LONDON (Alliance News) - Inland ZDP PLC on Tuesday said its shareholders voted to add five years to the redemption date for its loan agreement with owner Inland Homes PLC in the first half, increasing final capital entitlement.
Inland ZDP was set up in 2012 as a wholly owned subsidiary of housing plot developer Inland Homes to issue zero dividend preference shares. A loan agreement between the two sees Inland ZDP loan the proceeds of any issuances to Inland.
Inland Homes is required to repay the loan when Inland ZDP is wound up. The ZDP repayment date was initially April 2019, but this was extended by 5 years in July.
In 2012, Inland ZDP raised GBP8.5 million by placing 8.5 million zero dividend preference shares. As at December 31, Inland ZDP had 14.9 million zero dividend preference shares in issue.
The final capital entitlement increased to 201.4 pence per Inland ZDP share from 155.9p following the extension of the redemption date. The increased value gives shareholders a return of 5.3% for the additional five years.
The accrued capital entitlement attributable per ZDP share at December 31 was 151.79p, increased from 147.59p at June 30.
Shares in Inland ZDP were untraded Tuesday but last closed at 156.5p. Inland Homes shares were up 0.7% at 61.70p.
At the beginning of March, owner Inland Homes reported a moderate increase in pretax profit to GBP5.5 million for the six months to the end of December 2018 compared to GBP5.4 million a year earlier, despite revenue falling to GBP51.0 million from GBP61.2 million.
Revenue was hurt by a reduced number of plots sold and a decrease in private home completions due to the timing of Inland's development programme.
Inland increased its interim payout by 31% to 0.85 pence from 0.65p paid the year before.
