Inland Homes PLC - Trading Update
Inland Homes plc
("Inland Homes" or "Group")
Inland Homes provides trading update for the year ended
Inland Homes ("Inland Homes" or "the Group"), the leading brownfield developer, housebuilder and partnership housing company with a focus on the South and South East of
Period under review and comparator period
The period in relation to which this trading update relates is the year to
We expect revenue for the year to be no less than
Reducing net debt was the strategic priority for the Group this year, even before the impact of the global COVID-19 pandemic.
As the impact of COVID-19 became apparent, we swiftly implemented several measures to reduce the Group's cost base, preserve its assets and conserve cash. This included a successful placing of new ordinary shares in
During the year, we achieved a reduction of Net Debt to
The Group was trading in line with market expectations to
Throughout the pandemic, in line with the Group's commitment to health and safety, our priority has been to safeguard the health and wellbeing of our staff and maintain positive relationships with our customers, subcontractors and suppliers. Measures were rapidly taken to ensure full compliance with the Government's 'COVID-19 Secure' guidance and the Group is a signatory to the Home Builders Federation's 'Charter for Safe Working Practice'.
All but three sites remained operational through lockdown with stringent new procedures regarding hygiene, social distancing, travel and self-isolation in place to ensure the safety of those on site. Office-based staff have been supported in the transition to working from home and continue to do-so in line with Government guidance.
Sales and marketing suites reopened in
During the period have seen sustained demand from investors, housing associations and other developers for our high-quality land assets and our planning expertise, as evidenced by new management agreements in our asset management division.
We secured the sale of 94 plots at our flagship site
Additionally, the Group secured the sale of 208 apartments to two Build to Rent ("BTR") funds within its
During the year we completed the sale of 226 private homes (fifteen-month period to
The average selling price increase is due to a change of sales mix between houses and apartments sold as well as price differences in geographic locations. Our net reservation rate per active sales outlet was 0.69 for the year (fifteen-month period to
Asset management activity
A growing part of the Group's business involves procuring sites for and providing planning and management services to external investors. This activity enables the Group to earn substantial fees with a significantly reduced investment and working capital requirement. The transactions are generally structured so that they are non-recourse to the Group.
Our asset management division has grown significantly this year to six live projects in
The planning application for 514 homes at the Master Brewer site in Hillingdon was called in by the Greater London Authority and approved by the Mayor of
The Group sold 449 plots during the year and has grown its land bank to a record 11,045 plots (
Private and partnership housing build performance
Our total forward order books sit at
We continue to focus our efforts on growing the partnership housing activity as it achieves land sales for the Group and also secures a forward income stream from the subsequent construction activities thus balancing the business against any potential decline in the private sale market in the year ahead.
Whilst the general economic outlook remains uncertain, there is a fundamental shortage of high-quality, affordable housing across the
We remain focused on maximising and realising the value in our land bank in the year ahead, via land sales, private or partnership housebuilding activity, using our flexible business model to adapt to changing market conditions.
"The past six months have been one of dedicated focus to achieve the Group's stated strategic aims, namely a refocus for the Group on a clear strategy of land-focused activities geared to positive cash generation and net debt reduction. This has been achieved despite the inevitable disruption and significant impact on our results caused by the global COVID-19 pandemic."
"We start the new financial year with cautious optimism and a record land bank: buoyed by sustained demand from customers, investors, developers and housing associations for our quality land assets, homes and expertise and equipped with a stronger balance sheet."
"We remain focused on maximising and realising the value in our land bank in the year ahead, whether that be via land sales, private or partnership housebuilding activity. Our flexible business model supports us in making these decisions quickly. It is this entrepreneurial agility that gives us the flexibility to adapt to movements in a rapidly changing marketplace."
"I should also like to thank all members of our staff and supply chain for their immense efforts over these unprecedented times and for their continued support."
Inland Homes plc
Tel: +44 (0) 1494 762450
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Panmure Gordon (UK) Limited
Tel: +44 (0) 20 7886 2500
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Tel: +44 (0) 20 7457 2020
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Notes to Editors:
Incorporated in the
Inland Homes acquires brownfield land in the South and South-East of
The Company is committed to extensive public and community consultation to ensure that, where possible, local community needs and objectives are met.
Inland's aim is to create sustainable communities and homes which set a benchmark for all future developments in the South and South East of
For further information, please visit the Inland Homes website at www.inlandhomes.co.uk .
Hugg Homes - www.hugghomes.co.uk
Rosewood Housing - www.rosewoodhousing.co.uk
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