Financial KPIs

Revenue

Strategic focus

Revenue from housebuilding and contracting activities is expected to continue to increase and this will be supplemented by land sales and rental income.

Performance

There was one disposal of land in 2018 and two in 2017 which flow through gain on sale of subsidiary or joint venture rather than revenue and gross margin. If they had been direct land sales revenue would have been £148.6m (2017: £117.7m), representing a 26% increase on the prior year.

Recurring profit before tax

Strategic focus

The Board's expectation is to continue to build on the recurring profitability achieved over the last two years and will seek to secure this by the planned expansion of Private and Partnership Housing and contracting activities together with the sale of consented building plots.

Performance

Demand for consented land was once again strong during the year and this resulted in several highly profitable land sales.

EPRA net asset value per share

Strategic focus

The value added to the land bank by the planning process will continue to be one of the Group's key focuses. Further value will be extracted from the land bank through Private and Partnership Housing.

Performance

EPRA net asset value1 increased again this year by 6.3% from 96.22p to 102.28p. The use of the EPRA methodology reveals how much "hidden" value is held within inventories.

Net gearing

Strategic focus

The Group is keen to maintain gearing at a reasonable level, taking into account the EPRA net asset value.

Performance

Based on EPRA net asset value, net gearing has increased from 35.0% to 38.6% in line with management's expectations. On a non-EPRA basis, it has increased to 56.0% from 52.1% in the prior year.


Non-financial KPIs

Number of plots with or without planning consent

Strategic focus

The Group's target is to have a land bank of approximately 10,000 residential plots in the medium term.

Performance

The land bank now stands at 6,870 plots, including 1,708 plots with planning permission or resolution to grant planning permission.

Total residential plots sold

Strategic focus

The Group's objective is to sell consented plots that are unlikely to be developed by Inland Homes to realise profits and to raise working capital.

Performance

There was a strong demand for consented plots from housebuilders during the year, resulting in the sale of 837 plots.

Private residential home sales

Strategic focus

The sale of the number of private residential units is expected to fall in the year to 30 June 2019 and thereafter to increase substantially to approach our target of approximately 500 units pa.

Performance

The Group sold 275 private residential units during the year, which was a 46% increase over the previous year.

Planning permissions gained during the year

Strategic focus

The core activity of the Group is to acquire sites without planning consent and to secure consent on the majority of them within two years from the date of purchase.

Performance

The Group gained planning permission or a resolution to grant planning permission on 594 plots during the year ended 30 June 2018.