TIDMINL
RNS Number : 6435U
Inland Homes PLC
16 July 2018
16 July 2018
Inland Homes plc
Trading Update
Inland Homes (AIM: INL) ("Inland Homes", the "Group" or the
"Company"), the leading brownfield developer, housebuilder and
partnership housing company with a focus on the south and south
east of England, provides the following update on trading ahead of
its preliminary results for the 12 months ended 30 June 2018, which
will be announced in September 2018. Trading in the period has been
in line with the Board's expectations.
Operational highlights
30 June 30 June Change
18 17
Open market completions (including
joint ventures) 275 188 +46.3%
-------- -------- --------
Partnership housing equivalent
units 82 37 +121.6%
-------- -------- --------
Revenue GBP150m GBP90m +66.7%
-------- -------- --------
Cash GBP40m GBP26m +53.8%
-------- -------- --------
Net debt GBP80m GBP68m +17.6%
-------- -------- --------
Forward sales (at trading update) GBP20m GBP26m -23.1%
-------- -------- --------
Land plots sold 837 780 +7.3%
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Total land bank plots (at trading
update) 6,808 6,776 +0.5%
-------- -------- --------
Of which consented 1,547 2,105 -26.5%
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Current Trading
It has been another successful and very active period for Inland
Homes as management continues with the implementation of its
expansion strategy and the diversification of the Company's revenue
streams which include housebuilding, specialist brownfield site
regeneration, land sales, partnerships with housing associations
and exposure to the Private Rented Sector ("PRS").
Growth in both revenues and homes delivered and under
construction has been strong and of particular note was the
strategic and meaningful expansion of our partnership housing
activities, including a GBP65 million contract secured with A2
Dominion, a top ten housing association which lifted our
partnership housing order book to approximately GBP100 million.
In May, we formed a strategic relationship with a PRS focused
fund, KCR Residential REIT ("KCR"), to gain exposure to this
rapidly emerging sub-sector at an attractive entry point, through
an interest in the delivery of high quality, low-to-mid priced
housing for rent. We have since completed the sale of two
commercial properties and 27 residential units to KCR, with further
transactions in the pipeline.
In a milestone for the Company, we also submitted our largest
planning application to date on a 30-acre brownfield site in
Cheshunt, Hertfordshire for 1,853 homes and a significant office,
retail and leisure element. We expect to secure consent for this
extensive project during 2018.
Negotiations are continuing with the local authority on our
planning application for 350 homes at Wilton Park, Beaconsfield.
While the site is allocated for development and discussions are
progressing very well, the process is slow due to the complexity of
the negotiations with the planning authority.
The land team have focused on augmenting our strategic land
bank, with some exciting new opportunities secured at attractive
discounts to market value. We now have 24 options covering
approximately 380 acres of potential development land.
Market demand for consented housebuilding land remains strong
with 837 plots sold in the year to 30 June 2018. Of these, 480
plots were to private housebuilders and 357 plots to housing
associations.
Outlook
Contrary to what market commentary might indicate, customer
demand for our good quality, affordably priced homes (with an
average selling price of GBP293,000 (including joint ventures))
remains strong and the average sales rate per active site during
the second half of the year was 1.34 units. Low interest rates and
Help to Buy continue to underpin our market place.
We are continuing to see strong demand on our land sales and
where appropriate we are targeting these sales to the major housing
associations and where our partnership housing team can secure the
related build contract as part of the transaction.
We see the growth in the PRS market as an exciting opportunity
for Inland Homes. Several of our projects, particularly Cheshunt
Lakeside, where planning has been applied for 1,853 homes next to
the station (30 minutes to Liverpool Street Station and potentially
on Cross Rail 2), we believe are particularly appropriate for PRS.
We will be seeking a suitable partner for this project in the near
future.
Supporting the growth of the Company, in June we announced the
appointment of two new Non-Executive Directors, Laure Duhot and
Brian Johnson, whose operational and financial experience will be
invaluable moving forward.
Stephen Wicks, Group Chief Executive commented:
"Following the extensive progress we have made over the past 12
months, Inland now has a very well balanced business model.
Strategically, our focus has always been on suburban locations in
and around the South and South East of England, where we provide
good quality affordably priced homes, and we therefore have no
exposure to the weakening central London market.
"The core business of brownfield land acquisition and the
growing greenfield strategic land business is generating
significant opportunities to provide new outlets for our private
housebuilding, as well as partnership housing transactions where we
can also secure the build contracts from housing associations.
"With some major planning consents on the horizon and a strong
forward order book the Group is in an advantageous position to
propel significant further growth for our shareholders."
Market Abuse Regulation
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries:
Inland Homes plc: Tel: +44 (0) 1494 762450
Stephen Wicks, Chief Executive
Nishith Malde, Finance Director
Gary Skinner, Managing Director
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
Dominic Morley
Erik Anderson
FTI Consulting: Tel: +44 (0) 20 3727 1000
Dido Laurimore
Claire Turvey
Richard Gotla
Notes to Editors:
Incorporated in the UK in 2005, Inland Homes plc is an AIM
listed specialist housebuilder and brownfield developer, dedicated
to achieving excellence in sustainability and design.
Inland Homes acquires brownfield land in the South and
South-East of England principally for residentially led development
schemes. The business then enhances the land value by obtaining
planning permission, before building open market and affordable
homes or selling surplus consented land to other developers to
generate cash.
The Company is committed to extensive public and community
consultation in order to ensure that, where possible, local
community needs and objectives are met.
Inland's aim is to create sustainable communities and homes
which set a benchmark for all future developments in the South of
England. The Company is always looking for brownfield sites without
planning permission for future development.
For further information, please visit the Inland Homes website
at www.inlandhomes.co.uk.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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