Inland Homes (INL) still brings brownfield sites through the planning process to sell to housebuilders, but it is keeping more and more sites to develop itself. So while just nine homes were sold in 2011-12, this jumped to 114 units in the year to June 2014. Chief executive Stephen Wicks reckons completions in the current year will reach 270, with a mid-term target of 500.
Forward sales currently stand at £55m, with 436 units under construction. To meet this demand, the land bank has been increased to a record 3,734 plots. Sales were boosted by the government's Help to Buy initiative, with over half of all sales completed using the scheme. The average selling price on private units jumped from £208,000 to £256,000, lifting the operating margin from 16.3 per cent to 26.4 per cent.
Sensibly, Inland is also building up a rental portfolio to provide income when the current housing boom starts to moderate. Institutional funds are now being attracted to fund such schemes, with one large US fund recently signing an agreement for the development of over 200 homes at the group's Drayton Garden Village site.
Analysts at broker finnCap are forecasting adjusted pre-tax profit for the current year of £12m and EPS of 4.7p (from £8.6m and 2.7p in 2013-14).
| INLAND HOMES (INL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 47p | MARKET VALUE: | £95m | |
| TOUCH: | 46-47p | 12-MONTH HIGH: | 51p | LOW: 39p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 32p | NET DEBT: | 45%* | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 16.5 | 1.1 | 0.7 | nil |
| 2011 | 21.4 | 3.5 | 2.1 | nil |
| 2012 | 6.1 | 1.6 | 0.4 | 0.067 |
| 2013 | 31.1 | 5.2 | 2.0 | 0.27 |
| 2014 | 39.8 | 8.6 | 2.9 | 0.6 |
| % change | +28 | +65 | +45 | +122 |
Ex-div: 11 Dec Payment: 9 Jan *Includes zero-dividend shares worth £11.6m | ||||
