Henry Boot shrugs off impact of interest rates rises

LAND developer Henry Boot posted a rise in profits, despite lower revenues and said the successive interest rate rises had not affected its business.

The company, which has a market cap of 194.72 million, said: "Successive rises in interest rates have dampened both the housing and property investment markets.

"However, as yet, we have not seen any impact on the demand for quality land or on the prudent yields we have used in our development appraisal process."

Turnover for the year fell to 124.8m from 142.3m in 2006, reflecting fewer land transactions with lower acreages and values completed in the period.

Pre-tax profit though increased 14 per cent to 46.5m as lower sales were offset by valuation gains and development sales. Net asset value per share increased 20 per cent to 139p per share.

"The general economic climate in which the business is operating will result in the property sector having to endure a more turbulent period than for some time. That said, much of this uncertainty has already been factored into property equity prices, including ours," it said.

Total dividend increased 14 per cent to 5p per share.