review26Our New Strategy Going Forward30Segmental Reviews Land Promotion32 Property Investment and Development34 Construction36Group Finance Directors Review38Key Performance Indicators42Our Response to CV-1944Section 172(

9、1)Statement46Risks and Uncertainties48Our Responsible Business55OUR GOVERNANCEBoard of Directors68Executive Committee72Chairmans Introduction74Governance at a Glance76Corporate Governance Report Division and Responsibilities77 Board Leadership and Company Purpose80 Composition,Success and Evaluation

10、91 Nomination Committee Report94 Audit and Risk Committee Report100 Audit,Risk and Internal Control102 Corporate Governance Statement105 Directors Remuneration Report106 Remuneration Policy111 Annual Report on Remuneration119Directors Report128Statement of Directors Responsibilities133FINANCIAL STAT

11、EMENTSIndependent Auditors Report136Consolidated Statement of Comprehensive Income144Statements of Financial Position145Statements of Changes in Equity146Statements of Cash Flows147Principal Accounting Policies148Notes to the Financial Statements157SHAREHOLDER INFORMATIONNotice of Annual General Mee

12、ting198Financial Calendar202Advisers202Group Contact Information203Glossary 204View our online Annual Report at:We maintain a corporate website containing a wide range of information of interest to investors and stakeholders.Go to:henryboot.co.ukSHAREHOLDER INFORMATIONHenry Boot PLC Annual Report an

13、d Financial Statements for the year ended 31 December 2020Strategic focus delivering sustainable growthStrong financial track recordOur business model is based on transforming land,property and development activities into sustainable,long-term value.Read more on pages 18 to 21The following key compo

14、nents of our business give us a strong position for the future:The Henry Boot Way of doing businessOur strong position for the futureStrong presence in markets with long-term drivers01Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020OVERVIEWThe Henry Boot Way

15、of doing businessOur people are vital to Henry Boots 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 th

16、is 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 Groups strategy,whilst continuing to attract and retain people who support our culture.46 2020 Employee Net Promote

17、r Score(eNPS)Read more on pages 57 to 61We 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 th

18、at 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.1,119plots in Stonebridge Homes land

19、bank,of which 59%have either detailed or outline planning consentStrong presence in markets with long-term driversOur strong position for the future02Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020Strong financial track recordStrategic focus delivering susta

20、inable growthWe 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 Groups strategy,we also identified key opportunities for development throughout our operations,which will s

21、upport 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 Groups strategy and ability to deliver now and in the future.Our strategic land business is capable of

22、delivering88,070residential plotsWe 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,e

23、nsuring we can grow our development pipeline and continue delivering in the long term.1.1bnHenry Boot Developments development pipeline Read more on pages 38 to 4103Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020OVERVIEW30368 8 April 2021 11:30 am V0Empoweri

24、ng and developing our people sits at the core of our being.This focus shapes our values and behaviours and is also a key aspect of our strategic priorities.Being purpose-led enables us to create long-term value for our stakeholders and ultimately achieve our vision.Read more about Our New Strategy o

25、n pages 30 and 31 Our valuesOur strategyStrategic prioritiesValuesSafetyDeliveryPeopleGrowthRespectLoyaltyIntegrityCollaborationDeliveryAdaptabilityOur Purpose and CultureOur visionOur people,partners and communities continue to trust our reputation,respect our expertise and value us for our forward

26、-thinking approach.Our purposeTo empower and develop our people to create long-term value and sustainable growth for our stakeholders*Our stakeholders are our shareholders,employees,pensioners,customers and suppliers.More broadly,we recognise our duties to the environment and the communities in whic

27、h we operate.Read more on our website henryboot.co.uk04Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 202030368 8 April 2021 11:30 am V0All our operations are carried out in accordance with our six key values:Respect,Integrity,Loyalty,Delivery,Adaptability and C

28、ollaboration.Throughout the past 12 months in particular,these values have been imperative to our success,and our people continue to live by them in both their individual and collaborative roles.RespectIntegrityThroughout the pandemic,the Henry Boot Group has been highly committed to achieving a saf

29、e and adapted workspace for us all.They have achieved this by limiting the amount of people allowed into the offices and having rigorous cleaning routines.They have provided and implemented the wearing of PPE and installing screens to separate desks.Most employees are working from home,and the Group

30、 has recognised the challenges we have faced.Joanna Batten Buyer Henry Boot Construction LimitedAs a result of CV-19,the business had to quickly adapt to revised working practices.In early 2020 a Coronavirus Committee was formed,and has continued to develop and implement measures in line with Govern

31、ment guidance.Following a brief pause in March,site operations quickly resumed working to the Henry Boot and CLC Site Operative Procedures(SOP).Recovery plans,emergency protocols and Office Operating Procedures have been developed to ensure we have robust protection measures in place at all our site

32、s,depots and offices.Richard Grafton Head of Policy&Compliance Henry Boot Construction LimitedLoyaltyDeliveryLoyalty to our people,partners,communities and the environments we work in has never been more important and we have worked hard to demonstrate our enduring commitment to everyone we work wit

33、h.We have adapted and strengthened our charitable support to focus on the efforts made by our charity partners to support communities to respond to the challenges of the CV-19 pandemic.We recognise that our partners and communities have had to respond to rapidly changing circumstances in recent mont

34、hs,and we hope we have demonstrated to them that our loyalty is one thing that hasnt changed.Jack Kidder Responsible Business Manager Henry Boot PLCDuring CV-19,various apprenticeships and courses have been undertaken by a number of employees from all companies within the Henry Boot Group,many of wh

35、om have achieved qualifications during the past year.Henry Boot remains committed to supporting the development of its people,and this position hasnt changed despite the current situation.The success of the business has always been,and continues to be,dependent on its people,and this is recognised a

36、cross all subsidiaries within the Group.Craig Brown Apprentice&Learning Advisor Henry Boot PLCAdaptabilityCollaborationFrom quickly convening a Coronavirus Committee featuring representatives across the Group,to activating our business continuity response,altering working protocols,and then reflecti

37、ng on lessons learned that we could use to improve our working practices the Group has really risen to the challenges posed by the pandemic.One of the key issues arising out of those lessons learned,and which also links strongly with our Groups commitment to equality,diversity and inclusion,is our f

38、orthcoming agile working approach.We have consulted on this issue across the Group,and are formulating the best approach,which we anticipate will trigger further beneficial changes during 2021 and beyond.Amy Stanbridge General Counsel and Company Secretary Henry Boot PLCIn 2020,the International Adv

39、anced Manufacturing Park(IAMP)was selected for a temporary NHS Nightingale Hospital.The IAMP was delivered in a joint venture between Sunderland City Council and South Tyneside Council,with Henry Boot Developments as delivery partner.Henry Boot Developments worked to complete the building ahead of s

40、chedule,along with the infrastructure to serve its new function.While we never imagined that The Innovation Centre would start its life as an NHS hospital,as a brand-new,world class building it offered itself as an ideal venue for its new purpose.In partnership with the councils,we adapted to the ne

41、eds of the time and helped deliver the building in a condensed timeframe for the NHS.Tom Wheldon Director Henry Boot DevelopmentsLiving our Values the Henry Boot Way05Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020OVERVIEW“After an initial pause at the begin

42、ning 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 ChairmanChairmans StatementINVESTING FOR THE FUTUREHighlightsI am pleased to announce that Henry Boot delivered a robust set of results,achieving a prof

43、it before tax of 17.1m(2019:49.1m)against the challenging backdrop of a global pandemic,and we maintained our strong financial position throughout 2020,with Net Asset Value per share1 remaining resilient at 235p(2019:239p).After making selective investments in the Groups focused three long-term key

44、markets industrial&logistics,residential and urban development,net cash2 was preserved at 27.0m(2019:27.0m),which improved post year-end to 38.5m at 28 February 2021 as a result of land completions and deferred receipts in the land segment.Unsurprisingly,the Groups activity was impacted by COVID-19(

45、CV-19),which had a material effect on the Groups commercial and financial performance for 2020.However,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.We have had an encouraging

46、 start to 2021,showing strong forward sales and a high order book.As reported in Januarys trading update,our land promotion business,Hallam Land Management(HLM),continued to trade well,selling 2,000 plots(2019:3,427)and in H2 disposed of a significant interest in a joint venture site in the Midlands

47、,which contributed towards the Groups 2020 profit.Henry Boot Developments(Henry Boot Developments)delivered schemes with a Gross Development Value(GDV)of 58m(Henry Boot Developments share 55m)during the year but,in response to the market,reduced its committed programme.Accordingly,having commenced 2

48、020 with a pipeline having a GDV of 315m(Henry Boot Developments share 107m),this fell to 312m(Henry Boot Developments share 85m)by the end of the year.However,we have seen healthy demand for industrial accommodation and expect to grow our committed pipeline over the course of the current year.Stone

49、bridge Homes also saw good demand for its premium houses;however,its growth was affected by slow planning decisions,partly as a result of CV-19.Despite this,the business completed the year ahead of target,having achieved 115 completions(2019:159).Henry Boot Construction finished the year on 95%of pl

50、anned site activity,and Banner Plant increased its activity to 95%of year-on-year sales.Road Link(A69)still generated encouraging returns despite seeing a decrease in traffic volumes due to CV-19 travel restrictions.Our relatively new CEO has undertaken a strategic review,which pleasingly reported t

51、hat our business model is in good shape,so it is now about evolving our strategy.However,we want to be more explicit about our ambitions to grow,and to have more focus on our three key markets,which benefit from structural tailwinds.We have also identified synergies and efficiencies,plus ways to col

52、laborate across the Group.An important part of the strategy is to formalise and coordinate our approach to Environmental,Social and Governance issues(ESG).135 Henry Boot,whilst celebrating our 135th anniversary,is phase one of our new ESG strategy.The Group only utilised the Governments Coronavirus

53、Job Retention Scheme(CJRS)up to August of last year,and only ever had a minority of people on furlough,with the business topping up pay to 100%.After the Board reviewed full year performance and the net cash position,we made the decision to repay all furlough grants claimed under the CJRS,making a f

54、ull repayment in February 2021.In addition,the Remuneration Committee has taken the decision,in line with the results achieved for 2020,to reimburse the 20%deduction from the CEO and the Group Finance Directors salaries,to reflect the position that everyone at Henry Boot experienced in receiving 100

55、%of their salaries whilst either at work or on furlough.This is also aligned to the treatment of Executive Directors along with employees in receiving 50%of their 2019 bonuses,a parallel that will be continued in relation to 2020 with Executive Director bonus increases being tied to those of the wid

56、er workforce.Our People Our peoples skills,determination,and expertise in our three key markets has proved fundamental to the Groups 2020 performance 06Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020235pNet asset value per ordinary share1(2019:239p)9.0pEarni

57、ngs per ordinary share(2019:28.3p)5.5pDividends per ordinary share(2019:5.0p)and to maintaining our strong financial position in these challenging circumstances.Our teams have shown themselves to be agile and adaptable,adopting new ways of working and creating new efficiencies,which will continue to

58、 shape the Groups future working practices.I believe an effective business can be measured by its agility to respond effectively to challenging environments,market uncertainty,and structural change.On behalf of the Board,I would like to thank everyone at Henry Boot for their dedication and hard work

59、 during this unprecedented period,which has allowed us to produce a robust set of results.Dividend The Board regularly reviewed the Groups financial position and considered the impact of CV-19 on trading conditions when deciding whether to continue paying a dividend during the pandemic.Given the Gro

60、ups confidence in our strong balance sheet and that we operate in markets that will continue to deliver returns over the longer term,the Board has proposed to continue to pay a dividend and concluded to pay a final dividend of 3.3p,which together with the 2.2p interim dividend,gives a total of 5.5p(

61、2019:5.0p)for the year.Payment of the final dividend is subject to shareholder approval at the Annual General Meeting and will be paid on 28 May 2021 to shareholders on the register as at 30 April 2021.OutlookWhilst CV-19 had an impact on the Groups 2020 performance,there was still resilient demand

62、within the markets we operate in,leaving us optimistic for the year ahead.These remain unprecedented times;however,we begin the year in a strong financial position,with a resilient balance sheet,a portfolio with ample opportunities,and encouraging forward sales as our key markets recover.This leaves

63、 the Group feeling confident that we will be able to build on the momentum we saw in H2 2020 and continue delivering a high-quality service to our customers.Jamie Boot Chairman1.Net Asset Value(NAV)per share is an alternative performance measure(APM)and is defined using the statutory measures net as

64、sets/ordinary share capital2.Net cash is an APM and is reconciled to statutory measures in note 33.Pictured:Butterfield Business Park in Luton,boasting 45 acres of land ready for development.In partnership with The Crown Estate and Luton Borough Council,Phase 1 has been completed,with all 10 units a

65、lready been taken up.07Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020OVERVIEW30368 8 April 2021 11:30 am V0Group at a GlanceThe Group is split into three different business segments consisting of six primary businesses.The parent company,Henry Boot PLC,exis

66、ts to provide leadership,direction and support in a number of areas to the businesses.LAND PROMOTIONPROPERTY INVESTMENT AND DEVELOPMENTCONSTRUCTIONHALLAM LAND MANAGEMENT LIMITEDThe strategic land and planning promotion arm of the Henry Boot Group.Since 1990 we have been acquiring,promoting and devel

67、oping land with an outstanding record in achieving planning permission.Hallam Land has a strategic land bank of 16,607 acres,focused on higher value locations in the South and Midlands,and in total has the potential to deliver around 88,070 residential plots.Revenue stream:HENRY BOOT DEVELOPMENTS LI

68、MITEDHenry Boot Developments is one of the most progressive property companies in the UK with its considerable experience and impressive reputation in all sectors of property development.Currently the company has a commercial development pipeline of 1.4bn.Revenue stream:STONEBRIDGE HOMES LIMITEDSton

69、ebridge Homes is a jointly owned company(controlled by Henry Boot PLC).It has built homes and communities for over a decade and specialise in delivering quality,high specification properties in the Yorkshire region.It has exciting plans for sustainable growth that will soon see the launch of new dev

70、elopments in the North East of England and increase the number of outlets in Yorkshire.Revenue stream:HENRY BOOT CONSTRUCTION LIMITEDA regional construction services provider to both public and private clients,offering creative,customer-focused solutions and building strong partnering relationships

71、to ensure the best outcomes for all projects.Revenue stream:BANNER PLANT LIMITEDOffering a wide range of construction equipment and services for sale and hire in plant,temporary accommodation,power tools,powered access and big air compressors.Primarily,supply areas stretch from Yorkshire in the nort

72、h to the East Midlands and Birmingham in the south.Revenue stream:ROAD LINK(A69)LIMITEDRoad Link has a 30-year contract(five years remaining)with Highways England to operate and maintain the A69 trunk road between Carlisle and Newcastle upon Tyne.Highways England pays Road Link(A69)a shadow toll,whi

73、ch is a fee based upon the number of vehicles using the road and mileage travelled by those vehicles.%of Group revenue:9%of Group revenue:39%of Group revenue:52Number of employees:28Number of employees:118Number of employees:29408Henry Boot PLC Annual Report and Financial Statements for the year end

74、ed 31 December 202030368 8 April 2021 11:30 am V0Our market sectorsINDUSTRIAL AND LOGISTICSRESIDENTIALURBAN DEVELOPMENTIndustrial sector experienced high demandThe demand for industrial and logistic warehouses has increased significantly over the last decade as a result of the rapid growth in online

75、 sales.The pandemic has accelerated this demand and it was the only sector to deliver positive capital returns with investors in 2020.Read more on page 23UK housing prices continue to growIn the second half of 2020 the UK residential market witnessed resilient demand,leading to housing prices rising

76、,as many households have re-evaluated their housing needs.Despite price growth,rising house prices have been offset by falling mortgage rates.Read more on page 24People choosing urban centres to livePeople are moving to large urban centres for work and the lifestyle on offer.90%of the UK population

77、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-to-rent(BTR)playing an important element of supply.Read more on page 25UK warehouses take-up hit a record of over 50m sq ftin 2020.

78、Source:SavillsTotal UK house price growth for 2020 was 7.3%the highest in six years.Source:SavillsPrivate residential rents increased in the UK by 1.4%in 2020.Source:ONSKey market sectors:Type of revenue stream:Industrial&logistics Residential Urban Development Recurring Revenue:This revenue stream

79、is regular and stable which allows the Group to maintain long-term bank funding relationships.Cyclical Revenue:This revenue stream is dependent on each economic cycle.These profits,in good years,contribute significantly to the Groups profits overall.09Henry Boot PLC Annual Report and Financial State

80、ments for the year ended 31 December 2020OVERVIEW30368 8 April 2021 11:30 am V0Our Key DifferentiatorsOUR FOCUS ON MARKETS WITH STRUCTURAL TAILWINDSOUR LONG STANDING REPUTATION AND RELATIONSHIPS Read more on pages 22 to 25 Read more on pages 18 to 21OUR ENGAGED AND PROACTIVE PEOPLEOUR PRUDENT MANAGE

81、MENT OF RISKS Read more on pages 57 to 61 Read more on pages 48 to 54OUR PORTFOLIO IS EMBEDDED WITH VALUE AND OPPORTUNITIESOUR DEEP PLANNING AND DEVELOPMENT EXPERTISE Read more on pages 32 to 37 Read more on pages 30 and 3110Henry Boot PLC Annual Report and Financial Statements for the year ended 31

82、 December 202030368 8 April 2021 11:30 am V02020 HighlightsHighlights Revenue of 222.4m(2019:379.7m)reduced as operations saw lower demand affected by CV-19 Profit before tax of 17.1m(2019:49.1m)ahead of expectations primarily due to land disposals and a resilient performance from our operations in

83、H2.EPS lower at 9.0p(2019:28.3p)Robust NAV per share1 at 235p(2019:239p)and strong net cash2 position at 27.0m(2019:27.0m)resulting in nil gearing.Current cash(at the end of February 2021)is 38.5m Proposed final dividend of 3.3p(2019:1.3p),increasing the full year dividend to 5.5p(2019:5.0p)reflecti

84、ng our current financial position and confidence in our long-term markets.135 Henry Boot launches our ESG strategy and celebrates our 135th anniversary An evolved strategy focusing on our three long-term markets:industrial&logistics,residential and urban development,all of which are driven by positi

85、ve long-term trends Land promotion business sold 2,000 plots and interest in major JV in the Midlands.Capital successfully recycled into growing the landbank to 16,607 acres(2019:14,898 acres)Committed development of 312m(HB share 85m)88%pre-sold or pre-let.Strong 1.4bn development pipeline (HB shar

86、e 1.1bn)with 78%in industrial&logistics Stonebridge Homes performed ahead of target after completing on 115 sales in 2020 and secured 57%of their sales target for 2021.Land bank increased to 1,119 plots including a site in Wakefield secured for 149 plots Construction business recovered well in H2,pe

87、rforming ahead of expectations with a turnover of 86.2m.Encouraging demand,led by public sector customers,leading to full order book for 2021 Good start to year,ahead of expectations on activity,order book and forward sales in land,development and housebuilding1.Net Asset Value(NAV)per share is an a

88、lternative performance measure(APM)and is defined using the statutory measures net assets/ordinary share capital2.Net cash is an APM and is reconciled to statutory measures in note 33 to the financial statements.Read the Financial Review on pages 38 to 41 Read the Segmental Review on pages 32 to 37F

89、inancial highlightsProfit before taxNet cash2/(debt)17.1m27.0m17.1m2020201920182017201649.1m48.6m55.4m39.5m27.0m2020201920182017201627.0m(18.4m)(29.0m)(32.9m)Group revenueNet asset value per ordinary share1222.4m235p222.4m20202019201820172016379.7m397.1m408.5m306.8m235p20202019201820172016239p227p20

90、3p177pEarnings per ordinary shareDividends per ordinary share9.0p5.5p9.0p2020201920182017201628.3p28.3p32.1p21.5p5.5p202020192018201720165.0p9.0p8.0p7.0p11Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020OVERVIEW30368 8 April 2021 11:30 am V0STRATEGIC REPORTCh

91、ief Executive Officer Update14Business Model18 Our Competitive Advantages21Market Context22Strategy Review26Our New Strategy Going Forward30Segmental Reviews Land Promotion32 Property Investment and Development34 Construction36Group Finance Directors Review38Key Performance Indicators42Our Response

92、to CV-1944Section 172(1)Statement46Risks and Uncertainties48Our Responsible Business55The Directors present the Group Strategic Report for the year ended 31 December 2020.This report sets out how Henry Boot continues to create consistent value through the promotion of new land opportunities,the deve

93、lopment of and investment in high quality property assets,and construction activities.The Business Overview and Strategic Report on pages 01 to 65 has been approved by the Board and signed on its behalf byTim Roberts Chief Executive Officer16 April 2021Darren Littlewood Group Finance Director16 Apri

94、l 2021“The safety and welfare of our people,customers,supply chain,and the communities in which we operate,have been the key priorities in Henry Boots response to the CV-19 outbreak.”Tim Roberts Chief Executive OfficerChief Executive Officer UpdateWELL PLACED FOR THE FUTUREJust over a year into my n

95、ew role and I find myself very proud of the way our people have responded to the pandemic,along with many other institutions,businesses and communities across the country.It gives me added confidence that we are not only well placed in the three key markets we serve,together with our strong financia

96、l position,but that we also have a team that shows it can cope with significant change and uncertainty.The safety and welfare of our people,customers,supply chain,and the communities in which we operate have been the key priorities in Henry Boots response to the CV-19 outbreak and Im relieved to say

97、 that the safety procedures we have installed have allowed us to continue operating safely.We have monitored infection rates closely using lateral flow testing,including in our largest construction site at Barnsley,and there is no data to suggest that the people who have been working on site and in

98、our depots have been at greater risk.Whilst I want to thank everyone at Henry Boot,I would like to give special thanks to those who have worked on site or in our depots so effectively,away from the relative safety of home working.The Group utilised the Governments CJRS due to the initial reduction i

99、n construction,housebuilding and plant hire activity but only ever had a minority of people on furlough,with the business topping their pay up to 100%.We stopped using the CJRS by August 2020 and paid back all furlough grants claimed under the scheme in February 2021,as we are confident activity lev

100、els have now stabilised.The Group also made various adjustments in response to further support the business during the pandemic.This included:reducing the Boards executive and non-executive pay by 20%for six months;paying a reduced final dividend to shareholders for 2019;and only paying 50%of bonuse

101、s to employees and directors for the full year of 2019 in 2020.We also made the difficult decision to restructure our construction division,which included making some redundancies.In terms of operations,HLM performed well after the housing market recovered and was unexpectedly buoyant in H2.We sold

102、2,000 plots(2019:3,427)on nine sites,achieving a profit per plot of 6,456,and exchanged on 1,744 plots that will provide profit for the Group in 2021.We invested 10.0m in our land bank growing it to 16,607 acres(2019:14,898 acres)and ended the year with over 15,000 plots where we have planning secur

103、ed.Henry Boot Developments adjusted to the uncertain environment by slowing down development but still successfully completed on a total GDV of 58m(our share 55m),with 100%of these schemes either sold or let(41m)or retained(17m)in our investment portfolio.Towards the end of 2020,we started to increa

104、se our developments,particularly in response to growing industrial demand with commitments on 206,100 sq ft of industrial and logistic space.In H2 2021 we will complete on our 533-unit BTR Kampus scheme in Manchester,which has been forward-funded with us retaining a 5%equity stake.We also purchased

105、two opportunities at a combined price of 12.6m during the year,Mabgate in Leeds,and St Johns College in Manchester with existing buildings of 60,000 sq ft and 27,000 sq ft respectively.We also entered into a development agreement on Phoenix 10 in Walsall,which adds a further 620,000 sq ft to our ind

106、ustrial and logistic offering.Committed development currently stands at 312m(Henry Boot Developments share 85m)and our development pipeline has been maintained at 1.4bn(Henry Boot Developments share 1.1bn),78%of which is in industrial&logistics.Our jointly owned housebuilder,Stonebridge Homes,achiev

107、ed 115-unit sales(2019:159 sales),which was ahead of our target and,with a buoyant housing market,maintained a strong sales rate of 0.61 14Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 202088,070Strategic land plots(2019:77,144)Henry Boot Developments Pipeline

108、GDV1.1bn(2019:1.1bn)Stonebridge Homes Total Land Bank 1,119 plots(2019:1,023)2021 Construction Orderbook 80m(2020:86m)units per site per week during the year.2021 has started well with sales already agreed on 69 units to date,well ahead of the business plan.However,growth in Stonebridge has been ham

109、pered by a slow process for getting planning on our land bank,partly caused by CV-19.We are addressing this by taking a more portfolio approach in planning terms to our 1,119 plot landbank(2019:1,023 plots),helped by securing a site just before Christmas in Wakefield with planning for 149 plots.We a

110、re determined to grow this business so that it benefits from more operational scale and becomes a multi-regional premium housebuilder.Henry Boot Construction Limited delivered revenue of 86.2m(2019:89.7m),which was significantly ahead of our expectation despite earlier disruptions from CV-19.During

111、the year,we successfully secured a 40m contract to deliver a BTR scheme,and post year-end we started work on a 42.5m mixed use scheme both in the Heart of Sheffield.As a result,we now have a full construction order book for 2021,and with our public sector bias,expect to play our part in the Governme

112、nts plans to Build Back Better.Our balance sheet has remained rock solid,with no stranded assets needing to be written down.With 38.5m of cash in the bank(as at 28 February 2021),as well as committed and undrawn facilities of 75m,we are in a very strong position to fund our growth plans.However,like

113、 all businesses,we need to be clear about our strategic objectives,and there are also areas where we can develop our approach and skills.In this respect,I set out a summary of our evolving strategy together with a new approach to ESG in the next two sections,followed by the normal business review.I

114、am confident that with a greater strategic focus on our three key markets,the growth prospects driven by existing opportunities within our portfolio,our strong financial resources,plus our highly engaged people,the outlook is very encouraging.Pictured:MV55 is a 55,000 sq ft warehouse located at Mark

115、ham Vale,a 200-acre industrial and logistics development located at Junction 29A of the M1 in Derbyshire.15Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0Chief Executive Officer UpdateResponsible Business As a 13

116、5-year-old business,we understand sustainability and long-term value creation.This year,we will formalise and coordinate our approach to ESG as we launch our new ESG Strategy.This will guide our business to deliver an ambitious and strategic approach to ESG and align all our current and prospective

117、responsible business activities with a clear focus.Henry Boot would not be here today without sustainability being at our core.The new ESG Strategy will see us formalise ESG factors in our discussions of business risks and opportunities and will allow us to measure our progress against clear ESG obj

118、ectives.We understand that now is a time for action and for driving and communicating clear progress on these important factors.The implementation of our ESG Strategy will take a two-phase approach and will clearly align our responsible business ambitions with key societal issues,with particular foc

119、us in the first phase on how we will achieve Net Zero Carbon(NZC)and develop increasing equality,diversity and inclusion in our business and the sector we represent.135 Henry Boot is phase one of our ESG Strategy.This strategic framework will guide us as we launch three long-term initiatives:1.Our P

120、athway to NZC and enhancing our environmental stewardship2.Our new Equality,Diversity,and Inclusion Strategy3.Our Community Partnership Plan to provide funds,time,resources,and expertise to support our community partners135 Henry Boot will see our business build on our strong foundations of responsi

121、bility and create engagement with all of our stakeholders as we address and respond to crucial issues faced by our communities and environments.Phase two of our ESG Strategy will launch in January 2022 and will be influenced by further consultation and engagement with our people and partners.This wi

122、ll ensure we focus on the most material issues and will have regard to the United Nations Sustainable Development Goals that we believe we can impact most positively.It will incorporate all of our existing responsible business initiatives and guide us to achieve long-term ambitious targets and creat

123、e long-lasting and meaningful social value and impact.We will also be ensuring alignment with the requirements of the Taskforce on Climate-Related Financial Disclosures in preparation for the enhanced reporting requirements,that will apply fully to our activities for the 2021 Annual Report and Accou

124、nts onwards.To provide oversight and support to the Groups ESG ambitions and commitment,we have established a new Board Committee.The Responsible Business Committee will support the business to embed ESG factors into our Commercial Strategy.The Committee will be chaired by Non-executive Director Pet

125、er Mawson.Our timeline for key initiatives is:Responsible business strategy timelineMARCH 2021Phase 1 of our ResponsibleBusiness Strategy Launch of 135 Henry Boot and the Community Partnership PlanAPRIL 2021New Equality,Diversity,and Inclusion Strategy.JUNE 2021Our Pathway to Net Zero Carbon and enh

126、ancing our environmental stewardship.JANUARY 2022Phase 2 of our Responsible Business Strategy Whilst formulating our long-term ESG Strategy,I am pleased to report that we have maintained our focus on supporting our people and communities in the unprecedented circumstances of CV-19.Amid the challengi

127、ng working environment of a pandemic,we have:supported and maintained regular communications with our people;our Employee Net Promoter Score(eNPS)has increased to an outstanding score of 46;continued to provide support to,and work closely with the communities in which we operate;collaborated with re

128、gulatory bodies including the Construction Leadership Council,National Federation of Builders,Confederation of British Industry and UK Government Ministers,to ensure our services continue to adhere to best practice and guidance;directly supported the NHS Nightingale Hospital programme,as a unit at o

129、ur joint venture development scheme in Sunderland,the International Advanced Manufacturing Park,was selected for conversion into a temporary hospital,and our charitable giving programme donated a total of nearly 68,000 to 28 organisations who needed support during the pandemic.We recognise this appr

130、oach is a unique way to deliver our ESG ambitions.However,we believe it will enable us to successfully embed ESG factors within our business decision-making and activities and to engage with our people and partners,in order to create a meaningful strategic approach to responsible business and the so

131、cial value created through our operations.It is the Henry Boot Way!Looking Forward As I write,there are reasons to be cautiously optimistic;the successful ongoing national roll out of the vaccine,infection rates falling and the Governments road map setting out some form of social and economic recove

132、ry.Importantly over the last year,we have shown that our business has adjusted and,whilst not immune,still offers a resilient,viable and relevant business model.As for the immediate outlook I am encouraged.We start the year with strong forward sales and very healthy order books.Land plots pre-sold l

133、ast year,and sold at the start of this year,total 2,039,our committed developments of 312m(HB share 85m)are already 88%presold or let(HB share 69%),sales have now been agreed on 57%of our housebuilding target for 2021,plus the years orderbook for construction is fully secured.Just as importantly,wit

134、h cash on the balance sheet,together with a portfolio rich with opportunity,we are ready to respond to signs of increasing demand in our key markets.Moreover,our strategy focuses on growth in three long-term markets industrial&logistics,residential and urban development that are driven by long-term

135、trends,which in a post pandemic world,we are confident will endure.We also have a good record of serving public sector clients in key regional construction areas,at a time when the Government is looking to invest money in the regions.We remain committed to working with our clients and various stakeh

136、olders in building on the good start to the year and in realising our long-term strategy.Tim Roberts Chief Executive Officer16Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020Pictured:Phoenix 10 is a 44 acre site located in Walsall.The 114m project,including a

137、 40m remediation contract,will deliver up to 620,000 sq ft of employment space.Remediation works are set to begin in 2021,subject to planning permission.Development is expected to start in 2023,with completion in 2027.17Henry Boot PLC Annual Report and Financial Statements for the year ended 31 Dece

138、mber 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0Business Model12KEY RESOURCES AND RELATIONSHIPS GROUP OPERATING MODEL Our people are at the heart of what we achieve Henry Boot recognises that our people are fundamental to the success and sustainability of the Group.It is their expertise that

139、executes our business model successfully and delivers the value created by the business to our stakeholders.Group strategy framework In 2018,we developed our Group strategy framework to ensure there was an overarching and consistent business plan in place.Since then,using the existing framework,the

140、Group has reviewed and refocused its strategy to concentrate on three key markets,which underpin the business model.The strategy is still flexible to our subsidiarys different operational expertise,but it improves upon synergies and efficiencies within the Group,whilst still focusing on creating val

141、ue for all our stakeholders.Read more about Our New Strategy on pages 30 and 31The Henry Boot Way Our culture and behaviour are guided by The Henry Boot Way.This allows us to create and sustain an open culture,where our people can grow and thrive,upholding the standards that are so important to all

142、of us.It inspires excellence in everything we do for our customers,and our colleagues and aims to provide satisfaction for all our stakeholders.Read more about The Henry Boot Way on page 05Effective governance We align our dynamic business model with robust governance systems to ensure we operate tr

143、ansparently and openly.We set ourselves very high standards and strictly follow best practice in all of our operations.Read the Governance Report on page 771Identify opportunities and acquire land Hallam Land Management acquires mainly agricultural land and then promotes it for its highest value use

144、.Henry Boot Developments acquires mainly brownfield land.2Obtain planning permissionGaining planning permission on land adds immense value to its worth.Hallam Land Management promotes land for residential,commercial and retail consent.Henry Boot Developments promotes land for commercial development.

145、Stonebridge Homes promotes land for residential development.3aSale of landOnce Hallam Land Management obtains planning permission on a site,it is sold to a developer,sometimes after infrastructure has been installed.The amount of capital required to achieve planning permission on a section of land i

146、s a very small proportion of the total capital required for the whole building process,from acquisition of land without planning permission through to completion of construction.This means that Hallam Land Management is focused on maximising the most profitable section of the housebuilding process f

147、or the lowest amount of working capital.3bDevelopment of siteUnlike Hallam Land Management,when Henry Boot Developments and Stonebridge Homes gain planning permission for a site,they will develop it themselves.4a Sale of propertyOnce a property is developed,it may be immediately sold,generating sign

148、ificant revenue.Properties may be retained by the business to form part of the investment portfolio and may be sold at a later time.4b Investment portfolioA number of the finished property developments are retained and managed by the Property Investment and Development segment.The property investmen

149、t portfolio of Henry Boot Developments is worth over 80m and generates a sizeable amount of rental income each year.ConstructionHenry Boot Construction is a contractor specialising in servicing both public and private clients in all construction and civil engineering sectors.Banner Plant offers a wi

150、de range of services,and a high quality inventory of equipment for hire and sale,such as temporary accommodation,powered access equipment,tools and non-man operated plant.Road Link(A69)has a contract with Highways England to operate and maintain the A69 trunk road between Carlisle and Newcastle upon

151、 Tyne.Highways England pays Road Link a fee based on the number of vehicles using the road and the mileage travelled.GROUPRecurring revenueCyclical revenue1Identify opportunities and acquire land 2Obtain planning permissionSale of property4a4bSale of land3a3bDevelopment of siteInvestment portfolioCO

152、NSTRUCTIONLAND PROMOTIONPROPERTY INVESTMENT AND DEVELOPMENTRecurring Revenue:The revenue from construction and the property investment portfolio is regular and stable.This income allows Henry Boot PLC to maintain long-term bank funding relationships.Cyclical Revenue:Sale of land and property develop

153、ments generates cyclical revenue.These activities are riskier and give varying amounts of profit through each economic cycle.These profits,in good years,contribute significantly to the stable profits from construction and property investment.LAND PROMOTIONBusinesses:Hallam Land Management Identifyin

154、g land with future potential.The use of agency and option agreements,as opposed to buying all land outright,means less expenditure on each asset,allowing us to maximise the number of land opportunities that we are promoting at any one time.As investment is spread over many assets,this reduces the ov

155、erall risk of involvement in the planning process and maximises the probability of making a return on the capital invested.Taking land through the complexities of the planning system.PROPERTY INVESTMENT AND DEVELOPMENTBusinesses:Henry Boot Developments and Stonebridge Homes Acquiring and developing

156、brownfield land or under-performing property assets.Operating in focused sectors to maximise development opportunities.Developing partnership arrangements.Ability to self-fund or source pre-funding opens up opportunities.The businesses can commit to long-term projects,such as complex multi-site urba

157、n development schemes.CONSTRUCTIONBusinesses:Henry Boot Construction,Banner Plant and Road Link(A69)Project delivery in both the public and private sector,on time and within budget.Creating trusted relationships and repeat business.Supplying a wide range of plant equipment efficiently.GROUP As a res

158、ult of our financial structure,we invest in the more profitable areas of the business(strategic land and property development)to maximise the value generated while maintaining prudent gearing levels.Our people Our employees deliver the core activities of our business model.We invest a significant am

159、ount of time and resource in their training and development to ensure they are empowered in their roles.We apply the same methods and dedication when we are recruiting to ensure we attract the highest calibre of people within the Group.Communities We have offices in ten locations across the UK but w

160、e have projects which extend our community impact across the country.Wherever we operate it is fundamental to us that we develop strong relationships and partnerships with our communities.This could be by using the local supply chain on projects or volunteering our skill set to a local charity.Custo

161、mers We are committed to maintaining our long standing track record of customer satisfaction.We continue to listen,understand and adapt how we can improve upon what we deliver,so we are able to further enhance the competitive advantage our Group brings to its customers.Shareholders Our priority is t

162、o protect the sustainability of our Group for our shareholders.By operating transparently and responsibly,we are able to create added value for our shareholders,providing updates on performance and changes to the strategic direction of the Group.18Henry Boot PLC Annual Report and Financial Statement

163、s for the year ended 31 December 202030368 8 April 2021 11:30 am V0345KEY RESOURCES AND RELATIONSHIPS GROUP OPERATING MODEL BUSINESS MODEL View the video explaining Our business model on our Corporate websiteOUR EXPERTISE OUR VALUE GENERATION Our people are at the heart of what we achieve Henry Boot

164、 recognises that our people are fundamental to the success and sustainability of the Group.It is their expertise that executes our business model successfully and delivers the value created by the business to our stakeholders.Group strategy framework In 2018,we developed our Group strategy framework

165、 to ensure there was an overarching and consistent business plan in place.Since then,using the existing framework,the Group has reviewed and refocused its strategy to concentrate on three key markets,which underpin the business model.The strategy is still flexible to our subsidiarys different operat

166、ional expertise,but it improves upon synergies and efficiencies within the Group,whilst still focusing on creating value for all our stakeholders.Bank fundingGROUPRecurring revenueCyclical revenue1Identify opportunities and acquire land 2Obtain planning permissionSale of property4a4bSale of land3a3b

167、Development of siteInvestment portfolioCONSTRUCTIONLAND PROMOTIONPROPERTY INVESTMENT AND DEVELOPMENTRecurring Revenue:The revenue from construction and the property investment portfolio is regular and stable.This income allows Henry Boot PLC to maintain long-term bank funding relationships.Cyclical

168、Revenue:Sale of land and property developments generates cyclical revenue.These activities are riskier and give varying amounts of profit through each economic cycle.These profits,in good years,contribute significantly to the stable profits from construction and property investment.LAND PROMOTIONBus

169、inesses:Hallam Land Management Identifying land with future potential.The use of agency and option agreements,as opposed to buying all land outright,means less expenditure on each asset,allowing us to maximise the number of land opportunities that we are promoting at any one time.As investment is sp

170、read over many assets,this reduces the overall risk of involvement in the planning process and maximises the probability of making a return on the capital invested.Taking land through the complexities of the planning system.PROPERTY INVESTMENT AND DEVELOPMENTBusinesses:Henry Boot Developments and St

171、onebridge Homes Acquiring and developing brownfield land or under-performing property assets.Operating in focused sectors to maximise development opportunities.Developing partnership arrangements.Ability to self-fund or source pre-funding opens up opportunities.The businesses can commit to long-term

172、 projects,such as complex multi-site urban development schemes.CONSTRUCTIONBusinesses:Henry Boot Construction,Banner Plant and Road Link(A69)Project delivery in both the public and private sector,on time and within budget.Creating trusted relationships and repeat business.Supplying a wide range of p

173、lant equipment efficiently.GROUP As a result of our financial structure,we invest in the more profitable areas of the business(strategic land and property development)to maximise the value generated while maintaining prudent gearing levels.Our people Our employees deliver the core activities of our

174、business model.We invest a significant amount of time and resource in their training and development to ensure they are empowered in their roles.We apply the same methods and dedication when we are recruiting to ensure we attract the highest calibre of people within the Group.Communities We have off

175、ices in ten locations across the UK but we have projects which extend our community impact across the country.Wherever we operate it is fundamental to us that we develop strong relationships and partnerships with our communities.This could be by using the local supply chain on projects or volunteeri

176、ng our skill set to a local charity.Customers We are committed to maintaining our long standing track record of customer satisfaction.We continue to listen,understand and adapt how we can improve upon what we deliver,so we are able to further enhance the competitive advantage our Group brings to its

177、 customers.Shareholders Our priority is to protect the sustainability of our Group for our shareholders.By operating transparently and responsibly,we are able to create added value for our shareholders,providing updates on performance and changes to the strategic direction of the Group.19Henry Boot

178、PLC Annual Report and Financial Statements for the year ended 31 December 202030368 8 April 2021 11:30 am V045OUR EXPERTISE OUR VALUE GENERATION LAND PROMOTIONBusinesses:Hallam Land Management Identifying land with future potential.The use of agency and option agreements,as opposed to buying all lan

179、d outright,means less expenditure on each asset,allowing us to maximise the number of land opportunities that we are promoting at any one time.As investment is spread over many assets,this reduces the overall risk of involvement in the planning process and maximises the probability of making a retur

180、n on the capital invested.Taking land through the complexities of the planning system.PROPERTY INVESTMENT AND DEVELOPMENTBusinesses:Henry Boot Developments and Stonebridge Homes Acquiring and developing brownfield land or under-performing property assets.Operating in focused sectors to maximise deve

181、lopment opportunities.Developing partnership arrangements.Ability to self-fund or source pre-funding opens up opportunities.The businesses can commit to long-term projects,such as complex multi-site urban development schemes.CONSTRUCTIONBusinesses:Henry Boot Construction,Banner Plant and Road Link(A

182、69)Project delivery in both the public and private sector,on time and within budget.Creating trusted relationships and repeat business.Supplying a wide range of plant equipment efficiently.GROUP As a result of our financial structure,we invest in the more profitable areas of the business(strategic l

183、and and property development)to maximise the value generated while maintaining prudent gearing levels.Our people Our employees deliver the core activities of our business model.We invest a significant amount of time and resource in their training and development to ensure they are empowered in their

184、 roles.We apply the same methods and dedication when we are recruiting to ensure we attract the highest calibre of people within the Group.Communities We have offices in ten locations across the UK but we have projects which extend our community impact across the country.Wherever we operate it is fu

185、ndamental to us that we develop strong relationships and partnerships with our communities.This could be by using the local supply chain on projects or volunteering our skill set to a local charity.Customers We are committed to maintaining our long standing track record of customer satisfaction.We c

186、ontinue to listen,understand and adapt how we can improve upon what we deliver,so we are able to further enhance the competitive advantage our Group brings to its customers.Shareholders Our priority is to protect the sustainability of our Group for our shareholders.By operating transparently and res

187、ponsibly,we are able to create added value for our shareholders,providing updates on performance and changes to the strategic direction of the Group.20Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020STRATEGIC REPORTBusiness ModelOUR COMPETITIVE ADVANTAGES ENS

188、URE LONG-TERM VALUE GENERATION Our long lasting relationshipsOur culture,The Henry Boot Way,means that we have a unique and cohesive approach to doing business.Creating lasting relationships with clients,partners and customers is fundamental to the way we do business.We ensure landowners are guided

189、through the planning system,work with key property advisers to become aware of potential opportunities and deliver on time to create repeat business in each of the Groups segments.Our reputation and success are built on the relationships we create,and we take great care to ensure we build on these f

190、or the future.Capital structure The property investment portfolio of Henry Boot Developments generates rental income each year,which allows us to borrow against the investment portfolio at attractive rates.The Construction segment is self-funded and cash generative.We reinvest the cash generated fro

191、m these activities into strategic land and property development.The revenues generated from the sale of land and property development is not regular recurring income,and it would not be possible to directly fund these activities through borrowings.Our financial structure allows us to invest in these

192、 more profitable areas of the business to maximise the value generated while maintaining prudent gearing levels.Diversified businessesThe Groups three business segments operate across the whole property value chain.Each segment is involved in multiple sectors residential,leisure,retail,industrial,of

193、fice and civil engineering which means that we are not overly exposed to one area of the market.This enables us to weather economic fluctuations and deliver on our key objective of maximising stakeholder value.21Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 202

194、0Market ContextOUR MARKET SEGMENTS Henry Boot is focused on three sustainable markets,where the Group already has a strong presence and significant expertise:industrial&logistics,residential and urban development.Long-term trends such as population growth,rising numbers of households,shopping moving

195、 online and near-shoring of supply chains,suggest these three markets will continue to perform well,albeit at different rates of growth over time.In effect they benefit from structural tailwinds.Our key market segments Industrial&logistics Residential Urban DevelopmentCV-19 impactCV-19 has had a dir

196、ect and indirect impact on all of our markets.In particular,industrial&logistics saw positive growth,resulting in strong demand for prime warehouses and the residential market remained buoyant and recovered well in H2 2020.Read more about our response to CV-19 on page 44KEY LONG-TERM STRUCTURAL TREN

197、DS IMPACTING OUR BUSINESSUrbanisationBy 2050 approximately 90%of the UK population is expected to live in towns and cities of at least 300,000 inhabitants.Better job prospects have continued to drive urbanisation in the UK over the long term,with immigration strongest amongst those aged 2035 before

198、some young families start moving out prioritising space and schooling.People do not choose to live in cities merely to be close to work,but rather because of the lifestyle benefits provided by accessibility to amenities,culture and public transport.DemographicsIn 2020 the total population of England

199、 was estimated to be 56.7m and this is expected to rise by 7.9%over the next 20 years to 61.2m.At the same time,by 2040,the number of people aged 65 or above is expected to increase by 38.3%to 14.5m,accounting for 23.8%of the total population.The most significant change in the working age population

200、 over the next 20 years is for 20 to 30-year-olds who are expected to increase by 6.3%over the period.Demographics therefore provide positive support for senior living and BTR aimed at young professionals.TechnologyAdvances in technology over the past decade have caused disruption to how we live,wor

201、k,shop and communicate,resulting in many businesses needing to rethink their digital strategies and offering.The emergence of new technology impacts on a series of issues relating to not only how businesses deliver their services,but also the environment in which they do it in.This increases the req

202、uirement for property businesses to be flexible and deliver services to their customers as well as simply delivering a product to rent or own.EnvironmentGrowing energy,water and food demands,alongside climate change and health events show the need to reverse environmental degradation.In 2019,the UK

203、became the first major economy to legislate its commitment to produce net zero carbon emissions by 2050.The built environment contributes an estimated 40%of the UKs carbon emissions,which increases the pressure on businesses in that industry to adapt their operations to become more sustainable.Henry

204、 Boot PLC Annual Report and Financial Statements for the year ended 31 December 202022 INDUSTRIAL&LOGISTICSThe industrial&logistics sector performed with remarkable strength in 2020Market overviewIn 2020 the UK industrial take up was over 50m sq ft,a record performance for the sector.Despite CV-19,t

205、here was still strong demand for big box warehouses,with the pandemic having a direct impact on take-up with increased demand for space from online retail companies as well as for storage space from a range of occupiers.The sector has been supported by online retail sales over the past decade,and af

206、ter seeing a large increase in 2020 and the uncertainty of high street stores reopening due to CV-19 restrictions,businesses look set to push ahead their digital expansion plans.Read more about Our New Strategy on page 30What does Henry Boot have to offer:A long standing reputation and expertise in

207、the sector,in particular the Groups 2,000,000 sq ft flagship scheme,Markham Vale has been offering industrial&logistics solutions since 2004 In response to the continued occupational demand,the Group has committed to speculatively develop over 200,000 sq ft of industrial and logistic space and in to

208、tal is committed to developing 67m GDV across five sites in 2021 Industrial&logistics represents 78%of Henry Boots 1.1bn development pipeline with the potential to deliver approximately 10,000,000 sq ft of space Two further schemes were secured in 2020,Phoenix 10 Walsall,which has the potential to d

209、eliver units ranging from 21,000 to 415,000 sq ft,and Wakefield Hub,a joint venture to develop a 2,000,000 sq ft distribution warehouse,which is subject to planningInternet sales as a percentage of total retail sales(ratio)(%)111.3%2014201320122011201010.4%201512.5%201614.7%201716.3%201818.0%201919.

210、2%202027.9%9.3%8.3%7.3%051015202530Internet sales as a percentage of total retail sales(%)Big Box take up million sq ft235.22014201320122011201021.3201524.4201637.8201726.2201837.3201934.2202050.119.924.125.20102030405060TotalThree-year rolling average1.Source:Office for National Statistics2.Source:

211、Savills23Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0The UK residential market recovered well in the second half of 2020Market overviewAfter the initial disruption caused by the pandemic,the UK residential sec

212、tor recovered strongly in the second half of 2020.According to Savills,annual housing price growth hit a six-year high of 7.3%,whilst UK greenfield land values remained resilient with a modest 0.6%decrease in the year.Low mortgage rates have continued to support housing affordability with the averag

213、e mortgage payment at around 30%of peoples take-home pay,the lowest in a decade.After the Government extended the stamp duty holiday in England to June 2021,and with the rollout of the vaccination programme,the outlook for the UK residential market looks encouraging with the land demand from housebu

214、ilders supporting this.Read more about Our New Strategy on page 30LandWhat does Henry Boot have to offer:Hallam Land Management has six offices located across the country and is well established and experienced in the complexities of the UK planning system The Group has a strategic land bank of 16,6

215、07 acres,which has the potential to deliver around 88,070 residential plots Stonebridge Homes,the Groups jointly owned housebuilder,offers further residential capabilities,with a total land bank of 1,119 plots of which 59%has either detailed or outline planning consent(657plots)Land Values&Planning

216、Consents11009011012013014015010 10 11 11 12 12 13 13 14 14 15161516 17 17 18 18 19 19 20 20Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1Q1Q3Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3200150250300350400450Savills UK greenfield development land index(LHS)England planning consents 000(RHS)First time buyer affordability220%15%25%30%

217、35%40%60%55%50%45%83Q184Q386Q187Q389Q190Q392Q193Q395Q196Q398Q199Q301Q102Q304Q105Q307Q108Q310Q111Q313Q114Q316Q117Q319Q120Q3Mortgage payments as%of mean take home payLong-term average1.Source:Savills2.Source:NationwideMarket Insights RESIDENTIAL24Henry Boot PLC Annual Report and Financial Statements f

218、or the year ended 31 December 202030368 8 April 2021 11:30 am V0Market Insights URBAN DEVELOPMENT90%of the UK population is predicted to be living in urban areas by 2050Market overviewPeople are choosing to live in rental accommodation in prime urban areas,not only for work reasons but for better li

219、festyle options,with 56%of private renters aged between 25 and 44 years old.The BTR sector can capitalise on good rental growth prospects within the Private Rented Sector(PSR),which currently represents only 2%of total PRS stock.Construction has also seen an emergence in BTR and after CV-19 severely

220、 reduced construction output in Q1 2020,the largest contributor to the recovery was private new housing.Take-up of regional office space in 2020 was 40%below the five-year average reflecting the impact of CV-19.However,gains in supply in some markets were offset by falls in others as the overall vac

221、ancy rate remained relatively stable at 7.5%,comfortably below the five-year average of 8.1%.What does Henry Boot have to offer:The Group has a strong presence in key cites identified as target areas for BTR schemes In 2021,Henry Boots flagship 533-unit BTR development in Manchester,Kampus is set to

222、 be completed Henry Boot Construction has secured two BTR schemes in the city centre of Sheffield.Both schemes will commence work in 2021 and we will continue to seek and secure further opportunities within this marketConstruction output in Great Britain:volume seasonally adjusted1807090100110140130

223、12010 10 11 11 12 12 13 13 14 14 15161516 17 17 18 18 19 19 20 20Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1Q1Q3Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3Changing trends in tenure215%10%5%20%25%30%45%40%35%Own outrightOwn with mortgageSocial rentersPrivate renters00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 191.So

224、urce:Office for National Statistics2.Source:GOV.UK25Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0Our StrategyStrategic Priority/ObjectivePerformance in 2020Link to key performance indicators(see pages 42 and 43

225、)Link to key risks(see pages 50 to 53)SafetyContinual review of our systems,ongoing training and development,adoption of best practice and keeping abreast of change.During the Groups initial operational pause at the outbreak of CV-19,we engaged and consulted with contractors and our supply chain to

226、enable our operations to continue safely and to maintain our robust health and safety standards.The Groups 2020 accident frequency rate did very marginally increase to 0.10,but our rate is still in line with competitors and regulatory standards.6 7 1 2 4 PeopleOffer a wide range of long-term career

227、and development opportunities which attract new and retain employees.Despite CV-19 presenting challenges to our training and development offering,there was still a total of 1,420 personal development days.The total was reduced from 2019 due to readjusting our training offering to virtual capabilitie

228、s,but as we enter 2021,we now have a balanced offering which reflects our commitment to developing and nurturing our people.6 7 8 10 3 4 13 26Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 202030368 8 April 2021 11:30 am V0Strategic Priority/ObjectivePerformance

229、 in 2020Link to key performance indicators(see pages 42 and 43)Link to key risks(see pages 50 to 53)DeliveryMaintaining a maximum gearing level of 30%,utilising available capital efficiently.The Group maintained its strong financial position throughout 2020 and after making selective investments in

230、our three focused markets,the business ended the year in a net positive cash position and nil gearing.4 53 513 To dispose of an annually increasing number of residential plots while market conditions are supportive.Land promotion successfully completed the sale of 2,000 plots in 2020.Whilst CV-19 di

231、d materially impact our performance,there was a resiliant demand for land from housebuilders as the housing market recovered.This has meant we began 2021 in a strong position,having already exchanged contracts for the disposal of 1,744 plots.L1 L5L63 5 11 1213 To pre-fund and pre-sell our developmen

232、t opportunities to mitigate risk and secure delivery.In 2020 all completed schemes were 100%either pre-sold or pre-funded.D1 D2 D53 5 9 10 Constantly monitor the customers and markets in which we operate,to compete effectively and appropriately balance our workflows within these markets.Construction

233、 activity did decrease due to the disruption caused by CV-19 whilst we paused to install the correct safety procedures on sites and depots.However,activity did increase to 95%on both construction sites and depots by the end of the year,performing in line with our revised expectations.C1 C23 5 8 13 T

234、o maintain a high level of service and delivery,whilst tracking the performance measurements in place to review level of customer satisfaction.In 2020 we scored 9.13 out of 10 for how satisfied the client was with the service of the main contractor,which was a slight improvement from 2019.Whilst the

235、 KPI data published by Constructing Excellence has now concluded,we have continued to benchmark our performance against existing data,this score places us in the higher Upper Quartile performance.C1 C2C41 4 8 27Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020

236、STRATEGIC REPORT30368 8 April 2021 11:30 am V0Our StrategyStrategic Priority/ObjectivePerformance in 2020Link to key performance indicators(see pages 42 and 43)Link to key risks(see pages 50 to 53)GrowthTarget a dividend cover of over three times to grow net assets and profitability through reinvest

237、ment in strategic land and development opportunities.To protect our financial position and to ensure the Group was well placed to deal with the uncertainty of CV-19,the Group rebased its final 2019 dividend payment.After considering our financial performance the business has continued to pay a divid

238、end at a maintainable level,which ensures we have sufficient working capital and are able to be opportunistic in our markets whilst recognising the importance of continuing to pay a dividend to our shareholders.1 2 33 To increase the scale and investment in land acres and plots over time,with a focu

239、s on increasing our investment in owned land in those parts of the country which create the highest returns on capital employed.Whilst we did increase the total number of plots we have with planning permission,the pandemic did delay some projects whilst planning authorities transitioned to Virtual C

240、ommittee meetings.However,we continued to invest in new opportunities increasing our land portfolio to 16,607 acres,with over 60%being located in prime market areas in the South and have continued to secure sales at pre-CV-19 prices.L2 L3 L43 5 11 12 13 Explore new investment opportunities,such as l

241、ogistics and distribution,with the primary focus remaining on residential and mixed use opportunities.Residential markets continue to be our primary focus.We still have an interest in exploring new opportunities,particularly in industrial&logistics where we will look to do so on a partnership basis

242、with our sister company Henry Boot Developments.L23 5 11 12 13 28Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 202030368 8 April 2021 11:30 am V0Strategic Priority/ObjectivePerformance in 2020Link to key performance indicators(see pages 42 and 43)Link to key ri

243、sks(see pages 50 to 53)GrowthTo deliver at least one long-term strategic employment/industrial site from each of our regional bases.In 2020 industrial&logistics formed 90%of our completed schemes,and with the sector continuing to see strong demand throughout the pandemic,we have committed to complet

244、e a further 85m GDV in 2021.D3 D4 3 5 6 1113 Invest in our housebuilding residential land portfolio to ensure we have sites available to deliver quality in design and build while providing a first class customer experience.The housing market remained buoyant in 2020 and against resilient demand for

245、new housing we completed on 115 housing completions,which was slightly ahead of targets.There were also a further 211 plots secured in the landbank,leaving us in a strong position to achieve our growth aspirations although planning has become notably more difficult.D6 D7 3 4 5 1213 Focus on investin

246、g into a variety of sectors for new development to minimise the risk and maximise the return.At year-end,the investment portfolio had increased by 12.7m,after retaining completed developments at Huyton(4.8m retail)and Luton(12.2m industrial).D1 D25 910 To actively pursue contract values of between 5

247、m and 15m to benefit from improving economies of scale.Our average contract size for 2020 was 13.6m,which was primarily supported by securing a 40m contract to deliver the Kangaroo Works,a 364-unit residential build-to-rent project,part of the Heart of Sheffield redevelopment scheme.C1 C5 3 5 8 13 2

248、9Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0Our New StrategyGoing ForwardOUR STRATEGY IS DRIVEN BY LONG-TERM STRUCTURAL TRENDSOur strategy is focused around three key markets:industrial&logistics,residential

249、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.In this regard,the population of the UK continues to grow with the number of households rising,accentuated by the average size o

250、f households dropping.Supply of housing generally fails to meet the Government target of 300,000 new homes a year.At the same time,and whilst CV-19 might temper the trend short term,people are moving to large urban centres not just for work but also the lifestyle on offer.90%of the UK population is

251、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.BTR will be an important element of supply.Pre-CV-19 there has been a growth in demand for industrial&logistics,but with online sales up by c.40%

252、over the last 12 months or so,take up,especially in big boxes,has been at record highs.This is likely to be accelerated by more onshoring.With focus on our three key markets,and within the framework of our existing four strategic pillars of Growth,Delivery,People and Safety,we have reworked our stra

253、tegic priorities.Our values,which were developed as part of The Henry Boot Way,endure,and shape our culture.We have extremely skilled,experienced,and highly engaged teams focused on our three key markets.The vast majority of our 365m of capital is already employed in these markets and our aim is to

254、gain greater scale by growing our capital employed to over 500m through achieving the following key medium-term objectives:Land Promotion Grow our market-leading land promotion business to sales of 3,500 plots per annum(currently 2,039 plots)with increasing emphasis on the Midlands and the South.Thr

255、ough a blend of freehold purchases,planning promotion agreements and options to purchase,we will leverage the significant expertise within HLM to unlock value through the planning process.Development Grow our development activities to 200m per annum with a broad split of two-thirds industrial and on

256、e-third urban residential(including BTR).We continue to manage market risk through pre-funding/sales/lettings and JVs.In the short term,we will be selective in committing to urban development,as markets adjust to a post CV-19 world.We remain positive that over the longer term,population growth will

257、continue,and cities will outperform in terms of GVA output.Investment Double the size of our property investment portfolio to around 150m(currently c.80m),again with a focus on our key markets.This will be achieved through a mix of buying income-producing buildings,with redevelopment or refurbishmen

258、t potential and retaining certain of our own high-quality developments.The aim will be to create a recurring,resilient income stream with the added potential for capital growth which will show a total return of 6.0%p.a.Housebuilding Grow our premium housebuilding operations to an output of 600 units

259、 per annum,extending our regional presence from Yorkshire into the North East and the Midlands.To support this growth,we will build up a three to four-year landbank of sites,primarily via options to purchase,but also through selective freehold acquisitions.Construction Grow a profitable,cash generat

260、ive business focused primarily on public sector projects in our existing regional markets.We believe we can play a valued role in the Governments Levelling Up agenda and its Build Back Better plan for growth.Our emphasis will remain on repeat work generating above industry margins.We aim to start ea

261、ch financial year with a minimum of 65%of our order book secured.There are significant opportunities to grow in each of our three key markets and we have embedded value within our conservatively valued balance sheet.With over 16,000 acres of strategic land,a development pipeline of 1.4bn(Henry Boot

262、Developments share 1.1bn),and 18m of developments we have identified for our investment portfolio,plus 1,119 plots in Stonebridges landbank,we have all the building blocks to deliver our ambitious plans for growth.We have a long track record of managing our gearing levels well.With a strong balance

263、sheet,net cash of 38.5m(as at 28 February 2021),committed debt facilities of 75m and material retained earnings we are in a strong position to fund our growth strategy and,if required,will look to take a conservative approach to gearing,in a range of 10%to 20%of net assets.We are confident our strat

264、egy can generate attractive market returns(average ROCE between 1015%p.a.),without high levels of financial gearing,and will lead to growth in our profits to beyond pre pandemic levels,enabling us to continue with a progressive dividend policy.Each of our divisions has a clear focus and is driven by

265、 specific financial and strategic targets.We have also established an Executive Committee(Ex Co)to facilitate greater collaboration and the development of existing cross-functional expertise serving our key markets.In addition,we have identified and intend to take advantage of opportunities to creat

266、e further synergies and efficiencies in how we operate as a Group.As a modern,open,and progressive business,our aim is to attract,retain and develop a diverse range of talent.Our people strategy is at the heart of our business and together with the formation of Executive Committee(Ex Co)as a high-pe

267、rforming senior leadership team,it will allow us to continue to build on our positive culture and our strong operational record.Henry Boot celebrates its 135th anniversary this year and we are proud of our heritage.We have grown over the years with a clear culture of looking after our people and sta

268、keholders,and in return,levels of team engagement within the business are very high.We understand the need for further commitment to deal with issues at the heart of ESG.We have also launched 135 Henry Boot,phase one of our ESG approach,which will be an integral part of the Groups strategy going for

269、ward.PEOPLE30Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 202030368 8 April 2021 11:30 am V0OUR FOCUS ON THREE CORE MARKETSGrowth in long-term attractive marketsGrowth in long-term attractive marketsDELIVERYSAFETYPEOPLEGROWTHIncreased profits Progressive Divid

270、end PolicyLow Gearing Grow Net AssetsIncrease Total Shareholder Return(TSR)Increase Total Accounting Return(TAR)Increased Capital Employed Read more about our three core markets on pages 22 to 25Our three core markets Industrial&logistics Residential Urban Development31Henry Boot PLC Annual Report a

271、nd Financial Statements for the year ended 31 December 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0Segmental Review Land PromotionNick DuckworthHallam Land Management LimitedHLM performed well,achieving a 14.2m operating profit(2019:31.0m)from selling 2,000 plots(2019:3,427 plots),at an averag

272、e of 6,456 per plot(2019:10,000 per plot).During 2020,UK greenfield land values remained relatively stable with a decline of 0.6%in the year according to Savills Research.After suspending land buying in H1,the majority of the major national and regional housebuilders re-entered the market in H2 with

273、 land values increasing by 0.3%in Q4.This followed a strong recovery in new housing sales,leading to continued demand for our land,where encouragingly we received bids at pre-CV-19 prices.In 2020,disposals were made at various locations including,Wellingborough(600 plots),Lubbesthorpe(258 plots),Hat

274、field(189 plots),Ripley(200 plots)and Warton(109 plots).In addition,we also sold land in Buckingham for a Care Home and Doctors Surgery,and in Faversham for a Care Home and food store.Later in the year,we also disposed of an interest in a joint venture site in the Midlands,which made a major contrib

275、ution to HLMs performance.Significant strides forward were achieved at Didcot with Oxfordshire County Council securing an important infrastructure funding package which enabled it to reaffirm its support for our 2,170-plot scheme.We are hopeful that the final planning consent will be secured in 2021

276、.Furthermore,we continued to make good progress at Eastern Green,Coventry where in November a resolution to permit planning permission was secured for 2,400 plots,37 acres of commercial development,plus a primary school and community centre.This scheme requires a grade separated junction on the A45

277、to effect access,and a loan from the Homes and Infrastructure Fund(HIF)has been secured,with delivery expected during 2021/22.HLM secured further opportunities in its land bank during the year,increasing it to 16,607 acres(2019:14,898)with just under 60%located in prime market areas in the Midlands

278、and the South of England.Exciting new projects were secured including at Bicester with potential for c.2,300 plots,community centre and ancillary uses,Milton Keynes,Thirsk,Selby,Worksop,New Ash Green and Whitstable.In total,we invested 10m on acquiring positions in new sites and at the year-end held

279、 interests in land capable of delivering just over 88,000 potential residential plots.RegionPlotsScotland8,855North7,260North Midlands20,929South Midlands17,646South East11,782South West21,598Total88,070The pandemic did slow the preparation of local plans which,in turn,slightly delayed some projects

280、,as local authorities were unable to process plans through to publication and public consultation.Nonetheless,planning authorities transitioned to virtual Committee meetings during the year,allowing HLM to continue to make progress on planning applications.We secured new planning consents(or consent

281、s subject to s106 Agreements)for a total of 2,708 plots during the year,which resulted in our consented portfolio increasing to 15,421 plots at the year-end(2019:14,713 plots)and we also had 8,312 plots the subject of planning applications(2019:10,665 plots).By the year end,our housebuilder customer

282、s had returned to the acquisition trail,so that we entered 2021 with 1,744 plots unconditionally exchanged for 2021/22 completion (2019:1,268 plots).Operating profitProfit per plot 000s14.2m6.5k14.2m2020201920182017201631.0m28.0m23.2m18.6m6.52020201920182017201610.09.413.015.032Henry Boot PLC Annual

283、 Report and Financial Statements for the year ended 31 December 2020Pictured top:Hallam Land Managements New Lubbesthorpe site,located in the Blaby District on the edge of Leicester.The site has planning permission for 4,250 plots,schools,community facilities and employment,and Hallam have promoted

284、the site alongside Barratt,David Wilson,Davidsons and landowners the Drummond Family and Trustees.A further sale of 258 plots were completed in 2020.Residential Land PlotsWith PermissionIn PlanningFutureTotalb/fGrantedSoldc/f202014,7132,708(2,000)15,4218,31264,33788,070201916,4891,651(3,427)14,71310

285、,66551,76677,144201818,5291,533(3,573)16,48911,92944,05172,469201716,4174,281(2,169)18,5297,98240,84467,355201612,0435,983(1,609)16,41710,45232,63059,499At Chatteris(1,000 plots),which previously had received a minded to grant permission,we signed the s106 and secured outline planning consent.Bridpo

286、rt,which also had previously achieved Outline Planning Consent,cleared a Judicial Review in relation to our 760 plot and 10-acre commercial scheme,this site now being the subject of sale negotiations.Planning applications covering a further 1,171 plots were also submitted during the year.2021 has st

287、arted well.In addition to the 1,744 plots exchanged,we have also unconditionally exchanged 450 plots at Worcester to Taylor Wimpey and Redrow,and completed the disposal of 115 plots at Warton,Fylde.During January 2021,the Government published its next steps on the enhancement of Building Regulations

288、,the Future Homes Standard,and this will doubtless feature in future land negotiations.Nevertheless,as evidenced by our Worcester transaction where returns were in line with expectations,plus the high element of forward sales,we are confident about our prospects for 2021.Plots soldResidential land p

289、lotsPlots in planning processPlots with planning permission2,00088,0708,31215,4212,000202020192018201720163,4273,5732,1691,60988,0702020201920182017201677,14472,46967,35559,4998,3122020201920182017201610,66511,9297,98210,45215,4212020201920182017201614,71316,48918,52916,41733Henry Boot PLC Annual Re

290、port and Financial Statements for the year ended 31 December 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0Segmental Review Property Investment and DevelopmentEdward HutchinsonDarren StubbsHenry Boot Developments Limited Stonebridge Homes Limited Property Investment and Development delivered a c

291、ombined operating profit of 4.9m(2019:17.8m).In 2020,there was an acceleration in the recent divergence in property market performance with non-food retail and leisure assets severely impacted by trading restrictions for much of the year.According to the CBRE UK Monthly Index,commercial property val

292、ues declined by 7.6%in 2020.Industrial was the only sector to deliver positive capital returns with investors attracted by secure income and continued rental value growth.In 2020,Henry Boot Developments completed on developments with a GDV of 58m(Henry Boot Developments share 55m),with 41m of these

293、schemes having been sold and 17m having been let and retained in the Groups investment portfolio.Industrial&logistics development formed 90%of our completed schemes and despite the pandemic,the UK market experienced high demand throughout 2020 with record annual take up.We have responded to this dem

294、and by committing to speculatively develop a total of 206,100 sq ft at Luton,Preston and Enfield.Additionally,we exchanged contracts on two new projects Phoenix 10;Walsall,which has the potential to deliver industrial and logistic units ranging from 21,000 to 415,000 sq ft,and Wakefield Hub,to joint

295、ly develop a 2,000,000 sq ft occupier led distribution depot,which is subject to planning.In total,the committed development pipeline includes nine schemes with a GDV of 312m(Henry Boot Developments share 85m)and 2,611,000 sq ft,of which 88%is either pre-sold or pre-let.This includes our 533-unit BT

296、R scheme in Manchester known as Kampus,which is due for completion in Q3 2021 as well as approximately 67m(Henry Boot Developments share 52m)of new industrial&logistics space.All of the schemes are either already on site or are expected to commence in Q1 2021 and are all due for completion before th

297、e end of 2021.Committed SchemesSchemeGDV(m)Share of GDV(m)Commercial(sq ft)Residential(units)StatusIndustrialEnfield16856SpeculativeMarkham Vale,Orion2222297Pre-soldWakefield Hub,Kitwave8465Pre-letPreston7467SpeculativeLuton141482Speculative6752567ResidentialManchester,Kampus2161144536Pre-sold216114

298、4536Land and otherWakefield Hub,Mountpark1582,000Pre-soldSkipton,1414184Pre-sold29222,000184Total for year312852,611720%sold or pre-let88%69%Despite the challenges of CV-19,we have been successful in securing a number of new development opportunities.We have acquired sites at Mabgate in Leeds and St

299、 Johns College in Manchester for a combined price of 12.6m with existing buildings of 60,000 sq ft and 27,000 sq ft respectively.Both sites are fully occupied and offer good short-term income returns whilst providing excellent medium-term redevelopment opportunities in strong urban regeneration sett

300、ings.Adding to our industrial&logistics pipeline we have secured a position on 83 acres of land at Todwick just off J31 of the M1.The site has been secured under a promotion agreement with a view to creating over 1,000,000 sq ft of space,with a GDV of approximately 90m.34Henry Boot PLC Annual Report

301、 and Financial Statements for the year ended 31 December 2020In addition to our committed schemes,we have a short to medium-term development pipeline with a total GDV of 1.4bn(Henry Boot Developments share-1.1bn).All of these opportunities sit within our three core sectors of industrial&logistics(78

302、%),urban residential(11%)and urban commercial(11%).The immediate focus on our development pipeline will be to commence remediation works at Phoenix 10,Walsall,capable of delivering 620,000 sq ft of industrial space and starting construction of our 95-unit build for sale residential scheme in Birming

303、ham known as Cornwall House.At Wakefield Hub,we have submitted a joint application with our development partner to develop a 2,000,000 sq ft unit that will be pre-let prior to start on site,which we anticipate commencing on site in Q3 this year.Also,on this scheme post year-end,we will deliver a 260

304、,000 sq ft pre-let industrial unit on behalf of a German pharmaceutical company.Subject to securing planning in mid-2021,work is expected to start on site in the second half of 2021 with the total GDV in excess of 30m.Having successfully sold the majority of the retail assets from our investment por

305、tfolio in 2019,we have made further progress against our revised strategy.The year-end value of the portfolio was 82.7m(2019:70.0m),which reflected a modest 2.3%valuation decline on a like-for-like basis,outperforming the CBRE monthly index(-7.6%).The increase Operating profitCompleted developments

306、GDVStonebridge Completions 4.9m58m1154.9m2020201920182017201617.8m20.1m30.4m15.1m58m20202019201820172016407m17m75m108m115202020192018201720161591457970was principally as a result of retaining two completed assets amounting to 17.0m pre-let at Eden Farm,Luton(73,500 sq ft industrial unit)and Huyton(1

307、9,000 sq ft foodstore).Rent collection finished the year at 88%with the portfolio weighted average unexpired lease term now 12.9 years.Occupancy was at 84%as at 31 December 2020,although this has subsequently increased to 94%following post period end lettings at Blake House,Uxbridge and MV55,Markham

308、 Vale.We are confident of being able to continue to grow the investment portfolio from both retained developments and selective acquisitions with the objective of increasing the overall value to around 100m in 2021 and to approximately 150m over the medium term with a continued focus on the industri

309、al&logistics sector.Our jointly owned housebuilder,Stonebridge Homes,had a successful year,performing ahead of targets after achieving 115 house completions(90 private/25 affordable)(2019:159),at an average selling price for private units of 368k(2019:268k).As many households re-evaluated their hous

310、ing needs,there was high demand from house buyers in H2 and we maintained a strong sales rate of 0.61 units per week per site over the year.Excluding April and May,when we temporarily closed all our construction sites and sales centres,the sales rate rises to 0.71.A price uplift of 2.7%was achieved

311、over anticipated budget prices on the 90 private units sold in the year.We also secured a further 211 plots in the land bank including a key site in Wakefield in December,which has outline planning permission for 149 plots.The total owned and controlled land bank is now 1,119 plots,which at the curr

312、ent sale rates is a ten-year supply or four to five years supply,at our two-year forward forecast sales rate.We begin 2021 in good shape and,to date,have secured 69 reservations(40 private/29 affordable)out of a delivery target of 120 plots(75 private/45 affordable).With home reservations currently

313、running ahead of the comparable period last year,we continue to see positive signs that the market remains stable,leaving Stonebridge positioned to perform well and achieve its growth aspirations.Pictured top:Located in Manchester city centre,Kampus is a 250m BTR scheme.The site,is comprised of apar

314、tments,shops,restaurants and bars,and is set to complete in 2021.35Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0Segmental Review ConstructionSimon CarrGiles BootTrevor WalkerHenry Boot Construction Limited Bann

315、er Plant Limited Road Link(A69)LimitedDespite the challenging operating environment,the Groups construction segment,which also includes Banner Plant and Road Link(A69),achieved a combined operating profit of 6.5m(2019:9.0m).Henry Boot Construction performed ahead of expectations,with turnover of 86.

316、2m(86%in public sector),against a total UK construction output decrease of 12.5%in 2020.The Office for National Statistics showed a record 40.7%monthly decline in April 2020,UK construction activity recovered during the remainder of the year with December 2020 output only 3.5%below the pre-CV-19 Feb

317、ruary 2020 level.These national trends were broadly reflected in both Henry Boot Construction and Banner Plant where,after a brief pause due to the first national lockdown,year-end activity levels had both recovered to 95%.Our major 88.0m urban development scheme at The Glass Works,Barnsley,continue

318、d to progress at pace and is on schedule for handover this summer and works also continued on the 12.3m contract to transform the existing Opera North facilities in Leeds city centre,which is set for completion in 2021.Additionally,we signed a 40.0m contract to deliver the Kangaroo Works,a 364-unit

319、residential BTR scheme and began works on a 42.5m mixed use urban development project,Heart of Sheffield,Block H.Both projects are located in the centre of Sheffield and start on site in Q2 2021.Unfortunately,our affordable housing business,Starfish Commercial,was materially impacted by CV-19 and we

320、 made the decision to place it into creditors voluntary liquidation in H2.Across several public sector frameworks,we completed three schemes with a total contract value of 8.2m,and throughout 2020 were active on a further six schemes at a total contract value of 35.5m.We secured our first project th

321、rough the PAGABO framework and are taking another scheme through the pre-construction stage.We also secured a place on the new Crown Commercial Services framework in the North of England for projects up to 30.0m and a place on the NHS shared business services framework for projects up to 15.0m acros

322、s our operational area.We have had a good start to the year securing new opportunities and are now ahead of our expectations having already secured a full orderbook for 2021.We are still receiving good tender opportunities and are well placed as the economy recovers through our presence on nine publ

323、ic sector national and regional frameworks,where we expect spend on construction projects will be maintained by the Governments Build Back Better policy.Banner Plants performance was impacted by the pandemic,but after the initial pause to readjust our operations to CV-19,all the depots continued to

324、trade and remained profitable.With activity levels stabilising towards the end of the year,we are optimistic trading will be in line with our expectations for 2021.Due to CV-19 travel restrictions,Road Link(A69)traffic levels have been impacted resulting in a decrease in returns in 2020 and whilst w

325、e expect traffic levels to recover through 2021,we anticipate they will not fully return to pre-pandemic levels.With five years remaining on the contract,the hand back process will commence shortly to return the management of the A69 to Highways England.Total turnoverOperating profit115.9m6.5m115.9m

326、20202019201820172016114.3m100.1m81.9m79.4m6.5m202020192018201720169.0m8.9m9.6m10.2m36Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020Pictured:Kangaroo Works is a build to rent scheme in Sheffield within the Heart of Sheffield masterplan.It will high-quality a

327、partments,as well as five commercial units at ground level to provide active frontage to the streetscape,and is set for completion in 2023.37Henry Boot PLC Annual Report and Financial Statements for the year ended 31 December 2020STRATEGIC REPORT30368 8 April 2021 11:30 am V0“The Group has delivered

328、 a commendable result against the challenging backdrop of 2020 and,having secured several investments in our key strategic markets,maintained its net cash position.”Darren Littlewood Group Finance DirectorFinancial ReviewThe Group has delivered a commendable result against the challenging backdrop o

329、f 2020 and,having secured several investments in our key strategic markets,maintained its net cash1 position at the same level at which it commenced the year.UK housebuilders recovered from the initial UK lockdown well and whilst several transactions were secured in H2,they were all contracted to co

330、nclude in 2021,resulting in a 54%decrease in operating profit within our land promotion segment,although providing a strong start for the new year.The completion of The Event Complex Aberdeen(TECA)during 2019 gave our property investment and development segment a tough comparative,even without the p

331、ause on new work in the year,resulting in a 72%decrease in operating profit for the year.Having disposed of 64.1m of completed Investment Property in 2019,mainly comprised of mixed-use retail-focused properties,reinvestment in property has started well with the portfolio now standing at 82.7m.This h

332、as been achieved through retention of self-constructed properties and,with a 1.4bn(Henry Boot Developments share 1.1bn)pipeline of opportunities,we can continue to retain choice assets and rebuild the portfolio,especially those in the industrial&logistics market.Land promotion remains a long-term in

333、vestment with disposals in the year being derived from sites with an average length of ownership of 11 years.With over 15,000 residential plots with planning permission,we estimate that we have around five years of sales in stock working towards disposal and with a total portfolio covering 16,607 acres we estimate that this could deliver around 88,000 units,assuming they were all successful.Whilst