Inland Homes PLC (LON:INL) said it profits fell sharply in the year to end-September as COVID-19 affected costs, margins in housebuilding and its contract income business.
Revenues for the year of £124mln undershot expectations of around £139mln predicted in a trading update in October due to these factors, said the AIM-listed group.
Profits for the year fell to £3.7mln, from £25mln the previous year, reflecting the fewer houses sold and extra costs as a result of COVID-19.
Five significant land sales, which were at an advanced stage of documentation with solicitors, were also aborted due to the disruption from the virus, Inland said.
The group, which raised £9.4mln in May, said it closed the year-end with net debt of £148.2mln and reducing this is a priority added Stephen Wicks, chief executive.
“The consolidation to land-focused activity, supported by the group's other income streams and the new equity raised during the year, has benefited our balance sheet,” he added.
“We anticipate increased activity in the year ahead from affordable housing providers as demand for temporary accommodation increases due to COVID-19.”
Terry Roydon is also standing down as chairman, with senior independent director Simon Bennett taking over.