Finance
Henry Boot shares tumble after profit warning in tough housing market
Published by Global Banking and Finance Review
Posted on January 29, 2026
2 min readLast updated: January 29, 2026
Quick Summary
Henry Boot shares dropped 21% after a profit warning due to challenging housing market conditions and contract expirations, impacting future profits.
Henry Boot Shares Drop 21% Following Profit Warning Amid Housing Struggles
Impact of Profit Warning on Henry Boot's Share Price
Jan 29 (Reuters) - Shares of Henry Boot slumped 21% on Thursday after the British land and property development group warned its 2026 profit would come in significantly below market expectations, hurt by muted transaction volumes and slower deal completions.
Current Market Conditions
The company, which owns the Hallam Land, HBD, Stonebridge Homes, Banner Plant and Road Link businesses, continues to operate in a challenging housing industry, even though demand began to show some improvement in early 2026.
Analyst Insights
Henry Boot said a lower forward sales position across the group and the expiry of a profitable Road Link contract in March would also hit profits.
Future Profit Expectations
Analysts were expecting pretax profit of 33.6 million pounds ($46.48 million) for the current year, according to a company-compiled consensus.
Henry Boot shares pared some initial losses and were down 10.6% at 195 pence at 0851 GMT, making the stock the biggest percentage loser on the small-cap index.
The company said house prices and land values were broadly flat across the UK last year, and expects profit before tax for 2025 to be broadly in line with market consensus following the disposal of HBC.
For 2026, it expects profit before tax to be significantly below current market expectations.
Peel Hunt analyst Sam Cullen said Henry Boot's Stonebridge Homes business "has suffered" from softer sales rate and planning delays, reducing profitability, adding that the brokerage also expects reduced transactions at Hallam Land.
Cullen added that while "this is clearly a disappointing result," it "should not detract from the long-term value of the group's assets."
($1 = 0.7229 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Subhranshu Sahu)
Key Takeaways
- •Henry Boot shares fell 21% following a profit warning.
- •The company expects 2026 profits below market expectations.
- •Challenging housing market conditions impact transactions.
- •Stonebridge Homes faces softer sales and planning delays.
- •Analysts remain optimistic about long-term asset value.
Frequently Asked Questions about Henry Boot shares tumble after profit warning in tough housing market
1What is a profit warning?
A profit warning is a statement issued by a company indicating that its earnings will be lower than expected, often due to unfavorable market conditions.
2What are transaction volumes?
Transaction volumes refer to the total number of transactions conducted within a specific period, often used to assess market activity.
3What is pretax profit?
Pretax profit is the income earned by a company before taxes are deducted, providing a clear view of its operational performance.
4What are land values?
Land values represent the monetary worth of land, influenced by factors such as location, demand, and market conditions.
5What is a small-cap index?
A small-cap index is a stock market index that tracks the performance of small-cap companies, typically those with a market capitalization of under $2 billion.