Henry Boot still cautious despite construction contracts success

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Henry Boot’s construction division has won contracts equal to 95 per cent of its budgeted turnover for 2012 and is starting to take orders for 2013.

However, the Sheffield-based group says it remains cautious about the amount of traditional construction work that will be available next year at acceptable margins.

The Banner Cross Hall firm says in an interim management statement that trading conditions continue to be challenging, though relatively stable and the group has traded in line with its expectations.

Boot says the housing market, which is served by its land promotion and development arm, has slowly improved over the last twelve months and there are signs that the number of houses being built is beginning to increase, from a very low base, with the South and South East of England leading the way.

The group’s construction division has secured a place among companies chosen to bid for Ministry of Justice contracts for building and refurbishment work on behalf of the Prison, Court and Tribunal, Probation and Forensic Science Services in the North of England and Scotland and is currently working on three projects for Sheffield Teaching Hospitals.

Successes for the company’s property development and investment arm include staring work on a 100,000 sq ft distribution warehouse for national car parts distributor Andrew Page at Markham Vale, the long term regeneration development that Boot is undertaking in partnership with Derbyshire County Council, which has been included in the Sheffield City Region Enterprise Zone.

Boot has also completed a 40,000 sq ft unit for Squadron Medical and started work on a fast food outlet for McDonalds on the Markham Vale site.