Boot (Henry) PLC

First-pass take

Henry Boot is a UK real estate developer with minimal AI exposure (only as tenant in one future scheme). ROCE of 7.5% trails the company's 10-15% target and is declining. Net debt rose 72% to £108m with gearing at 25.7%, above target. While Hallam Land shows strong operating leverage (35% profit growth on 6% revenue growth), execution challenges at Stonebridge Homes and 30% profit reduction forecast for 2026 undermine near-term appeal.