Inland Homes posts widening loss amid contract costs

Housebuilder Inland Homes posted a pre-tax loss of £8.2million for the six months ending 31 March on Thursday, against a loss of £5.8million a year ago. 

The widening loss included £4million worth of expected costs to complete partnership housing contracts, it said. 

But, the group saw its revenue rise to £80.5million, up from £78million at the same point a year ago.

Loss: Inland Homes posted a pre-tax loss of £8.2m for the six months ending 31 March today

The company’s average selling price was £263,000, against a price of £262,000 seen in September last year. 

Inland Homes shares have fallen today and were down 4.46 per cent or 1.74p to 37.26p in mid-morning trading, having fallen by around 31 per cent in the past year.  

The group’s net debt fell to £96.2million compared with £132.9million at the same point last year. 

Its net assets by the end of the period came in at £174.6million, up from £168million a year ago.     

The company’s board said it would not be declaring a dividend for shareholders until it sees a reduction in net gearing. 

Inland Homes said it was seeing strong demand from affordable housing and build-to-rent providers.  

Stephen Wicks, the group’s chief executive, said: ‘The Group has made further progress in delivering its key strategic priority, achieving its year-end target of reducing net debt to below £100million within the first six months of the reporting period.

‘Our valuable land portfolio and expertise in securing planning consent on these sites is enabling us to maximise the opportunities presented by the strong land market and the wider-market undersupply of new homes. We continue to see high demand from affordable housing providers, Build to Rent operators and other housebuilders for our high-quality land assets and build capability.

‘Our asset management segment also continues to perform well, with planning permission granted at two schemes during the period and a determination of our planning application for 1,525 homes at Cavalry Barracks in Hounslow anticipated before the end of the calendar year.’

He added: ‘While the UK housebuilding industry is facing some headwinds in the short term, we believe there is a drastic shortage of consented sites in the South and South East that is exacerbated by a highly complex planning system which places high demands on developers. 

‘Resultantly, the Group, with its valuable land portfolio, is well placed to continue to make further significant progress on its strategic objectives in the second half of the year.’

Looking ahead, the group said: ‘Notwithstanding the loss incurred for the first six months of the financial year, based on management’s current expectations regarding the timing of planning applications and the completion of planned land sales, the financial outlook for the Group for the financial year remains unchanged.’ 

The firm’s land portfolio comprises 9,161 plots, against 10,055 plots back in September 2021.

This post first appeared on Dailymail.co.uk