Inland Homes Share Discussion Threads

[skyship] 20/2/2021 12:23

gb - LS* bulletin board?

[bwm2] 20/2/2021 10:30

Spud
I cut this time last year but reinvested part now. I see good recovery here. Holding only worth about the cost of a house in Doncaster but I know which I would rather have (and able to sell it as well!)

[spud] 20/2/2021 09:28

Going nowhere fast until they get a grip on their their debt gearing imo.Still holding 70k though (down from 270k). spud

[grand bornand] 20/2/2021 09:12

S.T did write about the company yesterday if you migrate to the LS* bulletin board you can read the article.

[cordwainer] 19/2/2021 15:28

'waist deep' implies 50% of portfolio ? it's like 2.4% for me.

[kev0856153] 18/2/2021 13:12

I'm waist deep in this filth

[scburbs] 17/2/2021 10:12

Zero's very cheap bearing in mind the company already has senior debt. Zero's much cheaper and more flexible than mezzanine debt despite ranking behind (i.e. they should be more expensive but presumably demand [retail?] prices them below where they should be on ranking alone).

The zero cash is invested to generate a return much higher than the cost of capital so by the redemption date the NAV should be enhanced by the return on the investment of the zero's cash.

Of course if they fail to make any profit then the Zero coupon will be a drag on NAV, but that will really be because the company is underperforming rather than the Zero's being too expensive.

[2wild] 17/2/2021 01:10

Are zeros flexible? A development loan to a company with few assets is one thing. Was the INL balance sheet so poor, they needed to pay over 10 or 20 times whatever bank base rates where at the time. That's not really the point. When looking at INL ords now, the zeros add an extra layer of expensive liabilities, which are sometimes overlooked.

[p1966] 16/2/2021 21:13

R2WCompared to the cost of development finance, together with the flexibility they provide, I thought the cost of the Zeros was not unreasonable?1,671,067 new ZDP Shares were issued at a price of 161.5 pence on 12 November 2019, giving the investors an annual rate of return to redemption of 5.13%

[2wild] 16/2/2021 20:02

Plus the very high coupon on the Zeros, will take a large chunk off ordinary nav by redemption dare.

[spud] 16/2/2021 18:35

Highly geared with their debt which is spooking investors. Spud

[golf12345] 16/2/2021 16:49

This price is utterly ridiculous.The company has of course been affected by COVID but the expertise is there and they have some very good sites .

[its the oxman] 12/2/2021 13:45

Bargain buying at these levels. Seems heavily oversold and certainly well short of nav. Perhaps a bid can put us out of our misery at some point.

[scburbs] 12/2/2021 10:27

They allude to it in the results, but they also need to sort out the gross margin on the volume they are currently doing.

All well and good having a £50+m partnership housing business, but it isn't going to cover many overheads whilst it has a gross loss!

The results indicate they are expecting future margin improvements on the partnership housing and private housebuilding, both of which are badly needed.

[housing investment] 12/2/2021 09:57

This company has too much overhead for the volume they are actually delivering and spinning too many plates. It's a drain on management time looking at the results. Fresh focus on reducing debt and increasing volume on what is a good market currently needed.

[p1966] 11/2/2021 12:39

I'm not sure if this will have a material impact, but positive for the sector.https://www.helptobuy.gov.uk/equity-loan/help-to-buy-equity-loan-2021-2023/Help to Buy: Equity Loan scheme (2013-2021)Scheme closes 31 March 2021If you've applied for Help to Buy: Equity Loan (2013-2021), the date to legally complete your purchase and get the keys to your home is now 31 May 2021. Ask your homebuilder and conveyancer to confirm you can meet this date.Applications for this scheme ended on 15 December 2020. This is to allow time for homebuyers to reach legal completion on their home before the funding ends on 31 May 2021.

[robertspc1] 10/2/2021 19:44

CEO & CFO are both supersmart but perhaps too smart. They both have large holdings but all the opaque financing and JV arrangements (with their personal networks?) just give the impression that they are hiding things. I think they have missed the time in the cycle to sell so now will be a bit of a grind.

[igbertsponk] 10/2/2021 16:57

Housing sector took a knock today from claddin announcement, guess INL suffered as it always suffers. Would be nice if it zoomed with the rest too!

[camerongd53] 10/2/2021 16:48

Roberts
I agree with you. I am a retired accountant and to fully appreciate these accounts one does need a wet towel and a couple of hours and spreadsheets, which I have not done yet. The share price was strong before the results were announced but has dropped back over the last couple of days. This is I suspect is due the apparent lack of progress as shown by the figures. Although living in NI, my understanding is that the market should have been buoyant and should have shown more progress in the P&L account.
In November ST in the investors Chronicle who has been following Inland for 3 years again rated them a buy @ 58p.
ST also rates the housebuilding sector to out perfform in the 1st quarter of the year.
It will be interesting to note his next update on Inland

[robertspc1] 10/2/2021 15:52

"Clearly defined business strategy" is what is lacking here. Business model is way too complex and funding arrangements too opaque. Makes it very difficult to value and probably puts potential acquirors off.

[cordwainer] 09/2/2021 19:31

I agree the debt is high compared to the big traditional housebuilders but I'm encouraged by the clearly defined business strategy which I think to some extent differentiates INL and mitigates the debt risk. Differentiating features include for example the asset management segment, focus on partnerships and JVs, a greater emphasis on trading development sites as opposed to just having a 'land bank'.
Debt has reduced only slightly in absolute terms which is disappointing for now, and as the CEO acknowledges in his first paragraph "A steady reduction in net debt is a strategic priority for the Group".
Discount to NAV may also be mitigating investor risk right now.

[suetballs] 09/2/2021 16:46

A pretty nasty reversal since the results.
Debt is way too high.
Suet

[cordwainer] 09/2/2021 16:22

Stamp duty holiday mostly benefitted the more affluent and especially those relocating from higher house price areas i.e. the 5-percent'ers paying half a million or more. If I'm not mistaken, INL mostly operates in a lower price bracket and in a general recession maybe some downsizing and increased BTR demand could occur.

[mallorca 9] 08/2/2021 18:36

A lot of 2021 house buying was pulled forward into 2020 due to the stamp duty holiday.

Stamp duty holiday ends in march - add to that a general recession and Im wary of a housing price collapse.

I dont currently hold here.