Happy New Year!

It's a quiet start to 2018, news-wise. Everyone is either still on holiday, or only today back in the office after their break, so there aren't too many updates for us to digest.

I'm going to take a look at Inland Homes (LON:INL).



(Please note that I own shares in Inland Homes)

Inland Homes (LON:INL)

  • Share price: 62p (+3%)
  • No. of shares: 201 million
  • Market cap: £125 million

Strong end of year momentum and positive outlook

This is a decent little house-builder with a good track record of paying dividends since 2012, though it has been listed since 2007. I covered it once last year, and Paul has also written about it several times over the past few years.

It operates in the South and South-East of England regions, owning land from Poole/Bournemouth through Greater London and up to Colchester and Ipswich.

This is a nice little update:

"As we head into the New Year, Inland Homes is well placed to achieve further significant growth in 2018, with the in house construction team now well established and beginning to bear fruit. We have had an extremely productive period, culminating in a number of profitable land sales and a growing order book for Inland Partnerships, our new business principally dedicated to delivering residential units for housing associations and other residential landlords such as PRS funds or Local Authorities. Our housebuilding programme is at a record level, with over 500 homes currently under construction and a healthy pipeline of new development projects in place for the coming months, supporting our positive outlook."

Recent activity growth has indeed been superb at Inland. It is forecast to produce c. £133 million in revenues in 2018 (prior to today's update), versus £91 million in 2017.

Today's update also spells out £13 million in land sales and describes a new purchase for a 40-home site in Berkshire, near the forthcoming Crossrail network. We additionally learn about a £29.5 million building contract secured by its subsidiary, Inland Partnerships.

As you've probably guessed from the disclaimer at the top of this section, I've decided to get my feet wet and purchase a few shares in this company. The size is less than 2% of my portfolio.

I don't expect huge returns…

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