31st Mar 2014 13:40
LONDON (Alliance News) - Inland Homes PLC Monday said pretax profit rose in the half year ended December 31, 2013, as improved margins offset a decline in revenue, and it expressed confidence for meeting market expectations for the full year.
The land developer and housebuilding business posted a pretax profit of GBP3.6 million, up from GBP3.1 million in the previous year, despite seeing revenue decline to GBP12.8 million from GBP19.3 million, as it improved its margin to 47.8% from 22.2% due to a change in the sales mix.
Inland Homes said 47 homes were sold in the period, compared to 15 in the previous year.
It said that, in the absence of unforeseen circumstances, it expects to recommend a "substantially increased" dividend for the full year, compared to 0.27 pence per share in the previous year.
Inland Homes said that its current land bank has increased to 3,114 plots. It has 486 homes under construction, with a forward order book of either reserved or contracted sales totalling GBP37.1 million. It expects to complete the sale of 140 homes between itself and Drayton Garden Village Ltd, in which it has a share.
Market conditions remained favourable, Inland Homes said, as the UK government's Help to Buy scheme drove sales, and the extension of the scheme to 2020 provided the company with clarity and visibility.
"A strong forward sales position on housebuilding with a substantial number of units under construction on prime sites in the South gives us great confidence for Inland's future prospects," Inland Homes said in a statement.
Its shares were trading down 2.6% at 48.70 pence Monday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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