Lee Powell
Henry Boot has agreed to sell its construction division to a company formed by the subsidiary’s management team.
The group confirmed the £4m deal to dispose of the entire share capital of Henry Boot Construction to newly formed PWS Construction Limited.
The transaction will be funded through a vendor loan note issued by Henry Boot and includes potential future payments subject to performance.
The sale marks a strategic shift by Henry Boot to focus on high-quality land, prime property development and premium homes. The construction arm had been deemed non-core to the group’s medium-term growth plans and made a limited contribution to its earnings.
Henry Boot Construction generated revenue of £49.7m in the year to 31 December 2024 but posted an operating loss of £2.7m. The company expects to break even in 2025, with 94 per cent of the current year’s order book already secured.
The deal is set to complete by the end of 2025, with the construction business to be renamed HBC Construction Group under its new ownership. A transitional services agreement will be in place while the vendor loan note—carrying 2.1 per cent interest above the Bank of England base rate—is repaid.
Three directors from Henry Boot Construction, including managing director Lee Powell, are listed as directors of PWS.
Powell joined Henry Boot from GMI Construction in January 2025, replacing former MD Tony Shaw.
Major jobs completed by the contractor last year include the £44m Heart of the City scheme in Sheffield and the £56m Cocoa Works residential scheme in York. Ongoing work includes a £38m redevelopment of Rotherham Markets and a new library, due to finish in 2027.
Henry Boot said the disposal would simplify its group structure and reduce headcount by 21 per cent. Additional consideration may be payable if the business is sold or exceeds profit thresholds within specified periods.
The carrying value of the vendor loan note is expected to be less than £4m, with the difference to be recorded as a gain on disposal in the group’s accounts.
