Property developer Henry Boot lifted its dividend payment despite reporting a decline in annual pre-tax profit as challenging conditions continue in the UK property and construction markets.
The Sheffield-based firm said pre-tax profit fell to £16.1m in the year for the year ended 31 December 2011 from £18.9m the year before. Trading profits rose to £20.8m from £18m a year earlier.
Earnings per share fell to 6.9p from 9.1p previously and net asset value per share decreased by 2% to 142p.
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Commenting on the results, chairman John Brown said, "Given the continued challenging conditions in the UK property and construction markets, Henry Boot once again produced a solid performance."
The group, which has agreed a new three-year bank facility that starts in May 2012, said it would continue to, "invest significant time and resource to secure planning consents on our greenfield land portfolio, in order to be able to supply the recovering housebuilding market."
Henry Boot's property revaluation showed a deficit £4.3m compared to a surplus of £0.6m the year before. Profit on disposal of assets held for sale rose to £0.4m compared with a loss of £0.1m before.
"We retain, and will continue to add to, a strong portfolio of land opportunities which we are working through the challenges of the new planning regime and will bring forward commercial developments on the basis of pre-letting and where the expected financial returns are commensurate with the associated development risk," the group said in a statement.
The firm has proposed a final dividend of 2.6p, up from 2.15p in 2010, giving a total for the year of 4.25p, up 21%.
Net debt reduced to £2.3m from £11.4m in 2010 with a gearing to 1% from 6% before.
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