Growing revenues in the logistics sector are likely to see property company Henry Boot PLC bring in results ahead of market expectations.
The Sheffield company has released a trading update for 2021 ahead of its preliminary results for the year, which will be issued on March 23. It said it had performed well, primarily due to an in increase in industrial and logistics capital values.
In the trading update, Henry Boot said its key markets of industrial and logistics, residential and urban development had all performed well, leaving it in a solid financial position with a strong balance sheet and net debt within its targeted gearing range.
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It added that it was taking 'strong momentum' into 2022 and highlighted a sale from one of its joint ventures of a 56-acre plot in Scotland for residential, retail and community uses. It has also concluded a forward land sale and development agreement for the construction of a 260,000 sq ft industrial unit in Wakefield for a German pharmaceutical company.
But the company said it was also monitoring the shortage of building materials and labour currently affecting the UK construction sector.
Chief executive officer Tim Roberts said: "We've had a good year ahead of expectations, operating in strong markets and also making very encouraging progress against our recently declared medium term strategic targets, which will position the business well for successful growth."
The company said that its Hallam Land Management division had performed materially ahead of expectations, driven by strong demand from housebuilders for residential land. Henry Boot Developments, meanwhile, was growing its investment portfolio with the acquisition of sites in Lancashire and Manchester.
The company's Stonebridge Homes division had completed on 120 units, a small rise on the year earlier, while Henry Boot Construction had secured a full order book for 2022.
