Housebuilders are on a roll at the moment. And while Inland Homes (INL) is a strong performer, the share price seems to have missed the bus recently, having fallen nearly 5 per cent since the start of the year, not helped by a rather unfortunate and public spat over a pub site in Amersham. So, now might be a good time to reload before the company releases what are expected to be bumper profits next month.
- Shares are cheaply rated
- Land valued at cost
- Housing output growing rapidly
- Extensive pipeline of building opportunities
- Modest dividend payout
- Planning process still very slow
Inland's business model is simple. It buys up derelict land, brings it through the planning process and either sells it 'oven ready' to other housebuilders or builds homes on it itself. The group also embraces an innovative approach to funding using joint venture partners. This is an effective way of boosting the capital it has available to accelerate its build rate. At the end of 2014 it secured a joint venture with Christian Candy's CPC Group to buy derelict land for development. Under the terms of the joint venture, CPC will contribute 80 per cent of the capital required, with Inland putting in just 20 per cent. Inland will act as the operator for the joint venture, which will concentrate on buying sites in and around London.