News blog
Inland
- BY: Andrew Hore |
- POSTED: 04/08/2008 |
Brownfield property developer Inland has renewed its banking facilities.
The £7m facility has been increased to £15m. The usable facility remains at £7m but the rest will be available when there is security from new assets.
Inland is building up a land bank and, by obtaining options on land prior to planning permission it can make substantial gains if planning permission is granted. Many of the land purchases have been on deferred terms so the initial cash outflow is a small proportion of the total value.
Inland is still managing to sell sites at a profit despite the fall in property values. Five sites were sold in the fourth quarter of the year to June 2008. Housing association demand is holding up well.
This should have helped Inland generate a modest profit of around £400,000 last year. If two expected transactions go ahead then Inland should be able to breakeven in 2008-09.
In recent weeks directors have invested more than £121,000 in Inland shares through purchases at 14.5p a share and 13.5p a share. Chief executive Stephen Wicks increased his stake to 12.8% and finance director Nish Malde upped his to 5.26%.
The shares are trading at 13p, which values Inland at £20.9m. The company’s net asset value was £59.4m at the end of December 2007. Inland joined Aim on 3 April 2007, when it raised £50m (£47.5m net) at 50p a share.
Inland recently had to appoint its broker KBC Peel Hunt as nominated adviser because of the demise of its previous nominated adviser Dawnay Day Investment Bank.
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