HENRY BOOT PLC
('Henry Boot' or 'the Group')
Voluntary liquidation of Starfish Commercial Ltd
In our interim results for the six months ended 30 June 2020, we announced that Starfish Commercial Limited (Starfish) was not performing in line with our expectations, with CV-19 also materially impacting its operations. Whilst we have been encouraged by recent increases in activity within our construction division, which is now at over 90% of pre-CV-19 levels, unfortunately, we have not seen the same level of recovery in Starfish. Furthermore, there is no visibility as to when it might reach a sustainable level.
These factors have led us to make the difficult decision of placing Starfish into creditors' voluntary liquidation. This decision has a minimal impact on Henry Boot's strong financial position and management's expectations for FY20. A £0.2m goodwill impairment will occur in H2, which is additional to the £1.8m impairment already accounted for in H1.
Affordable Housing is still a market of interest and we will continue to pursue our interest in this sector, but this will now be part of the overall services offered by our construction business.
The Group's overall performance remains in line with management's expectation, and we continue to be encouraged by the growing momentum within our operations. This enables us to remain focused on selectively investing in our three long-term markets: residential, industrial and logistics, and urban development. For further information, please contact:
Henry Boot PLC
Tim Roberts, Chief Executive Officer
Darren Littlewood, Group Finance Director
Daniel Boot, Group Communications Coordinator
Tel: 0114 255 5444
Numis Securities Limited
Joint Corporate Broker
Garry Levin/George Fry
Tel: 020 7260 1000
Peel Hunt LLP
Joint Corporate Broker
Charles Batten/Harry Nicholas
Tel: 020 7418 8900
Hudson Sandler LLP
Nick Lyon/Wendy Baker
Tel: 020 7796 4133
About Henry Boot PLC
Henry Boot PLC (BOOT.L) was established over 130 years ago and is one of the UK's leading and longest standing land promotion, property investment and development, and construction groups of companies. Based in Sheffield, the Group comprises the following three segments:
Hallam Land Management Limited
Property Investment & Development:
Henry Boot Developments Limited (HBD), Stonebridge Homes Limited
Henry Boot Construction Limited, Banner Plant Limited, Road Link (A69) Limited
The Group possesses a high-quality strategic land portfolio, an enviable reputation in the property development market backed by a substantial investment property portfolio and an expanding, jointly owned, housebuilding business. It has a construction specialism in both the public and private sectors, a plant hire business, and generates strong cash flows from its PFI contract, Road Link (A69) Limited.
Henry Boot plc published this content on 14 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2020 10:29:01 UTC