Interim report
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RNS Number : 6709VBoot(Henry) PLC22 September 2026 22 September 2026 HENRY BOOT PLC ('Henry Boot', the 'Company' or the 'Group') UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 Focused on realising value created in land bank while continuing to build long-termworth Henry Boot PLC, a company engaged in land promotion, property investment and development and homebuilding, announces its unaudited interim results for the six months ended 30 June 2026 ("H1 26" or the "period"). Ed Hutchinson, Chief Executive Officer, commented: 'Having taken on the leadership of Henry Boot this summer, my conviction in the Group's long-term prospects hasonly strengthened. While challenging market conditions have continued to impact our sector, the quality of ourassets, the strength of our pipeline and the significant value embedded across the business underpin a compellinggrowth opportunity. With more than 9,000 consented residential plots within our strategic land portfolio held at cost and a substantialdevelopment pipeline, we possess a depth of value not recognised on our balance sheet. Our priority is clear:unlock this value, enhance cash generation and ensure the Group is well positioned to capitalise as marketliquidity and activity improve. Consistent with recent years, we expect 2026 performance to be heavily weighted towards the second half,supported by land transactions, housing completions and leasing activity that is either secured or at an advancedstage of negotiation.Since assuming the role of CEO, I have made good progress in undertaking a comprehensive review of thebusiness and look forward to outlining our refreshed strategy in early 2027. Henry Boot is a high-quality businessoperating in attractive markets with enduring structural demand drivers. Supported by a strong balance sheet, adifferentiated land position and proven expertise, we are well placed to create significant long-term value forshareholders.' Financial summary · Revenue of £80.7m (HY25: £99.4m). Completed and exchanged on total land and property sales of£104.8m, our share at £72.8m (HY25: £159.6m: £99.3m our share), with a loss before tax of £6.3m (HY25 profit: £9.8m) and return on capital employed1 (ROCE) of (0.9)% (HY25: 2.8%), reflecting challengingmarket conditions and reduced transaction volumes across the Group's core markets · Net Asset Value2 (NAV) per share, excluding the defined benefit scheme, was 298p (2025: 312p), aftercompletion of the second tranche of the Stonebridge Homes (SBH) acquisition · Net debt3 of £132.9m (2025: £108.0m) with gearing at 33.0% (2025: 25.7%) as we invested £10.6m inaccelerating planning applications on existing Hallam Land sites and an increase in house builder deferredpayments · We have agreed terms to increase our existing bank facility to £165.0m until 31 December 2026, providingadditional financial flexibility as we progress targeted sales. Our lending group remains supportive, and discussions are continuing regarding amendments to the full-year covenant requirements Operational summary · Land promotiono Hallam Land completed the sale of 556 plots in H1 26 (HY25: 1,222), with a further 465 plots exchanged for completion in the second half, reflecting more subdued residential land transaction volumes o Further investment in accelerating planning applications and remain on track to submit over 10,000 plots in 2026, with 9,086 plots (HY25: 8,837) within the portfolio with planning permission and afurther 21,361 plots awaiting determination (HY25: 19,580) o Based on recently achieved profit per plot, our land holdings with planning and awaiting determination comprise an estimated c.£305m (HY25: c.£234m) of future gross profit o Total land bank increased to 107,924 plots at 30 June 2026 (2025: 105,854) · Property investment & development
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o HBD's committed development programme increased to £161m GDV (HY25: £128m), following the £95m addition of Golden Valley Phase One, which is fully funded. The programme is 79% pre-let or under offer (HY25: 40%)o The Origin JV is progressing on schedule and to budget across three I&L schemes, with strong leasing momentum and is 66% leased or under offer, up from 9% at the start of the year, achieving rents ahead of business plano Completed the £8.6m sale of the Warminster retail asset at a 7.5% premium to December 2025 book value. Despite outward yield movements, the investment portfolio contains high-quality assets with strong rental growth potential · Home building o SBH completed 72 home sales in H1 26 (HY25: 85 homes), with completions expected to remain second-half weighted and full-year volumes anticipated to show a small increase on the prior year(FY25: 185) o Private sales prices were higher on average than those achieved in the corresponding period last year at £431k (HY25: £391k), in line with expectations. The sales rate for the period was slightlylower year on year at 0.38 (HY25: 0.42), with incentives stable at around 5% o Progress made in reshaping SBH's land bank, which now includes 1,449 owned plots (2025: 1,414), and strengthening financial discipline Recent trading and outlook Whilst market conditions remain challenging, we expect an improvement in trading over the second half followingthe pattern of recent years, supported by visibility over higher home completions, further I&L lettings and thecompletion of land sales delayed from the first half. While transaction volumes in our markets are anticipated toremain subdued for the remainder of the year, we anticipate delivering profit before tax in line with consensusexpectations* for 2026. With the new CEO's review ongoing, we are not reaffirming our medium-term guidance atthis stage. The Group remains focused on cash generation and disciplined cost control, and the Board will not prioritise short-term performance at the expense of future returns. The longer-term fundamentals of our markets remain attractive,supported by a strong pipeline of opportunities across our portfolio, and the Group is well positioned to benefit as conditions in its markets recover. *Company compiled market consensus for 2026 profit before tax is £9.7m, comprising the average of three forecasts from Peel Hunt, Panmure Liberum and Jefferies Notes and definitions 1 Return on Capital Employed (ROCE) is an APM and is a 12 month rolling average defined as operating profit /average of total assets lesscurrent liabilities (excluding DB pension surplus) at the opening and closing balance sheet dates. 2 Net Asset Value (NAV) per share is an APM and defined using the statutory measures net assets/ordinary share capital. 3 Net (debt)/cash is an APM and is reconciled to statutory measures in note 14. 4 Total property return is a metric that combines capital and income returns for the investment portfolio. It is calculated as the percentagevalue change plus net income accrual, relative to the capital employed and is calculated on a monthly basis and then indexed in line withthe benchmark. Analyst presentation, webcast and conference call There will be an analyst and investor presentation held at the offices of FTI Consulting at 9.30am today. The presentation will be hosted by Ed Hutchinson, Chief Executive Officer and Darren Littlewood, Chief FinancialOfficer. The presentation slides will be available to download via www.henryboot.co.uk. To join the webcast, go to https://stream.brrmedia.co.uk/broadcast/6a4e3d7534b6ab0013ee3366 To join via the conference call, participants should dial +44 (0)33 0551 0200 and quote 'Henry Boot' whenprompted by the operator. For further information, please contact: Enquiries:Henry Boot PLCEd Hutchinson, Chief Executive Officer Darren Littlewood, Chief Financial OfficerDaniel Boot, Senior Corporate Communications ManagerTel: 0114 255 5444 www.henryboot.co.uk Peel Hunt LLP Ed Allsopp/Asha Chotai /Tom GrahamTel: 0207 418 8900 FTI Consulting (Financial PR)Giles Barrie/Richard SunderlandTel: 020 3727 1000henryboot@fticonsulting.com
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About Henry Boot Henry Boot is one of the UK's leading land, property development and home building businesses, transforming land and spaces since 1886. First listed on the London Stock Exchange since 1919, we employ over 350 people across the UK and focus on three key markets: residential, industrial and logistics, and urban development. The group comprises Hallam Land, HBD, Stonebridge Homes and Banner Plant. Hallam Land manages one of the UK's largest strategic land portfolios which has the potential to facilitate over 100,000 homes. HBD has a £1.4bn development pipeline across our key markets and owns a c.£120m investment portfolio focused on industrial and logistics. Stonebridge Homes, our majority owned housebuilder, delivers premium homes across Yorkshire, the North East and the North Midlands. Banner Plant supplies construction equipment and services through a network of depots across the East Midlands and Yorkshire. www.henryboot.co.uk CEO's review H1 2026 overview During the first half of 2026, macroeconomic uncertainty remained elevated, with continued domestic political upheaval and the conflict in the Middle East still weighing on consumer and business confidence. This backdropcontributed to lower transaction volumes across our markets, particularly for residential land, where a slowdown innew home sales has led a number of home builders to moderate their land acquisition activity. Whilst commercialproperty investment volumes also remained subdued, we have seen continued strong occupier demand for our industrial and logistics (I&L) developments, which delivered robust rental growth during the period. As a result of the challenging backdrop, the Group reported a loss before tax of £6.3m in the first half, compared with a profit before tax of £9.8m in H1 25. This reflected lower plot sales at Hallam Land, a reduction in thevaluation of our wholly owned property investment portfolio, lower completions and cost inflation pressures in SBH,and a reduced contribution from the Road Link (A69) contract, which concluded at the end of March 2026. Despite these headwinds, we continued to make strategic and operational progress across our core business areas: · Hallam Land: we have submitted 3,385 plots into planning year to date and remain on track to submit over 10,000 plots this year in line with our strategy of continuing to grow the embedded value within ourland portfolio, which is all held at cost. Nationwide, we have around 9,000 plots that already have anoutline permission and a further 21,000 plots being progressed through the planning system. · HBD: the £161m committed development programme is progressing on schedule and to budget. Thelaunch of Golden Valley Phase One (£95m GDV), together with strong I&L leasing momentum across Origin, demonstrates continuing demand for the Group's high quality projects. · SBH: completed 72 homes in the first half of the year (HY25: 85), achieving an average private sales price of £431k (HY25: £391k). The business is being repositioned to improve central cost efficiency and cashdiscipline, as well as towards a more sustainable land strategy, creating a stronger platform for recovery. As in recent years, our performance is expected to be significantly second half weighted. During the first half andincluding post-period sales up to 15 September, 71% of budgeted sales for 2026 have either been completed,exchanged or reserved. The remaining transactions in advanced discussions, once completed in H2 2026, are expected to enable us to meet our sales target for the year. This includes securing SBH's completion target ofc.200 units, of which 127 units are either completed or exchanged as at 15 September, with a further 69 unitsreserved. Near-term priorities My initial impressions as CEO have reinforced my confidence in the Group's long-term prospects. Henry Bootowns and controls long-cycle assets in markets supported by structural demand, including strategic residentialland, prime industrial and logistics development and regional home building. This is demonstrated by Hallam Land's high-quality strategic land portfolio, which includes more than 9,000 plots with planning permission, all heldat cost. Based on the recently achieved profit per plot, these plots represent potential future gross profit ofapproximately £99m. It is also reflected in HBD's £1.4bn prime development pipeline, weighted towards I&L, where occupier demand remains robust driving continued rental growth. While transaction volumes remain subdued, our focus is on progressing, de-risking and positioning our schemes to realise value as market liquidity returns. We are also taking actions to build a stronger, more efficient business.Our near-term priorities are: 1. Unlocking and crystallising value We are focused on accelerating planning applications and converting consents into land sales, whilecontinuing to let and sell completed commercial developments and translating the house building orderbook into completions. Together, these actions will deliver improved profitability, cash generation andreturns. 2. Reducing borrowings We are applying greater cost and capital discipline across the Group, prioritising investment in the highest-quality opportunities. We will also use partnerships to grow and fund the development programme and
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recycle capital from larger home building sites. These measures will support a stronger balance sheet andprovide capital for future investment and shareholder distributions. 3. Improving operational efficiency We are simplifying how the Group operates to create a more efficient cost base. The creation of anInvestment Committee will support agile and disciplined decision-making, enabling the Group to captureopportunities and manage risk effectively. We will also share expertise and resources more consistentlyacross the business creating a higher quality more efficient business capable of delivering sustainablelong-term value. Finally, as part of my new role, I am leading a thorough review of the Group. I intend to share my thoughts and setout an evolved strategy, including new medium-term financial targets, no later than our full year results in early 2027. This will ensure that the business is well positioned to realise the value within its portfolio whilst continuing tobuild its store of worth, manage risk appropriately and deliver attractive returns for shareholders over the mediumterm. Dividend Given the importance of retaining financial flexibility and completing the Group's planned sales for the year, theBoard believes that it is appropriate to consider the level of shareholder distribution once the full year earnings areknown. Accordingly, no interim dividend will be paid. The Board will consider the payment of a single final dividend in respect of the 2026 financial year when announcing the Group's full-year results. Business review Land promotion Hallam Land completed the sale of 556 plots in H1 26 (HY25: 1,222), with a further 465 plots exchanged and1,715 plots under offer, all expected to complete in the second half of 2026. UK greenfield land values decreased by 2.1% in H1 26, according to Savills Research. The South Eastexperienced the greatest decline, with the North and Scotland the only two regions to see an increase in landvalues. A number of home builders have changed their land strategy, slowing acquisition activity, which has resulted in delays to transactions and an increased use of deferred payment terms. The changes to the National Planning Policy Framework (NPPF) introduced in 2025 have positively impacted theland market in terms of achieving outline planning, albeit we continue to utilise appeals where we believe there is a mismatch between local and national policy. During the period, Hallam Land achieved an average gross profit perplot of £10,829 (HY25: £15,734) from the sale of 556 plots across two sites, reflecting the higher weighting ofplanning promotion agreements. These sales delivered an average ungeared internal rate of return of 30.5% p.a. and include: • 416 residential plots at Biggleswade, Bedfordshire, to Persimmon. Hallam Land entered into a planningpromotion agreement in 2017 and submitted an outline planning application that was refused in September 2023 due to highways and access concerns but was later approved after our team appealedthe decision, in November 2024; and • 140 residential plots at Thorpe Willoughby, North Yorkshire, to Vistry Group. In 2023, Hallam Land entered into a promotion agreement and submitted an outline planning application in May 2023. Consent wassuccessfully secured in December 2025. The planning environment has remained favourable and in the year to date, Hallam Land has invested £10.9m into new and existing opportunities. In H1 26, 618 plots have secured planning (HY25: 2,782), bringing the totalnumber of plots with planning as of 30 June to 9,086 (December 2025: 9,024). There are also a further 21,361plots currently awaiting determination. While illustrative, based on the recently achieved gross profit per plot of£10k, plots currently held with planning represent approximately £91m of embedded value, with a further £214m of potential value attributable to schemes currently awaiting determination. Hallam Land continues to accelerate applications in line with its target of submitting over 10,000 plots this year andhelping deliver much-needed homes across the country. The business is making good progress on this ambition, submitting 3,385 plots year to date. In addition to residential land, Hallam Land also controls multiple sites with the potential for commercial space,further broadening the value and optionality within the land bank. Hallam Land's total land bank now stands at 107,924 plots (December 2025: 105,854), securing two new siteswhich have the potential to deliver 1,252 plots. There is significant latent value in the Group's strategic landportfolio, which is held in inventory at the lower of cost or net realisable value. As such, no uplift in value is recognised within its accounts relating to any of the 9,086 plots with planning and any increase in value createdfrom securing planning permission is only crystallised into profit on disposal. Residential Land Plots With permission In planning Future Totalb/f granted sold c/f H1 26 9,024 618 (556) 9,086 21,361 77,477 107,924 2025 8,822 4,159 (3,957) 9,024 19,580 77,250 105,854 2024 8,501 2,982 (2,661) 8,822 13,146 82,819 104,787 2023 9,431 1,014 (1,944) 8,501 13,468 79,003 100,972 2022 12,865 435 (3,869) 9,431 12,297 73,976 95,704
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Property investment and development According to the CBRE UK Monthly Index, commercial property values declined by 0.2% in H1 26. Rental valuegrowth remains strongest for the industrial sector at 1.6% in H1 26, with take up back in line with the 10-year average as availability continues to fall from its mid-2025 peak. While demand remains broad, occupiers continueto prioritise modern, high-quality energy-efficient space, with Grade A units accounting for 76% of I&L take-up sofar in 2026. HBD's committed development programme has increased since the start of the year to £161m (HBD share: £113mGDV) following the addition of phase one of Golden Valley in Cheltenham. This comprises IDEA, the 160,000 sq ft innovation centre, together with ROUTER, a next generation transport hub and supporting infrastructure. Thisphase is fully funded by private sector investment and Cheltenham Borough Council. IDEA is already 68% pre-letor under offer within a year of securing planning, and the remaining space is already seeing significant occupier interest. HBD will benefit from de-risked developer returns within our target range, with completion anticipated inlate 2027. The rest of the committed programme is made up of I&L schemes, with the majority held in our Origin JV, withFeldberg Capital. The three JV schemes in Walsall, Preston and Markham Vale have a combined GDV of £56m(our share: £13m) and are all on programme and budget. Committed development programme Scheme GDV(£m) HBD share of GDV(£m) Total('000sq ft) Status Completion Industrial Origin, Preston APTUS 22 5 107 Speculative Q4 26 Origin, Markham, ARK (phase two) 9 2 54 Speculative Q3 26 Origin, Walsall SPARK (phase two) 25 6 101 Speculative Q4 26 Preston, APTUS 10 5 150 Pre-sold Q4 26 Urban Commercial Golden Valley, Cheltenham (phaseone) 95 95 160 Forward funded Q3 27 Total for the year 161 113 572 % sold or pre-let 61% 79%* *This includes space pre-let or under offer in the joint venture Origin at 15/09/26 HBD has seen strong occupier interest in its I&L projects throughout the year, with Origin schemes now 66%leased or under offer as at 15 September 2026, a significant increase from 9% at the beginning of the year,reflecting the renewed decision making on space by occupiers in the market. Key lettings within Origin include two units at SPARK, Walsall, where Relay Tech has leased a 250,000 sq ft unit and E.ON has taken an 18,330 sq ftunit. In addition, a combined 135,800 sq ft has been pre-let, with Virgin Wines leasing 82,000 sq ft at APTUS,Preston, and a manufacturing business has taken a 53,800 sq ft unit at ARK, Markham Vale. We also secured a further letting at Island, a £66m GDV office development in Manchester's Central Business District, with Arcadistaking a 10-year lease for the entire 10,300 sq ft first floor. HBD's total development pipeline has grown to £1.7bn GDV (HBD share: £1.4bn GDV). All these opportunities sit within the Group's three key markets of I&L (57%), Urban Commercial (27%) and Urban Residential (16%). Investment portfolio - key stats Jun 2026 Dec 2025 Market values - inc. share of JVs £117.2m £119.8m Total Area - '000 sq ft 564 706 'Topped-up' net initial yield 6.0% 5.2% Reversionary yield 6.6% 6.2% WAULT to Expiry¹ 9.5 years 9.7 years Occupancy² 97% 97% ¹Weighted average unexpired lease term (WAULT) on commercial properties ²As a percentage of completed property portfolio estimated rental value (ERV) During the period, the investment portfolio delivered a total property return4 of 2.5%, in line with the total returnfrom the CBRE UK Monthly Index of 2.5%. In March 2026, HBD completed the sale of a supermarket and threeadjoining retail units anchored by Waitrose, in Warminster, to a UK real estate investment trust for £8.6m. The sale represents a net initial yield of 6.6% and a 7.5% premium to the 31 December 2025 book value.
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Following this and some modest outward yield shift on our wholly owned assets, the total value of the investmentportfolio (including our share of completed JV investment properties and assets held for sale) reduced marginally to £117.2m (December 2025: £119.8m). Home building HY 2026 HY 2025 Completed homes 72 85 Private average selling price (£000) 431 391 Net private reservation rate per active outlet per week0.38 0.42 Total order book £30.0m £29.0m Total land bank (plots) 2,970 2,487 SBH completed 72 homes in the first half of the year (HY25: 85). Private sales prices were in line with expectations at £431k (HY25: £391k), with incentives remaining stable. Consistent with recent years, completionsare expected to be second-half weighted, with the full-year total anticipated to represent a small increase on theprior year (FY25: 185). Delays in securing detailed planning consents continue to impact new outlet openings, with SBH operating from an average of 10 outlets in H1 26 (HY25: 8). The sales rate for the period was 0.38 (HY25:0.42), in part attributable to higher mortgage rates impacting demand. As previously announced, SBH is expectedto make an operating loss in 2026, reflecting slower sales, build cost inflation of c.4%, site extension costs and legacy issues. Operational progress has been made in strengthening the foundations of the SBH business through the ongoing implementation of the 'Fresh Start Plan', which has helped reintroduce clearer accountability, improvedcollaboration and stronger business disciplines across the senior management team. Looking ahead, the focus forthe second half will be on converting the forward order book, maintaining discipline around build and cash management, and driving further improvements in financial controls, particularly through enhanced WIPmanagement and cost review processes. As we trade out of low margin sites this should support operating marginprogression and improved asset turn. SBH's owned land bank with planning stands at 1,449 plots (December 2025: 1,414). SBH has also madeprogress in reshaping its land bank to better align with future ambitions. While land cover remains above the desired level, this represents a meaningful step towards creating a more sustainable platform, supported by thedevelopment of a clearer land strategy and a more disciplined approach to future acquisitions. Other The sale of HBC was completed in December 2025, and the Road Link (A69) contract concluded at the end of March 2026. Banner Plant traded in line with management's expectation. Financial review HY26 HY25 (restated) Revenue £80.7m £99.4m Gross profit £14.1m £30.7m Gross margin 17.5% 30.9% Operating (loss) / profit £(3.9)m £12.2m Underlying (loss) / profit before tax £(7.1)m £8.9m (Loss) / profit before tax £(6.3)m £9.8m Basic earnings per share (2.2)p 4.8p RoCE (0.9)% 2.8% Underlying NAV per share 298.3p 303p Net debt £132.9m £88.1m Trading and operating performance In the first half of 2026, the Group generated total revenue of £80.7m (HY25: £99.4m), with transactional activityacross land promotion, property development and home building lower than the prior period, reflecting subduedconditions in both housing and commercial real estate markets. Land promotion revenue decreased by 67% to £10.4m (HY25: £31.9m) reflecting the sale of 556 plots (HY25: 1,222) in the period. Total housing completionsdecreased by 15% to 72 homes (HY25: 85), at an average private selling price of £431k (HY25: £391k). Incentiveson new home completions remained broadly stable year-on-year at c.5%. Revenue from property development also fell by 24% to £23.6m (HY25: £31.0m) reflecting a lower level of committed activity.
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Gross profit was £14.1m (HY25: £30.7m), with the gross margin 17.5%, lower than the prior period (HY25: 30.9%)reflecting lower land sales. During the period we completed the sale of 556 plots (HY25: 1,222) at an average gross profit per plot of £10,829 (HY25: £15,734). Other operating income and expenses net to an income of £0.3m(HY25: expense £0.1m). Of this, a net expense of £0.2m relates to our part-exchange programme withinStonebridge, which continues to be an important sales incentive for customers. The remainder relates to profit recognised in the period related to the disposal of Henry Boot Construction Limited. Administrative expensesdecreased £2.4m compared with the prior period, in line with management expectations, reflecting organisationaland cost savings delivered from our Future Ways of Working programme. The fair value of wholly owned investment properties decreased £3.0m (HY25: increase £1.3m) with the totalportfolio, including our share of joint ventures, performing in line with the CBRE UK Monthly Index over the period. Profits on the sale of investment properties were £0.4m (HY25: £0.5m), with no sales from assets held for sale inthe period (HY25: £1.0m). The Group's share of profit from joint ventures and associates was £1.9m (HY25: £1.2mloss), including investment property valuation gains of £3.8m (HY25: £0.4m loss). As a result, the Group reported an operating loss of £3.9m (HY25: £12.2m profit). Net finance expense in theperiod was £2.4m (HY25: £2.4m), resulting in a loss before tax of £6.3m (HY25: £9.8m profit) on a statutory basis, or a loss of £7.1m on an underlying basis (HY25 profit £8.9m). The tax credit for the period was £2.1m (HY25:£2.4m charge) and is a higher credit than receivable at the standard rate of corporation tax due to income fromjoint ventures and associates which is presented net of tax. Basic earnings per share decreased by 146% to (2.2)p (HY25: 4.8p). Lower operating profit in the period resulted in a decrease in return on capital employed (ROCE), before the revised classification of the group's main borrowing facility, to (0.9)% (HY25: 2.8%). We remain confident in theGroup's ability to deliver attractive returns over the medium term. Balance sheet and financial position The Group retains a robust balance sheet, supported by high-quality land holdings and an investment property portfolio focussed on the industrial and logistics sector, which continues to deliver strong rental growth. At the endof June, the wholly owned investment property portfolio (including assets held for sale) had a carrying value of£83.9m (HY25: £95.5m). The Group also had total strategic land holdings of 107,924 plots (December 2025: 105,854 plots) of which 9,086 have planning consent (December 2025: 9,024) providing a significant store offuture value. At 30 June 2026, net debt was £132.9m (December 2025: £108.0m) including lease liabilities of £2.9m (December 2025: £3.3m). The increase during the period reflects continued investment in securing planning consents onstrategic land as well as work in progress, which was partially offset by sales proceeds. As a result, gearingincreased to 33% (December 2025: 26%). We continue to expect net debt to reduce during the second half of the year as planned transactions complete. Net assets were £406.7m at 30 June 2026, compared with £420.1m at 31 December 2025. The reduction was primarily attributable to the payment of the 2025 final dividend, the loss in the period, and completion of the secondtranche of the Stonebridge Homes acquisition, which increased the Group's ownership to 75%. Statutory NAV pershare was 300.7p (December 2025: 313.3p), or 298.3p on an underlying basis excluding the defined benefit pension scheme surplus (December 2025: 311.6p). When combined with dividends paid in the period, the Groupdelivered a total accounting return of (2.0)%. Cash generation and liquidity The Group has a secured loan facility with Barclays Bank PLC, HSBC UK Bank PLC and National Westminster Bank PLC which runs until May 2028 with a one-year optional extension available. An amendment to the loanfacility was signed in June 2026, revising the interest cover covenant requirements as at June 2026 andSeptember 2026. We have agreed terms to increase our existing bank facility to £165.0m until 31 December 2026, providing additional financial flexibility as we progress targeted sales through the remainder of the year. The LTVcovenant has also been amended to enable full access to the facility. Our lending group remains supportive, anddiscussions are continuing regarding amendments to the full-year covenant requirements, consistent with the approach taken to date. During the period, we continued to invest selectively across the business to bring forward opportunities for sale and enhance the quality of our medium-term pipeline. The Group recorded a £1.4m cash outflow from operatingactivities during the period (HY25: £11.5m), before an £11.3m working capital outflow, principally reflecting thetiming of deferred land payables and VAT movements within the land promotion segment. After interest paid of £4.7m (HY25: £3.1m) and tax paid of £3.1m (HY25: £4.8m), net cash outflows from operating activities was£20.6m (HY25: £17.6m). In January 2026, the Group completed the acquisition of the second tranche of Stonebridge Homes, increasing itsownership from 62.5% to 75.0% for a cash consideration of £5.0m. NOTES: 1 Underlying profit before tax is an alternative performance measure (APM) and is defined as profit before tax excluding revaluationmovements on completed investment properties including the Group's share of joint ventures. Revaluation movement on completedinvestment properties includes losses of £3.0m (HY25: £1.3m gain) on wholly owned completed investment property and gains of £3.8m(2024: £0.4m loss) on completed investment property held in joint ventures. This APM provides the users with a measure that excludesspecific external factors beyond management's controls and reflects the group's underlying results. This measure is used in the business inappraising senior management performance. 2 Return on Capital Employed (ROCE) is an APM and is defined as operating profit/ average of total assets less current liabilities (excluding DB pension surplus) at the opening and closing balance sheet dates.
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3 Net Asset Value (NAV) per share is an APM and is defined using the statutory measures net assets/ordinary share capital. 4 Net (debt)/cash is an APM and is reconciled to statutory measures in note 14. 5 Total Accounting Return is an APM and is defined as the growth in NAV per share plus dividends paid, expressed as a percentage of NAV per share at the beginning of the period. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)for the half year ended 30 June 2026 Half year Half year Year ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 (restated) £'000 £'000 Revenue 80,743 99,391 251,549 Cost of sales (66,631) (68,716)(185,725) Gross profit 14,112 30,675 65,824 Other operating income 9,208 7,890 16,040 Administrative expenses (17,562) (19,976) (40,296) Other operating expenditure (8,954) (7,949) (16,329) (3,196) 10,640 25,239 (Decrease)/increase in fair value of investment properties (2,989) 1,320 2,087 Profit on sale of investment properties 405 465 512 Profit on sale of assets held for sale - 958 887 Share of profit/(loss) of joint ventures and associates 1,916 (1,197) 1,727 Operating (loss) / profit (3,864) 12,186 30,452 Finance income 2,586 1,661 3,940 Finance costs (4,996) (4,029) (7,975) (Loss) / profit before tax (6,274) 9,818 26,417 Tax 2,072 (2,376) (8,062) (Loss) / profit for the period from continuing operations (4,202) 7,442 18,355 (Loss) / profit for the period from discontinued operations - (1,515) 2,176 (Loss) / profit for the period (4,202) 5,927 20,531 Other comprehensive income/(expense) not being reclassified to profit or loss insubsequent periods: Revaluation of group occupied property 410 - 25 Deferred tax on property revaluations (84) - 63 Actuarial gain/(loss) on defined benefit pension scheme 1,559 (3,052) (6,927) Deferred tax on actuarial (loss)/gain (390) 763 1,732 Total other comprehensive income/(expense) not being reclassified to profit or lossin subsequent periods 1,495 (2,289) (5,107) Total comprehensive (expense)/income for the period (2,707) 3,638 15,424 (Loss) / profit for the period attributable to: Owners of the Parent Company (2,923) 6,391 23,517 Non-controlling interests (1,279) (464) (2,986) (4,202) 5,927 20,531 Total comprehensive (expense) / income attributable to: Owners of the Parent Company (1,428) 4,102 18,410 Non-controlling interests (1,279) (464) (2,986) (2,707) 3,638 15,424 Basic earnings per ordinary share for the (loss)/profit attributableto owners of the Parent Company during the period (2.2)p 4.8p 17.6p Diluted earnings per ordinary share for the (loss)/profit attributableto owners of the Parent Company during the period (2.1)p 4.6p 17.1p CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)as at 30 June 2026 30 June 30 June 31 December 2026 2025 2025
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Unaudited Unaudited Audited £'000 (restated) £'000 £'000 Assets Non-current assets Intangible assets 1,024 371 1,265 Property, plant and equipment 27,280 28,303 26,913 Right of use assets 2,508 3,023 2,929 Investment properties 76,024 91,591 94,646 Investment in joint ventures and associates 26,039 17,720 22,886 Retirement benefit asset 4,357 6,923 3,009 Trade and other receivables 25,833 44,852 47,920 Deferred tax assets - 219 0 163,065 193,002 199,568 Current assets Inventories 364,107 343,298 368,065 Contract assets 12,905 13,494 8,419 Trade and other receivables 72,982 57,211 69,920 Cash and cash equivalents 21,986 9,946 8,399 Assets classified as held for sale 7,833 3,905 - 479,813 427,854 454,804 Liabilities Current liabilities Trade and other payables 67,584 85,966 86,411 Contract liabilities 890 3,471 - Current tax liabilities 292 105 4,701 Borrowings 1,046 1,552 871 Lease liabilities 858 863 882 Provisions 745 2,756 857 71,415 94,713 93,722 Net current assets 400,398 333,141 361,081 Non-current liabilities Trade and other payables 8,000 11,740 21,722 Borrowings 150,990 93,026 112,222 Lease liabilities 2,018 2,592 2,450 Deferred tax liability 3,781 6,720 4,115 164,789 114,078 140,509 Net assets 406,674 412,065 420,140 Equity Share capital 13,856 13,803 13,811 Property revaluation reserve 1,182 1,008 856 Retained earnings 402,391 388,864 409,918 Other reserves (6,911) 8,318 (1,271) Cost of shares held by ESOP trust (375) (645) (645) Equity attributable to owners of the Parent Company 410,143 411,348 422,669 Non-controlling interests (3,469) 717 (2,529) Total equity 406,674 412,065 420,140 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)for the half year ended 30 June 2026 Attributable to owners of the Parent Company Cost of Property shares held Non- Share revaluation Retained Other by ESOP controlling Total capital reserve earnings reserves trust Total interests equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 1 January 2025 13,801 1,008399,791 8,293 (645)422,248 2,900425,148 Profit for the period - - 6,391 - - 6,391 (464) 5,927 Other comprehensive expense - - (2,289) - - (2,289) - (2,289) Total comprehensive income - - 4,102 - - 4,102 (464) 3,638 Equity dividends - - (6,190) - - (6,190)(1,455)(7,645)
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Acquisition of non-controlling interest- - (9,778) - - (9,778) (264)(10,042) Proceeds from shares issued 2 - - 25 - 27 - 27 Share-based payments - - 939 - - 939 - 939 2 - (15,029) 25 - (15,002)(1,719)(16,721) At 30 June 2025 (unaudited) 13,803 1,008388,864 8,318 (645)411,348 717 412,065 At 1 January 2025 13,801 1,008399,791 8,293 (645)422,248 2,900425,148 Profit for the year - - 23,517 - - 23,517(2,986)20,531 Other comprehensive expense - (88) (5,195) - - (5,107) - (5,107) Total comprehensive income - (88) 18,322 - - 18,410(2,986)15,424 Transfer between reserves - (240) 240 - - - - - Acquisition of non-controlling interest- - - (9,741) (9,741) (309)(10,050) Equity dividends - - (10,535) - - (10,535)(2,134)(12,669) Proceeds from shares issued 10 - - 177 - 187 - 187 Share-based payments - - 2,100 - - 2,100 - 2,100 10 (240) (8,195)(9,564) - (17,989)(2,443)(20,432) At 31 December 2025 (audited)13,811 856 409,918(1,271) (645)422,669(2,529)420,140 Profit for the period - - (2,923) - - (2,923)(1,279)(4,202) Other comprehensive income - 326 1,169 - - 1,495 - 1,495 Total comprehensive income - 326 (1,754) - - (1,428)(1,279)(2,707) Equity dividends - - (6,218) - - (6,218) (970) (7,188) Acquisition of non-controlling interest- - - (6,334) (6,334) 1,309 (5,025) Proceeds from shares issued 45 - - 694 - 739 - 739 Share-based payments - - 445 - 270 715 - 715 45 - (5,773)(5,640) 270 (11,098) 339 (10,759) At 30 June 2026 (unaudited) 13,856 1,182402,391(6,911) (375)410,143(3,469)406,674 CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)for the half year ended 30 June 2026 Half year Half year Year ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 £'000 Cash flows from operating activities Cash generated from operations (12,688) (9,716) (16,077) Interest paid (4,723) (3,123) (7,082) Tax paid (3,146) (4,761) (7,751) Net cash flows from operating activities (20,557) (17,600) (30,910) Cash flows from investing activities Disposal of a subsidiary - - (9,050) Purchase of intangible assets (2) (5) (1,229) Purchase of property, plant and equipment (31) (125) (153) Capital expenditure on investment property (122) (1,170) (3,539) Investment in joint ventures and associates (1,245) (2,838) (4,944) Proceeds on disposal of property, plant and equipment (excluding assets held for hire)121 123 685 Proceeds on disposal of assets held for sale - 9,288 13,054 Proceeds on disposal of investment properties 8,307 4,982 5,170 Repayment of loans from joint ventures and associates 2,505 803 13,654 Advances of loans to joint ventures and associates (2,893) (2,123) (8,266) Dividends received from joint ventures and associates 8 - - Interest received 1,411 918 2,139 Net cash flows from investing activities 8,059 9,853 7,521 Cash flows from financing activities Acquisition of a non-controlling interest (5,025) (10,000) (10,050) Proceeds from shares issued 740 27 187 (Payments to/advances from joint ventures and associates (928) 11 939
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Repayment of borrowings (8,138) (40,957) (59,442) Proceeds from new borrowings 47,081 60,000 97,000 Principal element of lease payments (456) (457) (941) Dividends paid- ordinary shares (6,207) (6,180) (10,514) - non-controlling interests (971) (1,505) (2,134) - preference shares (11) (10) (21) Net cash flows from financing activities 26,085 929 (15,024) Net increase/(decrease) in cash and cash equivalents 13,587 (6,818) (8,365) Net cash and cash equivalents at beginning of period 8,399 16,764 16,764 Net cash and cash equivalents at end of period 21,986 9,946 8,399 NOTES TO THE CONDENSED FINANCIAL STATEMENTSfor the half year ended 30 June 2026 1. GENERAL INFORMATION The Company is a public limited company, listed on the London Stock Exchange and incorporated and domiciledin the United Kingdom. The address of its registered office: is Isaacs Building, 4 Charles Street, Sheffield, UnitedKingdom, S1 2HS. The financial information set out above does not comprise statutory accounts within the meaning of Section 434 ofthe Companies Act 2006 and is neither audited nor reviewed. The Financial Statements for the year ended 31December 2025, which were prepared in accordance with UK-adopted International Accounting Standards, havebeen reported on by the group's auditors and delivered to the Registrar of Companies. The Independent Auditors'Report was unqualified and did not contain any statement under Section 498 of the Companies Act 2006. 2. BASIS OF PREPARATION AND ACCOUNTING POLICIES The half-yearly financial information has been prepared in accordance with the Disclosure and TransparencyRules of the Financial Conduct Authority and with UK adopted International Accounting Standard IAS 34 'InterimFinancial Reporting'. The half-yearly financial information has been prepared using the same accounting policies and methods ofcomputation as compared with the annual Financial Statements for the year ended 31 December 2025. A number of other standards, amendments and interpretations became effective from 1 January 2026, which donot have a material impact on the group's financial statements or accounting policies. On 31 December 2025, the group disposed of HBC Construction Limited (formerly Henry Boot ConstructionLimited), which was classified as a discontinued operation in the results for the year ended 31 December 2025.Consequently, the group has restated its comparative information for the period to 30 June 2025 to reflect thediscontinued classification. Going Concern The Group has a secured loan facility with Barclays Bank PLC, HSBC UK Bank PLC and National WestminsterBank PLC which runs until May 2028 with a one-year optional extension available. An amendment to the loanfacility was signed in June 2026, revising the interest cover covenant requirements as at June 2026 and September 2026. We have agreed terms to increase our existing bank facility to £165.0m until 31 December 2026,providing additional financial flexibility as we progress targeted sales through the remainder of the year. The LTVcovenant has also been amended to enable full access to the facility. Our lending group remains supportive, and discussions are continuing regarding amendments to the full-year covenant requirements, consistent with theapproach taken to date. The Directors have considered the group's principal risk areas, including the risk of economic slowdown, that theyconsider material to the assessment of going concern. In addition, the Directors have prepared forecasts to 31 December 2027 covering a base case and downsidescenario. Having conducted significant stress testing at the year-end they have further considered the outcome of our halfyear position and their latest forecasts, while taking into account the current trading conditions, the markets inwhich the group's businesses operate and associated credit risks together with the available committed bankingfacilities and the potential mitigations that can be taken, to protect operating profits and cash flows. The downside scenario considered includes short-term curtailment in transactional activity and percentagereductions in other activities mirroring recent downturn experiences. This is followed by a short to medium-termrecovery, coupled with the ability to manage future expenditure as described in the 2025 Annual Report and toimplement mitigations as necessary in a downturn scenario. Having completed this review, the findings support the view that the group will have adequate resources, liquidityand available bank facilities to continue in operational existence for the foreseeable future. Accordingly, theycontinue to adopt the going concern basis of accounting in preparing the half-yearly financial information Estimates and Judgements
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The preparation of half-yearly financial information requires management to make judgements, estimates andassumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,income and expense. Actual results may differ from these estimates. In preparing these half-yearly financial statements, the significant judgements made by management in applyingthe group's accounting policies and the key sources of estimation uncertainty were the same as those that appliedto the Consolidated Financial Statements for the year ended 31 December 2025. 3. SEGMENT INFORMATION For the purpose of the Board making strategic decisions, the group is currently organised into four operatingsegments: Property investment and development; Home building; Land promotion; and Construction. Centraloverheads are not a reportable segment; however, information about them is considered by the Board inconjunction with the reportable segments. Operations are carried out entirely within the United Kingdom. Inter-segment sales are charged at prevailing market prices. The accounting policies of the reportable segments are the same as the group's accounting policies, as detailedabove. Segment profit represents the profit earned by each segment before tax and is consistent with the measurereported to the group's Board for the purpose of resource allocation and assessment of segment performance. Half year ended 30 June 2026 Unaudited Property investment and Home Land Group development building promotion Construction overheads Eliminations Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue External sales 23,644 35,200 10,400 11,499 - - 80,743 Inter-segment sales 114 - - 241 19 (374) - Total revenue 23,758 35,200 10,400 11,740 19 (374) 80,743 Gross profit 4,274 810 6,663 2,360 5 - 14,112 Other operating income - 8,713 - - 495 - 9,208 Administrative expenses andpension (4,392) (3,683) (5,128) (1,404) (2,930) - (17,562) Other operating expenditure - (8,954) - - - - (8,954) Decrease in fair value ofinvestment properties (2,989) - - - - - (2,989) Profit on sale of investmentproperties 405 - - - - - 405 Share of profit of joint ventures andassociates 1,917 - (1) - - - 1,916 Operating (loss)/profit (810) (3,114) 1,534 956 (2,430) - (3,864) Finance income 726 - 1,573 78 6,313 (6,104) 2,586 Finance costs (731) (4,570) (1,336) (83) (3,562) 5,286 (4,996) (Loss)/profit before tax (815) (7,684) 1,771 951 321 (818) (6,274) Tax (88) 3,472 (801) (433) (78) - 2,072 (Loss)/profit for the period (903) (4,212) 970 518 243 (818) (4,202) Half year ended 30 June 2025 Unaudited Property investment and Home Land Group development building promotion Construction overheads Eliminations Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue External sales 30,969 22,078 31,936 14,408 - - 99,391 Inter-segment sales 194 - - 7,474 48 (7,716) - Total revenue 31,163 22,078 31,936 21,882 48 (7,716) 99,391
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Gross profit 5,015 1,511 18,980 5,163 10 (4) 30,675 Other operating income - 7,890 - - - - 7,890 Administrative expenses andpension (5,809) (3,498) (5,214) (1,261) (4,198) (4) (19,976) Other operating expenditure - (7,949) - - - - (7,949) Increase in fair value of investmentproperties 1,320 - - - - - 1,320 Profit on sale of investmentproperties 465 - - - - - 465 Profit on sale of assets held forsale 958 - - - - - 958 Share of profit of joint ventures andassociates (1,197) - - - - - (1,197) Operating profit/(loss) 752 (2,046) 13,766 3,902 (4,188) - 12,186 Finance income 651 - 499 364 293 (146) 1,661 Finance costs (34) (2) (491) (203) (3,472) 173 (4,029) Profit/(loss) before tax 1,369 (2,048) 13,774 4,063 (7,367) 27 9,818 Tax (461) 671 (3,444) (974) 1,832 - (2,376) Profit/(loss) for the period 908 (1,377) 10,330 3,089 (5,535) 27 7,442 Year ended 31 December 2025 Audited Property investment and Home Land Group development building promotion Construction overheads Eliminations Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue External sales 69,028 69,747 82,987 29,787 - - 251,549 Inter-segment sales 335 - - 16,291 84 (16,710) - Total revenue 69,363 69,747 82,987 46,078 84 (16,710) 251,549 Gross profit/(loss) 14,871 (2,208) 43,760 9,415 (9) (5) 65,824 Other operating income - 16,040 - - - - 16,040 Administrative expenses andpension (10,648) (6,659) (10,864) (2,574) (9,376) 5 (40,296) Other operating expenditure - (16,329) - - - - (16,329) Increase in fair value of investmentproperties 2,087 - - - - - 2,087 Profit on sale of investmentproperties 512 - - - - - 512 Profit on sale of assets held forsale 887 - - - - - 887 Share of profit of joint ventures andassociates 1,727 - - - - - 1,727 Operating profit/(loss) 9,436 (9,156) 32,896 6,661 (9,385) - 30,452 Finance income 1,353 2 1,306 531 50,053 (49,305) 3,940 Finance costs (57) (170) (1,022) (362) (6,651) 287 (7,975) Profit/(loss) before tax 10,732 (9,324) 33,180 6,830 34,017 (49,018) 26,417 Tax (2,818) 2,158 (8,398) (1,733) 2,729 - (8,062) Profit/(loss) for the year 7,914 (7,166) 24,782 5,097 36,746 (49,018) 18,355 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 (restated) £'000 Segment assets Property investment and development 223,849 237,301 231,251 Home building 153,724 126,280 159,869 Land promotion 203,072 195,974 210,435 Construction 26,602 37,334 28,536
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Group overheads 9,288 6,879 12,872 616,535 603,768 642,963 Unallocated assets Retirement benefit assets 4,357 6,923 3,009 Deferred tax assets - 219 - Cash and cash equivalents 21,986 9,946 8,399 Total assets 642,878 620,856 654,371 Segment liabilities Property investment and development 22,960 27,413 23,463 Home building 32,886 21,422 45,500 Land promotion 15,796 27,095 30,086 Construction 2,046 23,657 4,034 Group overheads 3,531 4,346 5,907 77,219 103,933 108,990 Unallocated liabilities Current tax liabilities 292 105 4,701 Deferred tax liabilities 3,781 6,720 4,114 Current lease liabilities 858 863 882 Current borrowings 1,046 1,552 871 Non-current lease liabilities 2,018 2,592 2,450 Non-current borrowings 150,990 93,026 112,222 Total liabilities 236,204 208,791 234,231 Total net assets 406,674 412,065 420,140 4. REVENUE The group's revenue is derived from contracts with customers. In the following table, revenue is disaggregated byprimary activity, being the group's operating segments and timing of revenue recognition: Timing of revenuerecognition Timing of revenueRecognition (restated) Activity in the United Kingdom 30 June2026Unaudited£'000 At a point intime Overtime 30 June2025Unaudited£'000 At a point intime Overtime Construction contracts: - Property investment and development15,996 - 15,996 21,169 - 21,169 Sale of land and properties: - Property investment and development13,766 13,766 - 6,723 6,723 - - Home builder unit sales 20,610 20,610 - 22,078 22,078 - - Land promotion and land sales 16,115 16,115 - 31,850 31,850 - PFI concession 3,521 3,521 - 6,927 6,927 - Revenue from contracts with customers70,008 54,012 15,996 88,747 67,578 21,169 Plant and equipment hire 7,978 7,482 Investment property rental income 2,687 3,077 Other rental income - land promotion 70 85 80,743 99,391 5. EARNINGS PER ORDINARY SHARE Earnings per ordinary share is calculated on the weighted average number of shares in issue being 135,205,001(30 June 2025: 134,017,794). Diluted earnings per ordinary share is calculated on the weighted average numberof shares in issue adjusted for the effects of any dilutive potential ordinary shares. 6. DIVIDENDS Half year Half year Year ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 £'000 Amounts recognised as distributions to equity holders in period: Preference dividend on cumulative preference shares 11 10 21 Interim dividend for the year ended 31 December 2025 of 3.24p per share (2024: 3.08p)- - 4,334 Final dividend for the year ended 31 December 2025 of 4.62p per share (2024: 4.62p)6,207 6,180 6,180
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6,218 6,190 10,535 7. TAX Half year Half year Year ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 £'000 Current tax: UK corporation tax on profits for the period (1,298) 2,744 8,023 Adjustment in respect of earlier periods 35 (281) 1,510 Total current tax (1,263) 2,463 9,533 Deferred tax: Origination and reversal of temporary differences (809) (87) 1,471 Total deferred tax (809) (87) 1,471 Total tax (2,072) 2,376 8,062 Corporation tax is calculated at 25% (31 December 2025: 25%) of the estimated assessable profit for the periodbeing management's estimate of the weighted average corporation tax rate for the period. The group's effectiverate of tax of a benefit of 33.0% is higher than the credit receivable at the standard rate of corporation tax due toincome from joint ventures and associates which is reported net of tax. 8. INVESTMENT PROPERTIES Investment Completed property investment under property construction Total £'000 £'000 £'000 Fair value At 1 January 2026 (audited) 94,646 - 94,646 Subsequent expenditure on investment property 123 - 123 Amortisation of capitalised letting fees (19) - (19) Disposals (7,904) - (7,904) Transfer to assets held for sale (7,833) - (7,833) Decrease in fair value in period (2,989) - (2,989) At 30 June 2026 (unaudited) 76,024 - 76,024 Adjustment in respect of tenant incentives 1,798 - 1,798 Market value at 30 June 2026 77,822 - 77,822 Fair value At 1 January 2025 (audited) 96,275 - 96,275 Subsequent expenditure on investment property 751 419 1,170 Amortisation of capitalised letting fees (9) - (9) Disposals (4,517) - (4,517) Transfer to assets held for sale (2,920) - (2,920) Transfer from inventory - 272 272 Increase in fair value in period 1,320 - 1,320 At 30 June 2025 (unaudited) 90,900 691 91,591 Adjustment in respect of tenant incentives 2,104 - 2,104 Market value at 30 June 2025 93,004 691 93,695 Fair value At 1 January 2025 96,275 - 96,275 Subsequent expenditure on investment property 708 2,831 3,539 Amortisation of capitalised letting fees (19) - (19) Disposals (4,657) - (4,657) Transfer to assets held for sale (2,851) - (2,851) Transfer from inventory - 272 272 Transfers from investment property under construction 3,660 (3,660) - Increase in fair value in period 1,530 557 2,087 At 31 December 2025 (audited) 94,646 - 94,646 Adjustment in respect of tenant incentives 2,645 - 2,645 Market value at 31 December 2025 97,291 - 97,291
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At 30 June 2026, the group had entered into contractual commitments for the acquisition and repair of investmentproperty amounting to £nil (31 December 2025: £nil). 9. BORROWINGS Half year Half year Year ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 £'000 Bank loans 150,000 92,500 112,000 Sale and leaseback 2,036 2,078 1,093 152,036 94,578 113,093 Movements in borrowings are analysed as follows: £'000 At 1 January 2026 113,093 Secured bank loans 45,500 Repayment of secured bank loans (7,500) New leases of sale and leaseback 1,593 Repayment of sale and leaseback (650) At 30 June 2026 152,036 Bank loans include the group's revolving loan facility which runs to May 2028 and is drawn for durations of up totwelve months. 10. PROVISIONS FOR LIABILITIES AND CHARGES Since 31 December 2025, the following movements on provisions for liabilities and charges have occurred: · The road maintenance provision represents management's best estimate of the group's liability under afive-year rolling programme for the maintenance of the group's PFI asset. During the period £474,000 ofadditional provisions were made, all of which were due to normal operating procedures, and £585,000 ofprovisions have been utilised. As at 30 June 2026 the carrying value of road maintenance provisions was£nil (30 June 2025: £1,148,000). · The Land promotion provision represents management's best estimate of the group's liability to provideinfrastructure and service obligations, which remain with the group following the disposal of land. Duringthe period, there has been no utilisation or additional provisions made. 11. DEFINED BENEFIT PENSION SCHEME The main financial assumptions used in the valuation of the liabilities of the scheme under IAS 19 are: 30 June 30 June 31 December 2026 2025 2025 % % % Retail Prices Index (RPI) 2.95 2.80 2.85 Consumer Prices Index (CPI) 2.55 2.45 2.45 Rate in increase to pensions in payment liable for Limited Price Indexation (LPI)2.55 2.45 2.45 Revaluation of deferred pensions 2.55 2.45 2.45 Liabilities discount rate 6.00 5.65 5.60 Amounts recognised in the Consolidated Statement of Comprehensive Income in respect of the scheme are as follows: Half year Half year Year Ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 £'000 Service cost: Ongoing scheme expenses 422 358 790 Net interest income (81) (273) (536) Pension Protection Fund 7 7 7 Pension expenses recognised in profit or loss 348 92 261 Remeasurement on the net defined benefit liability: Return on plan assets (excluding amounts included in net interest expense)3,004 4,519 6,091
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Actuarial (losses)/gains arising from changes in demographic assumptions(904) - 2,091 Actuarial losses arising from changes in financial assumptions (4,464) (3,614) (2,820) Actuarial gains arising from experience adjustments 805 2,147 1,565 Actuarial (gains)/losses recognised in other comprehensive income(1,559) 3,052 6,927 Total (1,211) 3,144 7,188 The amount included in the Statement of Financial Position arising from the group's obligations in respect of thescheme is as follows: Half year Half year Year Ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 £'000 Present value of scheme obligations (132,362)(136,175)(137,682) Fair value of scheme assets 136,719 143,098 140,691 4,357 6,923 3,009 12. RELATED PARTY TRANSACTIONS There have been no material transactions with related parties during the period. There have been no material changes to the related party arrangements as reported in note 29 to the AnnualReport and Financial Statements for the year ended 31 December 2025. Transactions between the Company and its subsidiaries, which are related parties, have been eliminated onconsolidation and are not disclosed in this note. 13. SHARE CAPITAL Half year Half year Year ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 £'000 400,000 5.25% cumulative preference shares of £1 each (31 December 2025: 400,000)400 400 400 134,556,657 ordinary shares of 10p each (31 December 2025: 134,110,155) 13,456 13,403 13,411 13,856 13,803 13,811 14. CASH GENERATED FROM OPERATIONS Half year Half year Year ended ended ended 30 June 30 June 31 December 2026 2025 2025 Unaudited Unaudited Audited £'000 £'000 £'000 Profit before tax - continuing operations (6,274) 9,818 26,417 Profit before tax - discontinued operations - (2,020) 581 Adjustments for: Amortisation of PFI asset 243 251 581 Depreciation of property, plant and equipment 1,910 1,993 3,899 Depreciation of right-of-use assets 421 437 883 Impairment of land and buildings 25 - - Revaluation decrease/(increase) in investment properties 2,989 (1,320) (2,087) Amortisation of capitalised letting fees 19 9 19 Share-based payment expense 716 939 2,100 Pension scheme debit 484 228 530 Profit on disposal of property, plant and equipment (excluding equipment held for hire)(50) (105) (596) Profit on disposal of equipment held for hire (343) (327) (66) Profit on disposal of investment properties (405) (465) (512) Profit on disposal of assets held for sale - (958) (887) Finance income (2,586) (1,661) (3,940) Finance costs 4,996 4,029 7,975 Share of loss/(profit) of joint ventures and associates (1,916) 1,197 (1,727) Operating cash flows before movements in equipment held for hire229 12,045 35,238
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Purchase of equipment held for hire (2,067) (1,078) (1,942) Proceeds on disposal of equipment held for hire 479 509 509 Operating cash flows before movements in working capital (1,359) 11,476 33,805 Decrease/(increase) in inventories 3,958 (10,699) (35,466) Decrease/(increase) in receivables 20,315 (4,147) (34,646) (Increase)/decrease in contract assets (4,486) (801) 100 (Decrease)/increase in payables (32,006) (4,134) 21,528 Increase/(decrease) in contract liabilities 890 (1,411) (1,398) Cash generated from operations (12,688) (9,716) (16,077) Net debt is an alternative performance measure used by the group and comprises the following: Analysis of net debt: Cash and cash equivalents 21,986 9,946 8,399 Bank overdrafts - - - Net cash and cash equivalents 21,986 9,946 8,399 Bank loans (150,000) (92,500) (112,000) Other loans - sale and leaseback (2,036) (2,078) (1,092) Lease liabilities (2,876) (3,455) (3,332) Net debt (132,926) (88,087) (108,025) 15. GROUP RISKS AND UNCERTAINTIES The Directors consider that the principal risks and uncertainties which could have a material impact on HenryBoot's performance over the remaining six months of 2026 remain consistent with those set out in the StrategicReport on pages 57 to 64 of the group's Annual Report and Financial Statements. These risks and uncertaintiesare: External markets; Sustainability targets; Underperformance of subsidiaries; Reputational incident; Loss of criticalsystems; Business continuity incident, attract; Retain and develop workforce; Loss of key personnel; Health, safetyand environment; Execution; Failure to adhere to regulations; Adverse changes in regulations; Funding; Erosion ofprofits; and Fraud. The longer-term fundamentals of our core markets remain attractive, and the Directors remain cautiously optimisticabout an improvement in the outlook for them. Changes in the national planning policy framework are supportive,yet the geopolitical environment continues to be volatile, and therefore any improvement is likely to be gradual. Henry Boot operates a system of internal control and risk management in order to provide assurance that it ismanaging risk while achieving our business objectives. No system can fully eliminate risk and therefore theunderstanding of operational risk is central to the management process within Henry Boot. The long-term successof the Group depends on the continual review, assessment and control of the key business risks it faces. 16. APPROVAL The issue of these statements was formally approved by a duly appointed committee of the Board on 22September 2026. RESPONSIBILITY STATEMENTS OF THE DIRECTORS The Directors confirm that these condensed interim Financial Statements have been prepared in accordance withInternational Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and thatthe interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8,namely: · an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertaintiesfor the remaining six months of the financial year; and · material related-party transactions in the first six months and any material changes in the related-party transactions described in the last Annual Report. The Directors of Henry Boot PLC are listed in the Henry Boot PLC Annual Report for the year ended 31 December 2025. A list of current Directors is maintained on the Henry Boot PLC group website: www.henryboot.co.uk. On behalf of the Board E J HutchinsonDirector22 September 2026 D L LITTLEWOODDirector22 September 2026
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