It was a very slow year for Inland Homes (INL), the Aim-traded property company that specialises in getting planning consent for brownfield land. It made no land sales during the 12-month period, and sold just nine homes (from 35 in 2011). One major deal, expected to generate £2m of profit, fell through when the buyer dropped its bid at the last minute. Inland held its nerve and hopes to announce a sale later this month.
This year, business has perked up considerably. The company has sold 44 plots to a housebuilder at the Queensgate development in Hampshire for £3.14m, and completed 14 more homes. Inland has been increasing its housebuilding capacity because it's hard to raise bank finance against pure land purchases.
The company also has an off-balance sheet venture called Drayton Garden Village or DGVL, from which it sold 116 plots for housing and one plot for an 80-bed nursing home during the financial year. In time, finance director Nishith Malde expects DGVL to generate at least 5p of profits per share net of tax.
House broker finnCap expects pre-tax profits of £3.4m in the current year, giving EPS of 1.5p.
INLAND HOMES (INL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 19p | MARKET VALUE: | £34.8m | |
| TOUCH: | 18.5-19p | 12-MONTH HIGH: | 21.6p | LOW: 14.75p |
| DIVIDEND YIELD: | 0.4% | INVENTORIES: | £43.8m | |
| DISCOUNT TO NAV: | 30% | |||
| INVESTMENT PROPERTIES: | £8.8m | NET DEBT: | 13% | |
| Year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 32.9 | -4.2 | -2.39 | nil |
| 2009 | 24.9 | -10.5 | -7.83 | nil |
| 2010 | 24.3 | 1.1 | 0.68 | nil |
| 2011 | 26.5 | 3.5 | 2.10 | nil |
| 2012 | 27.0 | 1.6 | 0.41 | 0.07 |
| % change | +2 | -55 | -80 | - |
Ex-div: 14 Nov Payment: 17 Dec | ||||
