Market's view on Henry Boot
Published on April 2024
- Planning reforms might make it simpler to get planning permission which could either help or increase competition for BOOT; taxing or compulsory purchase of land banks is considered a risk.
- Concerns are raised about no recent purchases by the board of directors following financial updates, suggesting a lack of confidence.
- BOOT is described as a semi-private mini-conglomerate with significant family interest, leading to conservative business strategies and potentially less aggressive growth tactics.
- There is a discussion on whether potential planning reforms under a Labour government could devalue BOOT’s landbank by making more land available for development.
- Recent financial highlights include a 5.3% increase in revenue driven by land disposals and housing completions, although profit before tax has decreased compared to the previous year.
- The company’s share is noted as undervalued based on the NAV per share being significantly higher than the current share price.
- There are concerns about the company’s immediate future due to a grim outlook in construction and a potential second-half weighting of the year’s results.
- Some stock watchers express dissatisfaction with the recent trading update, predicting the stock might not perform well in the short term.
- It is suggested that the stock might be a viable option for swing trading despite broader concerns.
- The potential impact of planning reforms on BOOT’s business model, particularly regarding its landbank, is a recurring theme in the discussion, with mixed opinions on whether reforms would be beneficial or harmful.