Directors' Report

The Directors present their report and the financial statements of the Group and the Company for the year ended 30 June 2016.

Results and dividends

The trading results for the year are set out in the Group Income Statement and the Group's financial position at the end of the year is set out in the Group Statement of Financial Position. Further details of the performance during the financial year and expected future developments are contained in the Chairman's Statement, Chief Executive's Review and the Finance Director's Review which form part of the Strategic Report.

The Directors have proposed a final dividend of 0.9p per share (2015: 0.7p) payable on 27 January 2017, subject to Shareholders' approval, to Shareholders at the close of business on 30 December 2016.

Business review

A review of the development and performance of the business during the year and the future outlook of the Group is set out in the Chairman's Statement and the Chief Executive's Review. The Group's key performance indicators and details of performance against these are monitored closely by the Board.

Financial risk management objectives and policies

All potential areas of financial risk are regularly monitored and reviewed by the Directors and management. Any preventative or corrective measures are taken as necessary.

The Group uses various financial instruments. These include loans, cash and trade receivables that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.

The existence of these financial instruments exposes the Group to a number of financial risks, which are described in more detail in note 26 to the Group financial statements.

Capital risk management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Group monitors capital in relation to overall financing. Further information can be found in note 25 to the Group financial statements.

Directors and their interests

Each of the Directors listed held office as at 30 June 2016. The Directors of the Company and their respective beneficial interests in the shares of the Company as at 30 June 2016 were as follows:

As at 30 June 2016As at 30 June 2015
Number of
Number of
Number of
Number of
Number of
Number of
S D Wicks13,737,33247016,237,332470
N Malde11,270,0293801,500,00011,270,0293801,500,000
P Brett3,504,2141501,100,0003,504,2141501,100,000
T Roydon325,000325,000
S Bennett110,000110,000

T Roydon and S Bennett are retiring by rotation in accordance with the Company's Articles of Association and have offered themselves for re-election.

Further information on the 2013 LTIP can be found in the Directors' Remuneration Report.

Qualifying third party indemnity provision

During the financial year, a qualifying third party indemnity provision for the benefit of all the Directors was in force.

Substantial shareholding

As at 13 October 2016, the Company was aware of the following holdings, in addition to those of the Directors discussed above, of 3% or more of the nominal value of the Company's shares:

M H Dixon20,000,0009.86
Henderson Global Investors10,403,0005.13
Downing LLP6,099,4323.02

Employee Benefit Trust

On 20 December 2015 the Group's Employee Benefit Trust purchased 377,500 shares of 10p each in Inland Homes plc under the terms of the Long Term Incentive Plan. The total consideration paid was £331,000.

Going concern

The Board has reviewed the performance for the current year and forecasts for the future period. It has also considered the risks and uncertainties, including credit risk and liquidity risk. The Directors have considered the present economic climate, the state of the housing market and the current demand for land with planning consent. The Group has continued to see a demand for consented land in the areas in which it operates. The Group has significant forward sales of residential units and is in discussions for the sale of some of the land within its projects and expects to make sufficient disposals in the foreseeable future to ensure it has adequate working capital for its requirements. The Directors are satisfied that the Group will generate sufficient cash to meet its liabilities as and when they fall due for a period of 12 months from signing these financial statements. The Directors therefore consider it appropriate to prepare the financial statements on the going concern basis.

Directors' responsibilities

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable laws and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the Group financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and have elected to prepare the Parent Company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable laws). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Company and of the profit or loss of the Group and Company for that period. The Directors are also required to prepare financial statements in accordance with the rules of the London Stock Exchange for companies trading securities on the Alternative Investment Market.

In preparing these financial statements, the Directors are required to:

  • select suitable accounting policies and then apply them consistently;
  • make judgements and accounting estimates that are reasonable and prudent;
  • state whether they have been prepared in accordance with IFRSs as adopted by the European Union for the Group and UK Accounting standards for the Parent Company, subject to any material departures disclosed and explained in the financial statements; and
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Website publication

The Directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are published on the Company's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.

Post balance sheet events

On 23 September 2016 Inland ZDP plc, a wholly owned subsidiary of the Group, issued 1,131,000 new zero dividend preference shares of 10 pence each at a price of 139 pence each. They were admitted to trading on the London Stock Exchange plc's main market on 28 September 2016. Net proceeds of this issue were approximately £1.52m.

On 24 August 2016 the Group entered into a new five-year, £27 million facility with Secure Trust Bank plc secured on some of the Group's properties. This repaid a loan of £18.9m from another UK bank.

On 23 August 2016 the Group entered into a new five-year, revolving credit facility of up to £25 million with a fund to be secured on sites without planning permission. Part of this facility has been used to repay individual loans previously provided by this fund.

Annual General Meeting

The Notice covering the AGM together with the proposed resolutions is contained in the document accompanying this report. The AGM will be held on 1 December 2016.


A resolution to reappoint BDO LLP as auditor for the ensuing year will be proposed at the AGM in accordance with Section 489 of the Companies Act 2006.

By order of the Board

Nishith Malde

Company Secretary
13 October 2016

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