HALF-YEAR RESULTS PRESENTATION BREATHING LIFE INTO LAND - Six months ended 31 December 2018 - Inland Homes plc
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HALF-YEAR RESULTS PRESENTATION
Six months ended 31 December 2018
BREATHING LIFE
INTO LAND
Business Model
▪ Identify and acquire high quality brownfield
land in South and South-East of England
▪ Add value by securing planning permission
– 100% track record
▪ Generate value from land holdings through
these activities
Inland Homes plc – Half year results December 2018
2
Land Sales
▪ Focus on brownfield and strategic sites
▪ Purchases of brownfield sites unconditionally and without
planning consent
▪ Strategic sites secured by way of discount to market
value options
▪ Focus on South and South-East in areas of high
housing demand
▪ Balanced risk/reward returns profile:
▪ Disposal of land to other developers
▪ Deals with Housing Associations for Partnership Housing
▪ Disposal of land to investors and provision of planning
and development services for management fees
Inland Homes plc – Half year results December 2018
3
Private Housebuilding
▪ Objective is to construct a balanced mix of
Houses and Apartments
▪ Target market: first-time buyers and first movers
▪ Help to Buy used widely
▪ Direct delivery provides greater control over
pressurised construction supply chain
▪ Excellent in-house construction team
▪ Selected developments carried out through
joint ventures
▪ Vertically integrated model enables
monetisation of greater proportion of
development value
Inland Homes plc – Half year results December 2018 Centre Square (formerly Lily’s Walk), High Wycombe
4
Partnership Housing
▪ Housing Associations and PRS operators
attracted to Inland’s ability to provide land
and construction of homes
▪ Partnering with industry-leading players
▪ Crystallise value and cashflow on land
disposal
▪ Construction working capital provided by
partner
▪ De-risks market exposure
Inland Homes plc – Half year results December 2018 Abbey Wharf, Alperton
5
Medium-term objective
Medium-term strategy to re-balance revenue
contribution across operating activities by growing
private housebuilding and Partnership Housing
businesses
4%
Revenue by segment 5%
15%
20%
June 40%
Medium-
48% 2018 term
28% 40%
Land sales Partnership Housing land sales and construction Private Housebuilding Other
Inland Homes plc – Half year results December 2018 6
Financials Chapel Riverside, Southampton
Progress in first half and positive start to the year
Financial overview
EPRA NAV1 Interim dividend
Revenue Gross margin PBT
2018: 103.57p per share
2018: £51.0m 2018: 28.6% 2018: £5.5m
(H1 2017: £61.2m) (H1 2017: 18.6%) (H1 2017: £5.4m)
+6.1% 2018: 0.85p +30.8%
(H1 2017: 97.63p) (H1 2017: 0.65p)
Strategic & Operational overview
High quality site Persuing significant
Private housing Private homes Successfully
acquisitions; both Partnership
units sold under construction extended debt
outright and under Housing contracts;
2018: 81 2018: 1,057 +88.8% facilities at
option Order book up 326%
(H1 2017: 96) (H1 2017: 560) improved terms
Plots +6.1% to 7,291 to £140m2
1 On an undiluted basis
2 Including Dagenham transaction (see slide 27)
Inland Homes plc – Half year results December 2018
8
Segmental results
Revenue by segment
Profit Net
Revenue Gross Profit before tax Assets
9%
£m £m £m £m 22%
Land 4.8 0.5 (0.7) 33.3
40%
29%
Private Housebuilding 20.2 2.5 1.7 89.1
Partnership Housing 15.0 1.7 1.4 5.6 Land sales Housebuilding
Contract income Mngt fees/Other
Other1 11.0 9.9 2.8 19.4 Gross profit by segment
Total 51.0 14.6 5.5 147.4 3%
17%
28.6%
12%
68%
1 Includes management fees and income/assets from investment property
Inland Homes plc – Half year results December 2018 9
Net debt
December December June
2018 2017 2018
£m £m £m Debt maturity – facilities1 (£m)
Net debt 96.6 69.8 79.7 2025
2024
Cash + headroom 54.8 61.8 72.5
2023
Gearing - IFRS 65.5% 51.8% 56.0% 2022
- EPRA 45.4% 35.6% 38.6% 2021
2020
2019
0 10 20 30 40 50 60
▪ Agreed new four-year £65m RCF with HSBC 1 Following refinancing of RCF facility
(including £20m accordion) on improved terms
Inland Homes plc – Half year results December 2018 10Generating value for shareholders
Recurring profit before tax EPRA NAV per share p Dividend growth p
£m
25.0 120
20.3 102.28 103.57 2.5 2.2
19.3 92.34 96.22
20.0 18.1 100
15.7 2.0 1.7
15.0 80
1.5 1.3
60
10.0 7.5 43.92 1.0
7.3 1.0 0.85
6.1 5.4 5.5 40
4.6 0.6 0.65
5.0 3.0 0.4 0.5
20 0.5 0.3
0.0 -
0 0.0
2014/15
2013/14
2015/16
2016/17
2017/18
2018/19
June June June June Dec
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2015 2016 2017 2018 2018
FY HY
Total Interim
Inland Homes plc – Half year results December 2018 See slides 29 and 30 for income statement and balance sheet
11Land Cheshunt Lakeside, Hertfordshire
Land
Plots with planning permission Plots without planning permission
▪ Land bank increased by 6% to 7,291 plots
8,000 7,372 7,291
7,000 6,428 6,522
2,048
▪ Planning received for 60 unit site at 6,000 2,328
2,042 1,939
Meppershall, Beds 5,000
4,000
3,000
5,044 5,243
4,583
▪ Planning permission on Cheshunt Lakeside 2,000 4,386
and Wilton Park expected shortly 1,000
0
Total Group share Total Group share
2017 2018
▪ Acquisition of site at Dagenham (see slide 27 Status of
Strategic
for detail) planning sites With
34% planning
28%
▪ Acquired options over two strategic sites
during the period with potential for 170 homes Pre-application discussions
5%
Planning applications
Inland Homes plc – Half year results December 2018 To be progressed submitted 26%
7%
13Planning update: Wilton Park ▪ Revised proposal submitted to Council in Relief road under construction January 2019 including 79 affordable Current planning units – 30% of 264 net increase in unit application numbers ▪ Planning decision expected in the current financial year ▪ GDV estimated at £350m with potential for further uplift ▪ New relief road currently being constructed to our boundary ▪ Formal adoption of new Local Plan for “East of Beaconsfield (1,700 homes – including 40% affordable) expected 2020 (see slide 26 for plan) Additional landholding Inland Homes plc – Half year results December 2018 14
Planning update: Cheshunt Lakeside Resolution to grant planning permission expected to be received during current financial year for the 28 acre site comprising 1,853 apartment-led mixed-use development We have a 50% interest in 20 acres of the site containing 1,343 apartments Regeneration includes commercial, retail, leisure and education space as well as a new local plaza Estimated gross development value of £650m Inland Homes plc – Half year results December 2018 Cheshunt Lakeside, Hertfordshire 15
Strategic land
522 acres across 35 sites with potential
for 3,079 homes
Strategic landholdings held in capital
efficient manner
86% of sites held under discount to
market value options
30 sites of 469 acres and 2,763 plots
Eight sites in planning process
Inland Homes plc – Half year results December 2018 Holmer Green, Buckinghamshire 16Other activities
Managed sites
Aston Clinton, Buckinghamshire
▪ £9.2m net management fees for planning and
development services
Master Brewer, Hillingdon
▪ Facilitated purchase on behalf of investor
▪ Major residentially led mixed-use scheme
New initiatives1
▪ Rosewood Housing (registered provider)
▪ - first affordable unit now let
▪ Hugg Homes (modular housing)
▪ 22 units in situ and fully let
▪ 32 units pre-let and being manufactured
▪ Annual rent by year end: £500k
1 See slide 28 for more detail on Rosewood Housing and Hugg Homes
Aston Clinton, Buckinghamshire
Inland Homes plc – Half year results December 2018
17Housebuilding
St. John’s, ChelmsfordHousebuilding in progress
H1 H1 H2 2019/
2017/18 2018/19 2018/19 2020
Completions
Homes for sale - Group 96 79 35 371
- 50% JVs - 2 45 150
96 81 80 521
Partnership equivalent units 32 63 163 313
Total homes delivered 128 144 243 834
+12.5%
Private ASP (£'000) 322 238 n/a n/a
Help to Buy contribution 58% 64% n/a n/a
Inland Homes plc – Half year results December 2018 19Housebuilding in progress - continued
December December Change
2018 2017 % Total land holdings split by type
Units under construction
Homes for sale - Group 864 517
- 50% JVs 193 43 Flats
54% Houses
1,057 560 88.8 46%
Partnership equivalent units 496 220
Total homes under construction 1,553 780 99.1
Inland Homes plc – Half year results December 2018 20Partnership Housing Witley Gardens, Southall
Partnering with Industry leading players
H2 Order Total
2018/19 2019/20 2020/21 > 3 years book contract1
Sites Partner £m £m £m £m £m £m
Church Road, Ashford A2 Dominion 6.5 14.0 14.1 23.2 57.8 64.5
Abbey Wharf, Alperton Clarion 7.5 10.7 1.2 - 19.4 30.0
Dagenham2 Clarion 2.0 22.0 22.0 20.0 66.0 66.0
Total 16.0 46.7 37.3 43.2 143.2 160.5
Clarion Housing A2 Dominion
▪ Largest social landlord in the country ▪ Top 10 Housing Association in the South-East
▪ Property portfolio: £7.5bn (cost) ▪ Property portfolio: £8.8bn (market value)
▪ Development pipeline: 15,000 houses ▪ Development pipeline: 7,800 houses
▪ Loans and grants/Undrawn facilities : £5.8bn/£540m ▪ Loans and grants/Undrawn facilities: £2.6bn/£330m
1 Including revenue to date
Inland Homes plc – Half year results December 2018 2 Estimated split
22Market and Outlook Farrier’s Wood, Garston
Market and outlook ▪ Continuing to see good demand for properties under £400k outside Central London ▪ Cross-party support for housing supply ▪ Partnership Housing market is robust with discussions ongoing on a number of new sites ▪ Strong appetite from housebuilders and Housing Associations for consented land in prime locations Inland Homes plc – Half year results December 2018 Wessex Hotel, Bournemouth 24
Appendices Church Road, Ashford
Wilton Park – East of Beaconsfield Local Plan
Relief road under construction
Current Inland
planning application
East of Beaconsfield
Local Plan
Additional landholding
Inland Homes plc – Half year results December 2018 26Acquisition: Dagenham, East London
▪ Four acre brownfield site - existing planning
consent for 325 homes and 1,600 sqm of
commercial space
▪ Gross development value of circa £95m
▪ Located within the London Riverside
Opportunity Area
▪ Advance discussions with major Housing
Association for a Partnership Housing deal
Inland Homes plc – Half year results December 2018 27
27New initiatives
Hugg Homes
First development completed at Chapel Riverside
22 units let to Southampton City Council and private tenants
for £168k pa
32 units being manufactured for Cheshunt Lakeside
Broxbourne Council has signed a three-year lease for
£319.5k pa
Rosewood Housing
First acquisition into Rosewood completed and let
Further pipeline of opportunities
Mix of shared ownership, social and discounted market rent
units
Inland Homes plc – Half year results December 2018
28Income statement
December December
2018 2017 Change %
Revenue1 (£m) 51.0 61.2 (16.7)
Gross profit1 (£m) 14.6 11.4 28.1
Net interest cost (£m) 2.9 1.6 81.3
Profit before tax (£m) 5.5 5.4 1.9
Earnings per share (p) 2.25 2.19 2.7
Dividend (p) 0.85 0.65 30.8
Inland Homes plc – Half year results December 2018 29Balance sheet
December December
2018 2017 Change %
Investment property 55.6 53.6 3.7
Assets by segment
Loans & Invts in JVs & associate 29.9 27.7 7.9
9%
4% 23%
4%
Inventories 162.5 137.1 18.5
Cash 30.2 24.8 21.8
60%
Borrowings 126.8 94.6 34.0
Land sales Housebuilding
Contract income Investment property
IFRS NAV - £m 147.4 134.7 9.4
Other
- per share (undiluted) 71.71p 67.02p 7.0
EPRA NAV - £m 212.9 196.2 8.5
- per share (undiluted) 103.57p 97.63p 6.1
Inland Homes plc – Half year results December 2018 30Net debt and borrowings
December December
20181 June 2018 2017
£m £m £m
Borrowings 126.8 120.1 94.6
Net debt 96.6 79.7 69.8
Cash + headroom 54.8 72.5 61.8
Gearing - IFRS 65.5% 56.0% 51.8%
- EPRA 45.4% 38.6% 35.6%
Average maturity - facilities 3.2 years 1.7 years 2.7 years
- borrowings 2.8 years 1.9 years 2.7 years
1 Proforma figures include RCF refinancing in March 2019
2 Excludes ZDP
Inland Homes plc – Half year results December 2018 31Directors’ Biographies
Stephen Wicks, Chief Executive
Stephen has worked in the construction and housebuilding sector all of his working life and has extensive experience in the
acquisition of large-scale development opportunities. He was the founding shareholder and Chief Executive of Country &
Metropolitan plc, which floated on the main market of the London Stock Exchange in 1999 with a market capitalisation of
£6.9m until its disposal in 2005 to Gladedale Holdings plc for approximately £72m.
Holding in Inland Homes plc: 8.2%
Nish Malde, Finance Director
Nish is a chartered accountant and has over 30 years’ experience in the property sector with wide professional knowledge
and understanding of both listed and unlisted companies. He was Finance Director and Company Secretary of Country &
Metropolitan plc, which floated on the main market of the London Stock Exchange in 1999, until its disposal in 2005 to
Gladedale Holdings plc.
Holding in Inland Homes plc: 5.5%
Gary Skinner, Managing Director
Gary brings considerable experience to the Board having worked in the housebuilding sector for over 30 years. He joined
the Group in February 2016 and was appointed to the Board in May 2018. Previously, he was director of operations at
Willmott Dixon Housing and production director at George Wimpey (now part of Taylor Wimpey plc) responsible for
constructing over 1,000 homes per annum.
Inland Homes plc – Half year results December 2018 32Disclaimer
This presentation has been prepared by Inland Homes plc (the “Company”). No This presentation is for information purposes only and does not constitute an
representation or warranty (express or implied) of any nature is given nor is any offering document or an offer of transferable securities to the public in the UK.
responsibility or liability of any kind accepted by the Company or any of its This presentation is not intended to provide the basis for any credit or other
directors, officers, employees, advisers, representatives or other agents, with evaluation of any securities of the Company and should not be considered as a
respect to the truthfulness, completeness or accuracy of any information, recommendation, invitation or inducement that any investor should subscribe
projection, representation or warranty (expressed or implied), omissions, errors for, dispose of or purchase any such securities or enter into any other
or misstatements in this presentation, or any other written or oral statement transaction with the Company or any other person. The merits and suitability of
provided. any investment action in relation to securities should be considered carefully and
involve, among other things, an assessment of the legal, tax, accounting,
In particular, no responsibility or liability is or will be accepted and no regulatory, financial, credit and other related aspects of such securities.
representation or warranty is or is authorised to be given as to the accuracy,
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future projections, management targets, estimates or assessments of future persons to whom it may lawfully be communicated, and has not been approved
prospects contained in this presentation, or of any assumption or estimate on for the purposes of section 21 of the Financial Services and Markets Act 2000. It
the basis of which they have been given (which may be subject to significant may not be reproduced (in whole or in part), distributed or transmitted to any
business, economic or competitive uncertainties and contingencies beyond the other person without the prior written consent of the Company. In particular this
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statements have not been independently audited, examined or otherwise any jurisdiction or country where such distribution or use would be contrary to
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All views expressed in this presentation are based on financial, economic, they are able to receive this presentation without contravention of any law or
market and other conditions prevailing as of the date of this presentation. The regulation in the jurisdiction in which they reside or conduct business.
Company does not undertake to provide access to any additional information or
to update any future projections, management targets, estimates or assessment
of future prospects or any other forward-looking statements to reflect events that
occur or circumstances that arise after the date of this presentation, or to correct
any inaccuracies in this presentation which may become apparent. Past
performance is not indicative of future results and forward-looking statements
are not guarantees of future performance.
Inland Homes plc – Half year results December 2018 33You can also read
