Henry Boot has taken the decision to restructure its construction division as it prepares for uncertain times due to the Covid-19 pandemic
The impact of Covid-19 saw Henry Boot’s profit before tax tumble from £24.1m in 2019 to £7.2m in 2020, as all operations were impacted by the pandemic.
The company’s construction division made a pre-tax loss of £691,000 on a turnover of £55.6m for the six months to 30 June.
Henry Boot revealed construction had steadily recovered and is now operating at nearly 90%, while plant hire is operating at 82% of capacity.
The group’s revenue sat at £108.7m, compared with £189m the previous year.
‘Reshape and protect the business’
Commenting on the results, chief executive officer of Henry Boot, Tim Roberts, said: “The first half of the year has proved to be very challenging for all of us, but with an agile recovery plan and a robust balance sheet Henry Boot remains in a strong position.
“Right from the beginning of this pandemic we have focused on our stakeholders’ wellbeing and protecting the liquidity of the group so we can come through this in the best possible way.
“While CV-19 has affected our interim results and led us to make difficult decisions to reshape and protect the business, we have seen clear improvements in our operations. As this momentum builds, we have been quick to secure selective long-term opportunities and make progress in our key markets – residential, industrial and urban development.
“We are prepared for uncertain times ahead but where we see good opportunities to invest, without taking undue risk, we will continue to take them.
“I would like to thank all of the group’s employees for their dedicated hard work during this unprecedented period, whose efforts have helped keep the business viable and produced a robust set of results, which are creditable given the circumstances we are in.”
