Henry Boot bosses said performance at its construction division including Banner Plant (BP) was “below our expectations” in its latest results for the year to December 31 2024.

Construction posted turnover of £80.5m during the year compared to £99.5m last time generating an operating profit of £4.9m from £6.5m.

A new management team led by former GMI Construction CEO Lee Powell took charge of the division at the start of this year.

Henry Boot said: “As HBC and BP review and explore all the options to deal with the current commercial challenges, the difficult decision has been made to make operational changes which has resulted in a restructuring within both businesses. While this is regrettable, it is being carried out to protect the long term future of HBC and BP.

“The team’s immediate focus will be on growing and diversifying the order book by developing a balanced portfolio of private sector projects to complement the existing public sector work.

“HBC has started 2025 in a better position, with 55% of its order book contracted and a further 16% secured at the time of the group trading update on 28 January.

“This includes the company being awarded a £16m contract in Sheffield with the National Centre for Child Health Technology to deliver a new world-class research and technology centre for children and young people. The 2025 order book has continued to progress, with 70% secured as at 3 March.”

Across the whole land promotion, property investment and development and construction business group turnover for the year was £328.4m from £359.5m generating a pre-tax profit of £30.7m from £37.3m.