Final Results

RNS Number : 8813N

Inland Homes PLC

04 October 2012

 

brownfield regeneration specialists and housebuilders

INLAND HOMES PLC

Preliminary Results for the year ended 30 June 2012

Maiden dividend reflecting confidence in the Group's future prospects

The year's focus has been on ·      Enhancing the quality of our land holdings ·      Improving the value of existing planning permissions and securing new planning consents ·      Increasing our own housebuilding activities which is enabling Inland to capture the development margin on projects thereby enhancing the overall returns to shareholders

Highlights:

·      Operating profit £1.1 million (2011: £3.5m)

·      Profit before tax £1.6 million (2011: £3.5m) ·      Proposed maiden dividend of 0.067 pence per share

·      Earnings per share was 0.41 pence (2011: 2.10p)

·      Net asset value per share increased to 27.0 pence (2011: 26.5p)

·      Significant progress at Drayton Garden Village

·      Land bank strengthened: 742 new plots acquired with 1,215 consented

Post year end: ·      Completion of the sale of 44 plots at Queensgate Farnborough to a national housebuilder ·      Contracts issued for the sale of a further 283 plots on three other sites ·      14 residential units sold ·      Major strategic land holding acquired in Beaconsfield, Buckinghamshire

"The year's focus has been on improving the quality of our land holdings by acquiring or controlling new sites, re-negotiating planning agreements and securing further consents. In particular, considerable effort and resources are being deployed into our project at Poole where we believe we should secure a planning consent in the current financial year. We are concentrating on generating cash and profit from the existing land portfolio and adding further value through the expansion of our housebuilding programme.

The Board consider that with Inland's existing land bank, the medium term prospects for the Group are excellent and this confidence has allowed us to propose the Company's maiden dividend."

Enquiries: Inland Homes plc Stephen Wicks, Chief Executive Nishith Malde, Finance Director Tel: [phone] www.inlandplc.com AIM: Ticker: INL

finnCap Nominated Adviser & Broker Corporate Finance: Matthew Robinson or Rose Herbert Corporate Broking: Simon Starr Tel: [phone]

TooleyStreet Communications IR & media relations Fiona Tooley, Director Tel: [phone] or Graeme Cull, Consultant Tel: [phone]

Editor's Note:

Inland Homes plc's strategy is to identify brownfield land in the South of England where it considers it to hold excellent potential for residential and mixed use development, including commercial space. The Group then seeks to enhance its land value by obtaining planning permission before selling consented land onto developers. It also develops some of its plots for private sale.

CHAIRMAN'S STATEMENT

INTRODUCTION

I am pleased to report that the Group has made positive progress across the various facets of its business, which is reflected in the continuing growth in our land bank and the additional consents which have been secured on the back of on-going strong demand for housing land in the South of England.

As shareholders are also aware, it is the Board's objective to maximise the value of each land sale and not to take a reduced consideration just to suit financial reporting periods. With this policy in mind, a land sale that was expected to generate a profit contribution of approximately £2.0 million in the year ended 30 June 2012 did not conclude as originally anticipated prior to the year end. In relation to this transaction, negotiations continue with a potential buyer and we hope to report a conclusion on this sale in the near future.

As announced in July 2012, whilst Inland's profit expectation for the year under review was adjusted accordingly, this has not had any impact on the Group's underlying net asset value which remains robust.

Although during the twelve month period the Group did not conclude the sales of any building plots and completed only nine residential unit sales compared to 35 in the previous year, I am pleased to report that since the start of the new financial year we have completed the sale of 44 building plots to a national housebuilder at our Queensgate development for a consideration of £3.14 million and contracts have been issued for the sale of a further 283 plots on three other sites. We have also completed the sale of 14 residential units since the year end.

FINANCIAL RESULTS

Consequently, as a result of the above factors, revenue from land and house sales, rental income and project management fees in the year was £6.1 million (2011: £21.4 million). Operating profit was £1.1 million (2011: £3.5 million) and profit before tax was £1.6 million (2011: £3.5 million). Earnings per share was 0.41 pence (2011: 2.10 pence) whilst net asset value per share increased to 27.0 pence (2011: 26.5 pence).

Once again, these financial results exclude any future value from the Drayton Garden Village (DGV) development services agreement where Inland expects to secure 90% of the profit from this project.

During the period Drayton Garden Village Ltd (DGVL) sold 116 plots and a plot with planning consent for an 80-bed nursing home for a total consideration of £8.5 million. The Directors believe that Inland's share of the future profits from this project could be in the order of £13.0 million which is equivalent to 5.0 pence per ordinary share net of tax. These projections are based on selling serviced plots to UK housebuilders and could be substantially enhanced if DGVL was to 'build out' parts of the site.

DIVIDEND

The Board is proposing to recommend a maiden dividend of 0.067 pence per share. If approved by shareholders at the Annual General Meeting on 27 November 2012, the final dividend will be paid on 17 December 2012 to members on the register at the close of business on 14 November 2012. The ex-dividend date will be 16 November 2012.

OPERATIONAL REVIEW

v  HOUSEBUILDING - a key focus of the Group has been to increase our housebuilding programme. This enables Inland to capture the development margin on projects, thereby enhancing the overall returns to shareholders.

Ø Queensgate, Farnborough, Hampshire - during the year nine new homes (2011: 31) were sold for a total consideration of £1.7 million (2011: £6.4 million) at good margins, with a further 14 units completing after the June 2012 year end.

Construction has also commenced on a further phase of 56 units, of which 20 units will be pre-sold to a Housing Association. The Group has successfully secured a revolving facility of £1.9 million from the Homes and Communities Agency under the 'Get Britain Building' initiative to fund the construction of these homes.

Ø Warwick Gardens, Redhill, Surrey - we have recently opened a show-house and marketing suite for the launch of this new development of 28 units; early indications are encouraging, having received a number of reservations at prices higher than our original expectations.

v LAND HOLDINGS - summarising the activities at each of the current key sites:

Ø Drayton Garden Village, West Drayton, Middlesex - within DGVL, consent was originally gained for 773 homes and commercial space. Inland provides significant development services and there have been considerable steps forward during the period under review. Substantial progress has been made with the infrastructure on the site and the state of the art energy centre has been completed and is operational.

Sales at DGV include 88 plots to a private housebuilder, 28 plots for shared-ownership to a Housing Association and the sale of a plot with planning consent for an 80-bed nursing home.

I am also pleased to report that negotiations are at an advanced stage for the pre-let of a 4,000 sq ft neighbourhood food store to a national retailer.

Ø Queensgate, Farnborough, Hampshire - We have successfully re-negotiated the Section 106 Agreement to reduce the affordable housing element down from 35% to 20% and improve the sales mix to reflect current market conditions. Since the year end we sold 44 building plots to a major housebuilder for £3.14 million and completed the sale of 14 residential units.Within Queensgate, Inland has 213 plots remaining.

Ø Ashford Hospital, Middlesex - we have successfully negotiated a variation to the Section 106 Agreement that has had the effect of reducing the affordable housing element of the planned scheme from 35% to nil. This is a major step forward and will enable this development of 152 units to commence shortly.

We are in advanced negotiations to embark on a development agreement with a major UK housebuilder on this site, where Inland will provide the consented land, with our partner managing and funding the construction and the sale of the completed units. If, as we anticipate, this venture proves successful, we intend to use this template to enter into further development projects on other sites in due course.

Ø St John's Hospital, Chelmsford, Essex - planning permission was secured for 127 homes on the northern section of the development site, of which only 14 will be affordable shared ownership units. We have also completed the purchase of the southern section of the same site, where we will shortly be making a planning application for approximately 100 units including detached houses, some of which will back on to the local golf course.

Ø Carter's Quay, Poole, Dorset - negotiations are continuing with the Local Authority regarding this site and our current planning application for 268 homes and 108,000 sq ft of commercial space. We expect a decision on this during the current financial year.

Ø Beaconsfield, Buckinghamshire - at the half-year, we touched on a significant new opportunity in a prime part of Buckinghamshire where Inland had secured an interest in land of strategic access importance. The Group has purchased 20 acres of land adjoining a site which has been allocated for the development of approximately 300 homes in the local plan.

During the year the land bank was strengthened by 742 new plots and the current land bank comprises:

Owned with consent	706
Drayton Garden Village and other managed sites with consent	509
Owned or contracted without consent	380
Sites controlled or terms agreed	347
Total plots:	1,942

v PEOPLE - once again, on behalf of the Board and all Stakeholders, I would like to express appreciation and thanks to the Inland team at all levels for their hard work and dedication in what is a tough and challenging planning and operating environment. Their knowledge and expertise remain an invaluable and important asset that is providing a solid base for the Group's and other Stakeholders' future success.

v INVESTMENTS - our associate company, Howarth Homes plc (Howarth) made progress in the year. Howarth's turnover for the financial year ended 31 July 2012 was £22.4 million (2011: £24.2 million), producing pre-tax profits improved from £0.6 million to £0.8 million. Howarth's current construction order book remains healthy, standing at £41.0 million.

Within our joint development with Howarth at Woodland Chase, Croxley Green, Hertfordshire, 14 homes were sold in the period. The last phase, comprising 12 houses, is now under construction and it is anticipated that this successful development will be fully completed by the next period end.

OUTLOOK

The year's focus has been on improving the quality of our land holdings by acquiring or controlling new sites, re-negotiating planning agreements and securing further consents. We are concentrating on generating cash and profit from the existing land portfolio and adding further value through the expansion of our housebuilding programme.

We have a number of current projects at various stages, as well as new opportunities being researched and undertaken; as a Board we remain confident about the future.

Terry Roydon

Chairman

3 October 2012

GROUP INCOME STATEMENT

For the year ended 30 June 2012

		2012	2011
		Unaudited	Audited
Continuing operations	Note	£000	£000
Revenue	2	6,110	21,372
Cost of sales		(2,224)	(15,699)
Gross profit		3,886	5,673
Administrative expenses		(2,679)	(2,207)
(Loss)/profit on investments		(145)	46
Operating profit		1,062	3,512
Finance cost - interest expense		(698)	(577)
Finance cost - notional interest		(115)	-
Finance income - notional interest		237	207
Finance income - interest receivable and similar income		87	131
		573	3,273
Share of profit of associate		307	132
Reverse impairment of investment in associate		500	-
Share of profit of joint venture		217	138
Profit before tax		1,597	3,543
Income tax	3	(838)	303
Profit for the year		759	3,846
Attributable to:
Equity holders of the Company		759	3,846
Earnings per share for profit attributable to the equity holders
of the Company during the year
- basic	4	0.41p	2.10p
- diluted	4	0.41p	2.07p

GROUP STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2012

		2012	2011
		Unaudited	Audited
	Note	£000	£000
Profit for the year		759	3,846
Other comprehensive income		-	-
Total comprehensive income for the year		759	3,846

GROUP STATEMENT OF FINANCIAL POSITION

At 30 June 2012

		2012	2011
		Unaudited	Audited
	Note	£000	£000
ASSETS
Non-current assets
Investment property		8,801	8,801
Property, plant and equipment		68	76
Investments		1,114	1,009
Joint ventures		2,563	2,401
Investment in associate		822	96
Receivables due in more than one year		55	70
Deferred tax		4,275	4,976
Total non-current assets		17,698	17,429
Current assets
Inventories		43,776	24,105
Trade and other receivables		2,632	10,299
Loan to associate		1,000	1,895
Listed investments held for trading (carried at fair value through profit and loss)		1	1
Cash and cash equivalents		575	2,239
Total current assets		47,984	38,539
Total assets		65,682	55,968
EQUITY
Capital and reserves attributable to the Company's equity holders
Share capital		18,301	18,301
Share premium account		30,794	45,794
Treasury shares		(366)	(366)
Special reserve		6,059	-
Retained earnings		(5,382)	(15,248)
Total equity		49,406	48,481
LIABILITIES
Current liabilities
Bank loans and overdrafts		1,111	663
Other loans		5,875	2,000
Trade and other payables		2,522	4,824
Other financial liabilities		6,768	-
Total liabilities		16,276	7,487
Total equity and liabilities		65,682	55,968

GROUP STATEMENT OF CHANGES IN EQUITY

For the year ended 30 June 2012

	Share	Share	Treasury	Special	Retained
	capital	premium	shares	reserve	earnings	Total
	£000	£000	£000	£000	£000	£000
At 30 June 2010 (audited)	18,301	45,806	(366)	-	(19,280)	44,461
Share-based payment	-	-	-	-	186	186
Issue of equity	-	(12)	-	-	-	(12)
Transactions with owners	-	(12)	-	-	186	174
Total comprehensive income for the year	-	-	-	-	3,846	3,846
Total changes in equity	-	(12)	-	-	4,032	4,020
At 30 June 2011 (audited)	18,301	45,794	(366)	-	(15,248)	48,481
Share-based payment	-	-	-	-	166	166
Capital reduction	-	(15,000)	-	6,059	8,941	-
Transactions with owners	-	(15,000)	-	6,059	9,107	166
Total comprehensive income for the year	-	-	-	-	759	759
Total changes in equity	-	(15,000)	-	6,059	9,866	925
At 30 June 2012 (unaudited)	18,301	30,794	(366)	6,059	(5,382)	49,406

GROUP STATEMENT OF CASH FLOWS

For the year ended 30 June 2012

		2012	2011
		Unaudited	Audited
	Note	£000	£000
Cash flow from operating activities
Profit for the year before tax		1,597	3,543
Adjustments for:
- depreciation		38	38
- share-based compensation		166	186
- fair value adjustment for movement in value of DGVL investment		145	(30)
- profit on disposal of listed investments		-	(16)
- interest expense		813	577
- interest and similar income		(324)	(338)
- share of profit of associate		(307)	(132)
- reverse impairment of investment in associate		(500)	-
- share of profit in joint venture		(217)	(138)
Changes in working capital (excluding the effects of acquisition):
- increase in investments		(250)	-
- (increase)/decrease in inventories		(19,672)	11,046
- decrease/(increase) in trade and other receivables		7,904	(4,400)
- decrease/(increase) in receivables due in more than one year		15	(70)
- increase/(decrease) in trade and other payables		4,330	(3,365)
Net cash (outflow)/inflow from operating activities		(6,262)	6,901
Cash flow from investing activities
Interest received		87	131
Purchases of property, plant and equipment		(30)	(56)
Purchase of investments		-	(283)
Sale of investments		-	146
Net cash inflow/(outflow) from investing activities		57	(62)
Cash flow from financing activities
Interest paid		(677)	(527)
Repayment of borrowings		-	(2,410)
New loans		4,323	2,000
Costs on issue of ordinary shares during prior year		-	(12)
Receipt of loan repayment from associate		895	-
Net cash inflow/(outflow) from financing activities		4,541	(949)
Net (decrease)/increase in cash and cash equivalents		(1,664)	5,890
Net cash and cash equivalents at beginning of year		2,239	(3,651)
Net cash and cash equivalents at the end of year		575	2,239
Cash and cash equivalents		575	2,239

NOTES TO THE PRELIMINARY ANNOUNCEMENT

For the year ended 30 June 2012

1.     Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below.

(a) Valuation of inventories

In applying the Group's accounting policy for the valuation of inventories the Directors are required to assess the expected selling price and costs to sell each of the plots or units that constitute the Group's land bank and work in progress. Estimation of the selling price is subject to significant inherent uncertainties, in particular the prediction of future trends in the market value of land.

Whilst the Directors exercise due care and attention to make reasonable estimates taking into account all available information in estimating the future selling price, the estimates will, in all likelihood, differ from the actual selling prices achieved in future periods and these differences may, in certain circumstances, be very significant. The critical judgement in respect of planning consent (see below) further increases the level of estimation uncertainty in this area.

(b) Income taxes

The Group recognises tax/deferred tax assets and liabilities for anticipated tax based on estimates of when the tax/deferred tax will be paid or recovered. When the final outcome of these matters is different from the amounts initially recorded, such differences impact the period in which the determination is made.

(c) Fair value of derivatives and other financial instruments

The fair value of instruments that are not traded in an active market is determined by using valuation techniques. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing.

(d) Investment properties

Properties are classified as investment properties if there are significant rentals and the intention is to hold those properties for a significantly longer time than inventory property, i.e. not for sale in the ordinary course of business.

(e) Discounting on deferred consideration of inventories

The Group discounts deferred consideration of inventories by discounted cash flow method, using the cost of debt capital as the discount rate.

Critical judgements in applying the entity's accounting policies

Inventories

The Group values inventories at the lower of cost and net realisable value. The net realisable value is based on the judgement of the probability that planning consent will be given for each site. The Group believes that, based on the Directors' experience, planning consent will be given. If planning consent was not achieved then a provision may be required against inventories.

Investments

The Group has entered into a Development Services Agreement with DGVL. The Directors have considered the requirements of IAS 27 'Consolidated and separate financial statements' (revised 2008) and 'SIC 12 Consolidation - special purpose entities' and do not believe that the Group has the power to control DGVL. DGVL makes its own decisions regarding the development of the site even though the director of DGVL receives property advice to consider and property services from the Group. The Directors also consider that the Group does not have the decision making powers to obtain the majority of the benefits and the risks of the activities of DGVL as the shareholder of DGVL maintains control as to whether he finances the deferred land consideration payments. The key requirement in influencing Inland's profit share is the basis on which deferred consideration is satisfied. This is at the discretion of the DGVL director and hence he can improve his profit share, or allow Inland to arrange the funding. Therefore the Directors do not believe that DGVL should be consolidated within the Group's financial statements.

The Group is entitled to receive a fee for the provision of planning application services, assistance in obtaining statutory and third party consents, assistance in entering into development and construction agreements, assistance in achieving sales, assistance in engaging professional advisors, seeking opportunities to generate interim revenues and the potential provision of finance to DGVL in respect of the site known as Drayton Garden Village. Under the agreement the Group has the potential to earn up to 90% of the profits realised from the sale of the property over the life of the project.

Because the final decision on the financial and operational activities of DGVL resides with the director of DGVL, the Directors of Inland Homes plc do not consider that they have significant influence over DGVL and therefore DGVL is not considered to be an associate or a subsidiary undertaking.

At 30 June 2012 the funding arrangements in place for the satisfaction of deferred consideration entitled Inland to 60.51% of the profits expected to be realised from the sale of the property over the life of the project. In accordance with the Option and Development Services Agreement with DGVL (The Agreement), 53.55% of the total profits would be due to the Group for the provision of planning application and property management services completed at the balance sheet date and this has to be accounted for under IAS 18. 6.96% of the profits would be due to the Group for the provision of finance to DGVL and would be accounted for under IAS 39 as notional interest income.

In calculating the fee for the provision of planning application and property services to DGVL recognised in the year, under IAS 18 the Group has estimated the following:

Ø total profits (total expected sales less total estimated development costs to completion) to be realised from the sale of the property;

Ø profits would be realised over six years from 1 July 2010;

Ø percentage, where the stage of completion is an appropriate basis for evaluating fair value, of planning application and property services provided to DGVL as at the period end with the balance to be provided over the remaining life of the project (i.e. in future accounting periods); and

Ø the fair value of completed service components at the year end.

During the year ended 30 June 2012 the Group has recognised £3.65m (2011: £3.77m) in revenue within the Group Income Statement for such services to DGVL.

In calculating the fee for the provision of finance to DGVL, under IAS 39 the Group has estimated the following:

Ø total profits (total expected sales less total estimated development costs to completion) to be realised from the sale of the property; and

Ø profits would be realised over six years from 1 July 2010.

Under IAS 39 the Group has a choice as to how to account for the asset. The Directors consider the most appropriate classification for the asset to be 'loans and receivables' due to the underlying asset being a 'non derivative' financial asset with fixed or determinable payments. The effective interest rate method has been applied in calculating the income in the period.

During the year ended 30 June 2012 the Group has recognised £0.24m (2011: £0.24m) within notional interest income in the Group Income Statement in respect of such fees.

The table below shows the revenue and notional interest recognised by Inland under IAS 18 and IAS 39 in comparison to the results recognised by DGVL on its sales:

	2012	2011	Cumulative
	Unaudited	Audited	Unaudited
	£000	£000	£000
Total revenue and notional interest recognised under IAS 18 and 39	3,885	4,017	7,902

Land sales in DGVL (unaudited)
Plots sold	118	148	266
Revenue (£000)	8,460	15,186	23,646
Gross profit (£000) as per DGVL's draft accounts	2,801	5,378	8,179
Inland's share of fees at 60.51% as per The Agreement (£000) (2011: 58.19%)	1,820	3,130	4,950

2.       Segmental analysis of turnover

	2012	2011
	Unaudited	Audited
	£000	£000
Land sales	-	9,399
Housebuilding	1,708	7,324
Fee income	3,885	3,975
Rental income	322	374
Other property sale	195	300
	6,110	21,372

3.     Income tax

	2012	2011
	Unaudited	Audited
	£000	£000
Tax charge on associate and joint venture profits	137	76
Deferred tax charge due to change of corporation tax rate	382	-
Deferred tax charge/(credit)	319	(379)
	838	(303)

The tax on the Group's profit before tax differs from the theoretical amount that would arise using the tax rate applicable to profits of the consolidated companies as follows:

	2012	2011
	Unaudited	Audited
	£000	£000
Profit before tax	1,597	3,543
Profit on ordinary activities multiplied by the standard rate
of corporation tax in the UK of 26% (2011: 28%)	415	992
Expenses not deductible for tax purposes	(77)	35
Other timing differences	126	109
Utilisation of tax losses	(327)	(1,439)
Difference between capital allowances and depreciation	(1)	-
Tax credit	136	(303)

4.     Earnings and net asset value per share

Basic and diluted EPS

Basic and diluted earnings per share is calculated by dividing the earnings attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

	2012	2011
	Unaudited	Audited
Profit attributable to equity holders of the Company (£000)	759	3,846
Net assets attributable to equity holders of the Company (£000)	49,406	48,481
Weighted average number of ordinary shares in issue (000)	182,999	182,999
Dilutive effect of options (000)	51	2,575
Weighted average number of ordinary shares used in determining diluted EPS (000)	183,050	185,574
Basic earnings per share in pence	0.41p	2.10p
Diluted earnings per share in pence	0.41p	2.07p
Net asset value per share in pence	27.00p	26.49p

5.     Deferred tax

The net movement on the deferred tax account is as follows:

	£000
At 1 July 2011 (audited)	4,976
Income statement charge	(382)
Adjustment in respect of corporation tax to 24%	(319)
At 30 June 2012 (unaudited)	4,275

The movement in deferred tax assets is as follows:

	Accelerated
	tax depreciation	Losses	Other	Total
	£000	£000	£000	£000
At 1 July 2011 (audited)	(2)	4,095	883	4,976
Charged to income statement	(1)	(688)	(12)	(701)
At 30 June 2012 (unaudited)	(3)	3,407	871	4,275

The deferred tax asset is recoverable as follows:

	2012	2011
	Unaudited	Audited
	£000	£000
Deferred tax asset to be recovered after twelve months	2,724	3,225

Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable. The Group has capital losses amounting to £20,449,000 (2011: £20,449,000) that have not been recognised as the Directors consider the realisation of the losses is not expected to crystalise in the future.

6.     Other financial liabilities

	2012	2011
	Unaudited	Audited
	£000	£000
Deferred purchase consideration on inventories falling due within one year	6,768	-

7.     Contingencies

The Group has the following contingent liabilities as at 30 June 2012:

a)   upon the sale of a specific investment property, a payment of £300,000 is due to one party;

b)   a subsidiary undertaking, Poole Investments plc, ceased to participate in its operating subsidiary's pension scheme when it disposed of former subsidiaries in May 2004. The Scheme's principal employer, Pilkington's Tiles Limited went into administration on 14 June 2010 and as a result Poole may be liable for a share of the cost of securing the liabilities of the Scheme pertaining to its two former employees should there be a deficit on the Scheme's fund. The Directors consider that, as at the balance sheet date, material uncertainty exists over the basis and calculation of any obligation that may fall due to Poole. Advice is being sort to clarify the Company's position. A provision has therefore not been made in the financial statements as the basis of any provision cannot be reliably established; and

c)   Inland Homes plc has guaranteed the obligations of Howarth Homes plc to Investec Bank plc in respect of cost and interest overruns in relation to the borrowings of the joint venture with Howarth for the site at Croxley Green, Hertfordshire. The potential exposure is limited to £1m.

No provisions have been made in these financial statements in respect of these contingent liabilities.

8.     Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The Group Income Statement, the Group Statement of Comprehensive Income, the Group Statement of Financial Position at 30 June 2012, the Group Statement of Changes in Equity and the Group Statement of Cash Flows and associated notes for the year then ended have been extracted from the Group's financial statements. Those financial statements have not yet been delivered to the Registrar, nor have the auditors reported on them.

This statement is not being posted to shareholders. The Annual Report and Financial Statements will be posted to shareholders shortly. A copy will also be available on the Company's website, www.inlandplc.com in due course. Further copies are available on request to the Company Secretary at Inland Homes plc.

 

END

 

 

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