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Henry Boot has decided to quit construction contracting to focus on house-building and land development.

Henry Boot Construction (HBC) is being sold to newly incorporated PWS Construction Limited, which  has been set up by Henry Boot Construction’s managing director Lee Powell and commercial director Chris Weathers.

PWS is paying an initial consideration of £4.0m, which is being funded by PWS via a vendor loan note issued by Henry Boot. The transaction also provides for additional payments to Henry Boot in the future based on certain performance criteria.

Under PWS ownership, the business will do business as HBC Construction Group.

Banner Plant is not included in the deal, nor is Road Link (A69), which is in the final seven months of its 30-year DBFO contract to maintain the A69 between Carlisle and Newcastle.

Henry Boot chief executive Tim Roberts said: “The sale of HBC which we are announcing today allows Henry Boot to further its strategic focus on high quality land, prime property development and premium homes. It also enhances prospects for long term growth with a more focussed portfolio of activities with greater synergies. While HBC’s contribution to the group is relatively small, it is a well-established business with a strong track record of delivery and an excellent management team and we wish them well for the future.”

During the year ended 31^st December 2024, HBC generated £49.7m of revenue with an operating loss of £2.7m in the consolidated financial statements of the group. Following a restructuring and the recruitment of Lee Powell from GMI in January 2025, the business is expected to break even this year. In the first six months it turned over £41.0m and made an operating profit of £1.9m.

The term of the vendor loan note from Henry Boot to PWS is five years and will carry interest at 2.1% over the Bank of England base rate. Henry Boot will continue to provide support to HBC in the short term under a transitional services agreement, with operational oversight from two Henry Boot representatives on the HBC board until the point when the vendor loan note has been repaid. Personal guarantees have been given by the HBC management team.

The transaction is expected to complete in December.

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