Henry Boot Shares Plunge After Slashing Full-Year Profit Forecast

Shares in property and construction group Henry Boot PLC (LSE:BOOT) fell sharply on Monday after the company issued a significant profit warning, stating that full-year earnings would fall well short of market expectations.

In a mid-year trading update, the company announced that pre-tax profit for the year ending December 31, 2026, is now forecast to be "significantly below" the current analyst consensus of £20.4 million. The downgrade reflects deteriorating conditions in its key markets.

Land and Housing Divisions Underperform

The primary driver of the revised forecast is a severe slowdown in the company's strategic land promotion business, Hallam Land. Key details from the update include:

• Residential plot sales at Hallam Land totaled just 556 in the first half of 2026, a steep decline from the 1,222 plots sold in the same period last year.
• The company noted that housebuilders have slowed land acquisitions and are increasingly using deferred payment terms, pushing revenue recognition into future periods.

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Compounding the issue, Henry Boot's housebuilding unit, Stonebridge Homes, is now expected to report a full-year operating loss. This reversal is attributed to softer sales rates and ongoing planning delays.

Market Reaction and Outlook

Investors reacted negatively to the news, with Henry Boot's stock dropping 6.7% to 154.85p in morning trading, hitting a new 52-week low during the session. The company attributed the challenging backdrop to domestic political uncertainty and geopolitical conflicts, which it said have suppressed consumer and business confidence.

The warning from Henry Boot highlights the persistent headwinds facing the broader UK property sector, as higher interest rates and economic uncertainty continue to weigh on transaction volumes and developer sentiment.