13th Feb 2014 12:30
LONDON (Alliance News) - Inland Homes PLC Thursday said it has performed strongly in the first half of the current financial year, with 47 residential units being completed delivering gross revenue of GBP12.7 million compared with GBP3.1 million in 2012.
The specialist housebuilder and brownfield developer said this figure includes units being managed on behalf of Drayton Garden Village Ltd, with which it has an option and development services agreement
In a trading update ahead of its half year results for the period ended December 31, 2103, the company said it "experienced improved margins on the sale of these homes as a result of achieving prices in excess of budget."
Inland Homes has also seen strong demand from consented land from housebuilders seeking to replenish their stocks and currently has GBP11.6 million of land sales changed or under offer with further offers pending.
During the period the firm secured 650 brownfield plots on seven sites in areas including Southampton, Bournemouth and Colchester. This was despite a visible increase in competition, it said.
These additional plots mean the land bank totals 2,917 plots compared with the 2,306 plots reported when Inland Houses published its preliminary results in early October 2013.
The group's house building activity is gaining momentum, with 495 units under construction across eight sites, including the construction of 156 units managed for Drayton Garden Village Limited.
Contracts have been exchanged for the sale of 59 units at West Plaza in Ashford, Middlesex for GBP10.8 million and for 107 units at Drayton Garden Village for GBP21.0 million.
After increasing its land bank, the firm had cash balances of GBP8.9 million at the end of December, down from GBP12.2 million in June 2013.
"Despite the considerable increase in the scale of Inland Homes' business in this financial year, we have managed to keep our gearing to relatively low levels," Chief Executive Stephen Wicks said in a statement.
"Inland is in great shape to deliver substantial growth in the remainder of this financial year and beyond," he added.
The company will publish its results on March 31.
The stock was trading at 46.25 pence Thursday afternoon, up 0.50 pence or 1.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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