Henry Boot plc (BHY) 2014年年度報告「LSE」.pdf

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1、henry boot pLcannuaL report anD financiaL statements FoR THE YEAR ENDED 31 DECEMBER 2014www.henryboot.co.ukStock code:BHYcreating VaLue.John brown ChairmanI am delighted to report another year of strong returns for our Group with profit before tax of 28.3m,a 54%increase on 18.4m achieved in 2013.str

2、ategic progress I am delighted to report another year of strong returns for our Group with profit before tax of 28.3m,a 54%increase on 18.4m achieved in 2013.It is also pleasing to report that all of the businesses within the Group performed well in their market segment,supported by a generally impr

3、oving UK economy.In our view,2014 was the second full year of our recovery from the bottom of the property cycle.The UK house building industry performed well,in what have been described as balanced market conditions,and this allowed us to sell sites with planning permission at competitive prices.Fu

4、rther investment in the planning process added over 2,100 plots to our portfolio of permissioned sites,an impressive replenishment rate,given that we sold approximately 1,100 plots in the year.2014 saw the UK commercial property development market improve significantly,with Henry Boot activity high

5、throughout the year and we were able to complete several schemes.In addition,we have a number of projects in progress for 2015 and opportunities beyond that are even more encouraging.It is pleasing to report that the cyclical upswing is once again helping the development business steadily improve bo

6、th activity and profitability levels compared to the last few years subdued trading performance.In addition,our jointly owned house builder,Stonebridge Projects Limited,had a good year and is now becoming a contributor to profits with good,long-term growth prospects.Finally,our Construction division

7、 traded well in 2014 and our Plant business had one of its best ever years which,combined with the stable income from the Road Link PFI,resulted in this segment of the business achieving a 12%increase in profit before tax over 2013.Dividend I am pleased to report that,following on from the very good

8、 result for the year,the Board will recommend an increased final dividend of 3.50p giving a total for the year of 5.60p(2013:5.10p),an increase of approximately 10%over 2013 and a record for the Company.Payment of the final dividend is subject to approval by shareholders at the Annual General Meetin

9、g and will be paid on 29 May 2015 to shareholders on the register as at 1 May 2015.talented peopleA key element of our strategy is to commercially empower our incredibly talented people to identify and obtain land,development and construction opportunities,achieve success in planning,and deliver a p

10、rofitable finished product.on behalf of my fellow Directors and our shareholders,thank you all for your efforts in 2014 and achieving such a great result.I look forward to seeing our teams achieve further success in 2015 and beyond.outlookHenry Boot enters 2015 in great shape,with a portfolio of hig

11、h quality opportunities to deliver growing shareholder returns.The 2015 financial year has started positively.We have already concluded two land sales and agreed terms on several others for completion later in the year and we recently announced encouraging news with regard to a major development in

12、Aberdeen.We have a comparatively larger number of developments compared to prior years which are progressing well to deliver anticipated financial returns on completion.our strategic direction remains the delivery of long-term growth in shareholder value through investing capital in the early stages

13、 of a land or commercial developments lifespan.In the shorter term,we remain confident that prevailing economic and market conditions will allow us to deliver growing returns through 2015.In the longer term we continue to identify and acquire numerous valuable opportunities to enable us to deliver t

14、his strategic goal,well into the future.J e brown Chairman 17 April 2015Profit before tax of 28.3mProposed final dividend of 3.50p per share2,100 plots added to land portfolioRead our Financial Statements in detail on page 82View more content online at:www.henryboot.co.ukcompany factschairmans state

15、mentoVERVIEWIFCour Group operationsIFCour Group LocationsIFCChairmans Statement01our Performance in 201404our Business Model06our Strategy08Creating Value.through Land Development12Creating Value.through Property Investment and Development16Creating Value.through Construction20Corporate Responsibili

16、ty28Financial Review34Key Performance Indicators-Financial36Key Performance Indicators-Non-Financial38Managing Risk46Board of Directors48Senior Management50Chairmans Introduction51Corporate Governance Statement56Nomination Committee Report57Audit Committee Report60Directors Remuneration Report78Dire

17、ctors Report81Statement of Directors Responsibilities84Independent Auditors Report92Consolidated Statement of Comprehensive Income93Statements of Financial Position94Statements of Changes in Equity95Statements of Cash Flows96Principal Accounting Policies104Notes to the Financial Statements140Propert

18、y Valuers Report141Additional Shareholder Information144Notice of Annual General Meeting155Financial Calendar155AdvisersIBCGroup Contact InformationIBCGlossary 00 oVeRVieW 01 stRategiC RePoRt 02 goVeRnanCe 03 FinanCial stateMents 04 sHaReHolDeR inFoRMationcontentsoVERVIEWHenry Boot PLC,established o

19、ver 125 years ago,is one of the UKs leading and long-standing land development,property investment and development,and construction companies.our group operationsLand Developmentrevenue39.0m2013:37.7mhallam Land management LimitedThe strategic land and planning promotion arm of the Henry Boot Group.

20、our experienced land and planning teams promote and deliver land opportunities through the complexities of the UK planning system.The company has been acquiring,promoting,developing and trading in land since 1990.We have established an outstanding record in resolving planning and associated technica

21、l problems in order to secure planning permission for a whole range of different land uses.Find out more about Land Development on pages 811Property Investment and Developmentrevenue25.8m2013:37.6mhenry boot Developments LimitedA major force in the UK property development market.With its considerabl

22、e experience and impressive reputation in all sectors of property development,the company has built up a substantial investment portfolio in recent years.stonebridge projects LimitedA jointly owned company in the north of England which develops family homes that combine care,consideration and attent

23、ion to detail to create a place where luxury living comes to life.The company also provides high specification fully serviced office space to the market.Find out more about Property Investment and Development on pages 1215Constructionrevenue82.4m2013:78.5mhenry boot construction LimitedWe specialise

24、 in serving both public and private clients in all construction sectors,including civil engineering.our jobs are delivered to the highest quality,safely,on time,within agreed costs and to the maximum benefit to all parties.banner plant LimitedWe offer a wide range of products and services for sale a

25、nd hire.Continuing investment is made to develop and meet the increasing needs of its many varied customers in commerce,industry and the general public.road Link(a69)LimitedRoad Link has a 30 year contract with the Highways Agency to operate and maintain the A69 trunk road between Carlisle and Newca

26、stle upon Tyne.This long-term contract was one of the first awarded via the Governments Private Finance Initiative.Find out more about Construction on pages 1619The head office of the Henry Boot Group is located in Sheffield but we operate throughout the country and have eight regional offices and s

27、ix plant hire centres.our group Locations040602081415051309030111101207officesheaD officehire centres02 Bristol03 Dronfield04 Glasgow05 Leeds06 London07 Manchester08 Northampton09 Stocksfield01 Sheffield10 Chesterfield11 Dronfield12 Derby13 Leeds14 Rotherham15 WakefieldNational coverage with overong

28、oing high quality opportunities200 projectsoVERVIEWFind out more about our Group Contact Information on the inner back coverour performance in 2014profit before taX(m)54%18.9m16.1m13.4m28.3m201418.4m2013201220112010(2013:37%)net asset VaLue per orDinary share(p)145p142p139p152p2014148p20132012201120

29、10 3%(2013:6%)earnings per orDinary share(p)88%(2013:23%)net Debt(m)1%11.4m2.3m21.9m36.4m201436.1m2013201220112010(2013:65%)DiViDenDs per orDinary share(p)3.50p4.25p4.70p5.60p20145.10p2013201220112010 10%(2013:9%)operating profit(m)47%(2013:35%)Financial and operational Highlights Trading environmen

30、t across all business streams improved further during 2014.Best financial result since 2007.Value creation achieved by improving the planning position or development use of speculatively acquired assets.Construction segment,including Road Link(A69)performed well.Plant business had a record year.Reco

31、mmended final dividend of 3.50p giving a total of 5.60p for the year,a record for the Company.The 2015 financial year has started positively.Visit us onlineFor more information on Henry Boot PLC please visit our website at www.henryboot.co.uk9.1p6.9p7.0p16.2p20148.6p201320122011201020.9m16.9m14.2m28

32、.0m201419.0m2013201220112010oVERVIEWHenry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY01oVeRVieWcreating VaLue.FoR oUR STAKEHoLDERSHenry Boot PLC:Best financial result since 2007 Higher land sale profits for land development Furt

33、her investment in development and property assets Construction division operating profits improved by 13%period eventsweLcome to our strategic reportWe have pleasure on behalf of the Directors to present this Strategic Report for the Group for the year ended 31 December 2014.This report will set out

34、 to show how Henry Boot creates value through the promotion of new land opportunities,the development of and investment in high quality property assets,and construction activities.The Strategic Report on pages 2 to 43 has been approved by the Board and signed on its behalf byJamie boot Group Managin

35、g Director John sutcliffe Group Finance Director 17 April 2015what are the benefits of recurring anD cycLicaL reVenues?our trading activities,financial capabilities and core skills are organised so property investments and construction activities generate recurring revenue streams which allow us to

36、maintain and benefit from long-term funding relationships at prudent gearing levels,which in turn enable land development and property development activities to create cyclical long-term revenue potential and realisation.See our Business Model on pages 4 and 5John sutcliffe Group Finance DirectorJam

37、ie boot Group Managing DirectorRead more about land Development on pages 8-11Find out more about Property investment and Development on pages 12-15Find out more about Construction on pages 16-19Read about our Corporate Responsibility on pages 20-27Find out more about our Strategy on pages 6 and 7our

38、 Key obJectiVeTo MAXIMISE LoNG-TERM SHAREHoLDER VALUEstRategiC RePoRt04our Business Model06our Strategy08Creating Value.through Land Development12Creating Value.through Property Investment and Development16Creating Value.through Construction20Corporate Responsibility28Financial Review34Key Performan

39、ce Indicators-Financial36Key Performance Indicators-Non-Financial38Managing Riskour business moDeLThe creation of value and achieving our key objective of maximising long-term shareholder value is underpinned by our business model.Our PeopleFinancial Strength and Long-Term RevenuesOur CapabilitiesLo

40、ng-term ExperienceLong-term commitment to high levels of dividend coverKnowledgeLong-term Funding RelationshipsRelationshipsRecurring Revenue StreamProperty Investment and DevelopmentProperty InvestmentCommitmentPrudent Gearing LevelsSkillsLand and Development ProftsGovernanceHealth&SafetySustainabi

41、lityEnvironmentDiversityConstructionOur Activities and ResourcesLand Development Recurring RevenueCyclical RevenueKEY:Maximise long-term shareholder valuePropertyDevelopmentHenry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY04Recu

42、rring revenue streams are generated by property investments and construction activities which allow us to maintain long-term funding relationships at prudent gearing levels,which in turn enable land development and property development activities to create cyclical long-term revenue.We have long-est

43、ablished relationships with our key funding partners,Barclays Bank PLC,The Royal Bank of Scotland plc and,more recently,Santander UK plc.We maintain headroom within our three year banking facilities,renewed from February 2015,and consider our property investment portfolio as a store of value to be r

44、ealised to augment these facilities if required.The land bank and development opportunities,together with the investment portfolio,have been acquired largely from retained resources ensuring our gearing levels are prudent.In the longer term we aim to achieve a healthy return on capital employed and

45、dividend cover for reinvestment in our core activities which,in turn,creates improving longer-term shareholder returns.ourFind out more about Financial Strength on page 28our actiVities anD resourcesLand DevelopmentAt 31 December 2014 we owned 1,819 acres and had interests in a further 8,166 acres t

46、hrough option or planning promotion agreements which give us the right to promote that land for a planning consent and share in the benefit created on ultimate disposal.We anticipate that this land bank will grow in future years and represents a significant future profit opportunity to the Group.Wit

47、hin that acreage,at 31 December 2014 we had planning permission for over 11,500 house units on some 40 sites.Find out more about Land Development on page 8our peopleThe Groups employees are at the heart of all that we achieve.our people are highly talented,successful and motivated individuals and ar

48、e essential to the success of the Group.We are committed to ensuring that we have the right people working for us and manage this process through a robust people strategy.Their skill,commitment,drive and enthusiasm are vitally important to the long-term success of our business.Find out more about ou

49、r People on page 23property investment We have a substantial investment portfolio built up over many years which we actively manage to drive year on year recurring revenue and cash flows,and maximise investment values.The investment portfolio is primarily composed of retail and office investments wh

50、ich make up 45%and 38%respectively of the rental income generated.Find out more about Property Investment on page 12our capabilitiesWe succeed in the delivery of shareholder value because our people,individually,achieve the targets set for them.They source and acquire land,promote planning consents,

51、acquire,develop,manage or sell investment properties and service constructors with plant,run our PFI project and refurbish and construct buildings.Find out more about our Capabilities on page 20property DevelopmentWe identify and secure development opportunities then we add value by securing plannin

52、g permissions.We have an extensive geographical spread of commercial development opportunities within the UK on sites across the retail,leisure,office and industrial sectors.The current portfolio should allow us to maintain current levels of activity for several years.We have a small but growing hou

53、se building interest that we hope to develop into a more substantial profit centre.Find out more Property Development on page 12financial strength and Long-term revenuesconstructionThe construction business works on an order book of between one and two years,though a number of the framework contract

54、s it has are spread over several years.We have many years experience working in our chosen markets and have delivered many successful projects developing strong relationships with our key customers.our plant hire business operates from six locations and has a modern,well-maintained fleet of assets s

55、ervicing the construction sector.Furthermore,we operate our own delivery fleet to ensure that our customers requirements are satisfied quickly.our PFI asset is well-established,cash generative and efficiently maintained and has 11 years remaining on the concession;furthermore,the market for PFI asse

56、ts remains strong even in the event of disposal.Find out more about Construction on page 16Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY05STRATEGIC REPORTour strategyour key objectiveWe define our key objective as follows:To

57、 maximise long-term shareholder value through the promotion of land development,the development of and investment in high quality property assets and construction activities.This overarching objective is at the core of all our decisions to allocate capital to the projects we undertake.Further consid

58、erations which help achieve the key objective are paying dividends to our equity shareholders,funding our defined benefit pension scheme,investing in existing and new opportunities in our asset portfolio and managing the utilisation of our debt facilities.our visionA consideration that goes to the h

59、eart of our strategic discussions is a rather under-utilised concept today prudently investing for the long-term.Henry Boot has been in operation since 1886,has seen many economic cycles come and go but has continued to provide an income return to shareholders over many years,in fact the dividend ha

60、s trebled over the last 18 years.our strategic decision-making has to be flexible enough to deal with the vagaries of the economic cycle,maximising opportunities arising throughout the cycle and successfully achieving our main business initiatives noted on page 7.These goals have to be achieved whil

61、st at all times maintaining prudent borrowing levels to ensure that the long-term security of our asset base and our ability to pay dividends is not compromised.It is through this balance of risk-weighted rewards that we aim to create shareholder value in the long-term.what we are seeing as market t

62、rendsThe trading environment across all our business streams improved further during 2014.The UK economy has recovered well and is showing signs of resilience compared to other global economies.It is expected that UK growth will continue and with a combination of low interest rates and previous quan

63、titative easing,there is a strong basis for continued recovery in our market segment.There are risk factors of course,with it being an election year,the continued Eurozone financial fragility,and when interest rates rise there will be a heavier burden on spending growth.our progress in 2014As antici

64、pated in last years performance review,trading throughout 2014 across all parts of our business was very encouraging;the UK economy is recovering steadily and our marketplaces improved throughout the year.The Group achieved its best financial result since 2007 as we benefited from the land and devel

65、opment site investments,made through the nadir of the last economic cycle,and subsequent success within the UK planning process.These schemes are increasingly becoming available for sale into the stronger conditions prevailing in todays marketplace.This opportunity portfolio is now larger and more v

66、aluable than we have seen for many years and results from the commitment to our key strategy:the creation of long-term shareholder value.Value creation is primarily achieved by improving the planning position or development use of speculatively acquired assets.As always,the interaction with the UK p

67、lanning process is uncertain,expensive,highly political,and very inconsistent over time.We successfully achieve results through the skill,determination and drive of our teams,coupled with long-term financial support required to successfully achieve these aims.The segmental business review highlights

68、 the success achieved in 2014 and the pipeline of opportunities we expect to bring forward in 2015,and beyond.In particular,we saw commercial development risk reduce through 2014 as tenant demand,investor appetite and yields on completed schemes all improve the risk-weighted return from a developmen

69、t opportunity.Strategic land markets also remained very buoyant in 2014 as UK house builders continued to restock their land banks.We sense that the planning system is beginning to tighten as we approach the General Election in May 2015,and the major house builders are moving to replenish,rather tha

70、n rebuild,their land portfolios.The construction segment,including Road Link(A69),once again performed well;our plant business had a record year for profit and construction workloads are on an improving trend supported by the general economic recovery,although contract margins remain tight.our focus

71、 for 2015Looking forward into 2015,we are confident of delivering a number of commercial development schemes and selling through at least the same amount of strategic land as achieved in 2014.Therefore,we see another year of progress across each business segment.The UK election process may prove to

72、slightly dampen that enthusiasm early in the year but by the second half,we expect our business to get back to what it does best creating shareholder value.Land DevelopmentHallam land Management limitedHenry Boot Developments limited Henry Boot Construction limited Banner Plant limitedstonebridge Pr

73、ojects limitedRoad link(a69)limitedproperty investment and Developmentconstructionthe group structurewww.henryboot.co.ukStock Code:BHY06Henry Boot PlCAnnual Report and Financial Statements for the year ended 31 December 2014In order to achieve our strategic objective of maximising long-term sharehol

74、der value,we have set the following initiatives:business initiatiVe1.Provide growing long-term shareholder returns2.Create regular revenue streams through retained property assets,rental income and construction activities3.achieve long-term funding relationships with financial partners and maintain

75、prudent levels of gearing at less than 50%of net assets4.Create long-term cyclical revenue potential and realisation through land development and property development5.Provide a long-term commitment to high levels of dividend cover6.achieve a return on capital in excess of 10%7.Recruit and retain th

76、e highest calibre of people to meet our key objective how weLL measure progresssupporteD by our resourcesShareholder value Shareholders fundsRevenue Return on capital employedInvestment property Gearing levelsRevenueNet assetsLong-term revenueAsset value creationEarnings per shareDividend coverProfi

77、tNet assetsReturn on capital employedLong-term success of businessIndividual performance targets metMore about our Key Performance Indicators Read on pages 34-37Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY07STRATEGIC REPORT

78、Profit before tax of 13.1m Planning permission secured on 15 sites12 site sales achieved in 2014Key highlightsCASE STUDYBiddenham,Bedfordshirea long standing jointly owned site of which Hallam land Management limited still control 180 acres.We have been involved with this land holding since the earl

79、y 1990s.a complete bypass for Bedford has been sought by Bedford Council for over 50 years,the anticipation being that once built the road will remove significant amounts of traffic from the town centre.in 1994 Hallam identified that the land required to deliver the Our business strategy is to creat

80、e new land development opportunities and to maximise the value of land.creating VaLue.THRoUGH THE PRoMoTIoN oF LANDNew image to be suppliedfinal(a6-a428)element of the link was not controlled by developers,and accordingly we engaged with the private landowners concerned,as well as the Bedford charit

81、y,the Harpur trust,who owned land used for private playing fields within the proposed scheme.after many twists and turns,in March 2014 we secured outline planning consent for 1,300 dwellings(700 dwellings on land controlled by Hallam)and associated uses.Construction of the“missing link”of the a6/a42

82、8 bypass(including a road bridge over the london/leicester main line railway)was commenced by the Borough Council in october 2014,and a re-location scheme for the private playing pitches was also granted planning consent.the residential development site was put to the market in June 2014 and it is h

83、oped that a conclusion to a sale to a national developer will take place in the summer of 2015.Strategic land portfolio under control of9,985 acreswith 1,819 acres in direct ownership25 sites being worked upon to add a further12,000 plotsto the For Sale portfolio of permissioned landKeran power Hall

84、am Land Management LimitedLanD DeVeLopment reViewDisposals of 1,100 plots in 201411,500 units with planning permission16 new sites added to the portfolioKey highlightsDuring the course of 2014 Hallam Land,our strategic land business,was able to reap the rewards of the considerable investment made in

85、 the planning promotion of sites over the course of the previous three or four years.The increased number of land transactions/deals initially experienced in 2013 continued through 2014 resulting in a further increase in the profitability and number of site disposals in the year.We experienced stron

86、g UK house builder land acquisition activity at the beginning of 2014 as our major customers sought to fully rebuild their land banks.However,as the year progressed,activity returned to a more steady level of transactions as they moved to replenish sales of sites from their holdings.We found that th

87、e land prices achieved on sale were healthy,realistic and sustainable.As always,negotiating land sale deals is never easy,the timing of completions within a specified financial period is uncertain but,in overall terms,the market performed solidly throughout the year.During the year,we made site disp

88、osals at Peterborough,Torrance,East Leake,Abingdon,Cam,Marston Moretaine,Winsford,oulton,Bridgwater,Hailsham and Repton.In total,over 1,100 plots(2013:1,177 plots)were disposed of within the schemes sold,contributing to a segment profit before tax of 13.1m(2013:11.1m),an increase of 18%.The run of p

89、lanning successes we saw over 2012/13 continued through 2014.During the course of the year,we achieved planning permissions on sites at Stone,Barnsley,Frome,Southbourne,Winsick,Worcester,Eckington,Cranbrook,Handcross,Longbar,Moodiesburn,Repton,Stafford,Worksop and Irthlingborough which,in total,adde

90、d over 2,000 additional housing units to our“for sale”portfolio,which now stands at approximately 11,500 units.In addition,we have a further 25 sites which are working through the planning system,either prior to an officer determination or moving towards an appeal.These sites have the potential to a

91、dd a further 12,000 units to our portfolio.While,at this stage,this represents an opportunity to add permissioned units,there is no certainty that we will be successful in all cases.We continue to actively pursue and acquire new long-term strategic land and added 16 new sites into the portfolio in 2

92、014.In total,at 31 December 2014,we held interests in 9,985 acres(2013:9,723)with 1,819 acres owned(2013:1,791),2,800 acres held under option(2013:3,184)and 5,366 acres held under planning promotion agreements(2013:4,748).The year saw further financial investment in new sites and planning promotion

93、costs which resulted in an inventory value of the assets of 99.6m(2013:83.9m),across 140 sites.We have continued to acquire both large and small strategic land schemes.Larger sites generally take longer to promote,obtain planning permission and bring to the market and consequently are more expensive

94、 to fund.on the other hand,these large sites deliver sales and profits over a much longer time frame,once planning permission has been obtained.This year we made a further small disposal from our large site at Bridgwater with the majority of sales coming from smaller sites.At this early stage in 201

95、5 we are working on seven land scheme disposals,two of which have already completed and we currently believe that the remaining five should conclude in the year.Land values,in certain parts of the country,have steadily recovered to where they were in 2007,however,elsewhere,particularly in the north,

96、activity and pricing have remained benign.Consequently,we are focusing our site acquisition and investment efforts into the more dynamic parts of the country where planning success and sales are more rewarding.over the last three years,the Coalition Governments planning system reforms have been bene

97、ficial to our business,house builders and home buyers by ensuring that more land is made available for new build residential development.The National 6,6436,6197,24620147,9328,1668,0528,0519,0119,9859,72320132012201120101,4091,4321,7651,7911,819OwnedOption and Planning Promotion AgreementsLanD(acres

98、)9,9852013:(9,723)+3%www.henryboot.co.ukStock Code:BHYwww.henryboot.co.ukStock Code:BHYHenry Boot PlCAnnual Report and Financial Statements for the year ended 31 December 201410Planning Policy Framework,the precedence of a five year land supply and the“Help to Buy”mortgage scheme all assisted in sti

99、mulating the slowly recovering housing market.We still believe that the recovery is relatively fragile and have seen that the Governments more recent support of the Neighbourhood Plan process has had an adverse impact on planning decision-making as we approach the election.We firmly believe that Nei

100、ghbourhood Plans,like Local Plans,should first and foremost seek to maintain a five year land supply as this also supports house builders delivery processes.However,many communities are using Neighbourhood Plans to rein back new development and we are beginning to see planning decisions at appeal an

101、d in the High Court give greater weight to these emerging Neighbourhood Plans rather than to the five year land supply.We believe that this change in emphasis will reduce the amount of land available to supply housing to a chronically undersupplied population,thereby slowing the long-term recovery i

102、n housing provision.However,the planning system is in more robust shape than it has been for several decades primarily due to the current Government tackling the five year land supply that had been previously largely ignored.The 2015 General Election brings uncertainty despite all parties stating th

103、at a more responsive planning system will be a priority.For any strategic land business,a key concern is the degree to which the Government extracts value from the grant of planning permission.Whilst we do not disagree with this in principle,the Government needs to ensure that they do not make schem

104、es unviable through unrealistic financial demands.We saw clarity of purpose in the first few years of the Coalition Government;but,more recently,the planning gain contribution system has become even more complex with different Local Authorities applying different rates of Community Infrastructure Le

105、vies,Affordable Housing and Section106 requirements.In our view,these issues are not helpful and further serve to hold back the creation of the new homes all political parties aspire to.hailsham Location:East Sussextype:Land Promotionsize:Planning for 240 new homesA planning promotion agreement for

106、43 acres of land was signed up in 2007 and an outline planning application was submitted for 240 new homes,a network of green infrastructure and open space,in 2013.The planning permission was secured in late 2013 and the land was sold to a national developer in october 2014.reptonLocation:Derbyshire

107、type:Land Promotionsize:Planning for 40 new homesA site of 14 acres in total,where a planning application was submitted in 2013 for 40 new homes and permission for development was received in March 2014.This parcel of land was sold to a national developer in late 2014.A further application for 75 pr

108、operties on the remaining land was submitted in December 2014,and gained planning approval in March 2015.An inventory value of 99.6mfor strategic land assetsThe number of sites140 sitesin strategic land portfolioView more content online at:www.hallamland.co.ukHenry Boot PLCAnnual Report and Financia

109、l Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHYSTRATEGIC REPORT11Profit before tax of 4.6mTwo business park projects secured for over 90 acres of allocated land Key highlightsCASE STUDYMarkham Vale,DerbyshireHenry Boot Developments limited was appointed development

110、partner to Derbyshire County Council in 2005 following a national development competition.the objective of the development partnership between Henry Boot and Derbyshire County Council is to create a new sustainable strategic employment zone and to regenerate the former coal mining area which has cre

111、ating VaLue.THRoUGH SPECIALIST PRoPERTY DEVELoPMENT AND NEW HoMESsuffered from high levels of unemployment and stagnant economic activity following the closure of the mining industry.Following the appointment of Henry Boot the Company worked closely with the County Council to complete the assembly o

112、f the site and secure planning permission for 200 acres of employment uses.Henry Boot commenced the first development of 50,000 sq ft of speculatively built industrial space in 2007 and this was completed to coincide with the opening of a new junction onto the M1 motorway to serve the business park

113、in 2008.since the opening of the new motorway junction the business park has seen continuous development activity on the site with Henry Boot developing a wide range of industrial and warehouse units for both local and national companies who were either expanding their existing operations in the reg

114、ion or newly investing in the area.to date over 50m of new investment has been secured with Markham Vale now sustaining 732 new jobs and attracting 33 new companies to the business park.Henry Boot has developed over 450,000 sq ft of industrial and warehouse accommodation so far with a further 520,00

115、0 sq ft of committed development due to commence on the site in 2015.the servicing of the second 100 acre phase of the business park is due to be completed in 2016 enabling a further one million sq ft of development to be undertaken.Sale of investment property valued at14.5mcompleted in the yearAcqu

116、isition of property by Stonebridge of7,066 sq ftfor refurbishment to serviced office spaceproperty inVestment anD DeVeLopment reView2015 Update-Aberdeen Project masterplan and business case approved by Aberdeen City CouncilKey highlightAs the economy recovered through 2013/14,tenant demand,investor

117、appetite and completed development yields improved,which allowed us to progress or commence 15 projects,spread throughout the country,comfortably exceeding pre-recession activity levels.of these schemes,eight completed during the year.This significant increase in development activity also reflects t

118、he improvement in occupier confidence and their ability to progress initial interest through to fully financed contractual commitments,particularly in the industrial and leisure sectors.At our 200 acre business park,Markham Vale in Derbyshire,we undertook or are in the construction phase of a number

119、 of industrial projects amounting to over 200,000 sq ft;much of this was contracted for and completed during 2014.In addition,new facilities including a petrol station,a Starbucks,a convenience store and a pub restaurant were completed in the year,servicing the expanding business park.A second signi

120、ficant industrial development undertaken and completed during the year was the 69,000 sq ft extension of the existing 123,000 sq ft Recticel factory investment in Stoke which also allowed us to re-gear the existing lease arrangement on more favourable terms.Active management of the retained investme

121、nt portfolio included the agreement for an extension to the highly successful lorry park at Stop 24,our motorway services investment in Kent.We also began two budget hotel developments during the year,one in Malvern,pre-let to Premier Inn,and the other in Richmond upon Thames,pre-let to Travelodge.C

122、ontracts for the forward sale of the Travelodge were also exchanged with Aberdeen Asset Management shortly before the 2014 year end,and both of these projects will be completed in 2015.our jointly held developments in Thorne,near Doncaster,and Chesterfield,in partnership with Royal Bank of Scotland

123、and Lloyds Bank respectively,progressed well with the Thorne site sale to Tesco completing and contracts for the sale of the majority of the Chesterfield site to a Ford dealership exchanged for completion in 2015.Selectively,as confidence within the sector returned,a number of retail developments al

124、so commenced.In Bodmin we exchanged pre-let agreements with Home Bargains to take the first retail unit of 18,000 sq ft,which represents about half the scheme and construction is now in progress.In Livingston,Scotland,terms have been agreed with a range of retailers and leisure operators to take alm

125、ost the entire six acre scheme;we expect the construction phase to commence late in 2015.Despite these successes we experienced delays in obtaining planning permission on a number of projects,in particular at the former Terrys Chocolate Factory in York,where heads of terms are agreed for the sale of

126、 one of the listed buildings to a care home operator and with a residential developer for the conversion of the main listed factory building into apartments.It is anticipated that the outstanding planning issues will be resolved in the first half of 2015.We also suffered a setback on our 56 acre mix

127、ed-use development in Skipton,North Yorkshire,with the refusal of planning permission for a foodstore and employment scheme.However,negotiations with planners are continuing to agree an acceptable development plan which we expect to be residential and employment based.Finally,in the light of the wid

128、ely reported food retail sector difficulties,where applicable,we reassessed the values of our prospective foodstore related development sites with any valuation adjustments taken through the Comprehensive Income Statement in 2014.As part of the continuing active management of the Companys retained p

129、roperty investment portfolio,three investment sales took place during the year,including our 50,000 sq ft B&Q unit in Rotherham which was sold to F&C Investment Management.These sales David anderson Henry Boot Developments LimitedDarren stubbs Stonebridge Projects Limited11 projects commenced repres

130、enting44.0mnew investment and 460,000 sq ft of spaceHenry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY1423804.04 13 April 2015 8:14 AM Proof 8property inVestment anD DeVeLopment reViewView more content online at:www.henrybootdeve

131、lopments.co.uk www.stonebridgehomes.co.uk www.stonebridgeoffices.co.ukwill make way for a number of new investments currently being developed,to be retained.The introduction of new,future development opportunities is key to long-term value creation.During the year we were selected as preferred devel

132、opment partner on two business parks,one outside Luton and the second at Southend Airport.We also purchased a vacant 22,000 sq ft office building in Uxbridge which we intend to immediately extend by a further 10,000 sq ft and fully refit to meet the strong occupier demand in that quadrant of the M25

133、.Stonebridge,our jointly owned housebuilding business,increased its turnover to over 10m in the year and continues to grow its activity,completing 32 units in the year.We successfully acquired two 100+unit opportunities during the year and have submitted planning applications for both schemes.These

134、larger schemes will help underpin future growth,though we continue to actively acquire smaller sites for between 10 and 20 units where the house builder competition has difficulty obtaining site acquisition finance.Whilst the challenges with planning and mortgage administration remain,we are confide

135、nt of achieving another year of growth in 2015.beestonLocation:Nottinghamshiretype:Mixed-use developmentsize:90,000 sq ftThe Square Shopping Centre has been in ownership since 2003.In 2013 planning permission was received to re-model 25,000 sq ft of leisure and retail space.The works commenced in 20

136、14 to coincide with development of the adjoining Nottingham tram stop.PureGym,Costa Coffee and Wilkinsons are amongst the new tenants.whitehavenLocation:Cumbriatype:Bespoke officessize:22,000 sq ftA development for Atkins Ltd at the Westlakes Science Park,the centre of the UK nuclear industry.The 3.

137、5m scheme began in September 2014 and will be completed by mid 2015.A Regional Growth Fund grant was secured to assist the commercial viability of the project.stonebridge projects Limited-guiseleyLocation:West Yorkshiretype:Residential developmentsize:14 new homesMeadow View is a cul-de-sac developm

138、ent of 14 quality homes built to the north west of Leeds.The site consists of 4 and 5 bedroomed homes and building commenced in July 2014.By the end of 2014 five houses had been completed and occupied.The remaining plots are scheduled for completion in 2015.Average rent roll during 2014 of6.5mfor 15

139、 investment propertiesThe refurbishment of Park House,our serviced office in Leeds,is complete and the building continues to attract new tenants.We were delighted to be nominated as a finalist in the 2014 National Serviced office Centre of the Year,just missing out on the top award.Building on our s

140、uccess in Leeds,we acquired a property in central Manchester which is currently being refurbished into our second serviced office outlet.This project will be completed in the first half of 2015 and we are encouraged by indicated tenant interest.Henry Boot PLCAnnual Report and Financial Statements fo

141、r the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY15STRATEGIC REPORTProfit before tax of 10.1mLarge increase in private sector workloads94%of waste diverted from landfill sitesKey highlightsCASE STUDYStocksbridge,South YorkshireFox Valley,stocksbridge is the 42.0m redevelopment of a

142、28 acre former steelworks site delivered by Dransfield Properties ltd,which will bring a new town centre to this community located to the north of sheffield.the overall scheme will deliver much needed retail,leisure and office spaces to create a new commercial heart for the town,as well as new infra

143、structure works and a 7 acre residential housing development of 114 three Contracting,plant hire and road maintenance companies generate recurring revenue streams.creating VaLue.THRoUGH SUSTAINABLE oPERATIoNSand four bedroomed executive riverside homes.it is anticipated that when complete this redev

144、elopment should create 900 new jobs for the community.Henry Boot Construction limited was appointed by stocksbridge Regeneration Company limited for the 30.0m construction works of the project which commenced in February 2014.the first phase of the development involved extensive reclamation and deco

145、ntamination works of the former steelworks site,followed by the building of a new steel stock warehouse for tata speciality steel which enables them to relocate their storage facilities away from the project land itself.Dr Vince Cable MP,the secretary of state for Business,innovation and skills perf

146、ormed the topping out ceremony on the tata warehouse in June of 2014.Dr Cable marked the milestone by dropping a 6m x 4m flag down the completed steelwork and then welcomed the investment in this part of south Yorkshire.the next phase of the development commenced in February this year.this part of t

147、he project includes the main retail and leisure elements as the new heart of the community begins to take shape.the overall development is due to be completed in the early months of 2016.Substantial forward order book of 55.0m in construction business for 2015Gross value of plant assets27.5mavailabl

148、e to rent at year end simon carr Henry Boot Construction Limitedtrevor walker Road Link(A69)Limitedgiles boot Banner Plant Limitedconstruction reViewLaunch of sustainability strategyAwarded Investors in Diversity Stage 2Nominated for 12 CIoB awardsKey highlightsAfter carrying forward a healthy order

149、 book into 2014,Henry Boot Construction exceeded both budgeted turnover and profit for the year.With the growing confidence in the general economy we began to see sustained growth in activity and some positive trends in tender prices;although we remain vigilant regarding material and labour price in

150、creases.our wide-ranging capabilities,depth of experience and understanding of clients requirements has helped produce these excellent results.We are carrying a strong order book into 2015 and expect that this solid trading performance will continue.our reputation for delivering high quality project

151、s,safely,on time and within budget,has enabled us to maintain workloads in the social housing,health,education and custodial sectors.Long-term framework and partnership arrangements with St Leger Homes(which ends in 2015),North Lincolnshire Homes,Eastland Homes,and ASRA Housing together with individ

152、ual schemes through EN Procure and YoRbuild,give us a strong presence in the social housing sector.Within the education sector we completed the refurbishment and fit-out of the Joseph Banks laboratory for the University of Lincoln and were awarded:the MERI Building Phases 2&3 for Sheffield Hallam Un

153、iversity,Chesterfield College East Block Construction Centre,and contracts at Blue Coats School,oldham and Ampleforth College in North Yorkshire.We are also delivering a number of court and prison refurbishment schemes through the Ministry of Justice framework and expect similar opportunities to the

154、se to continue into the future.We have continued to develop our Building Information Modelling strategy,including engagement with our supply chain,and will be level 2 compliant ahead of the Government target of 2016.We have also seen a large increase in private sector workloads with a number of oppo

155、rtunities arising in the industrial,commercial and retail sectors.2014 saw us commence a major contract for Stocksbridge Regeneration Company to redevelop the town centre,for completion in 2016.We also successfully completed a large office refurbishment for Sheffield City Council,a laboratory refurb

156、ishment scheme in Harrogate for Smithers Viscient and the RIBA Award winning Manor Works for the Manor Development Company in Sheffield.We constructed production facilities for Ready Egg and Holdsworth Food at Markham Vale where we were recently awarded further contracts for industrial facilities an

157、d new and refurbished industrial units at Thorne.Work is also progressing on an eco-office scheme at Doncaster International Business Park and a visitor centre for Games Workshop in Nottingham.our major 2013/14 project for a Screw Press House for Bifrangi completed earlier this year and led to the s

158、uccessful negotiation of a new Research and Development facility at their Lincoln site.We have seen a growth in civil engineering work Successful handover of 8mScrew Press House for Bifrangi UK LtdNew image to be suppliedPreparing for concrete pour at Bifrangi UK Ltd Lincoln in February 2014.Henry B

159、oot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY18View more content online at:www.henrybootconstruction.co.uk www.bannerplant.co.ukhenry boot construction Limited-smithers ViscientLocation:Harrogate,North Yorkshiretype:New laboratory

160、and office facilities size:15,715 sq ftA full refurbishment and fit-out was undertaken to create a state of the art facility for Smithers Viscient,a specialist environmental testing company.The project value was 4.3m and works commenced in December 2013 with full occupation completed by June 2014.ba

161、nner plant Limited-plant hireLocation:Chesterfield,Dronfield,Derby,Leeds,Rotherham and Wakefieldtype:Plant,temporary accommodation,power tools,powered access,big air compressors and serviced toilets size:over 2,800 productsThe range of products has constantly evolved to meet customer needs and to fu

162、lfil the requirements of modern health and safety legislation.The primary supply area stretches from Yorkshire in the north to the East Midlands and Birmingham in the south whilst more specialist divisions have national coverage.road Link(a69)Limited-road maintenanceLocation:Cumbria and Northumberla

163、ndtype:Road operation and maintenancesize:52 miles of trunk road from Carlisle to NewcastleA 30 year contract with the Highways Agency to operate and maintain the A69,which is the major east-west all-weather route in the north of England.Works include road resurfacing,bridge repairs,winter preparati

164、on and routine maintenance.Live plant contracts per weekc.3,200average weekly during 2014through involvement as a major supply chain partner on the 25 year Amey PFI Sheffield Highways scheme where we have continued to deliver a significant number of projects.We have also just been awarded the YoRciv

165、ils Don Valley Remediation Scheme for Sheffield City Council.plant hire The optimism we felt moving into 2014 was well founded.Turnover for the year increased by over 9%to 12.1m;an average weekly turnover of over 233k and a hire contract count that averaged around 3,200,both levels not seen since ea

166、rly 2008.Year end profit before tax was 1.3m,with the net margin up 1.9%to 10.8%,the Companys best result since the top of the last cycle.Capital expenditure during the year totalled 4.1m and focused on access equipment and general plant.With the introduction of clean air technology engines in large

167、r,new pieces of equipment,their capital cost pushes ever higher.The recovery of the higher capital costs is a major challenge,therefore,the aim for 2015 is to ensure that the ratio of hire rate to cost is increased successfully.road Link a69our PFI contract to maintain the A69 between Newcastle and

168、Carlisle has 11 years left to run and continues to perform very well and in line with expectations.Traffic volumes were broadly in line with previous years as were the price adjustment indices.We continue to adopt innovative maintenance techniques which helped us achieve savings against the budget c

169、osts of the maintenance programme undertaken in the year.Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY19STRATEGIC REPORTcreating VaLue.BY BEING RESPoNSIBLE AND REDUCING oUR IMPACTS oN THE ENVIRoNMENTWHY is Being ResPonsiBle

170、one oF YouR keY PRioRities?ouR aiMsCorporate responsibility means addressing our key business related social,ethical and environmental impacts in such a way that it brings value to all our stakeholders.Continuous improvement lies at the heart of our business and our corporate responsibility programm

171、e supports our business approach to acting responsibly whilst we continue to grow and evolve our business operations.to ensure that all our stakeholders have a safe and healthy work environment1to support our people in realising their full potential2to support the development of the local communitie

172、s in which we operate3to take responsibility and reduce our impact on the environment4rachel white Group HR ManagerThe percentage of employees95%engaged in a Company pension arrangementour VaLuesour reputation is a key asset which is fundamental to the success of Henry Boot PlC;our values are what e

173、nsures that our employees,suppliers,investors and other stakeholders have the confidence in us to trust that we will carry out our business ethically.By embedding our values in our actions we strengthen our ability to deliver long-term shareholder value and competitive advantage.our values are funda

174、mental in creating an environment of trust where all can thrive and in doing so securing our business for the future by creating long-term,sustainable relationships.all our stakeholders should believe in and uphold our core values:Respect for the individualit is critical that we show respect for the

175、 individual,their differences and the diversity this brings,and treat others as we would like to be treated.Henry Boot PlC encourages a culture in which communication is two-way,open,clear and constructive,we actively support continuous learning and improvement.Integrityour integrity is crucial to m

176、aintain and protect our long-standing reputation.We have ethical business practices in place as a framework for our employees to follow;we demonstrate ourselves to be reliable,trustworthy and honest.ExcellenceWe deliver what we promise and add value that goes beyond what is expected.through continuo

177、us improvement we aim to exceed our stakeholder expectations by encouraging teamwork and delivery to the best of our abilities.InnovationWe continually improve,embrace change and provide our employees with the opportunity to learn and develop.We create an environment where people are encouraged to d

178、emonstrate innovation by successfully implementing new ideas.Commitment to personal development1,164 daysof training delivered to employees during 2014The equivalent days of training 2.55 daysper Company employee per yearGender Diversity at the Henry Boot Group348111corporate responsibiLity HealTH a

179、ND SafeTYView more content online at:www.henryboot.co.ukRoSPA Gold Medal award Commitment to Health,Safety and Welfare Award for third year in successionKey awardsour health and safetyHealth and safety continues to be given the highest priority within Henry Boot from Executive Board level down;we ha

180、ve developed practical and safe systems of work which are borne out by the Companys exemplary safety statistics.Health and safety is extremely important to us,and everything we do is to ensure best practice and to provide a healthy,safe working environment for everyone involved with our businesses;w

181、e are fully committed to ensuring health and safety is the number one priority.our performanceHealth and safety remains our organisational priority;during 2014 we have continued to focus on making health and safety the top of the agenda within all our subsidiary businesses;our continued growth saw a

182、n increase in internal audits to 264 during 2014(2013:238).Conducted by our Group Safety,Health and Environmental Manager our system of audits ensures compliance of our internal management systems and external benchmarks.The Board remains fully committed to health and safety and conduct regular Dire

183、ctor Safety Visits across all subsidiaries.We continued to benchmark our health and safety performance against Constructing Excellence Health and Safety Key Performance Indicators(KPIs).our 2014 accident incidence rate(AIR)performance equated to a score of 91%.We have seen a slight increase in our a

184、ccident frequency rate(AFR)to 0.12 per 100,000 hours worked including our subcontractors(2013:0.06);however we are delighted that for the fourth consecutive year our construction related AFR for our directly employed staff is zero.We have continued to ensure that all employees take part in regular,c

185、omprehensive training,tailored to their specific job and meeting all industry requirements.We again undertook a mock incident on one of our construction sites to test our internal systems,our focus in 2014 was on scaffold risk.This was once again facilitated and presented by a partner of Nabarro LLP

186、s Health,Safety and Environment team.We maintained accreditations to BS oHSAS 18001(occupational health and safety),ISo9001 (quality management)and ISo14001(environmental management)for our construction activities by the implementation of our integrated management system.our commitment to the educat

187、ion of our own employees through direct training and safety briefings and to the communities in which we work have continued throughout 2014;we have again spent time within the communities spreading the message of safety within our businesses.our achievements For the fifth consecutive year we have c

188、elebrated the achievement of a RoSPA award for Health and Safety;due to our continued success with RoSPA this is now a Gold Medal award.our continued achievement celebrates our commitment to achieving the highest standards of health and safety within our business operations.We also celebrated the Co

189、mmitment to Health,Safety and Welfare Award at the National Federation of Builders(NFB)Annual Awards for the third consecutive year,this award recognises best practice in the industry and a commitment to achieving the highest possible standards of health and safety.We came out on top in the Health&S

190、afety category at the CIoB(East Midlands)Awards,underlining the Companys commitment and focus to delivering the very highest levels of health and safety in every project they undertake.Meg Munn MP visiting the Fox Valley development in StocksbridgeFind out more about our Key Performance Indicators o

191、n pages 36 and 37average employed during 2014Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY22our peopleTo encourage success across all of our core businesses,it is important that we are able to create a working environment th

192、at enables us to attract,inspire and retain the right people to work at every level,who are committed to working together and who will support our key corporate values of respecting individuality,innovation,excellence and integrity.We are committed to providing a working environment in which our emp

193、loyees can develop to achieve their full potential and enjoy opportunities for both professional and personal development.Henry Boot PLC has established policies for recruitment,training and development of our employees.We remain fully committed to investing both the time and resources to motivate o

194、ur employees to develop rewarding careers and to encourage them to remain working for the business;where possible we recruit and promote from within.As our businesses continue to grow and evolve,a key driver for ongoing success will be our ability to retain and continually motivate our employees to

195、deliver the excellence on which our businesses have been developed and which our customers have come to expect.During 2014 we directly employed an average of 459 people(2013:450);we value the experiences our employees bring and over 18%of our workforce have over 20 years service.equal opportunities

196、and diversity Henry Boot PLC is an equal opportunities employer and will continue to ensure that we offer career and development opportunities without discrimination.Full consideration is given to applications for employment from disabled persons,having due regard for their individual abilities.Wher

197、e possible Henry Boot PLC has continued the employment of individuals who have become disabled during their employment with us.At 31 December 2014,we employed 434 people(2013:448)comprising 325 males and 109 females(2013:345 males and 103 females);we have 20 Directors(18 male and 2 female)and 33 Sen

198、ior Managers(26 male and 7 female)(2013:22 Directors(20 male and 2 female)and 28 Senior Managers(23 male and 5 female).human rights We apply human rights considerations to all our business practices,including(but not limited to)business ethics,equal pay,health and safety,suppliers and anti-bribery a

199、nd corruption policies.We do not have a specific human rights policy,however this will remain under review as to whether a policy document is required in the future over and above our existing policies.We have a Whistleblowing policy in place and also a confidential externally managed telephone line

200、.pension arrangementsIn 2014 Henry Boot PLC implemented the UKs auto-enrolment pension requirements;we utilised our current pension providers,AVIVA and The Peoples Pension/B&CE,to deliver this.As at 31 December 2014 we had over 95%of our employees engaged in a pension arrangement to which both the e

201、mployee and the Company makes a contribution.our performanceWe remain committed to personal and professional development in order to support the growth of our people and their ability to make a contribution to our businesses;we delivered a total of 1,164 days of training in 2014(2013:1,306 days)the

202、equivalent of 2.55 days per employee(2013:2.92 days).We provide training in leadership,people management,health and safety and a wide variety of subsidiary specific training.We have seen an increase in the cost per capita spent to 117(2013:102).During 2014 we continued with our programme of supporti

203、ng internships and year out placement students within all of our businesses and have seen great success in utilising these programmes to identify both potential employees and future leaders.We continued through our network of CITB Construction Ambassadors to share our experiences of working within t

204、he built environment,through school visits,roadshows and work shadowing.our achievementsIn 2014,two of our Senior Managers in Henry Boot Construction Limited were nominated for the CIoBs Construction Manager of the Year Awards;both were subjected to a rigorous and intensive interview process to prog

205、ress to the final Awards.Steve Green was responsible for our site for Bifrangi UK Ltd in Lincoln which involved the construction of a press house for hot steel forging,and Mathew Clarke managed our site for Sheffield Hallam University which involved the development of the Graham Solley Sports Pavili

206、on and associated sports facilities.Mathew was fortunate to make the top 5 shortlist for his 2m to 7m category;although others were successful in achieving the final Awards at the presentation in London in october,we are incredibly proud of the success of our employees.During 2014,Henry Boot Constru

207、ction Limited successfully achieved Investors in People status;over 50%of our employees are employed by businesses who have been assessed and are recognised by this national accreditation.We continue to work with our remaining core businesses to achieve this accolade which recognises that high perfo

208、rmance is achieved through our people,and that by championing best practice in people management our businesses will achieve continued success.corporate responsibiLity peOpleHenry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY23STR

209、ATEGIC REPORTcorporate responsibiLity COMMuNiTYour communityour community involvement continues to ensure that our activities bring benefits to the local communities and the people within them,supporting employment and regenerating local areas.We have also continued to support charities and local gr

210、oups through company donations of time,expertise and financial donations.our performanceWe continued to be active in the communities in which we operate;we supported projects through the Henry Boot Endowment Funds managed on our behalf by South Yorkshire Community Foundation(SYCF)and through direct

211、donations.Some of the projects and fundraising we have been involved in over the last 12 months are:oughtibridge Brass Band through SYCF we supported the upgrading of the band room to include disabled access and kitchen facilities;old School Charity,Grenoside through SYCF we supported a grant to sup

212、port the purchase of equipment in order for the project to continue as a wider community facility;Barnsley Samaritans supported with a grant to contribute towards the refurbishment of toilet facilities.We have donated 18,072 to charities nominated by our employees through our Give As You Earn Scheme

213、(2013:13,581),and in 2014 we donated in excess of 38,540 to a varied range of causes,both locally and nationally(2013:30,902).During 2014 we introduced Dress Down Fridays at our Sheffield headquarters.This has resulted in 3,000 being raised by colleagues for a variety of local employee nominated cha

214、rities;through this we have also supported national charity days for Sport Relief and Children In Need.We have continued to work alongside local colleges and universities and have hosted year out placement students in our Finance and IT Departments.This is an ongoing partnership which will continue

215、year on year.In 2014 we supported the BiG Challenge in Sheffield,this scheme has been developed to teach children the importance of entrepreneurial skills.Teams were awarded 25.00 from which to start and grow a business of their choice.For the seventh successive year,we attended and supported Tech T

216、ech;held in Doncaster and hosted by BBC presenter Maggie Philbin,this event helps to promote science,technology,engineering and maths(STEM)to Year 9 students.our achievements our people take great pride in the work they do in our communities;they are all advocates for Henry Boot and are a credit to

217、our businesses.We make a significant investment in our community programmes and support colleagues fundraising and volunteering for all charities and registered good causes.In 2014,several of our employees undertook personal challenges for charity;we would like to recognise the efforts of Mick Wake

218、who ran his first marathon at Loch Ness in September,raising 1,000 for The Willow Foundation;Ryan Spencer and Tom Gibbons who completed The Cumbrian Cross Lake Challenge raising 1,250 for St Lukes Hospice and Paul Muncey who completed a sponsored walk around Derwent Dam raising over 1,000 for MND(Mo

219、tor Neurone Disease).We continued our Associate membership of Considerate Constructors and saw a continued upward trend in our scoring.our highest score in 2014,43 out of a possible 50,was achieved at ASRA Bilsthorpe,a social housing project in Leicester and Nottinghamshire where the improvements in

220、cluded installation of new windows,doors and rainwater goods,roofing repairs/replacement,replacement of soffits and fascias and other repair works as required.Sport Relief in March 2014Children in Need in November 2014Mick Wake completing the Loch Ness marathon for The Willow FoundationTom Gibbons a

221、nd Ryan Spencer taking part in The Cumbrian Cross Lake ChallengeHenry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY24During 2014,our employees supported the Cathedral Archer Project(CAP)based at Sheffield Cathedral.Established 25

222、years ago to support the homeless and vulnerable,CAP believes life should be fulfilling and enjoyable and homelessness isnt.CAP supports people to achieve through helping them to develop their independence,improve their ability to tackle setbacks,improve their ability to identify and change negative

223、 behaviour and improve their wellbeing.on a practical level this includes offering cooked breakfasts,lunches,food parcels,showers and medical support as well as access to a variety of activities and learning.CAP has a team of dedicated support workers to help people make their individual journeys aw

224、ay from homelessness.In the summer of 2014,Henry Boot PLC encouraged employees to donate to a harvest event in which employees donated food stuffs and toiletries which would be used to make up food parcels for the clients;we were delighted that our employees donated in substantial amounts which resu

225、lted in our representatives making several visits to the project to deliver the donations;in addition to this several of our employees also donated warm clothing and bedding to the project.A number of our employees volunteered during this period to assist in organising the goods received into the st

226、ores of the charity from other donation points;a worthwhile and enjoyable day was spent by our employees in the cellars near Sheffield Cathedral where the popularity of the project was realised by the continued stream of deliveries being made by other volunteers who were travelling around Sheffield

227、collecting donations.our final involvement with CAP in 2014 was at Christmas when employees of Henry Boot Construction Limited held a bake sale which raised over 90.00;following which a number of employees volunteered to help out with the serving of Christmas dinner to the clients at CAP and which a

228、llowed our employees to spend time with some of the people the charity helps.Together with sub-contractors,Henry Boot Construction Limited donated over 1,000 to purchase food and other items to support those visiting CAP over the festive period.Find out more about the cathedral archer project online

229、 at:www.archerproject.org.ukcase study cathedral archer project,sheffieldHenry Boot Construction Limited donated 1,000 for the Christmas LunchHenry Boot PLC volunteers helping out in the food bank storesHenry Boot Construction Limited festive volunteers preparing for the Christmas LunchHenry Boot PL

230、CAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY25STRATEGIC REPORTour environmentWe continue to be committed to the highest levels of sustainability and we are committed to reducing our environmental impact by a variety of measures.our perf

231、ormanceWe have again been recognised by Business in the Community(BITC)Yorkshire and the Humber and have achieved Gold status,attaining a rating of 94%when measured against its Environmental Index,a slight decrease on last years assessment(2013:97%);we continue to be listed as one of the top compani

232、es in the region on the Business in the Community Environmental Index.While waste cannot be eliminated,its environmental impacts can be reduced by preventing waste wherever possible.2014 saw a static result in reducing waste with our recycling rate remaining at 94%(2013:94%).We have continued in our

233、 drive to reduce our carbon footprint;our employees are working hard to reduce the Groups carbon footprint and reduce our energy levels to more sustainable levels of consumption.We have a duty to ensure that we are as efficient as possible to provide the best service to our customers while reducing

234、unnecessary negative environmental impacts.greenhouse gas reportingOur carbon footprintour greenhouse gas emissions for the year ended 31 December 2014 were calculated in accordance with the GHG Protocol Corporate Accounting and Reporting Standard(revised edition)and emission factors from UK Governm

235、ent GHG Conversion Factors for Company Reporting 2014.The calculation incorporates the six Kyoto gases including carbon dioxide,methane,nitrous oxide and hydrofluorocarbons(HFCs),and reports them in tonnes of carbon dioxide equivalents(Co2e).methodologyUsing the operational control consolidation met

236、hod we have reported on all scope 1(direct)and scope 2(indirect)emissions required under the Companies Act 2006(Strategic Report and Directors Report)corporate responsibiLity eNViRONMeNTcarbon emissions by sourceHenry Boot Group Co2e emissions2014 tonnes20132 TonnesTrendScope 1:Combustion of fuel an

237、d operation of facilities 2,2882,286Scope 2:Electricity,heat,steam and cooling purchased for own use1,3371,216Total direct emissions3,6253,502Total direct emissions per employee17.90 tonnes co2e7.78 tonnes Co2eScope 3:Upstream and downstream indirect emissions1,0171,000Total emissions4,6424,502Total

238、 emissions per employee110.11 tonnes co2e10.00 tonnes Co2e1 Employee numbers are based on the monthly average for the year 2 2013 emission figures have been restated due to omitted electricity data and an amended unit conversion for gasCompany ownedvehicles46%36%6%6%5%1%ElectricityOther Fuel/GasNatu

239、ral gasBusiness mileageRefrigerant gasour carbon footprintRegulations 2013 and have voluntarily included some of our scope 3 emissions.These sources fall within our consolidated financial statements.We do not have responsibility for any emission sources that are not included in our Financial Stateme

240、nts.Emissions relating to subsidiaries for which we have operational control have been included at 100%and emissions relating to joint ventures for which we have 50%operational control have been included at 50%.This is consistent with the treatment of subsidiaries and joint ventures within our finan

241、cial statements.overall,the Groups greenhouse gas emissions have risen by 3%when compared with those of the previous year;this equates to an increase of 0.11 tonnes per employee.The increase predominantly relates to scope 2 emissions,which have risen as a result of the increase in the emission facto

242、rs(UK Government GHG Conversion Factors for Company Reporting 2014)used in calculating the tonnes of Co2.assessment boundaryelectricity usebusiness mileagenatural gas userefrigerant gas losscompany owned vehiclesother fuels/gas usefire extinguishersfuel,well to tank and electricity transmission and

243、distribution waste disposalwater consumptionbiogenic co2Potential boundary for Group emissionsAssessment boundaryScope 1 emissionsScope 2 emissionsScope 3 emissionsHenry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY26property inve

244、stment and developmentExpansion of our housebuilding arm has resulted in an increase in the number of staff,the level of emissions relating to our offices,and onsite fuel and gas use during the year.As a result we have seen an increase of 0.54 tonnes of Co2 per 1,000 sq ft of investment property(wit

245、h communal areas).Land developmentThere has been minimal movement in the level of emissions relating to our land development segment.However,the emission tonnes of Co2 per employee have fallen by 0.25 due to an increase in the number of staff during the year.constructionThe level of fuel and gas use

246、d on construction sites has fallen during the year,despite an increase in the level of turnover,which has resulted in a reduction in carbon emissions of 2.43 tonnes per 1m of turnover.group overheadsEmissions in relation to Group overheads have fallen by 13%,irrespective of a slight increase in the

247、number of staff.The reduction predominantly relates to a lower usage of electricity and natural gas.our achievementsWe were successful again in winning two CIoB Environment Awards for South Yorkshire and the East Midlands.Henry Boot Construction Limited has signed up to participate in WRAP Built Env

248、ironment Commitment which provides a framework in which the Company can continue to lower carbon and improve resource efficiency in their everyday work activities.In order to ensure we are effective in achieving reductions in our environmental impact and carbon footprint,we have formed a Carbon Redu

249、ction Committee consisting of several individuals from within the business who are responsible for identifying and implementing improvements that will inevitably reduce our carbon emissions.During the year several measures were trialled and implemented,including:A Safe and Fuel Efficient Driving cou

250、rse was trialled on 36 members of staff and will be rolled out to the rest of the Group;HGVs fitted with data recorders monitoring driving styles,efficiency and fuel economy;Replacement vans fitted with speed limiters;More efficient replacement vehicles;Appointment of energy consultant to carry out

251、assessments of two office buildings.The Committee will continue to pursue improvement measures and continuous reduction in the level of our carbon emissions.carbon emissions by segmentHenry Boot Group Co2e emissions2014tonnes of co2e2014intensityratiotonnes of co2e20132Tonnes of Co2e20132IntensityRa

252、tioTonnes of Co2eIntensity BasisTrendProperty investment and development1,2342.581,0232.04per 1,000 sq ft of investment property with communal areasLand development1233.961224.21per employeeConstruction3,10837.733,15440.16per 1m of turnoverGroup overheads1773.412033.98per employeeTotal gross control

253、led emissions4,6424,502Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY27STRATEGIC REPORTcreating VaLue.THRoUGH STRoNG PERFoRMANCE AND RISK MANAGEMENTHoW is tHe gRouP BeneFitting FRoM its long-teRM stRategY?the Henry Boot group

254、 of Companies has long benefitted from a consideration that goes to the heart of our strategic decision making;the under-utilised concept of prudently investing for the long-term.We have seen many economic cycles since our formation in 1886 but we have always demonstrated our commitment to our share

255、holders with growing income returns and long-term stability.the cyclical nature of what we do has seen our share price vary significantly over the years but we have continued to make trading profits and continued to pay dividends.our long-term strategy has to be flexible enough to deal with the vaga

256、ries of the economic cycle,maximising opportunities arising throughout the cycle and successfully achieving our main business aims,whilst maintaining prudent borrowing levels and ensuring the security of our asset base.Best financial result since 2007 Profit before tax of 28.3mRecord dividend recomm

257、ended Key highlightsJohn sutcliffe Group Finance DirectorJamie boot Group Managing DirectorGross profit rose by 5.9m to43.7m an increase of 16%over our 2013 resultoperating profits rose by 9m to28.0man increase of 47%over our 2013 resultJohn sutcliffe Group Finance DirectorJamie boot Group Managing

258、Director Profit before tax increased by 54%to 28.3m Basic earnings per share increased by 88%to 16.2p NAV per share increased by 3%to 152p per share RoCE increased 310bps to 11.4%Total dividends for the year increased 9.8%toarecord 5.6p,covered 2.9 times Net assets now exceed 200mKey highlights of o

259、ur financial performance in 2014our clear and consistent long-term strategy helped produce our best result since 2007.The house building sector recovery is now well-established with the major UK house builders currently reporting significantly improved financial performance.Real estate debt markets

260、are performing well and increasing confidence across all sectors is supporting property development activity which has a positive knock-on effect in the construction and plant hire businesses.consolidated statement of comprehensive incomeRevenue reduced slightly to 147.2m(2013:153.8m)although,2013 i

261、ncluded some 20m of one-off revenue transactions at York andBromley which were matched by cost of sales.Gross profit increased 16%to 43.7m(2013:37.8m)helped by higher land sale profits.Selective reinvestment in staffing and into the business infrastructure at Stonebridge saw overheads rise 1.2m,offs

262、et by lower pension related costs of 0.4m.Property revaluation gains were 1.9m(2013:loss 1.6m)and asset disposal profits were 0.4m(2013:0.3m)as the improving property market allowed us to generate higher returns.The revaluation gains arose primarily from the development activity completed in the yea

263、r,offset by a write down,where proposed foodstore-led developments are unlikely to proceed as previously envisaged.Resulting operating profits increased 47%to 28.0m (2013:19.0m).The segmental result analysis shows that land development produced a significantly improved operating profit of 14.1m(2013

264、:11.9m).Property investment and development activities operating profit increased to 8.7m(2013:3.1m),arising from the revaluation surplus and higher trading profits.In addition,the share of profit of joint ventures is a revaluation gain within Pennine Property Partnership.Construction division opera

265、ting profits improved to 9.2m(2013:8.2m)helped by better results in both construction and plant hire.These results continue to show the benefits of abroad-based operating model in which all our business segments faced improving markets during the year.We recognise that the deal-driven results within

266、 the strategic land and commercial development segments can vary from year to year but these fluctuations are mitigated bythe relatively stable returns from the construction segment.tax The tax charge for the year was 4.8m(effective rate of tax:17.0%)(2013:5.1m and effective rate:28.0%).Current taxa

267、tion on profit for the year was 4.4m (2013:4.1m);with the charge for the year benefitting from higher joint venture profits which are included net of tax and changes in the carrying value of investment property not fully reflected in the tax charge.In 2014 we saw net revaluation gains which are not

268、taxable until capital losses giving rise to an unrecognised deferred tax asset have been utilised.The unrecognised deferred tax asset has therefore fallen to approximately 0.8m(2013:1.4m).The deferred tax charge fell to 0.4m(2013:1.1m)resulting from the tax charge in 2013 including the reduction in

269、the future reversal rate applied to the deferred tax asset brought forward to 20%from 23%in 2012,no further change in this measure was required in 2014.The deferred tax charge largely represents pension contributions being higher than the IAS 19 defined benefit charge.earnings per share and dividend

270、s Basic earnings per share were 88%higher at 16.2p(2013:8.6p).The total dividend payable for the year has been increased by 9.8%to a record 5.60p(2013:5.10p),with the proposed final dividend also increasing by 11.1%to 3.50p(2013:3.15p)payable on 29 May 2015 to shareholders on the register as at 1 Ma

271、y 2015.The ex-dividend date is 30 April 2015.financiaL reViewHenry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY30Read our financial statements in detail on pages 82 to 137 View more content online at:www.henryboot.co.ukreturn on

272、capital employed(roce)Higher pre-tax profitability in the year resulted in improved return on capital employed from 8.3%in 2013 to 11.4%in 2014.our aim is to achieve and maintain a rate of return of between 10%and 13%as we believe,in the longer term,this is the level of return achievable by a succes

273、sful business in the property sector.finance and gearingAlthough debt has increased marginally after further investment in our strategic land portfolio,netfinance costs remained stable at 0.8m(2013:0.8m).Average borrowing rate costs were slightly lower than the previous year and any increase in volu

274、me borrowing cost is offset by a corresponding reduction in the non-utilisation fee.It is anticipated that interest costs will remain similar in 2015 as the first upward change in interest rates seems more likely to occur in 2016.We expect to see further investment in both our land and development a

275、ssets,partly offset by investment sales as we recycle capital into the next phase of anticipated development activity.Interest cover,expressed as the ratio of operating profit(excluding the valuation movement on investment properties and disposal profits)to net interest,was 31 times(2013:24 times).N

276、o interest incurred in either year has been capitalised into the cost of assets.our continued extensive interaction with the planning system saw further investment in our strategic land holdings and to a lesser extent in the property development portfolio.This was achieved by using internally genera

277、ted cash flows so that total year end net debt only rose marginally to 36.4m(2013:36.1m).Gearing on net assets of 200.5m was 18%(2013:net assets 193.5m;gearing 19%).Total year end net debt includes 7.7m (2013:3.0m)of funding which is repayable from the future sale of residential units on certain sit

278、es.All bank borrowings continue to be from facilities linked to floating rates or short-term fixed commitments.During the year,we maintained three year committed bank facilities totalling 50m renewable in May 2015.In February 2015 we agreed a new three year 60m facility with covenants on a similar b

279、asis but on more competitive margin terms.The agreed terms also allow for the possible extension of the facilities for a further two more years on the same terms,subject to agreement between the banks and the Company.Throughout the year we operated comfortably within the facility covenants and conti

280、nue to do so.Proposed final dividend of3.50pan increase of 11.1%over 2013 paymentBefore and after refurbishment at the former Courthouse,Deansgate,Manchesterour gearing level has reduced to18%a reduction of 5%over the year of 2014Henry Boot PLCAnnual Report and Financial Statements for the year ende

281、d 31 December 2014www.henryboot.co.ukStock Code:BHY31STRATEGIC REPORTstatement of cash flows We continue to believe it is vital that we retain the flexibility to undertake developments and land deals without reference to specific funding from banks.Therefore,we retain the ability to fund such transa

282、ctions from our own resources,reserving the property investment assets as the covenant support for the new 60m banking facilities.Forecast bank debt levels at the end of 2015 are anticipated to be slightly lower than 2014 as we continue to realise land investment through sales.During 2014,we further

283、 increased operating cash flows before movements in working capital by 4.8m to 24.9m(2013:20.1m)and,despite further investments in working capital of 10.0m(2013:18.5m)we still achieved a positive change in cash generated from operations of 13.3m.Cash outflows from investing activities reduced to 0.3

284、m(2013:4.3m)as we recycled 16.8m of investment property and plant and equipment sales into 17.4m of new property development and plant purchases.Dividends paid,including those to non-controlling interests,totalled 8.6m(2013:8.4m),with dividends paid to equity shareholders now exceeding the pre-reces

285、sion level.statement of financial position Investment property and assets classified as held for sale were valued at 141.8m(2013:142.9m).The fair value of completed investment property including assets held for sale was 99.4m(2013:101.0m)and the value of investment property under construction within

286、 investment property is 42.4m(2013:41.9m)as we develop these assets into investmentproperties.Intangible assets reflect the Groups investment in Road Link(A69)of 6.7m(2013:8.0m).The treatment of this asset as an intangible asset is a requirement of IFRIC 12 and arises because the underlying road ass

287、et reverts to the Highways Agency at the end of the concession period.Property,plant and equipment comprises Group occupied buildings valued at 7.0m(2013:6.8m)and plant,equipment and vehicles with a net book value of 12.1m(2013:10.6m);this increase arose from further investment in new plant and plan

288、t delivery vehicles.Non-current trade and other receivables have reduced to 4.8m(2013:12.7m)due to net collections on long-term payment plans associated with completed land sales.Given the potential land sales predicted for 2015 we anticipate that this debtor caption will increase once again in 2015

289、.The non-current deferred tax asset increased in response to the higher IAS 19 pension deficit.In total,non-current assets increased slightly to 180.7m(2013:176.0m).financiaL reView continuedRevenue slightly reduced to147.2mduring the year of 2014Current assets inventory of117.5mincluding 99.6m ofst

290、rategic land assetsA mixed-use development at Halfway,Sheffield.A further planning application has been registered for 200 new homes.Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY32Within current assets,inventories of 117.5m(

291、2013:91.0m)increased due to further investment in the land portfolio to 99.6m(2013:83.9m)and assets in the course of construction to 17.8m(2013:7.1m).Trade and other receivables also increased to 50.1m(2013:43.1m)from higher construction and land sales.The decrease in cash and cash equivalents arose

292、 because several transactions were concluded very close to the 2013 year end and cash could not be offset against loan drawdowns at that time;no such issue arose at the end of 2014.In total,current assets increased to 172.1m(2013:160.2m).Current liabilities remained very similar to the previous year

293、 at 107.1m(2013:106.3m)as the current portion of debt reduced to 32.0m(2013:46.5m).However,if we were to offset the cash current asset last year,debt would be broadly in line.Tradepayables increased to 68.8m(2013:50.2m)as a result of various amounts related to higher levels of activity across all se

294、gments of the business.Provisions reduced to 4.3m(2013:7.1m)as amounts provided for the infrastructure obligations at Bridgwater and Cranbrook,Exeter,were utilised,satisfying planning obligations.Net current assets increased to 65.0m(2013:53.9m).This increase is due to further investment in land inv

295、entories,development contracts in progress and debtors,offset by increased trade creditors as we operate at a higher general level of activity throughout the Group.Non-current liabilities increased to 45.3m(2013:36.4m)after IAS 19 pension liabilities increased once again to 28.2m(2013:20.1m)with yet

296、 another strong performance from the Schemes assets and the introduction ofRPIJ as the inflation measure which was more than offset by the ongoing reductions in gilt and bond yields applicable to the present value of liabilities,as real interest rates turn negative in many economies.Net assets incre

297、ased by 3.6%to 200.5m(2013:193.5m)as retained profits were offset by the increase in the pension deficit,dividends paid and treasury share purchases.Net asset value per share increased 3%to 152p(2013:148p).pension schemeThe fluctuating profile of the IAS 19 deficit continued in 2014.At 31 December 2

298、014 the deficit was 28.2m,in 2013 it was 20.1m and in 2012 it was 30.5m.once again,the Scheme assets performed well,achieving an overall return in excess of 10%(2013:9%and 2012:8%).This is expected as the Schemes assets are invested with high quality asset managers on a global basis,utilising a broa

299、d range of assets and diversification,and since the second quarter of 2010,these assets have achieved an annualised return of 8.7%against a benchmark return of 8.2%.However,this impressive return has been more than offset by application of a reduced discount rate of 3.6%from 4.5%in 2013 to determine

300、 the present value of the Scheme liabilities prescribed under the rules of IAS 19.Whilst the standards intention is that the discount rate reflects the best long-term return,we should expect our assets to achieve,current application under the standard equates to 41%of the average asset return actual

301、ly achieved since 2010 and 44%of the asset managers benchmark.As a comparison,a discount rate of 4.75%would result in a negligible deficit.The deficit result produced has a significant impact on our net assets(circa 15p per share)and does so using a discount rate which is materially below the longer

302、 term returns our Scheme assets have achieved by investing globally,in a range of return-seeking assets rather than nationally in bonds and gilts.The Company agrees with the Pension Trustees asset allocation and actively reviews the return achieved from the asset portfolio against its benchmark on a

303、 regular basis.Jamie boot Group Managing DirectorJohn sutcliffe Group Finance Director 17 April 2015Banking facilities agreed of60mfor a three year period from February 2015Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY33STRA

304、TEGIC REPORTnet assets(m)184.8181.9200.52014193.5201320122011obJectiVeTo grow the asset base over timeperformance4%increasecommentsIncreased due to retained profits offset by rise in pension deficit which was affected by the fall in bond yields on target earnings per orDinary share(p)6.97.016.220148

305、.6201320122011obJectiVeTo increase returns over time performance88%increasecommentsIncreased due to higher retained profits helped by a reduction in deferred tax charged in the yearon target naV per share(p)1421391522014148201320122011obJectiVeTo increase shareholder value overtimeperformance3%incre

306、asecommentsLittle change to share capital,therefore,benefits from retained earningson target profit before taX(m)16.113.428.3201418.4201320122011obJectiVeTo increase profit levels over timeperformance54%increasecommentsHigher land sales and profits in 2014.2015 looks positive in terms of land and pr

307、operty developmenton target cash generation(m)9.1(19.6)(0.3)2014(14.2)201320122011obJectiVeTo monitor cash generated over timeperformanceCash outflow 0.3mcommentsWe continue toreinvest retained earnings in the portfolio of land and property development assetson target DiViDenDs per orDinary share(p)

308、4.254.705.6020145.10201320122011obJectiVeTo generate growing shareholder returns over timeperformance10%increasecomments10%increase to 5.60p as wemove dividends ahead of previous record of 5.10p on target our Key performance inDicators fiNaNCialEach business unit within the Group is required to esta

309、blish targets at the beginning of each financial year against abroad range of financial and non-financial indicators.The Managing Director of each subsidiary reports on progress at Board meetings every two months.The two main Board Executive Directors attend these meetings and are able toassess whet

310、her each unitis performing in accordance with its plan throughout the year.The key performance indicators used by the Board are as follows:Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY34sharehoLDer return(%)36130201452201320

311、122011obJectiVeTo generate growing shareholder returns over timeperformanceNo increase in yearcommentsShare price actually fell over the year despite earnings per share doubling.Return over the last 3 years is 73.6%comfortably above the median of the All Share and Small Cap indices on target gearing

312、 LeVeLs(%)11218201419201320122011obJectiVeTo monitor levels of cash required over timeperformance5%decreasecommentsThis still prudent gearing level gives us flexibility to reinvest in land sites andproperty development.2015 should seelevels fallslightly once again on target return on capitaL empLoye

313、D(%)7.36.211.420148.3201320122011obJectiVeTo increase returns on capital employed over timeperformance37%increasecommentsHealthy improvement in returns over the last three years.Now generating the kind of returns to meet our aspirations pension scheme Deficit(m)(22.6)(30.5)(28.2)2014(20.1)2013201220

314、11obJectiVeTo reduce the pension scheme deficit over time performance40%increasecommentsDiscount rate used by IAS19 has reduced to 3.6%from 4.5%.Yet again the pension scheme assets achieved a return substantially ahead of this(10%).A discount rate of 4.75%would result in a negligible deficit LinKing

315、 performance to rewarDThe KPIs differ in each subsidiary with the exception of financial targets which focus on profitability growth,cash generation and levels of debt,forecast cash requirements,return on capital employed,shareholder return and asset value created.We also review health and safety ma

316、tters and how economic conditions and changes in legislation may affect individual business units.The Board has decided that the following KPIs,which are included within the papers for each Board meeting,are indicators measuring our success towards achieving long-term,sustainable growth for all stak

317、eholders in our business.In addition to this,we review a range of specific indicators within each business unit,the main ones being as follows:land Development(see pages 8 to 11)The size of the strategic land bank,the split between owned and optioned land,the number of allocated sites and changes to

318、 those allocations,the extent to which we have full or outline planning consent and the number of residential units or commercial space contained in those consentsproperty investment and Development(see pages 12 to 15)The expected investment in developments,expected completed values and anticipated

319、yields,rents and rental growth,levels of tenant demand and unlet space,new commercial property investment and development opportunities and potential asset sales.Construction (see pages 16 to 19)Workload forecasts and capacity utilisation in relation to plan,general activity levels,tender opportunit

320、ies,contract costing workload and wins,health and safety and environmental matters and contract completion,sign off and financial closure.Activity levels by depot and class of asset,health and safety matters,levels of cash generated and returns on plant asset capital employed,which in turn drive ass

321、et investment decisions.Group (see pages 30 to 33)At Group level the business units financial performance against expectations forms an integral part of the reporting criteria.In addition Group performance indicators of cash and facilities,pension scheme performance,shareholder return and return on

322、capital employed along with health and safety matters are reported on at each meeting.Read more in our Directors Remuneration Report on pages 60-77on target on target Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY35STRATEGIC

323、REPORTacciDent frequency rate(afr)(per 100,000 hours worked)commitmentour health and safetyobJectiVeTo ensure a reducing number of health and safety incidents when measured against the Constructing Excellence Health and Safety KPImentsAnother successful year of zero incidents affecting our directly

324、employed staff.acciDent frequency rate(afr)(per 100,000 hours worked inclusiveof sub-contractors)commitmentour health and safetyobJectiVeTo ensure a reducing number of health and safety incidents when measured against the Constructing Excellence Health and Safety KPImentsour ongoing education of our

325、 sub-contractors and the closer monitoring of their working practices continues.personaL DeVeLopment(Days)commitmentour peopleobJectiVeTo ensure that our employees are trained to the appropriate level and are given adequate opportunity to develop their mentsA slight decrease in training days deliver

326、ed.Reflective of large increase in 2013,where skill gaps were addressed.reportabLe acciDentscommitmentour health and safetyobJectiVeTo ensure a reducing number of health and safety incidents when measured against the Constructing Excellence Health and Safety KPImentsIt is an ongoing priority and foc

327、us of the Group to commit to ensuring health and safety is paramount,however 2014 saw a slight increase in reportable accidents.empLoyee profiLecommitmentour peopleobJectiVeTo ensure a diverse spread ofgenders within all job roles in the GmentsWe currently have a gender split of 76%male to 24%female

328、.In order to address this we are working closely with external partners to encourage underrepresented groups into the industry.bitc enVironmentaL inDeXcommitmentour environmentobJectiVeTo be recognised by a recognised body as being a leader in environmental management in our mentsA decrease in our s

329、coring due to realignment of the process means that we are now classed as Gold status;the Company will endeavour to regain Platinum status in the future.our Key performance inDicators NON-fiNaNCialWe have identified a number of key performance indicators(KPIs)against which we measure ourcorporate re

330、sponsibility.These are monitored during the year and action taken if necessary.2 The BITC altered its scoring matrix in 2014 which resulted in reductions across the board of approximately 5%).MalesFemales0.310.200.1220140.06201320122011000201402013201220119271,0851,16420141,3062013201220115322014120

331、13201220114394384592014201320122011450921001111033473383483479195942201497201320122011Henry Boot PLCAnnual Report and Financial Statements for the year ended 31 December 2014www.henryboot.co.ukStock Code:BHY36consiDerate constructor schemecommitmentour communityobJectiVeTo be classified as a goodnei

332、ghbour when scored against theConsiderate Constructor SmentsAnother solid year of performance which saw achievement ofseveral high scores across our sites.recycLing(DiVerteD from LanDfiLL)commitmentour environmentobJectiVeTo reduce the amount of spoilgoing to landfill by recycling,reusing mentsWe co

333、ntinue to improve our methods of work to try to reduce this number further.our awarDsHenry Boot PLC is one of the UKs leading and long-standing land development,property investment and development,and contruction companies;renowned for quality and a diverse portfolio,we pride ourselves on maximising long-term shareholder value.We have a reputation for providing a quality product,delivered in a saf