Inland chair to step down as focus on land pays off

Housebuilder Inland Homes’ focus on building its landbank has enabled it to “weather” the coronavirus pandemic. Revenue and profit both fell over the 12 months to 30 September, from £147.9m to £124m and from £25m to £3.7m respectively, but the group was able to reduce its net debt from £152.3m to £148.2m and increase its cash balance from £10.9m to £15.7m. Chief executive Stephen Wicks said: “The group has weathered the global pandemic well. The flexibility in our diversified business model allowed us to adapt quickly during the year despite challenging conditions. The consolidation to land-focused activity, supported by the group’s other income streams and the new equity raised during the year, has benefited our balance sheet. A steady reduction in net debt is a strategic priority for the group.” The group’s landbank now totals 11,045 plots, up from 7,796 in 2019, with a gross development value of £3.1bn. Inland has planning permission on 2,470 of the plots, has submitted planning applications on 1,819 and has a further 3,961 plots at pre-application planning stage. Just 107 plots were sold during the year under review, compared with 532 in 2019. Wicks said that land was “at the heart” of what Inland does and its focus going forward would be to continue increasing its landbank of brownfield and strategic sites in the South and South East and growing its asset management division. The group’s asset management business now encompasses six live projects in London, with the potential to deliver some 3,100 homes. New contracts saw management fees from this segment of its business increase from £18.6m in 2019 to £24.4m in 2020. “We are seeing increasing demand for our experience and skills in successfully navigating the complex planning system,” he said. “A primary focus in the year ahead will, therefore, be growing our asset management division. As a ‘capital-light’ activity – where our skills and expertise are the service – this has lower risk and delivers attractive returns. There are plenty of opportunities ahead for Inland with growing demand in the affordable and build-to-rent spaces. We have proven capability in delivering such schemes and are actively seeking these opportunities, which provide regular cash flow and land sales.” Chairman Terry Roydon, who announced plans to stand down after 14 years in post, said that Inland’s ability to flex its business model had provided it some protection throughout the Covid pandemic. “Unlike others in the industry, Inland generates income from multiple sources – primarily land sales, asset management, private and partnership housing, supported by revenue generated from investment and rental properties,” he said. “This diversity enabled us to respond quickly to the challenges presented by Covid-19, enabling the group to adapt to changing market conditions and maintain cash flow. This change of emphasis to land-focused activity, supported by the group’s other income streams and the new equity raised during the year, has improved our balance sheet. I continue to be impressed by the sustained demand from customers, partners and investors for our quality land assets and build expertise.” During the year under review, Inland also secured its first forward sales of BTR projects for £52.8m – a 123-unit at Centre Square and 85-unit development at Buckingham House, both in High Wycombe, Buckinghamshire. Roydon said the deals were the “first of what we hope will be many BTR opportunities secured by the group, with Inland’s landbank and build capability making it well-placed to access this attractive market”. • Simon Bennett, currently senior indepentdent director, will take over as chairman following Roydon’s resignation on 11 March.   To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette Image of Centre Square, High-Wycombe by Inland Homes