PBT 2017 £5.4m , PBT 2018 £5.5m . So not much progress. Whilst Gross Profit was up, so were costs, both Administrative and Finance negating any improvement.
At the bottom line Inland reports a NAV of 71.7p a share with a share price of 63p.
It also reports an EPRA NAV of 103.57p and raised its interim dividend by 31%.
In my opinion the tenor of the results was not particularly optimistic, not negative, but nothing to rest a new stage in the business case on. The approval or otherwise of Cheshunt Lakeside remains a potentially significant swing factor.
Comparing Inland to other builders;
Company Price to NTAV
Barratt 1.7
Bellway 1.5
Berkekey 2.0
Bovis 1.5
Crest Nicholson 1.2
Galliford 1.4
Inland 0.9
Persimmon 2.6
Redrow 1.6
Taylor Wimpey 1.9
It clearly commands a significant discount to the general market. In part this is justified by its noticeably smaller size and in part it may be justified by its historic ability to make a mistake.
But to my mind the ongoing level of discount suggest that it is not being seen as moving forward from the mistakes of the past and may be for the next few years more a value trap than a deep value opportunity. It is allways wise to remember "the market can be wrong longer than most people can remain solvent". And "the market may be wrong, but it is not its usual state".
I currently hold INLand and have no intention to add, but may sell in the near future.