Henry Boot Shares Fall After Report Advisers Called in Amid Growing Sector Strain

A lender to London-listed housebuilder Henry Boot saw its shares fall by over 1% on Tuesday after Sky News reported it has begun a process to appoint external debt advisers to scrutinise the company’s finances, as pressure continues to build across Britain’s housebuilding sector.

According to the report, at least one of Henry Boot’s banks has initiated moves to bring in debt specialists to examine its balance sheet. The company, which traces its history back to 1886, has a market value of around £220m.

Its housebuilding division, Stonebridge Homes, is a relatively small player compared with major names such as Barratt Redrow, Crest Nicholson and Persimmon. Stonebridge manages a land portfolio with capacity for 1,500 homes and targets delivering up to 600 new homes annually.

Sky News noted that Crest Nicholson is among other housebuilders whose lenders have also called in advisers recently, reflecting wider strain on balance sheets across the industry.

A source close to Henry Boot told Sky News that the company maintains regular dialogue with its three lending banks — Barclays, HSBC and NatWest — and had recently agreed an amendment to its secured loan facility. The source added that Henry Boot held strong liquidity and had flexibility to expand its borrowing facility by £60m.

The development comes as Henry Boot prepares for a leadership change, with Edward Hutchinson set to succeed Tim Roberts as chief executive on 13 July, following an announcement made last month.