Henry Boot makes 'good' start to year as real estate segment meets expectations
StockMarketWire.com - Henry Boot said Friday its annual real estate division performance was hurt by a 'one-off' provisions, but offered an optimistic outlook for the year after getting off to a 'good' start.
Real estate focused activities traded in line with the board's expectations for the year ended 31 December 2018. Without the 'one-off' GMP pension provision of £1.5m, however, the real estate division's performance would have 'slightly' exceeded expectations, the company said.
The pension provision comes after the UK High Court ruled in favour of the equalisation of guaranteed minimum pensions on 26 October 2018, and advised that 'any one-off charge should be taken to profit and loss, rather than through other comprehensive income,' the company said.
Its Boot Developments division was weighed down by the aforementioned macro uncertainty, as prospective developments were held back by a combination of client uncertainty or planning delays, which affected the timing of starts on site at certain projects.
Henry Boot Developments' largest development project, 'The Event Complex Aberdeen', was expected to conclude mid-2019.
'It is always difficult to finalise deals or new developments in a specific financial period and, as noted above, three commercial developments anticipated to start during 2018 will now commence in 2019, and one sale expected to complete in 2018 completed on the 4th January 2019,' the company said.
'Although we remain mindful of some uncertainty in the UK real estate market, these transactions, added to the already committed and contracted activity for 2019, give us a good start to the year.'
At 9:32am: (LON:BOOT) Henry Boot PLC share price was +3p at 253p
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