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Inland Homes reports jump in annual revenues despite slowdown in housing market

Inland Homes said low interest rates and the government’s Help-to-Buy scheme have continued to support demand

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Inland Homes says it is not exposed to the weakening central London market

Inland Homes Plc (LON:INL) reported a 66.7% jump in full-year revenue on Monday, saying customer demand remains strong despite a widely-reported slowdown in the UK housing market.

In a trading update ahead of its annual results, the property developer posted revenue of £150mln for the year to 30 June 2018, compared to £90mln last year.

Open market housing completions, including joint ventures, rose to 275 from 188 a year ago.

Under partnerships with housing associations, the group delivered equivalent units of 82, compared to 37 last year. A £65mln contract with housing association A2 Dominion raised the company’s partnership housing order book to about £100mln.

Inland Homes sold 837 land plots in the period, up from 780 in the prior year.

However, forward sales at the end of the period stood at £20mln, down from £26mln a year ago.

Low interest rates and Help to Buy boost sales

The company said “contrary to what market commentary might indicate” demand for its homes remained strong, supported by low interest rates and the government’s Help-to-Buy scheme.

Rightmove on Monday revealed annual house price growth slowed to 1.4% in July from 1.7% the previous month as a surge in homeowners putting their property on the market prompted sellers to cut asking prices to find buyers.

READ: Inland Homes' links with housing associations underpin expansion plans

Inland Homes chief executive Stephen Wicks said the company’s focus on affordably priced homes in suburban locations in and around the South and South East of England means the company is protected from the weakening central London market.

He said the average selling price of homes for the year was £293,000 and the average sales rate per active site during the second half of the year was 1.34 units. 

Planning consents and 'strong' order book to support further growth 

 "The core business of brownfield land acquisition and the growing greenfield strategic land business is generating significant opportunities to provide new outlets for our private housebuilding, as well as partnership housing transactions where we can also secure the build contracts from housing associations,” Wicks said.

"With some major planning consents on the horizon and a strong forward order book the group is in an advantageous position to propel significant further growth for our shareholders."

Shares jumped 3.5% to 67.50p in morning trading. 

Quick facts: Inland Homes PLC

Price: 62.5 GBX

AIM:INL
Market: AIM
Market Cap: £142.63 m
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