Henry Boot Exits Construction Arm After 17% Insolvency Spike Halts 5,000 Homes
Henry Boot PLC sold its 50-year-old construction arm in December after CEO Tim Roberts cited razor-thin margins and insolvency risks. The decision follows a 17% share of contractor insolvencies in 2025 and halted work on over 5,000 London homes due to surging material costs and labor shortages.
1. Sale of Construction Business
In December, Henry Boot PLC completed the exit of its construction arm after more than 50 years in building, following CEO Tim Roberts’ assessment that razor-thin margins and rising debt exposure made the unit unsustainable.
2. Industry Insolvencies and Project Halts
Construction insolvencies in England and Wales rose to 17% of all sector failures in 2025, contributing to work stoppages on over 5,000 London homes, as six-year high material prices and post-Brexit labor shortages inflated project costs.
3. Strategic Repositioning for Henry Boot
By divesting its construction division, Henry Boot refocuses on property development and asset management, aiming to stabilize margins, reduce capital intensity, and pursue higher-return ventures in a challenging London housing market.