RNS Number:2070Q
Inland PLC
17 March 2008


For Immediate Release                                              17 March 2008


                                   Inland PLC

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


           Interim Results for the Six Months ended 31 December 2007


Inland, which specialises in buying brownfield sites and enhances their value by
obtaining planning permission, today announces interim results for the six
months ended 31 December 2007.


Financial highlights


O       Turnover £0.17m (2006: £3.87m)

O       Operating loss £(1.53)m (2006: profit £1.42m)

O       Pre tax loss £(1.18)m (2006: profit £1.01m)

O       Cash £11.7m (2006: £4.6m)

O       Stocks and investment property £60.8m (2006: £27.1m)

O       Net assets £59.4m (2006: £14.1m)


Operational highlights


O       Demand for land with the 'right' planning consent remains strong

O       Development pipeline now over 1,470 plots with a gross development value
        of circa £361m

O       Our associate company, Howarth continues to perform in line with our
        expectations

O       Planning application being prepared for our site at Poole


Stephen Wicks, Chief Executive of Inland commented:


"The last six months have been a very active period for Inland culminating in
the granting of planning permission on our major site in Farnborough for 399
residential plots and approximately 100,000 sq ft of commercial space. We also
concluded the acquisition of Poole Investments PLC which provides us with an
opportunity to achieve up to 500 residential plots and some commercial space. We
believe that the current slow down in the house building sector will present us
with some excellent land opportunities.


We therefore believe that the short to medium term outlook for Inland remains
positive as we continue to acquire high quality land stocks and produce planning
schemes specifically designed to meet the requirements of house builders."


For further information please contact:

Inland Plc                                                    Tel: 01923 713 600
Stephen Wicks, Chief Executive
Nishith Malde, Finance Director
Buchanan Communications                                       Tel: 020 7466 5000
Jeremy Garcia / Susanna Gale
Dawnay, Day Corporate Finance Limited                         Tel: 020 7509 4570
David Floyd / Alex Stanbury





CHAIRMAN'S STATEMENT

Introduction

It has been a very busy and highly productive six months for Inland. We have
continued to add to our land bank and expect the sale of a number of our land
assets to take place in the second half of the financial year. Our land team has
been extremely active submitting planning applications on a number of schemes.
Whilst this process continues to be challenging due to over complicated planning
legislation, we remain confident in maintaining our strong track record of
producing high quality development stock for house builders.


Inland continues to identify good land opportunities and the current land bank
that is owned, controlled or where offers have been agreed comprise of 24 sites
representing approximately 1,470 residential plots with a gross development
value of approximately £361m. The Group also has consents for commercial
development amounting to some 125,000 sq ft with a gross development value of
£15m.


Results

In line with our own internal budgets the Group did not dispose of any land
assets during the six months ended 31 December 2007. The Group showed a loss
before taxation for the period of £1.18m (2006: profit £1.01m). However,
conditional contracts have been exchanged subject to discharging a planning
condition for the sale of 24 residential plots, following a successful planning
application on our site at Hatfield for £3.65m. This leaves Inland with a listed
commercial building on this site comprising 13,000 sq ft, which will be placed
on the open market shortly. We anticipate a profit of approximately £900,000 on
the sale of the entire site. Terms have been agreed for the sale of our site in
Borehamwood which has planning consent for 14 residential plots.


We have gained planning consent in October 2007 at our major site in Farnborough
for 399 residential units and approximately 100,000 sq ft of commercial space.
We are now in the process of submitting a further planning application for 42
residential units to improve the overall residential density to 441 plots. We
anticipate there will be further opportunities to increase this in due course.
The main spine road through the site, which is being constructed by Segro plc at
their expense, is progressing well and once completed it will further enhance
the appeal and value of the site. The annual rental income from the site now
stands at £295,000. We are very pleased with the progress at Farnborough which
demonstrates the ability of the management team to identify large scale land
opportunities, obtain valuable planning permissions and create significant
shareholder value.


Since the last year end we have continued to increase our land bank and our
stocks and work in progress amounts to £52.0m (2006: £38.8m). In addition we
acquired Poole Investments plc which has an investment property that has been
reflected at a fair value of £8.8m. The increase in our land acquisition has
reduced our cash balances at 31 December 2007 to £11.7m.


Basic loss per share was 0.75p (2006: Earnings per share 1.49p). The Group did
not disclose a diluted loss per share as the share options issued to the
employees did not have a dilutive effect.


The increase in stocks and work in progress means that we now have 21 sites
owned and where purchase contracts have been unconditionally exchanged at 31
December 2007. These sites represent a gross development value of £345m with the
benefit of planning consent. Since 31 December 2007, the Group has also acquired
or agreed terms to purchase 3 sites which can accommodate 51 residential plots
with a gross development value of approximately £16m with the benefit of
planning consent. Planning applications have been submitted on a further 10
sites for 345 residential plots.


The acute shortage of land with planning consent is a continuing problem for
house builders and the sales referred to above demonstrates the demand for sites
in good locations with well thought through planning consent. In spite of the
current weakness in the housing market, the long term dynamics relating to the
supply and demand for housing remains unchanged, with the demand for land with
planning consent remaining strong in the areas in which we operate.


We believe that the current slowdown is presenting us with some excellent buying
opportunities and whilst planning remains very difficult the consents we obtain
are structured to meet the requirements of house builders with the right product
mix, location and the ability to effect an immediate start on site.


Planning

The UK planning system continues to languish in the dark ages when it comes to
facing the challenge of producing the required levels of housing stock. Planning
authorities remain understaffed and over worked and the over zealous drive by
government for house builders to provide greater quantities of social housing
will ensure demand in the long term will outstrip supply. With an increasing
amount of all new build earmarked for social housing, house builders are no
longer being incentivised to meet government targets.


Corporate activity and investments

The Group completed the acquisition of the remaining 10% of Poole on 3 January
2008 and our land team is progressing with plans for a mixed use scheme to
enhance the value of the site in Lower Hamworthy in Dorset. As we stated at the
time of the acquisition, this site represents an outstanding opportunity for
Inland to maximise the return on our investment, once a satisfactory planning
consent has been obtained.


On 19 December 2007, the Company announced that it owned 3.03% of M J Gleeson
PLC which is held as a strategic investment.


In January 2008 the Group also increased its investment in Howarth Homes PLC
("Howarth") by acquiring a further 5% of the issued share capital for a
consideration of £357,000. During the six months to 31 January 2008, Howarth
made a profit before tax of £1.09m and whilst, in line with other house
builders, trading conditions have become more challenging, the management team
at Howarth has been strengthened by the appointment of a new finance director,
technical director and a sales and marketing director. We have every confidence
that these additions to the Howarth management team, who have particular
experience in volume house building will be invaluable in helping the company
through its next period of growth. The company is currently operating from 7
sites with 135 units under construction and has forward sold £20.8m of the
current year's residential sales.


Outlook

Over the last few months some of the major house builders have stated that they
are not in the market to purchase land unless planning consents are in place.
This coupled with the recent tightening of the availability of credit in the
banking sector should provide Inland with good opportunities to acquire
additional brownfield development sites. We have already seen land opportunities
being brought back to us where higher bidders have failed to complete their
transactions. We are currently able to re-negotiate better terms than had
previously been proposed.


Market indicators would appear to suggest that further falls in interest rates
are in the pipeline. This should bring more stability to the housing market.
Whilst demand for new homes remains sluggish, the requirement for land with the
right planning consent remains strong. We have a strong balance sheet and remain
financially flexible and Inland has a real opportunity to take advantage of any
weakness in the marketplace as and when they arise.


We have a considerable number of planning applications in the pipeline and
believe that the Group's healthy balance sheet and strong land position together
with a highly experienced land team provides a positive outlook for the short to
medium term.


Terry Roydon

Chairman




CONSOLIDATED INCOME STATEMENT

                                     6 months to      6 months to   Year ended
                                     31 December      31 December      30 June
                                            2007             2006         2007
                                     (Unaudited)      (Unaudited)    (Audited)
                             Notes          £000             £000         £000

Revenue                         4            169            3,867        5,466
Cost of sales                                 (7)          (1,810)      (2,603)
Gross profit                                 162            2,057        2,863
Administrative expenses                   (1,020)            (640)      (1,506)
Loss on investments                         (673)               -            -

Operating (loss)/profit                   (1,531)           1,417        1,357

Interest expense                             (30)             (73)        (107)
Notional interest expense                   (740)            (513)      (1,265)
Interest and similar income                1,087              198          963
                                          (1,214)           1,029          948
Share of profit/(loss) of
associate                                     36              (19)         175
(Loss)/profit before                      (1,178)           1,010        1,123
taxation
Income tax                      5            (41)            (306)        (328)
(Loss)/profit for the period              (1,219)             704          795

(Loss)/earnings per share
Basic and diluted
(loss)/earnings per share in
pence                           6          (0.75)p           1.49p        0.98p









CONSOLIDATED BALANCE SHEET

                                             At 31          At 31        At 30
                                          December       December         June
                                              2007           2006         2007
                                       (Unaudited)    (Unaudited)    (Audited)
                                Notes         £000           £000         £000

ASSETS
Non-current assets
Property, plant and equipment     7          8,867             59           65
Investments                       8          7,572          1,006        4,156
Investment in associate           8            410            243          385
Deferred tax                                 6,434            159          393
                                            23,283          1,467        4,999
Current assets
Inventories                                 51,975         27,119       38,791
Trade and other receivables                    451            492        2,674
Loan to associate                              240          2,270        2,000
Cash and cash equivalents                   11,697          4,568       42,838
                                            64,363         34,449       86,303
Total assets                                87,646         35,916       91,302

EQUITY
Capital and reserves
attributable to the Company's
equity holders
Share capital                     9         16,216          6,212       16,216
Share premium account                       45,171          7,635       45,184
Retained earnings                             (756)           238          373
Other reserves                              (1,242)             6            -
Total equity                                59,389         14,091       61,773

LIABILITIES
Current liabilities
Trade and other payables                     1,447            321          740
Current tax liabilities                        599            251          454
Deferred purchase consideration             11,861          4,957        9,202
Borrowings                                       -          1,700            -
Total current liabilities                   13,907          7,229       10,396
Non-current liabilities
Deferred purchase consideration             14,350         14,596       19,133
Total non-current liabilities               14,350         14,596       19,133
Total liabilities                           28,257         21,825       29,529
Total equity and liabilities                87,646         35,916       91,302




CONSOLIDATED STATEMENT OF CHANGES IN EQUITY



                                 Share     Share   Retained     Other
                               capital   premium   earnings  reserves    Total
                                  £000      £000      £000      £000      £000

At 30 June 2006                  3,279       699      (466)        -     3,512

Fair value adjustment in
respect of
available for sale financial
assets                               -         -         -         6         6

Net income recognised
directly in equity                   -         -         -         6         6
Profit attributable to
shareholders                         -         -       704         -       704

Total recognised income and
expense                              -         -       704         6       710
Issue of shares                  2,933     6,936         -         -     9,869
                                 2,933     6,936       704         6    10,579

At 31 December 2006              6,212     7,635       238         6    14,091

Share based compensation             -         -        44         -        44
Fair value adjustment in
respect of
available for sale financial
assets                               -         -         -        (6)       (6)

Net income recognised
directly in equity                   -         -        44        (6)       38
Profit attributable to
shareholders                         -         -        91         -        91

Total recognised income and
expense                              -         -       135        (6)      129
Issue of shares                 10,004    40,407         -         -    50,411
Issue expenses                       -    (2,858)        -         -    (2,858)
                                10,004    37,549       135        (6)   47,682

At 30 June 2007                 16,216    45,184       373         -    61,773

Fair value adjustment in
respect of
available for sale financial
assets                               -         -         -    (1,242)   (1,242)
Share based compensation             -         -        90         -        90

Net income recognised
directly in equity                   -         -        90    (1,242)   (1,152)
Loss attributable to
shareholders                         -         -    (1,219)        -    (1,219)

Total recognised income and
expense                              -         -    (1,129)   (1,242)   (2,371)
Issue of shares                      -         -         -         -         -
Issue expenses                       -       (13)        -         -       (13)
                                     -       (13)   (1,129)   (1,242)   (2,384)

At 31 December 2007             16,216    45,171      (756)   (1,242)   59,389



CONSOLIDATED CASH FLOW STATEMENT

                                      6 months to    6 months to    Year ended
                                      31 December    31 December    30 June 2007
                                             2007           2006
                                       (Unaudited)    (Unaudited)    (Audited)
                                Note          £000           £000         £000

Cash flows from operating
activities
(Loss)/profit for
the period before
tax                                         (1,178)         1,010        1,123
Adjustments for:
                 - depreciation                 11              6           16
                  - share based
                   compensation                 90              -           44
                   - fair value
                 adjustment for
             listed investments                852              -            -
                    - profit on
             disposal of listed
                    investments               (179)             -            -
                 - interest and
                 similar income             (1,087)          (198)        (963)
             - interest expense                770            586        1,372
              - share of profit
                   of associate                (36)            19         (175)
Changes in working capital
(excluding the effects of
acquisition):
                  - increase in
                    inventories            (13,184)       (26,772)     (39,064)
            - increase in trade
                      and other
                    receivables              4,424         (2,300)      (4,212)
            - increase in trade
             and other payables             (3,334)        20,444       29,522
Net cash outflow
from operating
activities                                 (12,851)        (7,205)     (12,337)
Investing activities
Interest received                              915            193          946
Dividends received                             166              -           11
Purchases of
property, plant and
equipment                                     (109)           (29)         (45)
Purchase of listed
investments                                 (8,544)          (186)      (3,342)
Sale of listed
investments                                  3,168              -            -
Acquisition of
subsidiary, net of
cash acquired                    10        (10,638)             -            -
Net cash used in
investing
activities                                 (15,042)           (22)      (2,430)
Financing activities
Interest paid                                  (30)           (64)        (107)
Repayments of bank
borrowings                                  (3,205)          (525)      (1,700)
New bank loans
raised                                           -          1,700        1,175
Issue of shares
(net of expenses)                              (13)         9,869       57,422
Net cash from
financing
activities                                  (3,248)        10,980       56,790
Net
(decrease)/increase
in cash and cash
equivalents                                (31,141)         3,753       42,023
Cash and cash
equivalents at
beginning of period                         42,838            815          815
Cash and cash
equivalents at the
end of the period                           11,697          4,568       42,838




1.       Nature of operations and general information

The principal activity of the Company and its subsidiaries (together call the
Group) is to acquire residential and mixed use sites and seek planning consent
for development.

Inland PLC is the Group's ultimate parent company. It is incorporated and
domiciled in Great Britain. The address of Inland PLC's registered office, which
is also its principal place of business, is Trinity Court, Batchworth Island,
Church Street, Rickmansworth, Hertfordshire WD3 1RT.

Inland PLC's shares are listed on the Alternative Investment Market on the
London Stock Exchange.

This consolidated interim statement have been approved for issue by the Board of
Directors on 14 March 2008.

The financial information set out in this interim statement does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985. The
Group's statutory financial statements for the year ended 30 June 2007 have been
filed with the Registrar of Companies and is available at www.inlandplc.com. The
auditor's report on those financial statements was unqualified and did not
contain any statement under Section 237(2) or Section 237(3) of the Companies
Act 1985.

2.       Basis of preparation

This interim financial report has been prepared in accordance with International
Accounting Standard 34 Interim Financial Reporting.

The consolidated interim statement should be read in conjunction with the annual
financial statements for the year ended 30 June 2007, which have been prepared
in accordance with IFRS as adopted by the European Union.

3.       Accounting policies

The accounting policies applied are consistent with those of the annual
financial statements for the year ended 30 June 2007, as described in those
annual financial statements. The following additional accounting policy has been
adopted upon the acquisition of Poole Investments PLC:

"The Group measures all of the investment property in accordance with IAS 16's
requirements for the cost model, other than those that meet the criteria to be
classified as held for sale (or are included as a disposal group that is
classified as held for resale)."










CONSOLIDATED INCOME STATEMENT

4.       SEGMENT INFORMATION

                                                      Property  Investment
                                                       trading    property   Total
                                                        £000        £000      £000
6 months to 31 December
2007

Revenue
Rental income                                            113           6       119
Management fees                                           50           -        50
Land sales                                                 -           -         -
                                                     ---------    --------  --------
  Total                                                  163           6       169
                                                     ---------    --------  --------

Operating (loss)/profit
Rental income                                            111           6       117
Management fees                                           50           -        50
Land sales                                            (1,698)          -    (1,698)
                                                     ---------    --------  --------
  Total                                               (1,537)          6    (1,531)
                                                     ---------    --------  --------

6 months to 31 December
2006

Revenue
Rental income                                            162           -       162
Management fees                                          300           -       300
Land sales                                             3,405           -     3,405
                                                     ---------    --------  --------
  Total                                                3,867           -     3,867
                                                     ---------    --------  --------

Operating profit
Rental income                                            162           -       162
Management fees                                          300           -       300
Land sales                                               955           -       955
                                                     ---------    --------  --------
  Total                                                1,417           -     1,417
                                                     ---------    --------  --------

Year ended 30 June 2007

Revenue
Rental income                                            268           -       268
Management fees                                          323           -       323
Land sales                                             4,875           -     4,875
                                                     ---------    --------  --------
  Total                                                5,466           -     5,466
                                                     ---------    --------  --------

Operating profit
Rental income                                            263           -       263
Management fees                                          323           -       323
Land sales                                               771           -       771
                                                     ---------    --------  --------
  Total                                                1,357           -     1,357
                                                     ---------    --------  --------














5.       INCOME TAX

                                        6 months to    6 months to   Year ended
                                        31 December    31 December      30 June
                                               2007           2006         2007
                                        (Unaudited)    (Unaudited)    (Audited)
                                               £000           £000         £000

Corporation tax
charge                                          156            251          507
Deferred tax credit                            (505)            55         (179)
Deferred tax asset written off after
initial recognition in
respect of the
acquisition of Poole
Investments PLC                                 390              -            -
                                           ----------     ----------   ----------
                                                 41            306          328
                                           ==========     ==========   ==========





6.       (LOSS)/EARNINGS PER SHARE


Basic and diluted


Basic and diluted (loss)/earnings per share is calculated by dividing the (loss)
/profit attributable to equity holders of the Company by the weighted average
number of ordinary shares in issue during the period.

                                    6 months to       6 months to   Year ended
                                    31 December       31 December      30 June
                                           2007              2006         2007
                                    (Unaudited)       (Unaudited)    (Audited)
                                           £000              £000         £000

(Loss)/profit attributable to
equity holders of the Company            (1,219)              704          795
Weighted average number of
ordinary shares in issue                162,150            47,258       80,944
Dilutive effect of options treated
as exercisable at the period end
(thousands)                                   -                 -          (96)
                                        162,150            47,258       80,848

Basic and diluted (loss)/earnings
per share in pence                        (0.75)p            1.49p        0.98p


















7.       PROPERTY, PLANT & EQUIPMENT

                            Investment     Motor    Fixtures     Office  Total
                              property  Vehicles  & fittings  equipment
                                £000      £000        £000       £000     £000

Cost
At 1 July 2007                     -        27          29         31       87
Additions                         83        17           6          3      109
Acquired upon acquisition
of subsidiary                  8,704         -           -          -    8,704

At 31 December 2007            8,787        44          35         34    8,900

Depreciation
At 1 July 2007                     -         4           6         12       22
Depreciation charge                -         3           4          4       11

At 31 December 2007                -         7          10         16       33

Net book value
At 31 December 2007            8,787        37          25         18    8,867
At 30 June 2007                    -        23          23         19       65





8.       INVESTMENTS

                           Associate       Listed    Equity in   Loans   Total
                                      investments  convertible
                                                         loans
                              £000         £000         £000    £000      £000

At 1 July 2007                 385        3,341           39     776     4,156
Additions                        -        8,544            -       -     8,544
Transfer to investment in
subsidiary                       -          (51)           -       -       (51)
Disposals                        -       (2,989)           -       -    (2,989)
Fair value adjustment            -       (2,094)           -       -    (2,094)
Notional interest                -            -            -       6         6
adjustment
Share of profit of              25            -            -       -         -
associate

At 31 December 2007            410        6,751           39     782     7,572





9.       SHARE CAPITAL

                                    6 months to     6 months to    Year ended
                                    31 December     31 December       30 June
                                           2007            2006          2007
                                    (Unaudited)      (Unaudited)     (Audited)
Shares in issue
Shares in issue at start of period  162,150,059       32,792,866    32,792,866
Shares issued                                 -       29,329,193   129,357,193
Shares in issue at end of period    162,150,059       62,122,059   162,150,059


10. ACQUISITION OF SUBSIDIARY

During the period, the Group acquired the share capital of Poole Investments PLC.

                                                                               £000
Purchase consideration:
          - Shares purchased                                                 11,097
          - direct costs relating to the
                                acquisition                                     214
                                                                            ---------
                                                                             11,311
                                                                            =========

The assets and liabilities arising from the acquisition are as follows:

                                                              Acquiree's  Provisional
                                                              book value   fair value
                                                                  £000         £000

Investment property                                              6,524        8,704
Debtors                                                            144          144
Cash and cash equivalents                                           18           18
Creditors & other payables                                        (572)        (572)
Loans                                                           (3,205)      (3,205)
                                                              ----------    ---------
                                                                 2,909        5,089
Deferred tax (tax losses in
subsidiary)                                                          -        6,222
                                                              ----------    ---------
Net identifiable assets                                          2,909       11,311
acquired                                                      ==========    =========

                                                                               £000
Outflow of cash to acquire business, net of cash acquired:
Cash consideration                                                           11,311
Cash paid in previous period                                                    (51)
Cash consideration and direct costs
outstanding at 31 December 2007                                                (604)
                                                                            ---------
                                                                             10,656
Cash and cash equivalents in
subsidiary acquired                                                             (18)
                                                                            ---------
Cash outflow on acquisition                                                  10,638
                                                                            =========


INDEPENDENT REVIEW REPORT TO INLAND PLC


Introduction

We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
December 2007 which comprises the consolidated income statement, the
consolidated balance sheet, the consolidated statement of changes in equity, the
consolidated cash flow statement and notes 1 to 10 to the consolidated interim
statement. We have read the other information contained in the half yearly
financial report which comprises only the chairman's statement and considered
whether it contains any apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.


This report is made solely to the Company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, "Review of Interim Financial Information
performed by the Independent Auditor of the Entity". Our review work has been
undertaken so that we might state to the Company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.


Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved
by, the Directors.


As disclosed in Note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting," as adopted by the European Union.


Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.


Scope of Review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.


Conclusion

Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 31 December 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union.


Grant Thornton UK LLP

Chartered accountants

London Thames Valley Office

Slough


14 March 2008



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            The company news service from the London Stock Exchange

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