For Immediate Release
17 July 2008
("Inland", the "Group" or the "Company")
Trading and Market Update
Results for the year ended 30 June 2008 in line with market expectations
5 sites disposed of in the last quarter including 60 plots at Queensgate, Farnborough
Inland's brownfield portfolio has targets which now include non residential uses including hotels, key worker accommodation and medical centres
Inland, which specialises in buying brownfield sites and enhances their value by obtaining planning permission, today makes the following trading update for the year ended 30 June 2008 and provides additional clarity on the land market.
As has been well documented, the UK housing market is in serious decline with trading conditions deteriorating more rapidly in recent months. Although it appears that these market conditions could well persist for the foreseeable future, Inland is confident of its ability to extract value through the planning process and will continue to create demand from interested parties to deliver another year of progress for the Group.
Inland issued an update on land disposals and the land market generally on 9th June, in which the Company reported the sale of four developments. These comprised a total of 38 building plots, a listed building and a commercial investment property for a total of £6.86m with those sales achieving management's expectations on value. These transactions completed before the year ended 30 June 2008 with all the cash received by that date.
Inland is now able to report the sale of a further 60 plots, including 47 for low cost social housing, at our Queensgate, Farnborough site was also completed by the year ended 30 June 2008 for £3.65m on deferred terms. This sale was profitable and in line with management's internal expectations of value.
We are in discussions to sell our Redhill site which has consent for 31 residential units to a housing association, subject to a revised planning permission being obtained over the next six months.
Whilst our main target market was anticipated to be private housebuilders, it is now clear that this market will remain weak for some time. However, housing associations, who have remained active, are now the primary buyers for residential land.
We have interest from housing associations on a number of other projects where planning applications are being prepared specifically for social housing. Wherever possible we intend to secure the building contracts on these projects for our associated company Howarth Homes plc.
Our prime brownfield portfolio of sites also has the potential for a variety of non residential uses and we are currently promoting hotel use on two sites where we have interest from operators. Other alternative uses where the market place is active include key worker accommodation and medical centres.
Inland remains active in the land market, albeit cautiously, and expects to secure some major opportunities in the course of the year, particularly as vendors' expectations are becoming more realistic. Negotiations are still progressing in relation to the acquisition of a significant portfolio of mainly residential development schemes in the South of England referred to in the trading update on 9 June 2008.
Inland finished the financial year with £4.6m cash in the bank and currently have an unutilised bank facility of £7m and are in the process of increasing this to £15m.
Inland is also looking at the possibility of entering into joint ventures with finance partners on larger scale projects where the capital requirements of Inland would be limited and we have identified a number of interested parties in this regard.
Inland has a strong balance sheet and is well positioned to weather the current challenging conditions in the sector and will be working to further enhance the long term value of the Group. Further details will be provided in our preliminary announcement on 1st October 2008.
Stephen Wicks, Chief Executive of Inland commented:
"We remain confident in our ability to continue to acquire and dispose of land on favourable terms.
We enter another financial year of trading in good health with a high quality portfolio of land."
For further information please contact:
Stephen Wicks, Chief Executive
Nish Malde, Finance Director
Jeremy Garcia / Susanna Gale
Tel: 01923 713 600
Tel: 020 7466 5000
About Inland plc
Inland plc is a dynamic developer of urban regeneration projects around Southern England. Predominantly specialising in Brownfield developments, the Inland team can provide solutions to a variety of difficult and sensitive land situations.
Inland successfully navigates the complex planning system, applying meticulous attention to detail throughout the design process whilst utilising its close working relationships with local authorities. Our ability to secure sites often overlooked by others, means our track record in the development of Brownfield opportunities is second to none.
Dawnay, Day Corporate Finance Limited is the Nominated Adviser. David Floyd and Alex Stanbury can be contacted on 020 7630 4140.