annual report and financial statements 2009

Robin Hood Airport, DoncasterThe refurbishment of a hanger and associated works and the installation of an aircraft finishing centre at Robin Hood Airport, Doncaster has been our first contract in the aviation sector.


Completion of the modernisation of the 10,000th property by Henry Boot ConstructionCompletion of the modernisation of the 10,000th property by Henry Boot Construction under the Decent Homes programme was cause for celebration by its tenant and our team.

Henry Boot Construction (UK) has performed well during 2009 beating both targeted activity and profit levels.

Business review

OPERATIONS REVIEW

CONSTRUCTION

Henry Boot Construction (UK) has performed well during 2009 beating both targeted activity and profit levels. This was achieved in an increasingly competitive marketplace and, with a healthy forward order book, the Company is well placed to further consolidate its position within the construction sector in 2010. We continue to assess the risk profile of opportunities and carefully select the type of contracts and clients. Activity during the year focused on key partnering, framework and negotiated contracts, predominantly in Decent Homes, education, health and the Prison Alliance Framework. Our strategy moving forward is to continue to target public sector funded construction projects in social housing, health, security and education sectors, supplemented by suitable private sector construction opportunities in hotel and leisure, commercial, industrial and retail.

We continue to work alongside partner contractors on major Decent Homes schemes for Sheffield City Council on the largest project of its type in the country which is being managed by Sheffield Homes; Rotherham Metropolitan Borough Council on a 22,500 homes programme being administered by 2010 Rotherham; 22,000 homes for St Leger Homes on behalf of Doncaster Metropolitan Borough Council; and on a 6,000 homes programme for Eastland Homes in Manchester. We refurbished over 3,000 properties in the year and since 2006 have now completed over 10,000 properties under these programmes. 2009 also saw an increase in the refurbishment of non-traditional constructed houses and we secured work for both Barnsley Metropolitan Borough Council and Rotherham Metropolitan Borough Council. Work in this sector will continue in coming years, together with a targeted growth in public sector new build housing and environmental improvements to housing estates.

Our Preferred Alliance Contractor Agreement with the National Offenders Management Service has seen a large number of upgrade and refurbishment contracts within secure establishments, including a major £11m contract at HM Prison Leeds, and a programme of security improvements at Category A prisons. A number of projects are expected to come to market during 2010 which should provide good opportunities to retain a strong presence in this sector.

The education sector has seen continued consolidation during the year with facilities either being constructed or completed under partnering framework agreements with Cheshire County Council, Lancashire County Council, Derby City Council and Rotherham Metropolitan Borough Council. Further refurbishment work was also completed for Sheffield Hallam University. A number of school extension and modernisation projects have been carried out for North East Lincolnshire Council and with Rotherham Metropolitan Borough Council through our involvement in the Rotherham Construction Partnership. We also completed a 60-bed residential care home at Dinnington for Rotherham Metropolitan Borough Council under this arrangement which received the Chartered Institute of Building regional award for projects over £5m.

Our strength and experience within the retail and commercial sectors continues to grow with the completion of a B&Q store at Northfields Retail Park, Rotherham, and a training facility and offices at Doncaster Robin Hood Airport for Directions Finningley CIC. In addition, we have recently been appointed to the Sheffield Teaching Hospitals framework and have been awarded our first construction project at the Northern General Hospital which will be completed during 2010. Our general works division continued to work with its long-standing customer base on civil engineering contracts in the industrial and water sectors. This was once again augmented by an increasing level of business in small building work contracts in various sectors.