1、Henry Boot PLC Annual Report and Financial Statements 2010Henry Boot PLC Annual Report and Financial Statements 2010A lot has changed in125 years_5_HYB_ar10_cover.indd 112/04/2011 14:23:24A lot has changed in 125 yearst About ust ContentsThe Henry Boot Group operates in the UK Property and Construct
2、ion sectors.Our key objective is to maximise long-term shareholder value through construction and plant hire activities,the development of and investment in high quality property assets and the promotion of new land development opportunities.Review of the year01 2010 highlights02 Henry Boot at a gla
3、nce04 Chairmans statement06 Business review Operations review Financial reviewCorporate responsibility24 Corporate social responsibility Health and safety Our employees Corporate governance Supporting local communities and charities Our environmental responsibilitiesCorporate governance30 Board of d
4、irectors31 Subsidiary company managing directors31 Company advisers31 Financial calendar32 Directors report40 Directors responsibilities41 Corporate governance statement44 Directors remuneration reportFinancial statements47 Independent auditors report48 Consolidated statement of comprehensive income
5、49 Statements of financial position50 Statements of changes in equity51 Statements of cash flows52 Principal accounting policies58 Notes to the financial statementsShareholder information80 Property valuers report81 Notice of annual general meetingIBC Front cover imagest for more information:www.hen
6、ryboot.co.uk_5_HYB_ar10_cover.indd 212/04/2011 12:53:50Henry Boot PLC Annual Report and Financial Statements 201001A lot has changed in 125 yearst 2010 highlightst Tradingprofits(*)increased to 18.0m(2009:11.5m)t Propertyrevaluationsurplusof0.6m(2009:deficit22.4m)t Propertyinvestmentdisposalprofitso
7、f2.4m(2009:0.9m)t Profitbeforetax:18.9m(2009:loss11.9m)t Earnings per share:9.1p(2009:loss 5.7p)t Proposedfinaldividendof2.15ppershare,totalfortheyearof3.5pup40%on2009(2.5p)t Netassetvaluepershareincreasedby7%to145p(2009:135p)t Furtherreductioninnetdebtto11.4m(2009:32.1m)andingearingto6%(2009:18%)t
8、Post year end:t Group is net cash positive after property and land disposals completed in early 2011 t Director retirement and appointment announced(*)Tradingprofitcomprisesoperatingprofitof20.9m(2009:lossof10.0m),adjustedfortheincreaseinfairvalueofinvestmentpropertyof0.6m(2009:decreaseof22.4m),prof
9、itonsaleoninvestmentpropertiesof2.4m(2009:0.9m)and the loss on sale of assets held for sale of 0.1m(2009:nil).Group profit before tax(m)31 December18.9m201018.92009(11.9)200819.3200746.5200640.8Net asset value per ordinary share(p)31 December2010145p2009200820072006145135146139116Dividends per ordin
10、ary share(p)31 December20103.5p20092008200720063.52.55.05.04.4Earnings per ordinary share(p)31 December9.1p20109.12009(5.7)200810.8200724.5200619.8_0_HYB_ar10_front_MR.indd 1312/04/2011 16:30:22Henry Boot PLC Annual Report and Financial Statements 201002A lot has changed in 125 yearst Henry Boot at
11、a glanceThe Sheffield-based Henry Boot Group is one of the UKs leading property and construction organisations,with its four principal trading subsidiary companies operating in the property development and investment,land management,construction and plant hire sectors.The Groups main objective is to
12、 maximise shareholder value in the longer term through active commercial development and land management,allied to recurring income from investment property,PFI,construction and plant hire activities.Each Group company is managed autonomously and has set objectives to maximise short-term profits and
13、 create valuable long-term asset backed opportunities in the property sector.Our locationsGroup head officeSheffieldTwelve regional officesBristolChesterfieldDerbyDronfieldGlasgowLeedsLondonManchesterNorthamptonRotherhamStocksfieldWakefieldHenry Boot Developments LimitedHenryBootDevelopmentsisamajor
14、forceintheUKpropertydevelopmentmarket,operatingnationallyfromitsheadofficeinSheffieldandregionalofficesinBristol,Glasgow,LondonandManchester.Withitsconsiderableexperienceandimpressive reputation in all sectors of property development,theCompanyhasbuiltupasubstantialinvestmentportfolioinrecentyears.A
15、tthesametime,manyschemeshavebeensold-ontofinancialinstitutionslooking to add to their own quality portfolio.Head Office:Banner Cross HallEcclesall Road SouthSheffieldS119PDt:01142555444e:hbdlhenryboot.co.ukwww.henrybootdevelopments.co.ukManaging Director:David AndersonRegional Offices:SouthEastLondo
16、nt:02074956419SouthWestBristolt:01454275261North West Manchester t:0161 830 8000NorthEastSheffieldt:01142555444ScotlandGlasgowt:01412239090annualreports.henryboot.co.uk/2010/reviewoftheyear/operationsreview/propertyt to view online:annualreports.henryboot.co.uk/2010/reviewoftheyear/group_0_HYB_ar10_
17、front_MR.indd 1412/04/2011 16:30:23Henry Boot PLC Annual Report and Financial Statements 201003A lot has changed in 125 years Hallam Land Management LimitedHallam Land Management is the strategic land and planning promotion arm of the Henry Boot Group.The Companys key role is to promote and deliver
18、land opportunities throughthecomplexitiesoftheUKPlanningSystem.ExperiencedlandandplanningpromotionteamscovertheUK,operatingfromregionalofficesinBristol,Glasgow,LondonandNorthampton,aswellasfromtheSheffieldheadoffice.Head Office:Banner Cross HallEcclesall Road SouthSheffieldS119PDt:01142555444e:halla
19、mlandhenryboot.co.ukwww.hallamland.co.ukManaging Director:Keran PowerRegional Offices:SouthEastLondont:02074956419SouthWestBristolt:01454625532SouthMidlandsNorthamptont:01604646588NorthMidlandsSheffieldt:01142555444NorthSheffieldt:01142555444ScotlandGlasgowt:01698464320annualreports.henryboot.co.uk/
20、2010/reviewoftheyear/operationsreview/landHenry Boot Construction LimitedHenry Boot Construction operates from strategicregionalbasesatDronfieldandManchester,andspecialisesinservingbothpublicandprivateclientsinallconstructionsectors,includingcivilengineering.Itworksvery closely with clients under al
21、l forms of contract,includingPartneringandFrameworkagreements,whicharedeliveredtothehighestquality,safely,ontime,withinagreedcostsandtothemaximumbenefittoallparties.RoadLink(A69)Limited,a61%ownedsubsidiary,withtwoothershareholdersholdingtheremaining39%,operatesandmaintains the A69 Newcastle-Carlisle
22、trunkroad for the Highways Agency under a PFIcontract.Thecontractwasinitiallyfor30 years and has 15 years still to run.Head Office:Callywhite LaneDronfieldDerbyshireS182XNt:01246410111e:hbchenryboot.co.ukwww.henrybootconstruction.co.ukManaging Director:Simon CarrRegional Offices:EasternDronfieldt:01
23、246410111Western Manchester t:0161 273 5302RoadLinkStocksfieldt:01661842842annualreports.henryboot.co.uk/2010/reviewoftheyear/operationsreview/constructionBanner Plant LimitedBannerPlantisalongestablishedplanthirecompany offering a wide range of products and services for sale and hire.The Companys h
24、eadofficeisinDronfield,withhirecentreslocatedinDronfield,Chesterfield,Derby,Leeds,RotherhamandWakefield.Continuinginvestment is made in providing new equipment,transportandservicefacilitiesto meet the increasing needs of its many variedcustomersincommerce,industryandthegeneralpublic.Head Office:Call
25、ywhite LaneDronfieldDerbyshireS182XSt:01246299400e:dronfieldbannerplant.co.ukwww.bannerplant.co.ukManaging Director:Giles BootRegional Hire Centres:Chesterfieldt:01246268593Derbyt:01332752035/751762Leedst:01132406350Rotherhamt:01709515655/511500Dronfieldt:01246299400Wakefieldt:01924283487annualrepor
26、ts.henryboot.co.uk/2010/reviewoftheyear/operationsreview/plant_0_HYB_ar10_front_MR.indd 1512/04/2011 16:30:26Henry Boot PLC Annual Report and Financial Statements 201004A lot has changed in 125 yearst Chairmans statementInmyfinalreporttoshareholdersbeforemyretirementasChairman,Iampleasedtoreportasig
27、nificantlyimprovedsetofresultsfortheyearended31December2010,particularlygiven the continued challenging market conditions prevailing in the UK property and construction markets during the period.Propertyinvestmentyieldsingeneralstabilisedatsimilarlevelstothoseseenattheendof2009,withtheexceptionofpri
28、meyields,whichdidimprovesomewhatduringtheperiod.Consequently,the downward revaluations seen in 2009 were not repeated and the year closed with a small revaluationsurplus.TheGroupwasabletotakeadvantageofabetterinvestmentmarketduringtheyearandconcludedsalesatSouthShields,MansfieldandPortTalbot.Commerc
29、ialpropertydevelopmentremainsdifficult,thecombinationofconstruction,tenantandvaluationriskremainshigh,althoughthemorestablemarketmeansthat selectively we have commenced development onceagainwithafoodstore-led,retaildevelopmentinWarminster,pre-lettoWaitrose.Inaddition,wehavesignedupseveraldevelopment
30、opportunities,someasjointventureswiththelandowners,whereweexpecttoaddvalueinthelongerterm.Asanticipated,HallamLandManagementLimited(HallamLand)hadabetteryearthanin2009butresultsremainsignificantlybelowthelevelsseenatthepeakofthecycle.Pocketsofbuyingactivityfromretailersandhousebuildersareemergingand
31、weconcludedasignificantlandsaleatBridgwatertoMorrisonsforamajorregionaldistributionhubandtoBarrattforsome600 housing units.The proceeds of these sales will fund the cost of the infrastructure and Section 106 requirements of the site in order to access the further land with permission for over 400mor
32、ehousingunits.As2011continuestounfold,theUKhousebuildersreportingtodatehaveindicatedthatnewbuildhousingmarketvolumesremainfairlyflat,thoughpricingandmargins are recovering as land acquired more recentlybeginstoworkthroughintothesalesmix.Thekeyconcernwithinourlandbusinessis,however,neitherthelandmark
33、etnorthecustomersforourland,itistheunderlyingplanningenvironment.AcombinationofCoalitionGovernment intervention in the planning regime andlocalauthoritystaffcutbackswithinplanningdepartmentswill,webelieve,servetoreducethenumberofnewplanningpermissionsbeinggranted in the coming months and years.Howev
34、er,weanticipatedthisdevelopmentandarepleasedtoreportthatover20%ofourportfolioof land already has either planning permission oranallocationinalocalplan,andisthereforemuchfurtherthroughtheplanningprocess,comparedwitharound10%somefiveyearsago.The construction division generated another positivefinancia
35、lresultasworkcontinuedonJOHN REIsChairmanI am pleased to report a significantly improved set of results for the year ended 31 December 2010,particularly given the continued challenging market conditions prevailing in the UK property and construction markets during the period.t to view online:annualr
36、eports.henryboot.co.uk/2010/reviewoftheyear/chairmansstatement(*)See page 1_0_HYB_ar10_front_MR.indd 1612/04/2011 16:30:27Henry Boot PLC Annual Report and Financial Statements 201005A lot has changed in 125 years the Rotherham and Doncaster Decent Homes programmes,andworkcommencedatEastlands,Manches
37、ter.Asinpreviousyears,muchoftheconstruction divisions work is either local authority orcentrallyfundedandweexpectthatthepublicspending cuts will reduce potential contract workloads and increase pricing pressure as more firmscompeteforlesswork.At31December2010,asinpreviousyears,about70%of2011sbudgete
38、dactivity was already contracted.At our plant hire business,activitylevelsin2010recoveredslightlyalthoughthebadweatherinJanuaryandDecemberdid have an adverse impact on trading.Whilst we increasedcapitalexpenditureover2009,ourplantbusinessin2010wascashgenerativeonceagain.Road Link A69 continued to pe
39、rform in line with managementexpectationsandpreviousyears,onceagaincontributingsolidlytobothunderlyingprofitandcashgenerationintheperiod.Trafficvolumeshavebeenonlymarginallyaffectedbythe adverse weather over the last two winters andourteamcontinuedtodoagreatjobensuringthat the road remained open at
40、all times.WecontinuetooperatethroughourUK-widenetworkofoffices,creatingfutureland,planningand development opportunities in a cost effective way and as prudent cash management allows.The construction and property investment income streamsprovidesteadyprofitsandcashflows,whichunderpinourperformance,de
41、spitethereduction in the more cyclical development and landprofits.Ourstrategicfocusduringtherecessionaryperiodhasbeentopreserveassetvaluesandreducedebt.Wehavemadefurtherprogressondebtreductionduringtheperiodwithnetdebtdownfrom32.1mto11.4mattheyear end.Despite the large property valuation adjustment
42、seenoverthelastthreeyears,ournetassetvaluepershare(NAV)of145patDecember2010isnowaheadofthe139pper share reported at the top of the cycle in December2007.Weexpectourbusinessesto generate further cash in 2011 and achieved a strongstartwiththesalesmadeinJanuary2011.We are now seeing increasing opportun
43、ities toreinvestthiscashintoourextensiveportfolioof land and development opportunities.FINANCIAL REsULTsRevenuewas131.9m(2009:116.5m),arisingfromhigherlandtransactionvaluesoffsetbyweakerconstruction division turnover and development activityduringtheyear.Tradingprofit(*)increased to 18.0m(2009:11.5m
44、),onceagainbecauseoftheimprovedcontributionfromlandtradinganddevelopmentactivitiesin2010.Profitbeforetaxalsobenefitedfromaone-offpensionliabilitymanagementcreditof4.5m(2009:nil)and,at18.9m,wassignificantlyaheadofthe2009lossof11.9m.Themajorchangeinprofitabilityarosefrom the movement in the property r
45、evaluation surplusof0.6mcomparedtoadeficitof22.4min2009.Propertydisposalprofitswere2.4m(2009:0.9m),largelyattributabletothe sale of our South Shields retail investment.Basic earnings per share increased to 9.1p(2009:loss of 5.7p).Total net assets increased 7%to188.6m(2009:176.2m),representingaNAVof1
46、45ppershare(2009:135p).Gearingagainfell,forthethirdyearinsuccession,asthecash generated from land and property investment saleswasappliedtoreducingdebt.Gearingattheyearendstoodat6%,basedonnetdebtof11.4m(2009:gearing18%,netdebt32.1m).DIVIDENDsIbelievewehavemanagedthedownwardandearly recovery phases o
47、f this trading cycle well.Ialsobelievethattherecoverywillcontinuetobeslowanditislikelytobeseveralyearsbeforeproperty values recover towards those seen at thetopofthepreviouscycle.However,theBoardrecognises that dividends are vitally important to shareholders in a low growth environment and,giventher
48、ecoveryinprofitandpositivecashflowintheyear,hasdecidedtorecommendafinaldividendof2.15p,a72%increase(2009:1.25p).The total dividend for the year is thereforeincreasedby40%to3.5p(2009:2.5p).BOARD CHANGEsIhaveservedontheBoardofHenryBootPLCfornearly30yearsand,havingchairedtheGroupnowfor15years,latterlyt
49、hroughthelatestrecession,Ifeelitisanappropriatetimetoretirefollowingthis years Annual General Meeting(AGM)in May.MyfellowIndependentNon-executiveDirectorJohnBrownhasagreedtotakeovertheChairmansroleaftertheAGMandIhopehistenurewillbeasenjoyableasminehasbeen.TheDirectorshaveappointedJamesSykes,apartner
50、intheaccountantsSafferyChampness,asaNon-executiveDirectorwitheffectfrom22March2011andthisappointmentwillbeputbeforeshareholdersatthisyearsAGMforratification.JameswillnotbedeemedanIndependentDirectorasheisatrusteeofcertaintrustswhichhold16%oftheissuedsharecapitaloftheGroup,however,hisexperiencemakesh
51、imanidealChairmanoftheAudit Committee which he will take over from JohnBrown.Followingmyretirement,theBoardwillconsistofJohnBrownasIndependentNon-executiveChairman;MichaelGunston,SeniorIndependentNon-executiveDirector;JamesSykes,Non-independentNon-executiveDirector;JamieBoot,ManagingDirector;andJohn
52、Sutcliffe,FinanceDirector.EMPLOYEEsOnbehalfofmyfellowDirectors,Iwouldliketoexpressmythankstoallouremployeeswho have worked tremendously hard to achieve acreditableresultinverydifficultmarkets.Regrettably,thecontinuedtoughtradingconditionswithintheconstructiondivisionhavemeantthat,onceagain,wehavehad
53、tomakeanumberofpeopleredundantduringtheyear.Iwouldalsoliketo take this opportunity to thank all the employees who have worked for the Group throughout my tenureontheBoard.Withouttheirhardwork,manyofwhomareverylongserving,theGroupwouldnotbeinthestrongpositionitistoday.sTRATEGYWecontinuetoinvestforthe
54、long-terminlandpromotion,propertyinvestmentanddevelopment,withourperformancebeingunderpinnedbytherecurringprofitandcashflowsgeneratedbyourconstruction,PFIandplanthireactivities.Wehavealso succeeded in our previously stated aim to releasecapitalbycompletingdevelopmentsinprogress and disposing of cert
55、ain assets in the portfoliotoreducedebt.Wearenowdebtfree,whichgivesusconsiderableflexibilitygoingforwardto invest in land and property development withoutrecoursetoexpensivefundingsources.Furthermore,wewillcontinuetoinvestinsecuringplanningconsentsonourgreenfieldlandportfoliotoenableustosupplytherec
56、overinghousebuildingmarketwhere,webelieve,planningconstraints could serve to improve the value oftheselong-terminvestments.Wethereforecontinue to retain and add to a strong portfolio of opportunities which we will work through the challengesofthenewplanningregimeorbringforwardfordevelopmentwherethee
57、xpectedreturns are commensurate with the risk.OUTLOOKWhilstremainingchallenging,thepropertymarkethasstabilisedandisnowshowingsomesignsofrecovery,atalevelwhichallowstheGrouptomakeareasonablereturnonitsinvestments.However,Icontinuetobelievethattherecoverywillbepatchyandrelativelylonganddrawnout.Itiscl
58、earthattherearemanyriskstoasustainedrecovery in property values.These include the availabilityofmortgagesandbankdebttothesector,thepotentialreleaseofdistressedpropertyfrombanksportfoliosandcutbacksinGovernmentspending,allofwhichmaynotberesolvedforsometime.Therefore,theBoardbelievesthatthestrategyout
59、linedaboveremainsthecorrectone until there is clear evidence that the recovery issustained.TheGroupretainssignificantfacilityheadroomandthesupportofourlong-termbankingpartnerswhichwillallowustogearupagainastherecoverytakeshold,usingthepotentialinourbusinessestogenerateimproving shareholder returns o
60、nce again.JOHN s REIsCHAIRMAN18 april 2011_0_HYB_ar10_front_MR.indd 1712/04/2011 16:30:27Henry Boot PLC Annual Report and Financial Statements 201006A lot has changed in 125 yearst Business review _0_HYB_ar10_front_MR.indd 1812/04/2011 16:30:30Henry Boot PLC Annual Report and Financial Statements 20
61、1007A lot has changed in 125 years The Groups long-term aim remains the value enhancement of land through development,planning promotion and construction.it will be focused management teams like ours,capitalising on the opportunities available to them,that will generate the greatest improvements in
62、asset value,cash and profit over the next few years.beingheldbackbytheavailabilityofaffordablemortgage funding.When this funding situation improves,thelackofsiteswithpermissioncouldthenresultinashortageofsitesforhousing,along with the attendant pricing pressure.Theconstructiondivision,withitsperform
63、anceunderpinnedbythesolidrecurringrevenuesfromourPFIproject,RoadLinkA69,performedwell,albeitwithprofitsdownon2009duetoaone-offprovisionreleaseof8.2mwhichinflatedprofitthatyear.TherecontinuestobeuncertaintyastotheimpactofcutbacksinGovernmentspendingandpreciselywheretheaxewillfall.Itappearsthatrepaira
64、ndmaintenanceworkisstillbeingundertakenbutlarger,morecostly,projectsaresubjecttodelayandcancellation.Wehavemadesignificanteffortstotrytoanticipatethisand,forthisreason,havesadlyhadtoreducestaffinglevelsduringtheyear.PlantHirehadanotherchallengingyearbutwecurtailedallbutessentialcapitalexpenditureand
65、,asaresult,thebusinesswascashgenerative.Conditions did improve through the year and ifthistrendiscontinuedin2011,weshouldsee results improve.OurkeyfocusatGroupleveloverthisverydifficulttwoyearperiodhasbeentoretainas much of the NAV created in the period up totheendof2007aspossibleandtoreduceourborro
66、wings.NAVatDecember2010nowexceedsthepre-recessionlevelbeforetakingintoaccountdividendspaid,whilstdebthasbeenfurtherreducedfrom32.1m(18%gearing)at31December2009to11.4m(6%gearing)at31December2010.Furthermore,salesreportedafter the year end mean that we are now moving forwardwithcash,landanddevelopment
67、sitestoenableustogenerategrowingreturnsasthemarket recovers.Wecontinuetobelievethattherecoveryphasewillbeslowandpatchyandwillbehighlydependent on funding streams to the property sector in general continuing to improve.Therefore,inthischallengingmarket,itwillbefocusedmanagementteamslikeours,capitalis
68、ingontheopportunitiesavailabletothem,thatwillgeneratethegreatestimprovementsinassetvalue,cashandprofitoverthenextfewyears.Top left:Grange Primary School inGrimsbywasrecentlycompletedbyHenryBootConstruction.Top right:Some of Banner Plants range of powered access equipment.Bottom left:Hallam Land has
69、a 50%shareinthissiteinMansfield,thesubjectofaplanningapplicationfor430new homes and 30 acres of employment land.Bottom right:Henry Boot DevelopmentsThePoyntofficedevelopment,fullylettoTenonPLC for its Nottingham headquarters.OPERATIONs REVIEwTheGroupslong-termaimremainsthevalueenhancementoflandthrou
70、ghdevelopment,planning promotion and construction.The marketplacethroughouttheperiodcanbedescribedaschallengingwithacontinuinglackof liquidity at an individual level in the mortgage market,alsoatthecommercialdevelopmentlevelwherehighequityinvestmentandpre-letpercentagesarerequiredtosecuredebtfunding
71、,through to institutional grade investments where lower loan to value covenants reduce the scope toraisedebtagainstthevalueofproperty.Coupledwiththis,mosttraditionalfundersoftheUK property market are seeking to reduce their exposuretothemarketandinmanycaseshaveunwantedpropertywhichtheyarerecyclingba
72、ckinto the market.We remain very cautious regarding commercial development on the sites that we hold and continue to push for a high degree of certainty onpre-lets.However,therearesignsthatthemarket is recovering in certain areas which may allowprofitabledevelopmenttotakeplacein2011andbeyond.Duringt
73、heyear,wetookadvantageofareasonablystronginvestmentmarkettodisposeofinvestmentpropertiesatSouthShields,PortTalbotandMansfield,inordertoreleasecapital for reinvestment into potential future developments,suchastheWaitrosedevelopmentat Warminster.Ourlandplanningandpromotionbusiness,HallamLand,isaverylo
74、ng-termoperationwithplanningconsentstakingbetweenfiveand20yearstoachieve.2010remaineddifficultasUKhousebuilderscontinuedtobuildunitsat half the average rate of the previous 25 years as the demand for new housing settled at this new low level.The outlook appears to have improvedalittle,withalmostallm
75、ajorhousebuilderswhohavereportedsofarin2011indicatingthattheyarelookingtoreplenishtheirlandbanksat current market prices in anticipation of a growing market and a need to open new sites.The Coalition Governments changes to the planning system havealreadybeguntoslowthenumberofplanningconsentsandwecan
76、onlyseethisbottleneckbecomingworsebeforeitimproves.Housingdemandintheshort-termis,inourview,still_0_HYB_ar10_front_MR.indd 1912/04/2011 16:30:30Henry Boot PLC Annual Report and Financial Statements 201008A lot has changed in 125 yearst Business review continuedproperty investment and development_0_H
77、YB_ar10_front_MR.indd 2012/04/2011 16:30:32Henry Boot PLC Annual Report and Financial Statements 201009A lot has changed in 125 years OPERATIONs REVIEw CONTINUEDprOpErTY inVESTmEnT anD DEVElOpmEnTprOpErTYPropertyvaluesintheyearshowedreasonablestability,followingincreasesinlate2009andearly2010.The im
78、provement in demand and funding forprimeproperty,withlongleasesandstrongcovenants,helpedtomaintainthesevaluationimprovementsthroughouttheyear.Inthecaseofmostotherpropertycategories,whetherindustrial,retailorcommercial,valuespeakedinearly2010andhaveprobablyseenaslightsoftening since then.Secondary an
79、d tertiary properties in all categories have not fared as well,typicallyduetopoordemandcombinedwithalackoffunding,resultinginweakeningvaluations throughout the year.As we move into2011,valuesacrossallpropertysectorscurrentlyremainstable.Occupierconfidenceandthereforedemandacrossall sectors has margi
80、nally improved compared to2009,whenprospectivetenantsdeferredproperty decisions due to the recessionary conditionsinthewidereconomy.Inmostsectors,the supply of good quality vacant space has fallen as take up has improved and very little new,speculativelybuilt,spacehascomeforward.This has resulted in
81、 some sectors seeing improved lettingterms,eitherintheformoflongerleasesorlowertenantincentives.Inmostcases,theseimprovements have still not yet reached a level capableofsustainingnewspeculativedevelopment,althoughthereductioningoodquality,vacantspacehasgivenrisetoagreaterlevelofpre-letanddesignandb
82、uildactivity.inVESTmEnTSAnumberofinvestmentpropertiesweresoldduringtheyear,eithertotakeadvantageofstrongvaluesorbecauseparticularpropertieswerenotseenaslong-termportfolioholds.WaterlooSquare,our70,000sqftunrestrictedretailwarehouseinvestmentinSouthShields,letonlongleasestoDebenhams,Next,RiverIslanda
83、ndBHS,wassoldfor11.4mearlyin2010totakeadvantageofastrongoff-marketoffer,substantiallyinexcessof the 2009 year end valuation of 9.0m.TheneighbourhoodretailcentreinvestmentinMansfield,completedandfullyletattheendof2009,wassoldintheyearatvaluationof 2.1m as it was not considered a core long-terminvestm
84、ent.AllbutoneoftheremainingspeculativelybuiltsmallindustrialunitsatourbusinessparksatPrioryPark,HullandMarkhamValeonJunction29AoftheM1,havenowbeensoldorlet,withamodestimprovementincapitalvaluearisingat31December2010.Theremainingunitisexpectedtobeleasedin2011.Theonlyremainingspeculativelybuiltsmallof
85、ficeunitinvestment,atBridgeViewOfficeParkinHull,lettotheHumbersidePoliceAuthority,wasalso sold in 2010.The letting of vacant space within the investment portfoliocontinuedtobeapriorityandatourretailandofficeschemeinBromley,allbutoneofthevacantretailunitswaslet,withstronginterestin the remaining unit
86、 which we anticipate letting in2011.Interestintheremainingofficespacehasbeensufficientlystrongtojustifyitssubdivisiontosecureanumberofsmallerofficeoccupiers,withthisbuildingworknowabouttoproceedonsite.Termshavealsobeenagreedtoleaseour18,000sqftretailunitatCliftonMoor,York,anditisanticipatedthatthete
87、nantwillbeinoccupationbythemiddleof2011followingthecompletionoffit-outworks.We accepted an offer on our largest retail investmentpropertyinAyr,Scotland,during2010.Negotiations were very protracted and were not concluded until the early part of 2011 at33.8m,afigureslightlyaheadofthe32mgrossvaluationd
88、isclosedattheyearendbeforetheprovisionforleaseincentivesbroughttheasset held for sale value down to 27.7m.The mixed-useoffice,retailandleisuredevelopmentknownasTheAxisinNottinghamremainsfullyletandwesawa10%increaseinvaluationovertheyear,reflectingthesignificantupliftinrentalincome arising in the sec
89、ond half of 2011 from fixedincreaserentreviews.Wecontinuetoholdthe50,000sqftB&QinvestmentinRotherham,thedevelopmentof which was completed in 2009.This site has benefitedfromthestrengtheninginvestmentvalues for such prime properties during the year.Wecontinuetomarkettheadjoiningdevelopmentland which
90、has planning consent for a further 50,000sqftofretailwarehousing,butwewillonlyprogressthisonaviablepre-letbasis.A number of investment properties were sold during the year,either to take advantage of strong values or because particular properties were not seen as long-term portfolio holds.t to view
91、online:annualreports.henryboot.co.uk/2010/reviewoftheyear/operationsreview/propertyLeft:A computer generated image of our proposed development of the former CountyCourtbuildingsonDeansgate in Manchester whichwillincludeoffices,shops and restaurants._0_HYB_ar10_front_MR.indd 2112/04/2011 16:30:32Henr
92、y Boot PLC Annual Report and Financial Statements 201010A lot has changed in 125 yearst Business review continuedproperty investment and development continuedLeft:TheAxisinNottinghamcitycentre,ourmixed-useretailandofficedevelopment.Bottom left and below:Externalandinternalviewsofthedesignbuildmanufa
93、cturingfacility for MSE Hiller at our Markham Vale development inDerbyshire,justofftheM1._0_HYB_ar10_front_MR.indd 2212/04/2011 16:30:34Henry Boot PLC Annual Report and Financial Statements 201011A lot has changed in 125 years t AtPrioryPark,Hull,negotiationsforoff-sitehighwayimprovementworkshavenow
94、beenfinalisedwiththeHighwaysAgency.Thiswillnow allow for the grant of planning permission forthefinalphaseofdevelopmenttoincludeanincreasedamountofhighervalueofficespace and we will commence the infrastructure toopenupthisoffice-basedphasein2011.t The detailed planning application and listed buildin
95、gconsentapplicationhavebeensubmittedforourmixeduseconversionoftheformerCountyCourtbuildingonDeansgatein Manchester city centre.With the support ofEnglishHeritage,weexpectplanningapprovaltobegrantedinthefirsthalfof2011,followedbyamarketingphaseandultimately redevelopment.t Termsarebeingfinalisedonanu
96、mberofsmallersitesforarangeofpre-letdevelopmentsandifnoplanningdelaysareexperienced,weanticipatebeingonsitewithdevelopmentsofbudgethotelsinRichmonduponThamesandMalvernbeforetheendof2011.Whereoccupier demand for other sites remains weak,wearetakingtheopportunitytosecureimproved planning permissions a
97、nd planning renewals to enhance values and occupier attraction and reiterate that we will not undertake speculative development in the current market.t Anewdevelopmentopportunityhasbeensecuredthroughjointdevelopmentagreementswith Royal Bank of Scotland on a 23 acre site inThorne,Doncaster,wherewehav
98、eappliedforamixed-useplanningconsentincludingafoodstore,offices,ahotelandindustrialspace.t WearealsodelightedtohavebeenchosenasthepreferreddevelopmentpartnerbyCalderdaleandHuddersfieldNHSFoundationTrusttoenterintoalong-termjointventuretoconstructadditionalaccommodationfortheTrust,aswellastoworkwith
99、its surplus property assets in order to maximisedevelopmentordisposalvalues.investmentvalues,highqualitypre-letdevelopmentsarenow,selectively,financiallyviable.Thishasenabledanumberofdevelopmentprojectstomakeprogress,notably:t Theinitialphaseofourfoodstore-led,retaildevelopmentinWarminster,wherewear
100、enowonsitebuildingtherelocationpremisesfortheexistingindustrialoccupierforcompletionin2011.Oncethismoveiscompleted,wewillimmediately commence the development of the26,500sqftfoodstore,pre-lettoWaitrose,andthreeancillaryretailunitswhichweexpecttocompletebytheendof2011.t Thedevelopmentofasmallsupermar
101、ket,pre-lettoTesco,inBradford,isalsonowunderconstructionandisexpectedtobecompletedinthefirsthalfof2011.t OurbusinessparkatMarkhamVale,onJunction29AoftheM1Motorway,hascontinued to attract good quality industrial occupierswiththecompletionofabespoke,designandbuild,15,000sqftindustrialunitin the year f
102、or one owner occupier.This has beenquicklyfollowedbytheagreementof terms for another owner occupied design andbuildproject,comprising41,000sqftofofficesandwarehousing.Thepredominanceof interest from owner occupiers at Markham Valereflectsthesiteshighlyvisible,strategiclocation on the M1.FUTUrE DEVEl
103、OpmEnT OppOrTUniTiESt InDaventry,planningapplicationsforboththe100,000sqfttowncentreredevelopmentandthe140,000sqftedgeofcentreretailparkarebeingpreparedforsubmissioninthefirsthalfof2011.Onceconsenthasbeengrantedforthis50mscheme,anearlystartondevelopmentwork is anticipated.t Demolition work at our si
104、te in Tamworth town centrehasnowbeencompletedfollowingthegrantofthe200,000sqftretailplanningpermission and negotiations with a range of prospectiveoccupiersareprogressing.Inthemeantime,theclearedsiteisbeingoperatedasatemporarycarparkbythelocalauthority,generatingsomeincomeintheshort-term.With more c
105、ompetitive construction costs and the stabilisation of investment values,high quality pre-let developments are now,selectively,financially viable.OPERATIONs REVIEw CONTINUEDprOpErTY inVESTmEnT anD DEVElOpmEnT CONTINUEDinVESTmEnTS CONTINUEDWehaveagreedtermsontheadjoining10,000sqftspeculativelybuiltin
106、dustrialspaceandaimtoconclude these lettings in 2011.We also have occupierinterestinadesignandbuildschemeonthebalanceofthesitebutthereisnoagreement in place yet.VisitornumbershavecontinuedtoincreaseatourportwaitingfacilityatSaltwood,Kent,whereactiveschememanagementsecuredthepre-letof a 100 space lor
107、ry park on land to the rear of thescheme.The1mconstructionprojectinsupport of this is underway and due for completion inthefirsthalfof2011.Considerableactivityistakingplacetofirmupthefoodandretailofferand,whilstwearebeingselectiveinthetypeandqualityofoperatorswechoosetosecure,itisanticipatedthatfurt
108、herlettingswillbeannouncedin2011.Apossibleredevelopmentofpartofthesite for a hotel is also under consideration and we are in discussion with the Highways Agency regarding improving the signage to the facility in order to increase footfall.Our70,000sqfttowncentreretailinvestmentinBeeston,Nottingham,c
109、ontinuestobethesubjectofmajorredevelopmentplans.2010 saw the confirmation of funding for the NottinghamTramExtensionwhichwilloccupypartoftheexistinginvestmentandprovideadedicated passenger interchange as part of the enlargedscheme.WeareworkingwithBroxtoweBoroughCounciltofinaliseagreementsandhope to
110、conclude these discussions in 2011 in order to take advantage of the strong demand from retailers for the town which is considered to have strong demographics and too little quality retail space.DEVElOpmEnTS in prOGrESSWith occupier activity only recently improving and our current reluctance to prog
111、ress speculative projects,levelsofdevelopmentactivityoverthelastthreeyearshaveremainedbelowthelong-termaverage.However,withmorecompetitiveconstructioncostsandthestabilisationof_0_HYB_ar10_front_MR.indd 2312/04/2011 16:30:34Henry Boot PLC Annual Report and Financial Statements 201012A lot has changed
112、 in 125 yearst Business review continued land development_0_HYB_ar10_front_MR.indd 2412/04/2011 16:30:37Henry Boot PLC Annual Report and Financial Statements 201013A lot has changed in 125 years OPERATIONs REVIEw CONTINUEDlanD DEVElOpmEnTHallamLand,ourlandmanagementbusiness,continuedtofaceadifficult
113、marketthroughout2010.UKhousebuilderssawsomethingofarevivalintheearlypartof2010but,withtheelectionofacostcuttingCoalitionGovernment,thislargelypeteredoutbythesecondhalfoftheyear.Asaresult,landsalesproveddifficulttoconclude.However,recentannouncementsindicatethat there are some signs of renewed recove
114、ry inthehousingsectorbutthekeydifficultyfornewhousesalesremainsthelackofmortgageavailability,particularlyforfirst-timebuyers.Asaconsequence,total UK house sales have not recovered and remain around half the average annual volumes seen over thelast25years.Nevertheless,inthisrelativelysubduedmarket,Ha
115、llamLandsecuredsufficientsales,mostnotablyatStAlbans(20acres)andBridgwater(18acres),togenerateasmallprofitfor the year.Atthistimelastyear,wenotedthepotentialforan incoming Government to change the planning system.The Coalition Government has announced a radical overhaul of the system through the int
116、roduction of the Decentralisation and Localism Bill.This Bill will remove the regional tier of the planning system and introduce a new local layer of planning complexity.Inaddition,localauthoritycutbackshavereducedstaffnumbersinalreadyoverloadedplanningdepartments.Itremainstobeseenhowthebillandthene
117、wsystemwilleventuallyimpactonplanningdeliverybut,intheshort-term,ithasledto a curtailment of an already restricted supply of planning permissions for new residential schemes.Despitethesedifficultiesandagainstthetrend,wehavesecuredanumberofplanningallocationsand permissions on a range of sites during
118、 the year.Itisworthnotingthatfiveyearsago,HallamLandstotallandbankwas6,194acresofwhich651acres(10.5%)hadeitheraplanningpermission or were allocated for development.At31December2010,thelandbankstoodat8,052acresofwhich1,754acres(21.8%)hadeither planning or an allocation.The successful hard work since
119、2006 will stand the company ingoodsteadoverthenextthreetofouryearswhenweanticipatethatitwillbecomemoredifficulttogainnewpermissions.Wenowhaveasignificantnumberofconsentedsitesintheportfolio which should allow sales to increase overthenextthreeyears,eveninthecurrentchallengingmarket.Wedonotexpecttose
120、easignificantimprovementinlandpricesbecausethehousingmarketrecoveryislikelytobesubduedforsometime,atleastuntilmortgageavailabilityimproves,particularlyforfirsttimebuyers.HallamLandstradingperformancereflectedthedifficultconditionsinthehousebuildingsectorbutisnonethelesssignificantlyaheadofthatin2009
121、,withturnoverof34.3m(2009:10.2m),andanoperatingprofitof0.6m(2009:operatingloss3.1m).AtDecember2010,weheldinterestsin8,052acres(2009:7,933acres)ofwhichweowned 1,409acres(2009:1,679acres),had4,076acresunderoption(2009:4,117acres)andhad2,567acres under planning promotion agreements(2009:2,137acres).The
122、inventoryvalueoftheseassets totalled 55.0m(2009:51.3m)and we have 120sites(2009:119)inprogress,withageographical biastowardtheSouthandWestofEnglandandScotland.Oftheschemesinthelandportfolio,wehighlightbelowsomeofthemainsiteswhichareworking towards the marketing phase of the cycle.t ExETErwehavea30%h
123、olding,alongsidethethreenationalhousebuilders,inamajorurbanexpansiontoExeteratCranbrook.We converted the minded to grant planning permission into outline permission and have justobtainedfullplanningpermissionforthefirst1,100dwellings.WehavealsosecuredsubstantialGovernmentfundingforinfrastructureprov
124、isionandaffordablehousing and are now in initial discussions tosellthisfirstphasesite.t BriDGwaTErhavingobtainedplanningpermissionlatein2009,duringtheyearunderreview we secured infrastructure provision funding,disposedoflandfora750,000sqftsite to Morrisons for a south west regional distributioncentr
125、eandsoldthefirsttrancheof residential land to Barratt Homes.From thesefunds,wearerequiredtoprovidethesiteinfrastructureandthisworkhascommenced,ashasworkbyMorrisons.Weanticipatefurtherlanddisposalsoverthenexttwoto three years.We have secured a number of planning allocations and permissions on a range
126、 of sites during the year.t to view online:annualreports.henryboot.co.uk/2010/reviewoftheyear/operationsreview/land Left:An impressive view of part of Hallam Lands Bridgwater scheme showing Wm Morrison Supermarkets regional distributioncentreunderconstructionandsuperblyplacedforexcellentcommunicatio
127、n links._0_HYB_ar10_front_MR.indd 2512/04/2011 16:30:37Henry Boot PLC Annual Report and Financial Statements 201014A lot has changed in 125 yearst Business review continued land development continuedBelow:Ourin-housearchitectural team drew up the plans for the housing proposals forourlandholdingatTi
128、llicoultry,Clackmannanshire.Left:Partofthesubmissionfor the planning application for our site at Chatteris inCambridgeshire._0_HYB_ar10_front_MR.indd 2612/04/2011 16:30:42Henry Boot PLC Annual Report and Financial Statements 201015A lot has changed in 125 years t COUnTESThOrpE permission was granted
129、 on appeal for 180 dwellings on this optioned sitelastyearandweexpectmarketingtotakeplaceinthefirsthalfof2011.t TilliCOUlTrY permission was granted for 74housingunitsonlandwhichweownandweexpectthissitetobemarketedduring2011.t manSFiElDwehavea50%shareonthissitewhichisthesubjectofanapplicationfor430dw
130、ellingsand30acresofemploymentlandwhichweanticipatebeingapprovedinthefirsthalfoftheyear.t BiShOpBriGGS we have a consent for 32 dwellings and are looking to increase this to51onthisownedsite.Oncethesediscussionsareconcludedthesitewillbemarketed.t ShEFFiElD our wholly owned employment siteatOxclosePar
131、kisthesubjectofaproposalforan85,000sqftretailstorebyTesco.Ifsuccessful,wehaveagreedheadsof terms to dispose of the site to the retailer.t rUGBY our site at Calvestone Road represents the last phase of our successful Cawston Grange scheme.Planning permission forresidentialdevelopmenthasbeengrantedfor
132、 a twelve acre site of which our share is threeacres.Thesiteisnowbeingmarketedandweexpectadisposallaterintheyear.t markET harBOrOUGh a planning applicationhasbeensubmittedfor1,000dwellingsonthisoptionedsite.Ifwearesuccessfulintheplanningprocess,weaimtobeginmarketingthesitein2012.t BOlSOVErhavingbeen
133、refusedplanningpermissionatthefirstattemptforour250houseschemeonoptionedland,weamendedtheproposalandre-submittedthescheme.Weareexpectingadecisionontherevisedapplicationduring2011and,ifsuccessful,weanticipatemarketing the scheme later this year.OPERATIONs REVIEw CONTINUEDlanD DEVElOpmEnT CONTINUEDt B
134、iDDEnham we continue to negotiate the Section106Agreementforour1,000dwellingschemeandhavesecuredsignificantinfrastructurefundingforthebypass.Thiscomplexsitehassometimetogobeforemarketingcancommencebutthenextthree years should see the site much closer to disposal.t wOrCESTEr we have disposed of our o
135、ptionedsitetoBloorHomeswhichwillbethesubjectofaplanningapplicationlaterthis year.t BUCkinGham we marketed this 700 unit site during the second half of 2010 and concludedasaleduringthefirstmonthof2011.t kETTErinGthissitehasthebenefitofanoutline planning permission and we are clearing downpre-commence
136、mentconditionsbeforeputting it on the market.The total site is for 5,500dwellingsofwhichourshareis275.t kilmarnOCk our 90 acre owned site now has an allocation for 500 houses and a District Centre.The latter already has planning permission andwehavesubmittedtheapplicationfor500houses.Whenplanningper
137、missionisobtained,whichisexpectedlaterin2011,wewillcommence marketing the site.t ChaTTEriS a planning application has beensubmittedfor1,000dwellingsonthisoptionedsiteandwehopetoobtainconsentduring 2011.t BlaBYwehavea25%interestina4,500houseschemeonoptionedlandatBlabyboundedbytheM1andtheM69.Anapplica
138、tionhasnowbeensubmittedonthissitewhichBlabyDistrictCouncilincludeswithininitsCore Strategy.Inadditiontothemainsiteslistedabove,wealsohave a range of other schemes which we are seekingtobringforwardandmarketoverthecoming two to three years.We now have a significant number of consented sites in the po
139、rtfolio which should allow sales to increase over the next three years,even in the current challenging market._0_HYB_ar10_front_MR.indd 2712/04/2011 16:30:42Henry Boot PLC Annual Report and Financial Statements 201016A lot has changed in 125 yearst Business review continued Construction_0_HYB_ar10_f
140、ront_MR.indd 2812/04/2011 16:30:43Henry Boot PLC Annual Report and Financial Statements 201017A lot has changed in 125 years OPERATIONs REVIEw CONTINUEDCOnSTrUCTiOnHenry Boot Construction performed well during 2010,achievingtargetedactivitylevelsandexceedingbudgetedprofitmargins.Thispleasingresult w
141、as achieved in a very competitive market place throughout the period.We hold a healthy forwardorderbookfromagoodmixofregional,aswellassector-focusedbusinessesandcontinuetobepositive,butrealisticaboutconstructionactivity.Weareconfidentthatwecanachievesustainableactivitylevelsinexistingandnewmarketsfo
142、r2011.Ourapproachcontinuestobeunderpinnedbyanassessmentoftheriskprofileofopportunitiesandthecarefulselectionof the type of contracts and clients we work with,focusingonkeypartnering,frameworkandnegotiatedcontracts,predominantlyinsocialhousing,education,healthandprisonsectors.Ourongoingstrategytarget
143、samixofpublicsectorfundedconstructionprojectsinourchosensectors,supplementedbysuitableprivate sector construction opportunities in thehotelandleisure,commercial,industrialandretailsectors.Thiswillbesupportedbytheexpansionanddeliveryofourintegratedregenerationagenda,offeringunparalleledquality,innova
144、tionandmodernconstructionprocesses,togiveourcustomersvalueformoney whilst incorporating the social and green agendas.We continue to work alongside partner contractorsonmajorDecentHomesschemesand environmental programmes for Rotherham 2010andforStLegerHomesonbehalfofDoncaster Metropolitan Borough Cou
145、ncil.Partnering contracts secured in 2010 include Decent Homes and environmental works to 6,000unitsinManchesterfortheEastlandsHomes Partnership and for North Lincolnshire Homes delivering housing improvements in Scunthorpe.Work also commenced on a contract forSheffieldCityCounciltoconstruct27newpro
146、pertiesbeingbuilttotheCodeforSustainableHomesLevel5.Notably,thisschemereceiveda 2010 Housing Design Award.We also saw continuedexpansionintherefurbishmentofnon-traditionallyconstructedhouseswithcontractsbeingsecuredforBarnsleyMetropolitanBoroughCouncil,RotherhamMetropolitanBoroughCouncil,St Leger Ho
147、mes of Doncaster and North Lincolnshire Homes.Weanticipate,subjecttothecontinuedavailabilityofappropriatefundingstreams,further growth in this sector.OurpreferredalliancecontractoragreementwiththeNationalOffenderManagementServiceisproviding work to deliver upgrades and security improvements in Categ
148、ory A prisons and refurbishmentcontractswithinarangeofothersecureestablishments.NewworkwassecuredduringtheyearatHMPManchester,HMPFullSutton,HMPRanby,HMPYOIWerrington,HMPWakefieldandHMPLindholme.Weanticipatethatseveralnewprojectswillcometomarketduring2011which,ifwearesuccessfulinwinning,willreinforce
149、ouralreadystrongpresence in this sector.Work for the education sector has continued at stablelevelsduringtheyear,withnewfacilitieseitherbeingconstructedorcompletedunderpartnering framework agreements with Cheshire CountyCouncil,LancashireCountyCouncil,DerbyCityCouncilandRotherhamMetropolitanBorough
150、Council.We also completed a refurbishmentschemeforSheffieldHallamUniversity.AnumberofschoolextensionandmodernisationprojectshavebeencompletedforNorth East Lincolnshire Council and Rotherham Metropolitan Borough Council through our involvement in the Rotherham Construction Partnership.Further contrac
151、ts secured in this sectorincludeanewextensionandrefurbishmentat Heptonstall School for Calderdale Metropolitan BoroughCouncil,classroomextensionsatStapeleySchoolforCheshireEastCouncilandanew-buildChildrens Centre at Brinscall for Lancashire County Council.Ouractivitiesinthehealthsectorcontinuetoexpa
152、ndwiththeawardandcompletionoffourcontracts at the Northern General Hospital under theSheffieldTeachingHospitalsframeworkformajorrefurbishmentworkstoexistingfacilities.Late 2010 also saw the award of the negotiated 5mRawmarshJointServiceCentre,incorporatingadoctorssurgery,pharmacy,libraryandsportsfac
153、ilities for Rotherham Metropolitan Borough Council and the Rotherham Primary Care Trust.Our ongoing strategy targets a mix of public sector funded construction projects in our chosen sectors,supplemented by suitable private sector construction opportunities in the hotel and leisure,commercial,indust
154、rial and retail sectors.Left:Work in progress at Scunthorpe,deliveringhousingimprovements for North Lincolnshire Homes.t to view online:annualreports.henryboot.co.uk/2010/reviewoftheyear/operationsreview/construction _0_HYB_ar10_front_MR.indd 2912/04/2011 16:30:44Henry Boot PLC Annual Report and Fin
155、ancial Statements 201018A lot has changed in 125 yearst Business review continued Construction continued_0_HYB_ar10_front_MR.indd 3012/04/2011 16:30:46Henry Boot PLC Annual Report and Financial Statements 201019A lot has changed in 125 years OPERATIONs REVIEw CONTINUEDCOnSTrUCTiOn CONTINUEDOurgenera
156、lworksdivisionmaintainedworkloadswithitslong-standingcustomerbaseincivilengineering and environmental works in the industrial,waterandwastesectorsandhassecured future contracts to provide recycling centres for Veolia and Leeds City Council as well as environmental improvements for Barnsley Metropoli
157、tan Borough Council.This was once again augmentedbyanincreasinglevelofbusinessinsmallbuildingworkcontractsinvarioussectors.Pleasingly,during2010,HenryBootConstructionreceivedfiveprestigiousNationalSiteAwardsunderthe Considerate Constructors Scheme.Two Gold and one Silver Considerate Constructors Awa
158、rds werereceivedforprojectsundertakenonbehalfof Rotherham Metropolitan Borough Council andStLegerHomesofDoncaster,aswellasthe additional accolade of two runner up awards for the Most Considerate Site in the UnitedKingdom.Duringtheyear,wealsoreceived the RoSPA Gold Award and the CIOBCorporateResponsi
159、bilityAward.rOaD link a69RoadLinkhasnowcompletedhalfthe30-yearterm contract to operate and maintain the A69 trunk road for the Highways Agency and had another successful year trading in line with managementexpectations.Inrecentyears,thecoldwinterswithperiodsofheavysnowfallhaveprovidedasignificantcha
160、llengetotheA69team.However,theexpertiseof those providing the winter gritting has ensured thattheA69hasremainedanopenall-weatherroute,evenaccommodatingextratrafficwhenadjacentroadshavebeenclosed.Planned maintenance schemes incorporating whole lifecostanalysis,togetherwiththeintroductionofinnovativec
161、osteffectivemaintenancesolutions,continue to achieve savings against the original plan.Asexpected,trafficvolumesin2010remainedstatic,butwehavebenefitedfromaslightlyhigherthanforecastincreaseinthepriceadjustmentindices.Itisexpectedthattrafficflowswillincreaseslightly in each year of the remaining con
162、tract periodandweareconfidentthatexpectedlevelsofprofitabilitywillbeachieved.planT hirETradingin2010provedtobemorebuoyantthanwehadinitiallyanticipatedanditcouldhavebeenevenbetter,haditnotbeenfortheadverseweatherconditionsatthebeginningandendoftheyear.Whilstcontinuingtostriveformaximumturnoverandprof
163、it,thecompanystrategycentredonthreecoreelements:generatingapositivecashflow,costcontrolandcontinuedfleetrealignmenttoreflectthecurrentmarket.Thehirefleet,atoriginalcost,wasreducedinvalueby3.8%duringtheyear.However,whererequired,controlledinvestmentinnewitemsof1.75mhasbeenmadetoensurewecontinuetooffe
164、ramodern,technicallystrong,competitive product and was targeted towards poweredaccessequipment,temporaryaccommodation units and mechanical plant.Afterthereductioninturnoverin2009,asmallincrease in hire revenues was achieved in 2010.Asalreadyindicated,thiswouldhavebeenhigherbutforweatherconditions.Th
165、isincrease,combinedwiththebenefitsofreducedborrowings,lowerdepreciationandstableoverheadcosts,resultedinasmallprofitfortheyear.2010alsosawcashgeneration of over 1m reducing the operations borrowingstotheirlowestlevelforovertenyears.Despiteincreasesinfleetmaintenance,fuelpricesandhigherbaddebtsoveral
166、l,costshavebeenkeptbroadlyinlinewith2009levels.Top left:The award winning homesforSheffieldCityCouncilat Shirecliffe include a high level ofsustainablefeatures.Top right:ATerexTV1200TandemRollerbeingputthroughits paces at Banner Plants Dronfielddepotpriortogoingouton hire.Left:Thenewsportshallwebuil
167、tfor St Bernards Catholic High School in Rotherham pictured on the day of handover.Henry Boot Construction received five prestigious National Site Awards under the Considerate Constructors Scheme.we also received the RoSPA Gold Award and the CIOB Corporate Responsibility Award.t to view online:annua
168、lreports.henryboot.co.uk/2010/reviewoftheyear/operationsreview/plant _0_HYB_ar10_front_MR.indd 3112/04/2011 16:30:46Henry Boot PLC Annual Report and Financial Statements 201020A lot has changed in 125 yearst Business review continued FINANCIAL REVIEwCOnSOliDaTED STaTEmEnT OF COmprEhEnSiVE inCOmEReve
169、nuefortheyeargrewby13%to131.9m(2009:116.5m)asaresultofincreasedlandsales,principallyBridgwater,partiallyoffsetbyreducedconstruction division revenues.This gave rise toasignificantimprovementintradingprofit(*)of18.0m(2009:11.5m).Operatingprofitwas 20.9m(2009:loss 10.0m)after a net revaluationsurpluso
170、f0.6m(2009:deficit22.4m)andprofitonsaleofinvestmentpropertiesof2.4m(2009:0.9m).The revaluation surplus largely aroseinthefirsthalfof2010withonlyaslightfurther recovery in the second half.As predicted lastyear,administrativecostswerereducedby16%to12.2mcomparedwith14.5min2009,helpedbyareductioninpayro
171、llcostsandnon-recurringpensionandfacilityexpensesin 2009.There was a pension credit of 2.7m in2010comparedwithanexpenseof3.6min2009asaresultoftheliabilitymanagementexercisesthattookplaceintheyear(seesectionon pension scheme).This led to a reduction in past serviceliabilitiesofaround4.5mwhichunderIAS
172、19aretreatedasacredittotheConsolidatedStatementofComprehensiveIncomewithinprofitfortheyearratherthanthroughothercomprehensive income.The segmental result analysis shows that land development generated a small operating profitof0.6m(2009:loss3.1m)andpropertydevelopment and investment activities showe
173、d anoperatingprofitof10.5m(2009:loss16.3m),mostlyarisingfrompropertyrentalincome,revaluation surplus and profits on sales.Constructiondivisionprofitswerelowerat9.2m(2009:16.8m)after 2009s one off release of provisions of 8.2m was not repeated.Central costs were a credit of 0.5m(2009:cost 7.5m)afterl
174、owerIAS19pensioncostsandtheliabilitymanagementcredittopensioncostsnotedabove.Basic earnings per share were 9.1p(2009:loss 5.7p)andthetotaldividendpayablefortheyearis3.5p(2009:2.5p),anincreaseof40%.Thefinaldividendof2.15pispayableon31May2011.FinanCinG anD GEarinGAsanticipated,netinterestcostswererela
175、tivelystableat2.0m(2009:1.8m)asnon-utilisationfees offset much of the cost reduction due to lowerlevelsofdebt.2009alsobenefitedfromlower average interest rates over the year as new facilities at higher rates were not signed until Mayofthatyear.Itisexpectedthatinterestcostswillbelowerin2011withmostof
176、thecostbeingnon-utilisationfees.Interestcover,expressedastheratioofoperatingprofit(excludingthevaluation movement on investment properties One of our key aims for 2010 was to further reduce debt levels whilst continuing to invest in each of our businesses.We were successful in this objective and our
177、 year end net debt position improved by 20.7m during the year.t to view online:annualreports.henryboot.co.uk/2010/reviewoftheyear/financialreview(*)See page 1_0_HYB_ar10_front_MR.indd 3212/04/2011 16:30:46Henry Boot PLC Annual Report and Financial Statements 201021A lot has changed in 125 years andd
178、isposalprofits)tonetinterestcosts,was9 times(2009:6 times).No interest incurred in eitheryearhasbeencapitalisedintothecostof developments in progress.Landsalesachievedintheyear,partiallyoffsetbythecontinuedinvestmentinourinvestmentpropertyportfolio,sawnetdebtfallby64%to11.4m(2009:32.1m).Gearingonnet
179、assetsof188.6mfellto6%(2009:netassets176.2m,gearing18%).Allborrowingscontinuetobeatfloatingratesoronshort-termfixedcommitments.Includedinreceivablesare7.7mofnegotiableinstruments,arisingfromdeferredpaymentarrangementsonlandsales,whichhavenotbeenforfaitedgiventhecashpositivepositionarisingin2011.Duri
180、ngtheyear,weretainedthreeyearcommittedbankfacilitiestotalling94m,however,thenon-utilisationcostsassociated with this mean we will look to reduce these facilities in 2011 to 50m.We feel this revisedlevelwillprovidesufficientheadroomforthebusinessuntilfacilitiesarerenewedagainin May 2012.Throughout th
181、e year we operated comfortablywithinthefacilitycovenantsandcontinue to do so.TaxThetaxchargefortheyearwas5.4m(28.5%)(2009:credit5.9m)arisingfromthesignificantchangeinnetprofitoverthetwoyears.Taxationonprofitfortheyearwas2.2m(2009:1.1m)andbenefitsfromprioryearadjustmentsof0.5m(2009:0.3m).Thedeferredt
182、axchargewas3.2m(2009:credit7.0m)astheGroupsdeferredtaxassetfellfrom11.1mto6.6m,mostlyasaresultofthereductionintheIAS19pensiondeficit.Deferredtaxhasbeencalculatedat27%,beingtherateexpectedtobeapplicableatthedatetheactualtaxwillarise.COnSOliDaTED STaTEmEnT OF CaSh FlOwSOneofourkeyaimsfor2010wastofurth
183、erreducedebtlevelswhilstcontinuingtoinvestineachofourbusinesses.Weweresuccessfulinthisobjectiveandouryearendnetdebtpositionimprovedby20.7mduringtheyear(2009:17.2m).Webelieveitisvitalthatwehavetheflexibilitytoundertakedevelopmentsand land deals without the interference and addedexpensearisingfromeach
184、lendinginstitutions internal approval process.The cash flowachievedintheyear,withfurthersalesinearly2011,givesustherequiredflexibility.We anticipate that the forecast net investment inlandandpropertyinvestment/developmentin2011 should result in a further modest reduction indebtbytheendoftheyear.Cash
185、generatedfrom operations increased to 20.1m(2009:13.9m)afterincreasedlandinventoriesandreceivablesweremorethanoffsetbyhigherpayables,reversingthetrendsin2009.However,theseimpactswereoffsetbya2.0mhighertaxoutflowprimarilyarisingfromhigherpaymentsonaccountoftaxableprofitsin2010.Theseoperatingcashinflo
186、wswereaugmentedbya11.1minflow(2009:14.8minflow)frominvestingactivities.Cashoutflowsfromassetpurchases and the completion of developments inprogressatthebeginningoftheyearwerereducedsignificantlyto5.7m(2009:11.3m).Proceeds from property and asset disposals fellto16.5m,comparedto25.6min2009.Dividendsp
187、aid,includingthosetonon-controllinginterests,totalled5.3m(2009:8.2m).COnSOliDaTED STaTEmEnT OF FinanCial pOSiTiOn Total investment property and assets in the course of construction were valued at 135.1m after the adjustmentfortenantincentives(2009:172.3m).ThisexcludesthevalueofourAyrpropertywhichwas
188、heldincurrentassetsheldforsale,netoftenantincentives,at27.7m.Themarketvalueofinvestmentproperty,includingAyr,was122.1m(2009:129.9m)and the value of investment property under construction within investmentpropertywas48.4m(2009:51.0m).The principal disposals from investment property wereretailinvestme
189、ntsatSouthShields,PortTalbotandMansfield.IntangibleassetsreflecttheGroupsassetinvestment in Road Link A69 of 11.7m(2009:12.7m).This is a requirement of IFRIC12ServiceConcessionArrangementsandarisesbecausetheunderlyingroadassetreverts to the Highways Agency at the end of theconcessionperiod.Property,
190、plantandequipment now comprise Group occupied buildingsvaluedat7.0m(2009:7.0m),andplant,vehiclesandofficeequipmentwithanetbookvalueof8.3m(2009:9.2m).Non-currenttradeandotherreceivableshaveincreasedto10.4m(2009:3.7m)duetodeferredreceiptson land sales undertaken during the year.We haveflaggedforsometi
191、methatthisisamuchmorecommonoccurrenceashousebuildersdeferlandpayments,morecloselyreflectingtheircashflowsandbuildoutperiods.Deferredtaxassetshavefallenasaresultofthereducedpensiondeficitandvaluationchangeswithinthepropertyportfolio.Intotal,non-currentassetshavereducedto179.1m(2009:216.1m),with the m
192、ain variances arising from investment property disposals of 11.1m and the transfer of the Ayr property to current assets.Withincurrentassets,inventoriesof58.0m(2009:55.4m)werehigherduetofurtherinvestment in the land portfolio.Trade and otherreceivablesat27.3m(2009:25.1m)reflectthehigherdeferredlandr
193、eceipts.Currentliabilitieshavereducedby11%to80.0m(2009:90.0m)asthecurrentportionofdebtfellto11.4m(2009:31.2m)andprovisionsroseto11.8m(2009:4.0m)duetoamountsheldwithin the land division for infrastructure costs at Bridgwater.Net current assets were therefore 37.1mcomparedtonetcurrentliabilitiesof5.1m
194、in2009.Non-currentliabilitiesalsofellto27.6m(2009:34.7m)afterreductionsinpensionliabilitieswereoffsetbyanincreaseinprovisions,onceagainforlanddevelopmentinfrastructure costs at Bridgwater.Netassetsincreasedby7%to188.6m(2009:176.2m)astheretainedprofitof11.8mandretainedothercomprehensiveincome,largely
195、thepensiondeficitreductionof3.3m,wasoffsetbydividendspaidof3.4m.Netassetvaluepersharewas7.4%higherat145p(2009:135p).pEnSiOn SChEmETheIAS19valuationofthedefinedbenefitpensionschemeshowedtheschemedeficitdecreasingto16.2m(2009:25.7m)attheyear-end.Thedeferredtaxassetassociatedwiththiswas4.4m(2009:7.2m).
196、Addingbackthisnetdeficitof11.8m(2009:18.5m)tonetassets,the2010deficitequatesto5.9%ofequityshareholdersfunds(2009:9.5%).Thetriennialdeficitcalculatedat1January2010hasnowbeenfinalisedwiththedeficitvaluedat25.2m(1January2007:8.8m),theincreasearisingduetoadecreaseinlong-termbondyields,risinglong-terminf
197、lationandincreasedmortalityassumptions.During2010,weundertookliabilitymanagementexerciseswhichhavebeentakenintoaccountincalculatingthevalueofthedeficit.Therevisedannualcontributionintotheschemein the latest recovery plan is agreed at 3.8m(previously 0.7m).Following the 2007 triennial valuation,theCo
198、mpanyprovidedanondemandletterofcreditfor7.0mandthiswillnotberequiredunderthenewrecoveryplan.Thedefinedbenefitscheme is closed to new entrants and new employeesareofferedadefinedcontributionscheme.Each0.1%changeintheassumeddifferentialbetweenlong-terminvestmentreturnsandinflationaffectsthedefinedbene
199、fitschemedeficitbyabout2.5mto3.0m,thereforearelatively small change in gilt yields has a marked effectonthedeficit.Theliabilitymanagementexercisesundertakenduring2010toreducescheme risk included offering enhanced transfer valuetermstocertaindeferredmembers,cappingfuturesalaryincreasesforactivemember
200、sat1%perannum(withanybalancegoingintothedefinedcontributionscheme)andoffering_0_HYB_ar10_front_MR.indd 3312/04/2011 16:30:47Henry Boot PLC Annual Report and Financial Statements 201022A lot has changed in 125 yearst Business review continued FINANCIAL REVIEw CONTINUEDpEnSiOn SChEmE CONTINUEDapension
201、increaseandexchangealternativetopensioners,takinginflationriskoutbyofferingahigherfixedpension.Webelievethatthebenefitof this work was a 10m to 12m reduction in totalschemeliabilities.Inaddition,liabilitieshavealsobeenreducedfollowingaGovernmentconsultationtochangetheinflationmeasurefromtheRetailPri
202、cesIndex(RPI)totheConsumerPricesIndex(CPI)inrespectofincreasestomembersdeferredpensions.Wewillcontinueto evaluate cost effective ways of reducing risk andliabilitieswithinourdefinedbenefitscheme,undertakingfurtherexercisesasnecessary.kEY riSkSIncommonwithallorganisationstheGroupfaces risks which may
203、 affect its performance.Thesearegeneralinnatureandinclude:obtainingbusinessoncompetitiveterms,retainingkeypersonnel,successfulintegrationofnewbusinessstreamsandmarketcompetition.The Group operates a system of internal control and risk management in order to provide assurance that we are managing ris
204、k whilst achievingourbusinessobjectives.Nosystemcan fully eliminate risk and therefore the understanding of operational risk is central to the management process within Henry Boot.The long-termsuccessoftheGroupdependsonthecontinualreview,assessmentandcontrolofthekeybusinessrisksweface.Toenableshareh
205、olderstoappreciatewhatthebusinessconsidersarethemainoperationalrisks,theyarebrieflyoutlinedbelow:DEVElOpmEnTnotdevelopingmarketableassetsforbothtenantsandtheinvestmentmarketon time and cost effectively.Rising market yields on completion can make development uneconomic.Construction,fundingandtenantri
206、skwhichisnotmatchedbycommensuratereturnsondevelopmentprojects.Thelackoffundingavailabilityatacceptableinterestratestoallowdevelopment to take place.lanDtheinabilitytosource,acquireandpromote land would have a detrimental effect onourstrategiclandbankandincomestream.PricesmaybeaffectedbychangesinGove
207、rnmentpolicy,legislation,planningenvironmentandtaxation.Adramaticchangeinhousebuilderfunding sentiment and demand for housing can dramatically change the demand and pricing profileforland.inVESTmEnTS identifying and retaining assets whichhavethebestopportunityforlong-termrentalandcapitalgrowth,orcon
208、verselysellingthoseassetswherecapitalvalueshavebeenmaximised.This is an ongoing process with regular reviews of theassetsandmarketconditionsandmustbeundertakendispassionatelytoachievebestvalue.inTErEST raTESsignificantupwardchangesininterestratesaffectinterestcosts,yieldsandasset prices and reduce d
209、emand for commercial and residential property.TrEaSUrYthelackofreadilyavailablefunding to either the Company or third parties to undertake property transactions can have asignificantimpactonthemarketplaceinwhichweoperate.Duetothedifficultieswithinthebankingsector,theGrouphasagreedthreeyearfacilities
210、withourthreebankingpartners.Detailedcash requirements are forecast up to 15 months in advance and reviewed and revised monthly.Financial instruments are considered where applicableandanyshort-termpositivecashbalancesareplacedondeposit.planninGincreasedcomplexity,costanddelayin the planning process m
211、ay slow down the projectpipeline.Therecentsignificantchangein demand for housing and the attendant decline in land prices may have a detrimental effect on thesupplyoflandbeingbroughttomarketbylandowners.ChangesinGovernmentorGovernmentpolicy,ashappenedin2010,towards planning policies could impact on
212、the speed of the consent process or the value of sites.pErSOnnEl the attraction and retention of thehighestcalibrepeoplewiththeappropriateexperienceiscrucialtoourlong-termgrowthinthehighlycompetitivelabourmarketsinwhichwework.Itisanticipatedthatintheshorttermthisriskmaybereducedasunemploymentrisesan
213、d recessionary conditions prevail.pEnSiOntheGroupoperatesadefinedbenefitpensionschemewhichhasbeenclosedtonewmembersforsometime.Whilstthetrusteeshaveaprudentapproachtothemixofreturnseekingandfixedinterestassets,timesofeconomicinstabilitycanhaveanimpacton those asset values with the result that the re
214、portedpensiondeficitincreases.Furthermore,therelationshipbetweenimpliedinflationandlong-termgiltyieldshasamajorimpactonthepensiondeficitandourbusinesshaslittlecontroloverthosevariables.Whilstpensionschemesarealong-termcommitment,regulationsrequireustorespondtodeficitsintheshortterm.EnVirOnmEnTaltheG
215、roupisinextricablylinked to the property sector and environmental considerations are paramount to our success.Therefore our interaction with the environment andtheagenciesthathaveanover-archingresponsibilityhasgottobepositiveatalltimesinordertoachievebestvalue.Stricterenvironmental legislation will
216、increase developmentandhousebuildingcostsandthereforecouldimpactonprofitabilityifcapitalandlandvaluesdonotincreasetoreflectthismoreefficientenergyperformance.The Groups employees are its foremost asset.Their skill,commitment,drive and enthusiasm are vitally important to the long-term success of our
217、business.We succeed in the delivery of shareholder value because our people,individually,achieve the targets set for them._0_HYB_ar10_front_MR.indd 3412/04/2011 16:30:47Henry Boot PLC Annual Report and Financial Statements 201023A lot has changed in 125 years ECOnOmiC we operate solely in the UK and
218、arecloselyalliedtotherealestate,housebuildingandconstructionsectors.Astrongeconomy with strong tenant demand is vital to createlong-termgrowthinrentalandassetvalues,whilstatthesametimecreatingahealthymarket for the construction and plant hire divisions.Themuchpublishedforecastreductionsinpublicspend
219、ing,themoredifficultplanningregime and comparatively low levels of property lendingcouldhaveanimpactonourbusiness.COUnTErparTYwedependonthestabilityofourcustomers,suppliers,fundersanddevelopmentpartnerstoachievesuccess.Inrecessionaryperiodswepayparticularattentiontothefinancialstrengthofcounterparti
220、esbeforecontractingwiththemsoastomitigatefinancialexposure.kEY pErFOrmanCE inDiCaTOrS(kpis)EachbusinessunitwithintheGroupisrequiredtoestablishtargetsatthebeginningofeachfinancialyearagainstabroadrangeoffinancialandnon-financialindicators.TheManagingDirectorofeachsubsidiaryreportsonprogressat Board m
221、eetings every two months.The two mainBoardExecutiveDirectorsattendthesemeetingsandareabletoassesswhethereachunit is performing in accordance with its plan throughout the year.TheKPIsdifferineachsubsidiarywiththeexceptionoffinancialtargetswhichfocusonprofitabilitygrowth,cashgenerationandlevelsofdebt,
222、forecastcashrequirements,returnoncapitalemployed,shareholderreturnandassetvalue created.We also review health and safety matters and how economic conditions and changes in legislation may affect individual businessunits.Inadditiontothis,wereviewarangeofspecificindicatorswithineachbusinessunit.Themai
223、nones are as follows:lanDthesizeofthestrategiclandbank,thesplitbetweenownedandoptionedland,theextenttowhichwehavefulloroutlineplanningconsentandthenumberofresidentialunitsorcommercial space contained in those consents.DEVElOpmEnTStheexpectedinvestmentindevelopments,expectedcompletedvaluesandanticipa
224、tedyields,rentsandrentalgrowth,levelsoftenantdemandandunletspace,newcommercialproperty investment and development opportunities and potential asset sales.COnSTrUCTiOn workload forecasts and capacityutilisationinrelationtoplan,generalactivitylevels,tenderopportunities,contractcostingworkloadandwins,h
225、ealthandsafetyand environmental matters and contract completion,signoffandfinancialclosure.planT hirEactivitylevelsbydepotandclassofasset,healthandsafetymatters,levelsofcash generated and returns on plant asset capital employed which in turn drive asset investment decisions.GrOUpatGrouplevelthebusin
226、essunitsperformanceagainstexpectationsformsanintegralpartofthereportingcriteria.Inaddition,Group performance indicators of cash and facilities,pensionschemeperformance,shareholder return and return on capital employed,alongwithhealthandsafetymattersare reported on at each meeting.rESOUrCESThe Group
227、has the following key resources to assistitinthepursuitofitskeyobjectives:pEOplE the Groups employees are its foremostasset.Theirskill,commitment,driveandenthusiasmarevitallyimportanttothelong-termsuccessofourbusiness.Wesucceedinthedeliveryofshareholdervaluebecauseourpeople,individually,achievetheta
228、rgetssetforthem.Theysourceandacquireland;promoteplanningconsents;acquire,develop,manageorsellinvestmentpropertiesand;serviceconstructors,runourPFIprojectandrefurbishandconstructbuildings.DEVElOpmEnT pOrTFOliO we have an extensivegeographicalspreadofopportunitieswithintheUKonsitesacrosstheretail,leis
229、ure,officeandindustrialsectors.Thecurrentportfolioshould allow us to maintain current activity levels for several years and in particular food stores currentlyofferverystrongreturns.Inthecurrentmarketplace completed investments may give abetterreturnthandevelopmentsandwillbeconsidered alongside and
230、as an alternative to development.STraTEGiC lanD Bank at the year end we ownedover1,409acresandhadinterestsinafurther6,643acresthroughoptionoragencyagreements which give us the right to promote that land for a planning consent and share inthebenefitcreatedonultimatedisposal.Weanticipatethatthislandba
231、nkwillgrowinfutureyearsandrepresentsasignificantfutureprofitopportunity to the Group.COnSTrUCTiOn aCTiViTiES the construction businessworksonanorderbookofbetweenoneandtwoyears,thoughseveraloftheFrameworkcontracts it has won are spread over several years.Ourplanthirebusinessoperatesfromsevenlocations
232、andhasamodern,wellmaintained,fleetofassetsservicingtheconstructionsector.Furthermore,weoperateourowndeliveryfleetto ensure that our customers requirements are satisfiedquickly.OurPFIassetiswellestablished,cashgenerativeandefficientlymaintainedandhas15yearsremainingontheconcession;furthermore,themark
233、etforPFIassetsremainsreasonablystrong even in these recessionary times.rOBUST FinanCial pOSiTiOn we have long establishedrelationshipswithourthreekeyfundingpartners,BarclaysBank,LloydsTSBBank and Royal Bank of Scotland.We maintain significantheadroomwithinourthreeyearbankingfacilitiesandconsiderourp
234、ropertyinvestmentportfolioasa“storeofvalue”toberealised to augment these facilities if required.Thelandbankanddevelopmentopportunities,togetherwiththeinvestmentportfolio,havebeenacquired largely from retained resources ensuring ourgearinglevelsareprudent.Inthelongertermwe aim to achieve a high retur
235、n on capital employed and a healthy dividend cover level allowing for reinvestment in our core activities which in turn createimprovinglonger-termshareholderreturns.JAMIE BOOTGROUP MANAGING DIRECTOR18 april 2011JOHN sUTCLIFFEGROUP FINANCE DIRECTOR18 april 2011_0_HYB_ar10_front_MR.indd 3512/04/2011 1
236、6:30:47Henry Boot PLC Annual Report and Financial Statements 201024A lot has changed in 125 yearst Corporate social responsibilityWe make sure that the way we manage our businesses has a positive impact upon our employees,our other stakeholders,society at both the local and wider level and on the en
237、vironment.Thecorporatesocialresponsibilityethos,longbeforethenamecameintouseinthe1980s,hasalwayshadasignificantplaceinthe125yearhistoryofHenryBootandisnow,morethanever,embeddedinallaspectsofour operations.We make sure that the way we manageourbusinesseshasapositiveimpactuponouremployees,ourotherstak
238、eholders,societyatboththelocalandwiderlevelandon the environment.HEALTH AND SAFETY:FIRST AND FOREMOsTHealthandsafety,bytheverynatureofourbusiness,continuestobethetoppriorityinallour operations.The following is the Henry Boot HealthandSafetyPolicyStatement,thekeydocument setting out our health and sa
239、fety philosophyandresponsibilities:Henry Boot PLC is committed to achieving excellence in safety,health and welfare management and recognises the key role this excellence plays in the successful and costeffective management of the business.It is the policy to maintain a healthy and safe working envi
240、ronment for all our employees and any persons who may be affected by our assets and undertakings.The principles of safety management throughout the Group of companies are based upon the identification of the inherent risks associated with our activities and the application of sensible and practical
241、control measures that eliminate or reduce risk to an acceptable level.To achieve the objectives of this policy Henry Boot PLC and its subsidiary companies are required to:t implement and maintain management systems that ensure the effective planning,organisation,control,monitoring and review of heal
242、th and safety measures;t assess and manage the risks to the health and safety of our people and any others that may be affected by our undertakings;t promote best working practices and standards of behaviour,which minimise the risk of injury and occupational ill health;t set performance targets to a
243、chieve continuous improvement above and beyond statutory requirements relating to health and safety;t identify individual responsibilities;t provide the necessary resources to effectively manage health and safety;andt identify training needs and provide health and safety training to industry and nat
244、ionally recognised standards.t to view online:annualreports.henryboot.co.uk/2010/corporateresponsibility Firewardensatourheadofficeundergoing a refresher course in the use of various types ofextinguisher._0_HYB_ar10_front_MR.indd 3612/04/2011 16:30:48Henry Boot PLC Annual Report and Financial Statem
245、ents 201025A lot has changed in 125 years In order to assist the achievement of these objectives,all employees are required to be aware and fulfil their responsibilities in maintaining a healthy and safe working environment.The Group Safety Department will independently monitor compliance with this
246、policy and audit activities against the documented procedures.The Group Safety Manager will continuously review the policy and update it accordingly to reflect best practice,changes in legislation and new knowledge,such that it remains at its most effective.Wecontinuetohavealong-standingandwell-resp
247、ecteddedicatedhealthandsafetydepartment,headedupbyafullyqualifiedhealthandsafetyprofessional,thatisactivein:tadvisingonhealthandsafetyissuesandpolicy;t monitoring new legislation and ensuring it is properlydisseminatedandfullyunderstood;t compiling and updating the Group Safety Manualandassociateddo
248、cumentation;t inspectingandauditingthesafetyofbuildingsites,offices,premises,physicalassetsandworkingpractices;t compiling statistics associated with health andsafetymattersandbenchmarkingthemagainstrecognisedcomparators;t providing comprehensive health and safety trainingtoallemployeesand,whereappl
249、icable,tothewidercommunityinwhichwework,ensuring that all training and knowledge is dulyrefreshed;t making health and safety a separate top-of-the-agendaitemforallCompanyBoardmeetings and management meetings and reporteduponbytheDirectoroftheCompanyexpresslyresponsibleforhealthandsafetymatters;andt
250、striving for continuous improvement in health and safety performance.Particularemphasishasalwaysbeenplacedonhealth and safety training and continues to do so.The scope of courses offered range from the verycomprehensiveNationalExaminingBoardinOccupationalSafetyandHealth(NEBOSH)NationalConstructionCe
251、rtificatetoahalf-dayannualfirstaidrefresher.In2010agroupofourprojectmanagerssuccessfullypassedtheNEBOSHNationalConstruction Certificate which is aimed at supervisors,managersandCDMco-ordinatorswithin the construction industry who are required to ensure that activities under their control are underta
252、ken safely.We also fully support The ConstructionSkills Safety Plus Scheme which is a comprehensive health and safety training programme designed toprovidethebuilding,civilengineeringandalliedindustries with a range of courses designed to give everyone from operative to senior manager the skill set
253、they need to progress through the industry.Such courses range from a one day HealthandSafetyAwarenesscoursetothefivedaySite Management Safety Training Scheme.All personnel working on a construction site attend training under this scheme.During the year we supported the new scaffold inspectionqualifi
254、cationlaunchedbytheConstructionIndustryScaffoldersRecordScheme which is aimed at anyone who is responsibleforcarryingoutstatutoryscaffoldinspections in accordance with the Work at HeightRegulations2005.Anumberofouremployeesattendedatwo-daycoursewhichincorporatesbothapracticalinspectionandreportwriti
255、ngassessment,aswellasatheorytest,whereupontheparticipantisthenentitledto apply for the industry accredited card.Othercoursesourhealthandsafetydepartmentran in 2010 included:t AbrasiveWheelsAwarenesst AsbestosAwarenesst CableAvoidancet Carriage of Dangerous Goodst ConfinedSpaceTrainingt Fire Wardent
256、IOSHWorkingSafelyt ManagingLiftingOperationst Manual Handlingt Temporary Works SupervisionA study in concentration:a pupil at Watercliffe CommunityPrimarySchoolinSheffieldlistensintently to a talk we gave on safety and the importanceofkeepingawayfrombuildingsites._0_HYB_ar10_front_MR.indd 3712/04/20
257、11 16:30:48Henry Boot PLC Annual Report and Financial Statements 201026A lot has changed in 125 yearst Corporate social responsibility continuedThe new kitchen we provided for the Latin Gardens Community CentreinScawsby,nearDoncaster,waswellreceivedbylocaltenants.HEALTH AND SAFETY:FIRST AND FOREMOsT
258、 CONTINUEDWe are also proactive in providing health and safety awareness to the wider community and in particular to children who live in areas where we carry out construction work that is often a magnetfortheircuriosity.Onewaywedothisistoprovideastimulating,educationalandfunpresentation that we tak
259、e into schools which isprovingtobeverysuccessfulingettingthesafety message across.During the year we were delighted that Henry Boot Construction was awarded a RoSPA Gold Award forOccupationalHealthandSafetywhichwas made following an assessment of the Companysentryandassociatedevidencebythe RoSPA(The
260、 Royal Society for the Prevention ofAccidents)adjudicationpanelandwasparticularlycommendableinviewofthehighlevelofentriesreceivedtotalling1,800.Itscommitmentto health and safety and improvements made in reducingaccidentsisreflectedinthestatisticsshown on page 27 which show the progress madein2010and
261、overthelastfiveyears.Wealsorunourownin-houseannualSafetyAwardswhicharedecidedonthebasisofmonthlyhealthand safety audit scores and site inspections.Such awardsincludeaYoungAchieverTrophyforoutstanding dedication to health and safety byatrainee.OUR EMPLOYEES:ADAPTING TO CHANGETheworkinglivesofouremplo
262、yeeshave,in2010,againbeenchallengingacrossallourbusinesses,as we continue to adapt to the changing economic conditions of recent years.Intheyearunderreview:t weemployed441peopleat31December2010,a13.7%decreaseonthe31December2009figure;twerecruited46peopleduringtheyear;t employeeturnoverequatedto23.6%
263、,partly due to some redundancies in our constructionactivities;t7.5%ofouremployeesworkedparttime;t22%ofouremployeeswerefemale;t2.7%declaredthattheyhadadisability;andt 1.2%statedthattheywerefromanethnicminority._0_HYB_ar10_front_MR.indd 3812/04/2011 16:30:49Henry Boot PLC Annual Report and Financial
264、Statements 201027A lot has changed in 125 years Despitedifficulttradingconditionsinwhichsomeharddecisionshavehadtobemadeintermsofheadcount,werecognisethatongoinginvestmentinouremployeesisstillabsolutelycrucialtomeetthe demands of the changing face of our overall business.Intermsoftraining:t wedelive
265、red649trainingdays,theequivalentof1.47daysperemployee;t wesupported560daysoutsidethebusinesswithinhighereducation;andt our per capita training spend was 218 per person.Inadditiontohealthandsafetycourses,werunanumberofpersonaldevelopmentcourses.Whetheranoperativeonaconstructionsiteoranofficeadministr
266、ator,thereisanopportunitytoundertakeaNationalVocationalQualification(NVQ)relevantto the work the employee is undertaking.The levelsofNVQrangefromtypicallyaLevel2foratradespersonuptoaLevel5foraprojectmanager.ThetypesofNVQsthathavebeenprovidedincludeWoodOccupations,Plastering,CustomerCare,BusinessAdmi
267、nistration,SiteManagementand Construction Senior Management.AnInstituteofLeadershipandManagementprogramme is run for aspiring managers ateitherLevel3awardforfirstlinemanagementorLevel4awardformanagers.Otherdevelopmental workshopsincludeasuiteofMicrosoftOfficecourses,legislativeupdatesandsoftskillcou
268、rses,suchastime management and communication skills.Eachsubsidiarycompanyhastheirownindividualneeds.Bywayofexample,BannerPlantLimitedruns courses for its employees who drive commercialvehiclesover3.5tonnes,aspartofthenewDriverCertificateofProfessionalCompetence(CPC).Thishasbeenintroducedacross the E
269、uropean Union to maintain high driving standards and improve road safety.All commercial vehicle drivers need to complete a minimum of 35 hours of periodic training every fiveyears.ThisfirstcycleofperiodictraininghastobecompletedbySeptember2014.AllBannerPlantdrivershavealsobeengiventhe opportunity to
270、 undertake the Driving Goods VehicleNVQLevel2.While Henry Boot Developments and Hallam Land Management have developed aprogrammeofbespokecoursesfortheiremployees,HenryBootConstructionfocusesits requirements on ensuring its employees arekeptuptodatewith,forexample,legislativechanges in construction l
271、aw and modern practices inlowcarbonconstruction,togetherwithassociatedenvironmentalissues.Intermsofcommitmenttotargetedtraining,ithasrecentlybeenawardedaPlatinumAwardCertificateofCommitmentbytheConstructionSkillsCertificationScheme(CSCS)to recognise the fact that Henry Boot Construction is a company
272、 committed to improving competence in construction and has registered more than 90%ofitsworkforceundertheschemewhichwassetupbytheconstructionindustrytoimprove quality and reduce accidents.The holding ofaCSCScardbyemployeesisincreasinglydemanded as evidence of occupational competencybycontractors,pub
273、licandprivateclients and others.Inadditiontotheemphasisontrainingandemployeedevelopment,keyelementsofouremployment policies include:t toemployaworkforcethatreflectsthediversityofoursociety;t to provide equal opportunities for all employees,regardlessofage,gender,race,religion,disability,nationality,
274、sexualorientationandbelief;t toensurethatintheeventofanexistingemployeebecomingdisabledeveryeffortis made to continue their employment and thatappropriatetrainingisprovided;andt to recognise that effective employee communication and consultation are essential inachievingourbusinessobjectives.Inthisc
275、onnection,informationontheprogressandactivitiesoftheCompanyandtheexternalfinancialandeconomicfactorsaffectingit,bothfromsourcesinthepublicdomainandthosepublishedinternally,aremadereadilyavailabletoemployeesinavarietyofways.CORPORATE GOVERNANCE:MAINTAINING THE HIGHEsT sTANDARDsHenry Boot PLC is commi
276、tted to maintaining the highest standards of corporate governance and details of its policies and adherence to the June2008editionofTheCombinedCodeonCorporateGovernanceasissuedbytheFinancialReportingCounciltowhichitissubjectare set out in the Corporate Governance Statementonpages41to43.2006 2007 200
277、8 2009 2010Reportableaccidents69121412Numberoffatalinjuryincidents00000Accidentfrequencyrate(AFR)per100,000hoursworked0.210.440.530.680.28AFRper100,000hoursworked(includingsubcontractors)0.680.670.610.520.46Numberofdangerousoccurrenceincidents00000NumberofprohibitionnoticesbyHealthandSafetyExecutive
278、00000NumberofimprovementnoticesbyHealthandSafetyExecutive 00000_0_HYB_ar10_front_MR.indd 3912/04/2011 16:30:49Henry Boot PLC Annual Report and Financial Statements 201028A lot has changed in 125 yearst Corporate social responsibility continuedsUPPORTING LOCAL COMMUNITIEs AND CHARITIES:A STRONG COMMI
279、TMENTAsever,wecontinuetosupportthelocalcommunities in which we operate and the followingarejustsomeexamplesoftheprojectswe have undertaken in 2010:t helping to sponsor the highest commercial vineyardintheUKsetupbyWhirlowHallFarmTrustinSheffield,acharitywhichincludesproviding a range of vocational ac
280、tivities and trainingforpeoplewithdisabilities;t providingapurpose-builtrecyclingareaandbinstoresfortheAutismPlusResidentialCentreatThorne,nearDoncaster,whereweareworkingontheStLegerHomesDecentHomesproject;t supportingDronfieldsfirstWinterFestwhichincluded a specially constructed ice rink for youngp
281、eople;t working with the young peoples charity Catch 22 tosetupanallotmentprojectinGrimesthorpeandprovidingknow-howandashedforthestorageoftoolsandforshelter;t carryingoutsignificantrefurbishmentworksatTheHomesteadCommunityCentreinBentley,the Elm Green Lane Community Centre inConisboroughandtheLatinG
282、ardensCommunityCentreinScawsby,allprojectsbeingassociatedwithhousingmodernisationworkwewerecarryingoutinSouthYorkshire;t allowingFoxwoodSpecialSchoolinBeestonto have free use of a retail unit for a year at the towns shopping centre that we own in ordertoprovideatrainingfacilityforpupils;t supplying
283、a greenhouse and chicken coop fortheDenabyChildrensCentrewiththeaim of encouraging children with the concept ofself-sufficiency;t in association with our Eastland Homes contract nearby,installinganewkitchenandassociatedworks for The Breakthrough Centre in Manchester which supports people with mental
284、 health problemsanddisabilities;andt inconjunctionwiththelocaltenantsandresidentsassociation,donatingplantsandbulbsfortheregenerationoftheBuskMeadowscommunitygardeninShirecliffe,Sheffield.Aspartofourcommunitywork,wehavestronglinks with local schools and universities.For those schools offering the Di
285、ploma in Construction and theBuiltEnvironment,weoffersitevisits,talkson specialist topics and provide career guidance andworkexperienceforthosepupilsinyear10.We have also developed a programme for such diplomaandworkexperiencestudentswherebytheyareabletoshadowvariousdifferenttypesofjobroles,suchases
286、timators,plannersandquantitysurveyorssothattheycangetabetterunderstanding of the different careers that areavailableintheconstructionandpropertyindustries.We support and work very closely withtheConstructionDesignCentreinSheffieldwhichoffersonandoff-sitevocationaltrainingtostudentsaged14to19studying
287、foraconstructionqualification,includingtheYoungApprenticeship,anNVQ,thework-relatedBTECqualificationandsoforth.Foruniversitystudentsweareabletoprovide relevant work placement opportunities and these can range from as little as one week toafullyearsexperience.TonyShaw,EasternRegionalManagerforHenryBo
288、otConstruction,handsoveranewshedforusebytheCatch22charityfortheirStepstoSuccessprogrammeatGrimesthorpe,Sheffieldwhereanorganicallotmentisbeingusedtohelpex-offendersgainconfidenceandlifeskills._0_HYB_ar10_front_MR.indd 4012/04/2011 16:30:50Henry Boot PLC Annual Report and Financial Statements 201029A
289、 lot has changed in 125 years Aswehavedoneformanyyears,wecontinuetooperateTheCharitiesTrustsponsoredGive-As-You-EarnScheme(alsoknownasPayrollGiving)whereby donationsmadebyemployeesfromtheirpaytocharitiesoftheirchoicearematchedbytheCompany ona1for1basis.Thisisanextremelyeffectivewayofsupportingcharit
290、ableworkandgoodcausesand provides a regular income for the recipients.Monthlydonationsmadebyouremployeesrangefrom a few pounds to hundreds of pounds.Yetagain,theCompanywasawardedwithaPayroll Giving Silver Award in 2010 in recognition of its support.Duringtheyearwemadeourthirdcontributionof10,000toth
291、eSouthYorkshireCommunityFoundation(SYCF)foritsHenryBootGrassrootsEndowmentFund.ThisdonationhasbeenmatchedfundedbytheOfficeforCivilSociety,partofTheCabinetOffice.TheSYCFhelpsphilanthropists,localbusinessesandtruststoachievetheircharitablegoalsbysettingupcharitablefundsthat support local community gro
292、ups and last year it awarded more than 2.5m in grants.CharitiessupportedbyTheHenryBootFundinthe year included Ravenscroft Agewell Group andtheWath-upon-DearnebasedTweeniesSewing and Home Craft Class to provide assistancefortheirdisabledmembers.Asever,wealsomakeaconsiderablenumberofadhocdonationstoav
293、arietyofcharities.In2010thosewesupportedincludedTheLighthouseClub(theconstructionindustrycharity),theSheffieldbasedStLukesHospice,TrinityDayCareTrust,YorkshireWildlifeTrustandweregularlymatchortopupcharitabledonationsraisedbyemployeesforparticularone-offcausesthattouchthem.OUR ENVIRONMENTAL RESPONSI
294、BILITIES:MAKING A POsITIVE IMPACTEffective environmental management is an essential feature in the operations of all HenryBootcompanies.Ourkeycommitmentsin this regard are to:t protectandenhancetheenvironmentatlarge;t mitigateanypossibleadverseimpactupontheenvironment;t continuously review and impro
295、ve our working practices to protect the environment as far as isreasonablypracticable;t comply with the requirements of environmental legislation,regulationsandbestpracticeasaminimumstandard;t setobjectivesandtargetstoachievegreatereffectiveness;t provide employees with a high standard ofawarenessin
296、environmentalmatters;andt promoteourenvironmentalvaluestoconsultants,advisers,suppliersandallbusinesscontacts.Ourapproachtoenvironmentalawarenessandmakingapositiveimpactisprobablybestillustrated at the contract we are in the course ofcarryingoutforSheffieldCityCouncilatShirecliffewherewearebuilding2
297、7localauthorityhousesandflats.ThesearebeingbuilttotheimpressiveCodeforSustainableHomesLevel4standard.However,wehavetakenuponourselvesto run a pilot scheme on plot 22 as a research anddevelopmentprojecttofindwaysofachievingLevel 5 of the Code to show how construction techniques and products can help
298、a property meetthedifficultstandardof100%aboveBuilding Regulations requirements in terms of energyefficiencyandraisingitupfromthe56%demandedbyLevel4oftheCode.Inadditiontoextraphotovoltaicpanelsontheroof,thepropertyfeaturesagreywatercollectiontank,compostingfacilities,cyclestorage,energyefficientwhit
299、egoodsandhighlevelairtightness,among its other upgrades.With a growing demandforsustainablehousingexpertise,anumberofourplanningstaffhavebeentrainedtobecomeCodeforSustainableHomesAssessors.Inaddition,wealsohaveanin-houseRICSSkaAccreditedAssessorwhoisfullytrainedin assessing the environmental perform
300、ance of officefit-outprojects,providingguidanceonmakingimprovementsandbenchmarkingperformanceagainstothersimilarprojectsand,again,thisdemonstratesarealcommitmenttoputtingsustainabilityattheheartofourbusinesspractices.During 2010 Henry Boot Construction received aBREEAMExcellentratingforthedesignandb
301、uildB&QwarehouseitconstructedforHenryBootDevelopmentsatNorthfieldsRetailParkinRotherham.Theprojecthadtomeetstrictenvironmental criteria to achieve the rating and was achieved through good design and selectionofmaterials.Wasterecyclingfiguresareupto96%onanumberofprojectsandtheWaste and Resources Acti
302、on Programme(WRAP)has produced a case study highlighting the achievements of the Company in meeting itstargetsfortheHalvingWastetoLandfillprogrammewhichshowsthatthishasbeenreducedby20%since2008.AreportissuedinOctober2010byECUSenvironmentalconsultancyshowedthattheoff-siteoperationsofHenryBootConstruc
303、tionproduced22.5%lesscarbonthanthepreviousyear,showingasignificantreductionintheoverallimpactontheenvironment.Measurescontinuetobetakentorecord,analyseandreducethecarbonproducedasaresultofofficeandvehicularactivities,inadditiontoinitiativesonsitetoreducecarbonfootprintsthroughsustainabledesign.Recyc
304、lingofbuildingwasteisanimportant part of our programme tosignificantlyreducesendingsuchmaterialtolandfillsites._0_HYB_ar10_front_MR.indd 4112/04/2011 16:30:51Henry Boot PLC Annual Report and Financial Statements 201030A lot has changed in 125 yearst Board of directorsJOHN REIsChairmanJohnReis,MA,73,
305、wasappointedaNon-executiveDirectorin1983andbecameNon-executiveChairmanin1996.Hemanagessubstantialinterestsinfarmingandproperty.HeisamemberoftheAuditandRemunerationCommitteesoftheBoard.Hewillberetiring as Chairman and as a Director of the Company at the conclusionoftheAGMtobeheldon27May2011.JAMIE BOO
306、TGrOUp manaGinG DirECTOrJamieBoot,59,joinedtheCompanyin1979andwasappointedtotheBoardin1985.HebecameGroupManagingDirectorin1986.HeistheChairmanoftheCompanysfourprincipaloperatingsubsidiaries HenryBootConstructionLimited,HallamLandManagementLimited,Henry Boot Developments Limited and Banner Plant Limi
307、ted.He is theBoardmemberresponsibleforhealthandsafetymatters.JOHN sUTCLIFFEGrOUp FinanCE DirECTOrJohnSutcliffe,BA,ACA,51,joinedtheCompanyandtheBoardin 2006 as Group Finance Director and Company Secretary.He previously held a similar role with Town Centre Securities PLC andpriortothatwasFinanceDirect
308、orofAbbeycrestplc.JohnisamemberoftheCBIYorkshireandtheHumberRegionalCouncil.JOHN BROwNnOn-ExECUTiVE DirECTOrJohnBrown,FCCA,CTA,66,wasappointedtotheBoardin2006andistheSeniorIndependentDirector.HewasformerlytheChiefExecutiveof Speedy Hire plc which he founded in 1977.He is also the Non-executiveChairm
309、anofNorcrosplcandaNon-executiveDirectorofLookersplc,bothLondonStockExchangelistedcompanies,andheholdsanumberofotherdirectorships.HeistheChairmanoftheAuditCommitteeandamemberoftheRemunerationCommittee.HeistobeappointedNon-executiveChairmanoftheCompanyupontheretirementofJohnReisattheconclusionofthefor
310、thcomingAGM.MICHAEL GUNsTONnOn-ExECUTiVE DirECTOrMichaelGunston,FRICS,67,wasappointedtotheBoardin2006having retired as the Chief Surveyor of The British Land Company PLC where he worked for nearly 32 years.He is the Chairman of the RemunerationCommitteeandamemberoftheAuditCommittee.JAMEs sYKEsnOn-Ex
311、ECUTiVE DirECTOrJamesSykes,BA,ACA,46,wasappointedtotheBoardon22March2011.HeisaPartnerintheLondonofficeofSafferyChampness,CharteredAccountants,whichhejoinedstraightfrom university in 1987.He is the Head of its Private Wealth Group andisalsoamemberofthefirmsManagementBoard._0_HYB_ar10_front_MR.indd 42
312、12/04/2011 16:30:59Henry Boot PLC Annual Report and Financial Statements 201031A lot has changed in 125 yearst Subsidiary company managing directorst Company advisersHENRY BOOT DEVELOPMENTs LIMITEDDaViD anDErSOn,BSC(hOnS),mriCS,44,started his career in a planning consultancy and thenjoinedHenryBootD
313、evelopmentsLimitedin1990asanAssistantDevelopmentSurveyor,rapidly rising to the position of Senior Development Surveyor.He was appointed a Director in 1996 andbecameManagingDirectoroftheCompanyin 2005.HENRY BOOT CONsTRUCTION LIMITEDSimOn Carr,BSC(hOnS),mriCS,52,hasbeenwithHenryBootforover22years.Heha
314、sheldanumberofpositionsontheconstructionsideofthebusiness,morerecentlyasPartneringManagerandasOperationsDirector.HetookoverasManagingDirectorinSeptember2009.SimoniscurrentlythePresidentoftheYorkshireBuildersFederation.HehasrecentlybeenappointedtotheBoardofTheSheffieldCityRegion Local Enterprise Part
315、nership and to theSheffieldCityRegionJointHousingandRegeneration Board.BANNER PLANT LIMITEDGilES BOOT,Ba(hOnS),51,joinedtheHenry Boot Group in 1982 and had a variety of managementrolesinRothervaleTradingLimited,the retail side of the then Groups door manufacturing business.MovingtoBannerPlantLimited
316、in1988,heheldanumberofpositions,includingDepot Manager and Business Development Manager,beforebeingappointedtoitsBoardin1995,becomingManagingDirectorin2000.HALLAM LAND MANAGEMENT LIMITEDkEran pOwEr,mrTpi,60,beganhiscareerinLocalGovernmentasaplanningofficer.HejoinedthenewlycreatedHallamLandManagement
317、 Limited in 1990 and was appointed aDirectorin1993.HebecameManagingDirectoratthebeginningof2010.KeranisaCharteredTownPlannerandforanumberofyearswasamemberoftheNationalCouncilofTheRoyalTownPlanningInstitute.AUDITORspriCEwaTErhOUSECOOpErS llp1 East Parade SheffieldS12ETBANKERsBarClaYS Bank plC2 Arena
318、Square SheffieldS92LFllOYDS TSB Bank plC14ChurchStreet SheffieldS11HPThE rOYal Bank OF SCOTlanD plC56 Market Street Chorley PR7 2SDCORPORATE FINANCEkpmG COrpOraTE FinanCE1TheEmbankment Neville Street LeedsLS14DWFINANCIAL PRCiTiGaTE DEwE rOGErSOn1 Wrens Court LowerQueenStreet Birmingham B72 1RTREGIsT
319、RARsCapiTa rEGiSTrarS limiTEDThe Registry 34BeckenhamRoad Beckenham KentBR34TUsOLICITORsDla pipEr Uk llp1 St Pauls Place SheffieldS12JXsTOCKBROKERsEVOlUTiOn SECUriTiES limiTEDKings House 1 King Street Leeds LS1 2HH LONDON sTOCK EXCHANGE ANNOUNCEMENTsPreliminary Statement of Results 2010:23 March 201
320、1First2011InterimManagementStatement:early May 2011Half-yearlyResults2011:endAugust2011Second2011InterimManagementStatement:midNovember2011TradingUpdate2011:midJanuary2012ANNUAL REPORT AND FINANCIAL sTATEMENTs 2010 AND HALF-YEARLY REPORT 2011 POsTED TO sHAREHOLDERsAnnual Report and Financial Stateme
321、nts 2010:by27April2011Half-yearlyReport2011:earlySeptember2011ANNUAL GENERAL MEETING27 May 2011DIVIDENDs PAID ON ORDINARY sHAREs2010 Final:31 May 20112011Interim:endOctober2011t Financial calendar_0_HYB_ar10_front_MR.indd 4312/04/2011 16:30:59Henry Boot PLC Annual Report and Financial Statements 201
322、032A lot has changed in 125 yearst Directors reportThe Directors have pleasure in presenting the Annual Report and the audited Financial Statements for the year ended 31 December 2010.PrinCiPaL aCtivities of tHe grouPThe principal activities of the Group during the financial year were:t Property pro
323、perty development and property investment.t Land land development.t Construction construction,civil engineering,road maintenance under a PFI contract and plant hire.t Other central services,head office administration and inhouse leasing.resuLts for tHe year anD DiviDenDsThe results are set out in th
324、e Consolidated Statement of Comprehensive Income on page 48.The principal active subsidiary companies affecting the profit or net assets of the Group in the year are listed in note 31 to the Financial Statements.The Directors recommend that a final dividend of 2.15p per ordinary share be paid on 31
325、May 2011 to ordinary shareholders on the register at the close of business on 3 May 2011.This,together with the interim dividend of 1.35p per ordinary share paid on 28 October 2010,will make a total dividend of 3.50p per ordinary share for the year ended 31 December 2010.Business reviewThe review of
326、 the development and performance of the business of the Group during the year and the future outlook of the Group is set out in the Chairmans Statement on pages 4 and 5 and the Business Review on pages 6 to 23.Details of the principal risks and uncertainties that the Company faces are set out in the
327、 Business Review on pages 22 and 23.The Groups policy in respect of financial instruments is set out within the Accounting Policies on page 55 and details of credit risk,capital risk management,liquidity risk and cash flow risk are given respectively in notes 15,21,22 and 23 to the Financial Stateme
328、nts.sHare CaPitaLDetails of the Companys issued share capital during the year are set out in note 28 to the Financial Statements.The Notice of the Annual General Meeting(AGM)on pages 81 and 82 includes the following resolutions:t an ordinary resolution(Resolution 7)to renew the authority of the Dire
329、ctors to allot shares up to a maximum nominal amount of 4,341,479 being 33.33%of the Companys issued ordinary share capital at 23 March 2011.The authority will expire on 26 August 2012 or at the conclusion of the next AGM whichever is the earlier but it is the present intention of the Directors to s
330、eek annual renewal of this authority.The Directors do not have any present intention of exercising the authority;t a special resolution(Resolution 8)to enable the Directors to continue to allot equity securities for cash in connection with a rights or other issue pro rata to the rights of the existi
331、ng shareholders,but subject to certain exceptions,and for any other purpose provided that the aggregate value of such allotments does not exceed 650,000(4.99%of the Companys issued ordinary share capital at 23 March 2011).The authority will expire on 26 August 2012 or at the conclusion of the next A
332、GM whichever is the earlier but it is the present intention of the Directors to seek annual renewal of this authority;andt a special resolution(Resolution 9)to renew the authority of the Company to make market purchases of up to 11,055,000 of its own issued ordinary shares(8.49%of the Companys issue
333、d share capital at 23 March 2011).The minimum price that may be paid under the authority for an ordinary share is 10p and the maximum price is limited to not more than 5%above the average of the middle market quotations for an ordinary share as derived from the London Stock Exchange Daily Official List for the five business days before the purchase is made.The Directors will exercise the authority
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