Inland Homes (INL) delivered a strong first-half performance, with profit boosted by a revaluation surplus on the group's property portfolio of £14m. For the first time, the Aim-traded land developer and housebuilder has reported its net asset value (NAV) adopting the performance measures of the European Public Real Estate Association (EPRA), which includes the unrealised gains within its projects. This meant that basic NAV of 53p was considerably higher at 84p on an EPRA basis. And, according to analysts at Stifel, adjusted NAV growth since the June year-end was an implied 12 per cent.
Revenue generated from building and selling houses fell from £48.1m to £30.3m as completions dipped from 199 to 93 private homes. However, margins were higher thanks to a jump in the average selling price from £242,000 to £325,000. The drop in revenue was offset by £21.5m generated from the sale to builders of 244 plots; there were no such sales in the first half of the previous year.
Inland has a number of projects in the pipeline including plans to build 304 homes at Beaconsfield, and as a development partner with Southampton City Council to build 380 residential units on an 8.9-acre site.
Analysts at Stifel are forecasting full-year adjusted NAV of 93p at the end of June 2016, from 77p a year before.
| INLAND HOMES (INL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 85.25p | MARKET VALUE: | £172m | |
| TOUCH: | 85-85.5p | 12-MONTH HIGH: | 89p | LOW: 61p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 4 | |
| NET ASSET VALUE: | 53p | NET DEBT: | 51% | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 52.6 | 5.7 | 2.42 | 0.3 |
| 2015 | 55.1 | 21.5 | 10.0 | 0.4 |
| % change | +5 | +274 | +315 | +33 |
Ex-div: 5 May Payment: 31 May | ||||
