Inland Homes interim profit plummets as it focuses on second half

Brownfield regeneration specialist and housebuilder with a focus on the South and South East of England, Inland Homes, announced its results for the six months to 31 December on Tuesday.

The AIM-traded firm delivered a rise in EPRA NAV to 87.05p from 80.64p from the first half of the prior year, and adjusted EPRA NAV growth to 92.03p from 84.38p per share.

It posted a 10.3% increase in net asset value to £118m, with group revenue dropping to £32.6m from £55.1m.

Profit before tax plummeted to £4.4m from £21.4m.

The board said the majority of profits were due to be realised in the second half of the financial year, due to the timing of construction and of planned land sales.

Annualised rental income was £2.3m.

The company said it transformed its net current asset position, with 98% of debt falling due after more than one year, compared to 20% a year ago, and at “substantially” lower rates of interest.

Inland’s board proposed a 25% rise in the interim dividend to 0.5p per share, which it said reflected its confidence in the expected performance in the second half of the current financial year.

“These results reflect another period of strategic growth for the business which has seen us meet a number of important operational and development milestones,” said chief executive Stephen Wicks.

“Our business is in robust shape with demand remaining high for our homes, with forward sales growing substantially on a like for like basis, and for the expertise that the company offers to joint venture parties, as proven by the recently received resolution to grant planning permission for 457 units at Chapel Riverside in Southampton, our first jv with a local authority.”

Wicks said the investment in Inland’s in-house building operations was starting to show good results and would ensure certainty of delivery as well improved margins on home sales.

“This repositioning, combined with key completions due in the second half of the financial year means that we remain positive on the outcome for the full year.”