Inland Homes Share Discussion Threads

[mrcb1] 29/10/2015 12:51

PJI - finncap reiteration as Buy - target 80p.
Source -LSE board

[david77] 29/10/2015 11:53

"There is an argument here that it would be bette for shareholders for INL not to pay a divi at all"

I would go along with that as long as the dirs showed the same restraint.

[pj 1] 29/10/2015 11:34

Only on mobile access this week due to Norfolk Holiday. Has anyone any forecasts here? TIA

[joe say] 29/10/2015 11:30

Spot on davidosh - something I suspect the market will take time to digest/appreciate

Also agree with the dividend points considering the cost of funding - ie a token div is ample imo

[davidosh] 29/10/2015 11:25

winsome147.....The QED NAV was far from conservative. By contrast the NAV here is very conservative. The EPRA NAV measure will certainly help in March as clarified today...


Net assets attributable to shareholders were £88.8m at 30 June 2015 equating to 43.92p (2014 restated: 29.63p) per share. The major part of the Group's land bank is held as inventories at the lower of cost and net realisable value and it should be noted that the unrealised value within the portfolio of sites is significantly higher than the stated value.

NAV is a key performance measure used in the real estate industry. However, IFRS NAV does not provide shareholders with the most relevant information on the fair value of the assets within an ongoing real estate company with a long term strategy. Accordingly, after consultation with our advisers, we have decided to adopt the accounting practices of the European Public Real Estate Association ("EPRA") to address this issue. Specifically, the EPRA NAV measure highlights the fair value of net assets on a long term, ongoing basis.

While not recognising unrealised gains due to planning gains in the income statement, the adjusted value of trading assets and land subject to planning gains would reflect their current fair value under EPRA's NAV measure. We intend to introduce this additional disclosure when we report the Group's half year results for the 6 month period ending 31 December 2015 expected in March 2016.

[interceptor2] 29/10/2015 11:13

Agree Shanklin, a token dividend is ok, but I always prefer to a see company plough profits back into the company's development and then as a shareholder enjoy a significant growth in the business.

A company that pays a dividend is a bonus on my checklist, but not a priority.

[shanklin] 29/10/2015 10:30

As INL state in their RNS, cash is an expensive commodity especially when borrowed to pay for land without planning permission. There is an argument here that it would be better for shareholders for INL not to pay a divi at all let alone waste money on a larger one.

[winsome147] 29/10/2015 10:06

Maybe if they were far more generous with the div then the share price would rise higher. I'm still not sure if they are a tad too expensive given all their properties are in the highly priced South East. Quintain shareprice struggled to reach NAV until it was bought over and only then went 15% above a conservative NAV. THey didn't pay a div at all. It too was a small company. I think short-termism and speculation will be the main driver for INL.

[manrobert] 29/10/2015 10:01

hope he gets a letter from chairman of Barrats soon.

[dt1010] 29/10/2015 09:52

My 18 month old just bought some more ;)

[cfro] 29/10/2015 09:44

Bought back in today myself. Couldn't ignore such a strong set set of results. I have to admit to feeling cold on the whole house-building sector lately but INL does seem to be a stand out performer.

[manrobert] 29/10/2015 09:42

that was my thought Interceptor hence p,e ratio around 9 which now gives share a firm base and little downside risk,imo

[interceptor2] 29/10/2015 09:37

Very impressive results.

Must admit that I thought these would increase to 80p on the open, maybe it will take time for the results to sink in once the number crunching is concluded.

If the £14.5m is stripped out and the same tax rate applied at 15%, using the previous accounting standard, then an EPS of 8.2p would have been reported imo. Happy to be corrected if my sums are incorrect.

8.2p EPS is 33% higher than the highest estimate from Finncap at 6.1p...

[luckymouse] 29/10/2015 09:04

Fincap raised from hold to buy

[dt1010] 29/10/2015 08:54

Nope. This one rises when it's ready. And then....bang.

Now is the time to buy, 73p.

[impvesta] 29/10/2015 08:50

I'm surprised at the lack of share price reaction to these results. I thought we were in for some early morning fireworks.

[dt1010] 29/10/2015 08:49

Agree I don't really follow IC.

But it first tipped INL at 19p so it did at least get this one very right.

[pj 1] 29/10/2015 08:47

All investors get some wrong. Its important to look at the overall record which I believe is extremely good over a good number of years. I do not follow IC myself.

A 'failure' rate of above 33% can give very good overall Returns if strict Risk control is followed

[winsome147] 29/10/2015 08:42

DT101. I agree except for ST over at IC. Does anyone listen to him anymore after his recent stinkers, including repeated Buy advice on Globo?

[dt1010] 29/10/2015 08:40

The market will digest all of this, new broker notes and targets and IC will publish a bullish article and then it will lift.

I would expect mid eighties to 90p short term.

[winsome147] 29/10/2015 08:30

I thought I was premature selling at 75.5p a few weeks ago on the uncertainty around the accounts as I reckoned the share price would shoot up after this morning's results. But that's the market for you! On its way back to 70p maybe. Might jump back in now.

[jlo10] 29/10/2015 08:28

This embedded value comes from the fact that its land assets are booked at cost. And since these are acquired at relatively low cost, there is significant value yet to be crystallised. In fact, analysts at WH Ireland reckon that a sum-of-the parts valuation would equate to a share price of about 105p

From IC earlier this year

[ravin146] 29/10/2015 08:09

Amazing results!I hope this leads to a re-rate. Short term profit takers this morning it seems. This needs some coverage in the press.Well done bod.

[dt1010] 29/10/2015 08:08

This isn't a tech style stock lol you buy it and hold and add to your position.

Solidly run and a target to be swallowed up by Barratt etc...

[winsome147] 29/10/2015 07:54

Thanks Pastybap but I wish they would clarify their methodology. Don't professional valuers do this? Why undersell themselves? As we potentially near the top of the property cycle with sales slowing in the South East is it perhaps a little dangerous to buy well above what the current assets are valued at. I think I'll sit on the fence to see where the share price does. I think it could float between 70p and 90p next few months after a sure spike upwards this morning.