Henry Boot performed ahead of expectations after its logistics and warehousing development activities thrived.

The boost from its operations in the sector, which is one of three businesses that make up Henry Boot, helped to boost its pre-tax profit, which is expected to be ahead of market expectations at around £30.7m for the year ended 31 December 2021, the company said in an update this morning.

Strong demand for industrial space spurred the business on to make further land acquisitions in Welwyn Garden City, Rainham and in Manchester. Henry Boot also won planning consent for a £114m industrial and logistics scheme in the West Midlands in May, which it said would provide up to 620,000 square feet of employment space.

Its residential and urban development businesses also performed well over the course of last year, thanks to strong demand from housebuilders for residential land.

Henry Boot Construction meanwhile had a good year, and has secured its entire order book for the coming year.

The company said it had “successfully managed” rising labour and material costs during the year and was continuing to monitor the situation. Henry Boot also increased its sales prices across all its businesses to combat rising labour and material costs.

The construction sector was hit hard by shortages and rapidly increasing build costs, but material prices did level out for the first time in a year in November.

Logistics and warehouse building space has been in heavy demand with the rise of online shopping. Global logistics firm Prologis announced last year that it would plough around £1.5bn into the development of new zero-carbon warehouses in England.

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