RNS Number:2695U
Inland PLC
03 April 2007


For immediate release                                             3 April 2007


                                   Inland plc
                                        
                    ("Inland", the "Group" or the "Company")


                          FIRST DAY OF DEALING ON AIM
                                        
Inland, which specialises in buying 'brown field' sites and enhancing their
value by obtaining planning permissions, is pleased to announce the commencement
of trading in its shares on AIM under the ticker symbol INL.

Inland has raised 50 million (before expenses), at the issue price of 50 pence
per share giving the Company a market capitalization on admission, of
approximately 81.1 million.

Key Points

    The reasons for the IPO and use of proceeds include:

- to provide working capital and finance land purchases, in line with
  Inland's growth strategy
- to provide a higher profile and greater credibility in the
  marketplace particularly with land vendors and their agents
- to use quoted shares as consideration for acquisitions of companies
  or assets
- to assist in attracting and retaining experienced staff

    To date, Inland Homes Limited ("Inland Homes"), the Group's principal
    operating subsidiary, has acquired, obtained planning permission for, and
    sold, 25 building plots on two sites, producing an average annual return on
    its equity investment of 122 per cent. and an average annual return on
    capital employed of 96 per cent.


    Dawnay, Day Corporate Finance Limited is acting as Nominated Adviser and
    KBC Peel Hunt Ltd is acting as Broker to Inland.

Placing Statistics

Placing Price                                                   50 pence
Number of Placing Shares                                        100,000,000
Number of Ordinary Shares in issue following the Placing        162,150,059
Capitalisation at the Placing Price                             81.1 million
Gross proceeds of the Placing                                   50 million
Estimated net proceeds of the Placing                           47.5 million
Placing Shares as a percentage of the Enlarged Share Capital    62%


For further information please contact:

Inland Plc                                                  Tel: 01923 713 600
Stephen Wicks, Chief Executive
Nishith Malde, Finance Director

Dawnay, Day Corporate Finance Limited, Nominated Adviser    Tel: 020 7509 4570
Gerald Raingold
David Floyd
Alex Stanbury

KBC Peel Hunt Ltd, Broker                                   Tel: 020 7418 8900
Julian Blunt
Nicholas Marren

Buchanan Communications                                     Tel: 020 7466 5000
Mark Edwards
Jeremy Garcia

Additional Information

The Management
The Group has an experienced management team, led by Stephen Wicks (Chief
Executive) and Nishith Malde (Financial Director), who have had a working
relationship for 17 years. In addition, Paul Brett and Stephen Trenwith are the
land director and development director of Inland Homes Limited ("Inland Homes"),
the Group's principal operating subsidiary. The Inland team worked successfully
together at Country & Metropolitan plc, a residential and commercial property
developer specialising in brown field sites, which was founded by Stephen Wicks
in 1990.

The History
The Company is the holding company of Inland Homes, a residential and mixed-use
property development company which specialises in buying brown field sites and
enhancing their value through obtaining planning permissions, primarily for
residential and mixed-use development.

Since its incorporation on 16 June 2005, Inland Homes has sold 25 building plots
on two sites, producing an average annual return on equity of 122 per cent. and
an average annual return on capital employed of 96 per cent. The Group currently
owns or controls over 700 potential building plots, has investments in listed
and unlisted securities including an interest in Howarth Homes plc ("Howarth"),
a private house building company.

The Group has already successfully acquired and disposed of two sites. The first
of these, in Beaconsfield, was acquired as a redundant haulage yard in November
2005 and options were secured over two neighbouring gardens. Planning permission
for 12 residential units and an office block was obtained in September 2006 and
the property was sold on at a profit which represented an average annual return
on capital employed of 94 per cent. and an average annual return on equity
invested of 146 per cent.

The acquisition of the second site, a commercial property in Uxbridge, became
unconditional in January 2006 on terms which included a delayed completion until
October 2006. Planning permission for 12 residential units was obtained in May
2006 and the profit made on the subsequent sale represented an average annual
return on capital employed of 98 per cent.

During 2006, Inland conducted a private placing to raise funds for the
development of its operations. It raised 11.24 million from institutional and
other investors through the issue of 32,122,050 Ordinary Shares at a price of 35
pence each.

The Business
The Group seeks to acquire properties with development potential and apply its
expertise in planning to win consents and approvals prior to selling consented
land to house building companies. It also seeks to make strategic investments in
quoted and unquoted companies.

So far as possible, all planning and technical issues are resolved prior to
selling sites so that they are acquired by builders on a ready to build basis.
The Directors believe that, through its established management team and
employees, the Group has an extensive range of expertise and skills at its
disposal including:

    the management team has many years of experience in negotiating with
     vendors and their advisers and, in addition to its own staff, the Company
     has an extensive range of contacts who are able to bring opportunities to
     its attention;
    the knowledge and experience required to make informed assessments of
     the development potential of individual sites; and
    an in-depth understanding of planning regulations and practices.

Market
The Directors believe that demand for residential development sites remains
strong with the number of households in England projected to increase from 20.9
million in 2003 to 25.7 million in 2026 and an estimated current annual
shortfall in new homes required of 48,766 (source: Communities and Local
Government Agency).

Additionally, the Government has stated its objective of achieving 200,000 new
homes annually by 2016 (source: address by Ruth Kelly, Secretary of State for
Communities and Local Government, 13 February 2007).

About 60 per cent. of the projected household growth is expected to be in
London, South-West, East and South-East England, which are the Group's target
areas.

Demand for land for residential development is therefore high and is likely to
remain so for the foreseeable future. Current Government policy favours
development on brown field sites rather than green field land and this too is in
line with the Group's business strategy.

Competition for sites with planning permission is high and house builders are
having to reduce margins and increase turnover to maintain or increase
profitability. In the Directors' experience, house builders try to limit their
period of land bank retention to not more than three years and are reluctant to
commit capital until planning permission has been granted.

The high level of competition is evidenced by the recent increase in takeovers
and consolidation amongst the major house builders, which is substantially
driven by the need to increase their holdings of developable land.

The planning process is generally recognised as being cumbersome, restrictive
and subject to delays. Accordingly, the Group's ability to purchase brown field
sites, obtain relevant planning permissions and sell plots on as 'ready to
build' represents an attractive proposition to house builders. It reduces their
land holding time and thereby enables them to increase turnover.

Corporate Strategy
The Group's principal strategic objective is to build up a land bank which would
be attractive to a major trade buyer. This will take a few years, during which
time it will continue to sell certain sites where it can obtain favourable
offers.

Once Inland has identified a site, it will devise an implementation plan for
that site, including an assessment of the most appropriate planning consents for
the location and the potential return on the ultimate disposal of the site to
one or more house building companies.

With regard to acquisitions, Inland will carry out due diligence on the site
including surveys, legal and environmental due diligence. Having acquired the
site, the Group will make appropriate planning applications and enter into
negotiations with the relevant planning authorities. It will also seek to
identify purchasers for the site.

Inland will continue to invest in sites with purchase prices of up to 25
million, concentrating its activities on areas of high demand (for example,
where there are good transport links or attractive residential environments) and
seek planning consents that are appropriate for the location and most desirable
to house builders.

The Group will also continue its strategy of identifying and acquiring strategic
investments in quoted and unquoted companies.

The Company currently has an equity interest, and convertible loan stock, in a
house building company, Howarth. Inland may sell some sites to Howarth on an
arms length basis and will share in Howarth's profitability by virtue of its
investment in the company.

Current Portfolio
The Company has fourteen sites in its current portfolio, which are at varying
stages of the planning process. Selected properties are:

Queensgate, Farnborough, Hampshire
This 24.5 acre site was acquired from The Secretary of State for Defence in July
2006. The site is located to the South of Farnborough town centre adjacent to
Farnborough airfield. The site includes a number of buildings, one of which is
let for an annual rental stream of 210,000 and negotiations are progressing for
a long term lease of another building on the site. A planning application is
being prepared to regenerate this brown field site with a predominantly
residential scheme.

The site is identified within the Borough Council local plan as being within a
published planning brief confirming its suitability for a mix of employment and
residential development. An initial master-planning exercise has shown that the
site has the capacity to provide up to 500 residential units along with some
additional commercial uses and Inland intends to submit a planning application
during 2007.

Hayes, Middlesex
This 4.2 acre site is located to the North East of Hayes town centre, adjacent
to The Parkway (Hayes Bypass). The site was purchased in September 2006 with
payments spread over two years. A planning application for approximately 100
houses and apartments is being prepared for submission.

Redhill, Surrey
This property is a former public house on a large corner plot in a residential
area south of Redhill. Inland Homes purchased the property unconditionally in
August 2006 with an existing planning consent for 8 residential units on part of
the site. A planning application has been submitted for 23 houses and
apartments.

Old Hatfield, Hertfordshire
Inland Homes has a conditional contract to purchase the property known as Howe
Dell School, Old Hatfield. The property is set in five acres of landscaped
grounds. The site includes a Grade II Listed building, currently housing the
primary school, which totals approximately 10,000ft2. Inland anticipates
planning consent being granted for the erection of 24 mews style houses in the
grounds. The purchase price is payable only upon planning permission being
granted and once vacant possession is given.

Northwood, Middlesex
This is a detached property on a large plot in Northwood, Middlesex which was
purchased in the open market. An option has been secured for up to 18 months on
a neighbouring house An application for planning permission has been submitted
for 14 apartments.

Board of Directors
Stephen Wicks, Chief Executive (aged 55) was the founding shareholder and chief
executive of Country & Metropolitan plc, which was floated on the main market of
the London Stock Exchange in December 1999 with a market capitalisation of 6.9
million. He directed the growth of Country & Metropolitan plc until its disposal
in April 2005 to Gladedale Holdings plc for approximately 72 million. Mr Wicks
has worked in the construction and housebuilding sector all of his working life
and has extensive knowledge of local and national policies on both green field
and brown field sites.

Nishith Malde, FCA Finance Director (aged 48) qualified as a Chartered
Accountant in 1985 with KPMG and specialised in advising owner managed
businesses. He left KPMG in 1989 to set up a consultancy firm which later merged
with an audit practice where he was the partner responsible for the affairs of
Country & Metropolitan plc. Mr Malde joined Country & Metropolitan plc as
finance director and company secretary in November 1998. He was actively
involved in the preparation for the flotation of Country & Metropolitan plc in
December 1999 and its further development (which included acquisitions and
disposals) until it was acquired by Gladedale Holdings plc in April 2005. Mr
Malde was recently appointed to the board of Billam plc and is also a
non-executive director of SLR Holdings Limited, which has a successful
international environmental consultancy business.

Terry Roydon, Non executive Chairman (aged 60) holds a B.Sc. in Estate
Management from the
University of London and a Masters in Business Administration from the
University of Pittsburgh. He was previously chief executive of Prowting plc, a
UK house builder, which he led to flotation on the London Stock Exchange in
1988. The company was subsequently purchased by Westbury plc in June 2002 for
140 million. Since 1998, Mr Roydon has been a consultant and member of the
board of Dom Development S.A., a major quoted Polish residential developer,
together with a number of non-executive and consultancy positions in UK and
continental housebuilding companies, including holding non-executive board
positions with AIM quoted Engel East Europe N.V., Country & Metropolitan plc
(until 2005), Gladedale Holdings plc and McCann Homes Holdings Limited. From
1995 to 1997 he was president of the European Union of House builders and
Developers.

Simon Bennett, Non executive director (aged 48) has over 20 years investment
banking experience in the City. Mr Bennett qualified as a chartered accountant
with Saffery Champness in 1977. In 1982 he joined stockbrokers Scrimgeour Kemp
Gee which was subsequently acquired by Citicorp (now Citigroup) in 1986.
Thereafter, Mr Bennett was instrumental in establishing the mid and small cap
advisory business of Citicorp Scrimgeour Vickers which was focused on fast
growing mid and small cap companies. In June 1990, Mr Bennett joined Credit
Lyonnais Securities and, following the defection of a team to a rival company,
became Head of Corporate Finance and Head of the mid and small caps team in June
2000. In June 2004 Mr Bennett left Credit Lyonnais, following its acquisition by
Credit Agricole, and established Incremental Capital LLP to provide corporate
finance advice to mid and small cap companies. In the latter part of 2005, Mr
Bennett joined Baker Tilly as Managing Director of Baker Tilly and Co. Limited.
He has recently left the practice to concentrate full time on growing Citicourt
& Co. Limited, where he is the Managing Director and the majority shareholder.
Mr. Bennett is also non-executive chairman of Billam plc.




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