Inland Homes PLC – INL – Final Results

Inland Homes PLC – INL – Final Results

Inland Homes plc (AIM: INL), a housebuilder, partnership housing developer and regeneration specialist, today announces its audited results for the year ended 30 September 2020 (prior period was fifteen months ended 30 September 2019).

 

Stephen Wicks, Chief Executive at Inland Homes, commented:

 

"The Group has weathered the global pandemic well. The flexibility in our diversified business model allowed us to adapt quickly during the year despite challenging conditions. The consolidation to land-focused activity, supported by the Group's other income streams and the new equity raised during the year, has benefited our balance sheet. A steady reduction in net debt is a strategic priority for the Group.

 

"We are seeing increasing demand for our experience and skills in successfully navigating the complex planning system. A primary focus in the year ahead will, therefore, be growing our asset management division. As a 'capital light' activity - where our skills and expertise are the service - this has lower risk and delivers attractive returns.

 

"There are plenty of opportunities ahead for Inland with growing demand in the affordable and build to rent spaces. We have proven capability in delivering such schemes and are actively seeking these opportunities, which provide regular cash flow and land sales.

 

"Above all else, there is a significant shortage of new homes being built in the UK and we will play our part in building sustainable communities for the future. We end the year with a record land bank and sustained demand from customers, partners and investors for our quality land assets and build expertise, leaving us well positioned for future growth."

 

Financial performance*

·      Raised £9.4m (net of expenses) in May 2020, to provide additional liquidity

·      EPRA NAV[1] sustained at £235.7m (30 September 2019: £233.1m)

·     ERPA NAV per share 103.97p per share (30 September 2019: 113.69p), 8.5% lower due to placing of 20.75m new ordinary shares during the year

·     Revenue at £124.0m (30 September 2019: £147.9m), different from that guided to in the Trading Update due to change in accounting policy for contract income

·     Gross profit reduced to £22.0m (30 September 2019: £32.5m) as a result of a lower number of homes sold by the Group and increased costs due to COVID-19

·      Profit before tax at £3.7m (30 September 2019: £25.0m)

·      Net debt reduced to £148.2m (30 September 2019: £152.3m)

·    Cash balances increased to £15.7m (30 September 2019: £10.9m) of which £4.7m was restricted (30 September 2019: £1.3m)

 

Operational performance*

·      Activity disrupted by COVID-19 pandemic

·     Robust health and safety procedures ensured operations continued throughout the first lockdown on all but three sites, which reopened in August 2020

·    Strategy refined to focus on four key pillars: increase the size of our land bank; secure capital light opportunities; use the flexibility within our model to maximise the value of land; deliver homes that meet market need in a cost-efficient way

·      Two major land sales achieved at Wilton Park, Beaconsfield and Cheshunt Lakeside, Cheshunt

·    Resolution to grant planning consent achieved at Hillingdon Gardens (former Master Brewer site) subject to signing of a Section 106 agreement to deliver 514 homes including 182 affordable homes

·      Secured our first two sales to 'Build to Rent' (BTR) funds for £52.8m

·    Building a high-quality land bank to support expected growth in demand from affordable housing providers and BTR operators. Total land holdings at a record 11,045 plots (7,796 plots) with an anticipated gross development value (GDV) of £3.1bn

 

·    Private Housing:  226 completions (30 September 2019: 201) including joint ventures. Continued strong demand with a forward order book of £50.8m (2019: £39.3m)

·     Partnership Housing: Revenues of £51.8m (30 September 2019: £62.6m). Will continue to increase our partnership housing activity as it achieves both land sales and a forward income stream for the Group that provides a good balance to our business model

·      Asset Management: Grown to six live projects in Greater London with the potential to deliver more than 3,100 homes. During the year, the Group earned management fees of £24.4m (30 September 2019: £18.6m) from these sites

·      Land sales: 107 land plots sold (30 September 2019: 532). Five significant land sales were aborted as an immediate result of the COVID-19 pandemic. Subsequently the Group has secured new purchasers for these sites.

·    Hugg Homes: Winner of the 'Innovator of the Year: Housing Delivery' at the UK Housing Awards. Our temporary modular housing business continues to grow and once additional units at Cheshunt and Southampton have been constructed, the total number of Hugg tenanted homes will be 118 (30 September 2019: 54).

·     Rosewood Housing: Our affordable housing provider continues to see high demand and made good progress, adding four Shared Ownership and eight affordable rent homes to its property portfolio

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