Inland Homes (INL) sits somewhere between a housebuilder and a property company as it operates as both. So taking off a smaller revaluation uplift on its investment properties at Wilton Park left pre-tax profits for the year to June 2017 up from £15.7m to £18.1m.
As well as having its own in-house construction team, Inland also brings land through the planning process to sell to housebuilders, and supplements this income with rental income on properties destined for redevelopment, but still tenant-occupied. That brought in a useful £2.6m of rent. A total of 188 homes were sold during the year, up from 147 in the previous year, although the average selling price dipped from £337,000 to £306,000, mainly due to a change in the mix away from homes and towards apartments.
There are also a record 427 units currently under construction, including joint ventures, while the 780 plots sold ‘oven ready’ generated profits of £19.1m. Forward selling of houses helps to reduce capital requirements, and the current forward order book rose from £22.5m to £33m. The land bank stood at 6,936 plots, of which 2,137 have planning consent or a resolution to grant consent.
Analysts at Stifel are forecasting adjusted net asset value (NAV) of 107p at the year ending June 2018 (from 96.2p in 2017).
| INLAND HOMES (INL) | ||||
| ORD PRICE: | 58.125p | MARKET VALUE: | £117m | |
| TOUCH: | 58-58.25p | 12-MONTH HIGH: | 67p | LOW: 51p |
| DIVIDEND YIELD: | 2.9% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 65p* | NET DEBT: | 52% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 31 | 5.2 | 2.0 | 0.3 |
| 2014 | 59 | 9.6 | 3.5 | 0.6 |
| 2015 | 114 | 34.0 | 14.7 | 1 |
| 2016 | 102 | 33.7 | 14.0 | 1.3 |
| 2017 | 91 | 19.6 | 7.8 | 1.7 |
| % change | -11 | -42 | -44 | +31 |
| Ex-div: | 28 Dec | |||
| Payment: | 26 Jan |
