Inland Share Price (INL)

Yes and a good percentage at 3.5%

Well respected fund good news!

Another article in 9th July Investors Chronicle as ' Recovery Buy '

IC Tip - reiterating timing delays in accounts - see below

IC ARTICLE SIMON THOMPSON 2ND JULY 2021
Contracts exchanged on former Homebase site in Walthamstow and build contract awarded.
Inland poised to sign a £41.9m contract with a major housing association.
Net debt cut 10 per cent to £133m and forecast to fall below £100m by September.
Full-year profit guidance maintained.
On first glance, an interim pre-tax loss of £5.8m on 30 per cent higher revenue of £78m looks a poor result from Inland Homes (INL:54p), a south-east England-focused housebuilder and brownfield land developer. However, there are timing issues that impacted the figures, the most significant of which was the delay in the receipt of a £4.5m asset management fee relating to planning consent at the former Homebase site in Walthamstow. The payment was received two weeks after Inland’s 31 March 2021 period end following receipt of planning consent for 583 units on the site, hence the delay.

More importantly, Inland has exchanged contracts to sell 355 private units for £116m on the site, split £27.5m for the land and a build contract of £88.5m. This takes the group’s partnership housing contract income forward order book to £140m. Inland is also at an advanced stage of negotiations with a major housing association to deliver the remaining homes on the inner-city site. The £41.9m contract is expected to be signed shortly. As the Walthomstow scheme and others progress, then Inland will receive further milestone payments under its asset light management contracts.

It’s worth noting, too, that Inland is set to receive £14m proceeds from the sale of 53 plots at its flagship Wilton Park development in Beaconsfield when that deal completes in September. There are a further 157 plots to sell on the site in addition to the refurbished former Ministry of Defence homes currently being marketed. Since the March half-year end, Inland has received £5.2m from the completed sales of eight refurbished houses. Inland’s first half loss also included a £1m impairment charge on the carrying value of the surplus investment properties and one commercial property on the Wilton Park site. The properties have been valued at £11.1m and the directors expect them to be sold within 12 months.

The cash inflows from both Inland’s 10,573 plot land bank and housing sales – the group has forward residential home sales of £39.1m and at an average selling price of £254,000 they are aimed at the affordable end of the market – explains why management guidance is unchanged for the full-year. Net debt declined 10 per cent to £133m in the first half and analysts at house broker Panmure Gordon expect it to be slashed to £98m by the 30 September 2021 year-end. They also pencil in a sharp recovery in pre-tax profits from £3.7m to £13.4m on 25 per cent higher revenue of £125m. On this basis, the shares are priced on a forward PE ratio of 12.

Something afoot?