Creative thinking in brownfield development
annual report and accounts 2011
Inland plc
2 Anglo Office Park 
67 White Lion Road 
Amersham 
Buckinghamshire HP7 9FB
T: 01494 762450 
F: 01494 765897 
E: info@inlandplc.com
www.Inlandplc.com
Inland plc annual report and accounts 2011 Company information and advisers
company regIstratIon number
5482990
company secretary
nishith Malde F ca
regIstered offIce and websIte
2 anglo office p ark 
67 White lion road 
amersham 
Buckinghamshire hp7 9FB 
www.inlandplc.com
nomInated advIser and broker
Finnc ap liMited
60 new Bond street 
london ec2M 1JJ
solIcItor
dorsey & Whitney llp
21 Wilson street 
london ec2M 2td
audItor
Grant thornton uK llp
chartered accountants 
statutory auditor 
churchill house 
chalvey road east 
slough 
Berkshire sl1 2ls
banker
Barclays BanK plc
Gatwick & sussex t eam 
90/92 high street 
crawley 
rh10 1Bp
regIstrar
c apita reGistrars
the registry 
34 Beckenham road 
Beckenham 
Kent Br3 4tu
sustainability is at the heart of everything we do.
Inland plc is a leading brownfield regeneration specialist. 
We specialise in buying brownfield sites and enhancing 
their value through obtaining planning permissions for 
residential and mixed use developments.
Inland’s highly experienced land team has extensive knowledge of the 
complexities of the planning system which in turn enables it to unlock 
added value in property that others cannot.
we recognise the significant impact our activities can have on the 
environment and the communities in which we work.
we believe that managing these activities responsibly brings long 
term benefits to our shareholders as well as our other stakeholders.
at the heart of our business is the principle of sustainability – the need 
to conserve scarce resources for the benefit of future generations.
overvIew
01 highlights
02  delivering innovative and pioneering 
state of the art homes
04  ensuring our solutions meet local needs
06  providing quality homes with an 
emphasis on design and sustainability
08 chairman’s statement
busIness revIew
10 chief executive’s review
corporate governance
12 directors
14 directors’ report
group fInancIal statements
19 independent auditor’s report
20 Group income statement
20  Group statement of 
comprehensive income
21 Group statement of financial position
22 Group statement of changes in equity
23 Group statement of cash flows
24 notes to the group financial statements
company fInancIal statements
47  independent audit or’ s r eport
48  company balance sheet
49  notes to the company financial statements
Ibc company information and advisers Annual Report and Accounts 2011 Inland plc
01
Overview Business review Corporate governance Group financial statements Company financial statements
For more information 
about Inland visit  
www.inlandplc.com
 A Pre-tax profit increased by 237% to £3.54m (2010: £1.05m)
 A Earnings per share: 2.10p (2010: 0.68p)
 A Net assets: £48.48m (2010: £44.46m)
 A Net asset value per share: 26.49p (2010: 24.30p)
 A Sale of 256 building plots during the year (2010: 158)
 A Share of future profit from Drayton Garden Village expected 
to be approximately £18m
 A Planning application submitted for approximately 270 homes 
and over 100,000 sq ft of commercial space at Poole, Dorset
Land portfolio
The land portfolio consists 
of 1590, plots across the 
south of England, controlled 
or managed by Inland.
Highlights
 A Land portfolio of 1,590 plots
 A 1,109 of which are consented
 A Sites include 260,000 sq ft of commercial space
 A Annual rental income of £374,000
 Exeter, Devon 
 Poole, Dorset 
 West Drayton, Middlesex 
 Ashford, Middlesex 
 Farnborough, Hampshire 
 Redhill, Surrey 
 Hounslow, Middlesex  
 Chelmsford, Essex 
0
150
0
50
100
200
250
2007 2008 2009 2010 2011
Plots sold (number)
0
Plots owned/managed (number) 
2007 2008 2009 2010 2011
500
1,000
1,500
2,000
 Plots without 
 planning permission
 Plots with planning 
 permission
4
(4)
0
Profit/(loss) before tax (£m)
2007 2008 2009 2010 2011
(8)
(12)
51
2009
715
596
760
696
1,338
1,357
602
1,109
481
38
67
25
158
256
1.12
(4.18)
(10.46)
1.05
3.54
0
150
0
50
100
200
250
2007 2008 2009 2010 2011
Plots sold (number)
0
Plots owned/managed (number) 
2007 2008 2009 2010 2011
500
1,000
1,500
2,000
 Plots without 
 planning permission
 Plots with planning 
 permission
4
(4)
0
Profit/(loss) before tax (£m)
2007 2008 2009 2010 2011
(8)
(12)
51
2009
715
596
760
696
1,338
1,357
602
1,109
481
38
67
25
158
256
1.12
(4.18)
(10.46)
1.05
3.54
0
150
0
50
100
200
250
2007 2008 2009 2010 2011
Plots sold (number)
0
Plots owned/managed (number) 
2007 2008 2009 2010 2011
500
1,000
1,500
2,000
 Plots without 
 planning permission
 Plots with planning 
 permission
4
(4)
0
Profit/(loss) before tax (£m)
2007 2008 2009 2010 2011
(8)
(12)
51
2009
715
596
760
696
1,338
1,357
602
1,109
481
38
67
25
158
256
1.12
(4.18)
(10.46)
1.05
3.54 Inland plc Annual Report and Accounts 2011
02 | OveRview
Drayton Garden Village, West Drayton  
Inland secured planning permission for 773 new homes, a primary 
healthcare facility, nursing home and a variety of commercial premises.
OVERVIEW
inland’s planning and development services contract at the 
31 acre Drayton Garden village site is now well underway 
with 148 private tenure and affordable homes currently 
under construction.
Following planning permission being granted in October 2010 
for 773 homes, an 80 bedroom nursing home, medical centre 
and a variety of office, retail and community space, inland has 
undertaken the major infrastructure works required to deliver 
this high profile project. 
The energy Centre, home to the gas fired combined heat and 
power plant that will provide heating and hot water to the entire 
development, is nearing completion. This state of the art District 
Heating Network is being delivered by Drayton Garden village 
Limited (DGvL) in conjunction with e.ON Sustainable energy, 
one of the UK’s leading integrated power and gas companies, 
and will result in a 43% carbon dioxide reduction each year.
inland’s use of low and zero carbon technologies at Drayton 
Garden village, when compared to housing built in 2006, will 
create carbon savings significantly beyond the sustainable 
requirement of the Greater London Authority of 20%.
Drayton Garden village has already become an award-winning 
development by gaining the prestigious Land Award, sponsored 
by the Land Trust, at the annual Sustain Magazine Awards in 
London on 1 March 2011.
This award was in recognition of inland Homes’ overall 
management of the concept and approach to Drayton Garden 
village. in particular its sustainable design, construction, 
code for Sustainable Homes (Code 4) “zero” waste target, 
remediation approach, district heating network being built 
on-site, water conservation, ecological enhancement, 
sustainable selection and sourcing of materials and 
mitigation of pollution. 
Delivering innovative 
and pioneering state of 
the art homes Annual Report and Accounts 2011 Inland plc
03
Overview Business review Corporate governance Group financial statements Company financial statements
OVERVIEW continued
The on-site district heating network will play a 
major role in reducing the carbon footprint for the 
overall development. Stephen wicks, Chief executive 
of inland plc, said “we are delighted the development 
received this award. inland has made significant 
progress in managing the preparation of the site 
for redevelopment and the gaining of this award 
is a tribute to the hard work of the project team. 
At the outset, DGvL and inland plc were determined 
that the scheme for Drayton Garden village would 
be pioneering in terms of sustainability”. 
Significant progress has been made over the past 
12 months with the sale of 89 plots to a private 
house builder for £9.5m plus £0.63m towards 
Section 106 contributions. 
Gross receipts from land sales at Drayton Garden 
village now amount to £15.2m and inland’s future 
profit generated from the planning and development 
services contract with DGvL is expected to be 
approximately £18m.
  Stephen wicks with Sir Brian Hoskins, an eminent 
and world leading authority on climate change, 
at Drayton Garden village Inland plc Annual Report and Accounts 2011
04 | OveRview
Ensuring our solutions 
meet local needs
OVERVIEW
inland has contracted to acquire the northern 
section of the former St John’s Hospital site located 
in the desirable town of Chelmsford, essex.
The 6.5 acre site is situated in a Conservation Area 
and within close proximity of the town centre and 
its mainline station.
The combined hospital site benefits from an 
allocation for the development of 300 residential 
dwellings and inland is working closely with the 
Local Authority to agree a comprehensive and 
high quality design solution for this important 
local site, of which we currently control 50%.
inland proposes to retain many of the former 
victorian w orkhouse buildings that exist on site 
due to their historical value, together with the 
introduction of high quality new housing and 
some apartments in a well landscaped setting.
A planning application for approximately 
125 dwellings on the northern section of the 
site is anticipated towards the end of 2011.
St John’s Hospital, Chelmsford  
Inland has contracted to acquire the northern section of 
the former St John’s Hospital site located in the desirable 
town of Chelmsford, Essex. Annual Report and Accounts 2011 Inland plc
05
Overview Business review Corporate governance Group financial statements Company financial statements
OVERVIEW
inland has now submitted a planning application 
for approximately 270 homes and over 100,000 sq ft 
of office, retail and restaurant space at the high 
profile waterfront Carter’s Quay site in Poole, Dorset.
This application, forming a central part of 
Poole’s Holes Bay Basin Regeneration Area, 
follows 12 months of extensive consultation with 
the Local Authority, Resident’s Associations, 
Action Groups and local residents which included 
public exhibitions attended by over 800 people. 
The application incorporates many of the requests 
from local residents such as public access to the 
waterfront, car parking for visitors and the location 
and sizes of houses, apartments and businesses 
in different parts of the site.
The name is a tribute to the Carter family who 
produced ceramic tiles on the site from 1895 to 
1964. 86% of local residents who completed the 
survey approved the name.
The construction of the iconic ‘Twin Sails Bridge’ 
is nearing completion and will form a new access 
to the regeneration area.
Carter’s Quay, Poole  
Inland has now submitted 
a planning application for 
approximately 270 homes and 
over 100,000 sq ft of office, 
retail and restaurant space.
  The Twin Sails Bridge is part of the 
regeneration project that will see Poole’s 
much needed second harbour crossing 
open in early 2012.
  Northern section of St John’s Hospital Inland plc Annual Report and Accounts 2011
06 | OveRview
Queensgate, Farnborough  
Inland completed the construction of 37 houses 
and apartments at the former Ministry of Defence 
site in Farnborough during the year.
Providing quality homes 
with an emphasis on design 
and sustainability
OVERVIEW
inland completed the construction of 37 houses 
and apartments at the former Ministry of Defence 
site in Farnborough during the year. Our associate 
company, Howarth Homes plc, acted as the main 
building contractor. 
To date, all houses and apartments have been 
sold with the exception of one being held for short 
term rental investment. Due to the popularity of 
this project amongst purchasers and our intention 
to increase our house building activity, we will shortly 
commence building a further phase of 19 homes. 
This phase mainly consists of two bedroom houses.
A revised planning application for approximately 
270 plots has been submitted to the Local Authority 
for the balance of the site. This is to improve the 
scheme layout and product mix given changes 
in the market demand locally and to ensure 
optimisation of the value of the site.
  Show home at Queensgate, 
Farnborough Annual Report and Accounts 2011 Inland plc
07
Overview Business review Corporate governance Group financial statements Company financial statements
Woodland Chase, Croxley Green  
Inland’s joint venture with our associate company, 
Howarth Homes plc, at Woodland Chase, is proving 
very popular with buyers.
OVERVIEW
inland’s joint venture with our associate 
company, Howarth Homes plc, at woodland 
Chase, Croxley Green, Hertfordshire is proving 
very popular with buyers. 
The development of 3, 4 and 5 bedroom detached 
and semi-detached homes is set in over 12 acres 
of protected woodland with paths leading to the 
Grand Union Canal and is within close proximity 
of a number of highly regarded schools.
The site is ideal for commuters due to its proximity 
to both Croxley Green and Rickmansworth 
Metropolitan line stations, which allow travel 
to Baker Street within 40 minutes.
we have now completed the building of 31 of the 
51 homes of which 26 are now sold and occupied 
and another is unconditionally exchanged for sale. 
15 of the homes were sold to a Housing Association.
inland will receive 50% of the net profit from 
this project.
  Completed homes at 
woodland Chase, 
Croxley Green Inland plc Annual Report and Accounts 2011
08 | OveRview
Chairman’s statement
I am pleased to report that the 
year ended 30 June 2011 has 
seen an excellent performance 
by Inland.
This has produced a substantial 
increase in both revenue and 
profitability over the previous 
period as well as significantly 
lower levels of debt. 
RESuLTS
Total turnover resulting from land 
and property sales, rental income and 
project management fees was £21.4m 
(2010: £16.5m), operating profit was 
£3.5m (2010: £2.0m) and profit before 
tax was £3.5m (2010: £1.1m). Earnings 
per share have increased by 208.8% 
from 0.68p to 2.10p. Net asset value per 
share was 26.49p, an increase of 9.0% 
over the previous period (2010: 24.30p). 
As I stated in the Interim Report, this 
figure excludes any future value from 
the Drayton Garden Village Development 
Services Agreement, where Inland has 
the potential of earning up to 90% of 
the profit from this development as a 
result of the development services 
Inland expects to be able to provide. 
The Directors believe that our potential 
share of the future profits from this 
project could be approximately £18m and 
is equivalent to 7p per share net of tax.
OPERATIONAL REVIEW
Inland achieved the sale of 256 building 
plots during the year, an increase of 62% 
compared to the corresponding period. 
This strong performance demonstrates 
the ongoing demand for development 
land in the South East of England, 
a trend that we believe looks set to 
continue irrespective of the general 
weakness in the house building industry 
elsewhere in the UK. Of particular note 
in the year was the sale of 65 plots 
for affordable homes in Minet Drive, 
Hayes, Middlesex to a major housing 
association. We succeeded in securing 
planning permission for this site seven 
weeks from submission of the planning 
application after initially having lost 
a planning appeal. This has enabled the 
Directors to maintain their unbroken 
track record of obtaining consents 
on their projects; an outstanding 
performance in today’s very hostile 
planning environment!
Drayton Garden Village, a ‘flagship’ 
development of 773 plots with 
commercial space in West London 
to which we provide significant 
development services, continues 
to make considerable progress. 
Key milestones in this project were 
the sale of 89 plots to a substantial 
private house builder for £9.5m plus, 
a contribution of £630,000 towards 
‘Section 106’ payments and a further 
sale (conditional on detailed planning 
consent) of a plot for an 80 bed nursing 
 A Strategy continues to evolve.
 A Increase the scale of our house 
building activities.
 A Strong performance over the 
last twelve months.
 A Confident about our strategy 
and prospects for the future.
Future growth strategy Annual Report and Accounts 2011 Inland plc
09
Overview Business review Corporate governance Group financial statements Company financial statements
home for £1.8m which is expected 
to complete in the second half of the 
current financial period. Gross receipts 
to date from land sales at Drayton Garden 
Village are £15.2m. Inland’s share of 
the profits of DGVL to 30 June 2011 is 
£4m. At the year end, the total amount 
of deferred consideration payments due 
on this site amounted to £14m of which 
£7m falls due after more than one year. 
Having completed demolition and land 
remediation, DGVL ’s focus is now on 
installing the infrastructure at Drayton 
Garden Village and I am pleased to 
report that with our assistance roads, 
drainage and the first of the village 
greens are nearing completion. The 
combined heat and power network 
and energy centre are now also well 
underway. During the course of the 
year Drayton Garden Village won the 
coveted Land Award by Sustain Magazine, 
recognising our achievements in 
managing the energy conservation 
and sustainable development.
I am pleased to report that we completed 
the sale of 31 homes at our Queensgate, 
Farnborough development achieving 
a development contribution of £576,000. 
We will shortly commence building 
the next phase of 19 homes on this 
development, which are mainly two 
bedroom houses, with construction 
finance provided by Close Property 
Finance. A revised planning application 
for the balance of the site (approximately 
270 plots) with an improved layout and 
mix has now been submitted. We also 
intend to start the construction of our 
Redhill, Surrey development in early 
2012. This residential development 
of 28 units is in an attractive location 
which we believe will be popular 
with homebuyers.
In light of the changes in the marketplace, 
our strategy continues to evolve and we 
have made a conscious decision to 
increase the scale of our house building 
activities on specific sites under our 
control, following the successful 
conclusion of the planning process. 
On our larger projects, this strategy will 
not only improve the value of the 
remaining land but will also allow Inland 
to retain the development profit, thereby 
further enhancing shareholder value. 
This approach will be carefully balanced 
to ensure the Group’s cash flows are 
sufficient to enable us to take this longer 
term view. The Board is also proposing 
a resolution at the next Annual General 
Meeting (AGM) to change the Company’s 
name to Inland Homes plc.
The first phase of work on the £2m link 
road for the new Twin Sails Bridge in 
Poole, Dorset has now been completed. 
The planning application for our 
development has now been submitted 
for approximately 270 homes and over 
100,000 sq ft of commercial space. 
This is a momentous achievement for 
our planning team as the site in Poole 
will be a significant redevelopment 
project for the region.
I am also pleased to report that 
since the year end, we have contracted 
to purchase part of St John’s Hospital 
in Chelmsford, Essex. This 6.5 acre 
brownfield site should gain a consent 
for approximately 125 homes.
The current land bank under 
the Group’s control consists of 
approximately 965 residential plots 
and 205,000 sq ft of commercial space 
of which 484 plots and 97,000 sq ft 
of commercial space is consented. 
In addition the Drayton Garden Village 
development has 625 residential plots 
and 55,000 sq ft of commercial space 
with planning permission.
It gives me great pleasure to 
also report that Paul Brett has been 
appointed as Land Director to the Board 
of Inland plc. Paul joined the Inland 
Group in August 2005 and has extensive 
experience in identifying brownfield 
land and in the complex processes 
of the planning system.
FINANCIAL SuMMARy
The net profit for the year ended 
30 June 2011 was £3.8m (2010: £1.2m) 
which represents earnings per share 
of 2.10p (2010: 0.68p).
As reported previously to shareholders, 
despite a track record with Royal Bank 
of Scotland stretching back over many 
years, the bank behaved in a precipitous 
manner with regard to our banking 
facilities, reducing the amounts available 
to Inland and introducing penal terms 
that were unpalatable. As a consequence 
the Board decided to make a full 
repayment at the earliest possible 
opportunity to avoid these exorbitant 
fees and enable Inland to exit the 
‘relationship’. I am pleased to report 
that the bank was repaid in full in 
December 2010. 
Whilst the Group is seeking a new 
senior banking relationship and some 
positive discussions are taking place, 
interim funding is being achieved from 
sales and loans from private investors. 
However, bank finance for house building 
is now more readily available than in 
recent years.
By the year end all deferred 
consideration on land purchases 
by the Group were paid (2010: £6m 
outstanding); net debt at the year end 
stood at £0.42m (2010: £6.72m) translating 
to net gearing (including deferred 
consideration) of 0.9% (2010: 34.2%).
In view of the progress achieved by 
the Group, the Board has resolved to 
eliminate the deficit in reserves and a 
resolution will be proposed at the next 
AGM for the capitalisation of the Parent 
Company’s reserves to pave the way for 
distributions to be made in the future.
INVESTMENTS
Our associate company Howarth 
Homes plc (Howarth) made considerable 
progress in the year, increasing both 
turnover and profitability. Howarth 
secured £14m of contracts to build 
affordable housing on sites where the 
Housing Associations purchased the 
land from Inland.
Howarth is project managing a complex 
infrastructure package for Inland at 
Drayton Garden Village as well as 
working in partnership with us on the 
Croxley Green joint venture of 51 houses.
OuTLOOk
Inland’s strong performance over the 
last twelve months is in stark contrast 
to the broader economic outlook in the 
UK. Our strategy of pursuing complex, 
large scale projects where our expertise 
can create substantially increased value 
is now starting to show tangible results.
With Inland’s development focus in 
the South East and our portfolio and 
pipeline now generating exciting new 
opportunities, we remain confident 
about our strategy and prospects 
for the future.
Terry Roydon
CHAiRMAN
17 October 2011 Inland plc Annual Report and Accounts 2011
10 | BUSiNeSS Review
Chief Executive’s review
Mark Twain said ‘buy land they’re not 
making it anymore’, therein lies Inland’s 
opportunity and also the major issue 
that besets our industry.
The fear and paranoia of anti‑development 
groups in the UK who believe that 
house builders are hell‑bent on 
‘concreting over the countryside’ sets 
the scene for how the public at large 
and regulatory bodies view development 
and developers.
If this deeply embedded anxiety and 
fear of development could be set aside 
for a moment perhaps house builders 
could be seen for what they are, simply 
manufacturers of a product that 
requires a raw material – land with 
planning permission.
Last year saw the lowest number of 
new homes built for 90 years and as 
the country’s housing crisis escalates, 
there are serious side effects: over 
5 million people are on local authority 
waiting lists; millions more live in 
overcrowded and substandard 
accommodation against a backdrop 
of a rapidly rising population.
The recently announced national 
planning policy framework showed 
signs that the Government was waking 
up at last to the regulatory burdens that 
the housing industry is weighed down 
with. Unfortunately, anti‑development 
groups are succeeding in ‘watering 
down’ this initiative by ill‑informed 
propaganda that creates the fear and 
paranoia I refer to above.
House builders, and numerous 
companies in the supply chain, want 
to go to work and build the homes 
the country desperately needs. The 
Government must stand firm on its 
commitment to be pro‑growth and 
create a framework in which local 
authorities are required to encourage 
the house building that is so vital to 
our economy and the needs of 
ordinary people.
Looking back on the last year I am 
pleased that, notwithstanding the very 
tough planning, financial and economic 
climate in which we operate, our small 
team at Inland performed exceptionally 
well at every level.
Of particular note was the complete 
repayment of our facilities with Royal 
Bank of Scotland, leaving us with much 
lower net debt levels compared to the 
prior year (2011: £0.4m; 2010: £6.7m) 
and a record number of building plots 
sold, which helped to produce this very 
good set of results for shareholders.
Mainstream funding for buying 
brownfield land without planning 
permission is very difficult to find 
in the current climate and the Group 
therefore relies on its cashflows and 
has re‑appraised the way in which it 
fulfils its capital requirements.
 A Our development pipeline 
has never been stronger and 
we continue to see further 
opportunities across the 
South East.
 A Despite the broader market 
uncertainty we remain upbeat 
and believe the next twelve 
months will deliver another 
period of growth for Inland.
A strong performance Annual Report and Accounts 2011 Inland plc
Overview Business review Corporate governance Group financial statements Company financial statements
11
To this end I am pleased to report that 
the Group is at an advanced stage of 
negotiations with a number of parties 
to draw down new lines of funding 
secured on our unencumbered assets. 
Whilst this source of funding will be 
more costly than conventional bank 
facilities, it will be available for up to 
three years and will create new core 
capital to expand the business. We are 
expecting to raise approximately 
£15m via this route.
As set out in the Chairman’s Statement 
we will be increasing our direct house 
building and intend to commence 47 units 
on two sites shortly. This house building 
will take place on prime plots within our 
existing land bank. Subject to performance 
we would expect to further increase the 
scale of these activities substantially 
over the next few years. I believe that 
this will provide improved access to bank 
finance and also enable the Group to 
receive the development contribution, 
thus enhancing shareholder value.
Drayton Garden Village continues 
to evolve. With further land sales in 
the pipeline, a modern combined heat 
and power system, which targets a 
43% carbon reduction, is the subject 
of considerable industry interest. 
Sir Brian Hoskins, an eminent and 
world leading authority on climate 
change and an advisor to the 
Government on this subject, showed 
his support for the efforts being 
made at the development by visiting 
the project recently.
Despite a very competitive market 
for unconsented land we have a good 
forward pipeline that we are working 
on. These projects would provide a 
further 900 plots and included in that 
number is the former St John’s Hospital 
in Chelmsford where we have exchanged 
contracts on the northern section and 
expect to make a planning application 
for approximately 125 units within this 
calendar year.
We have also submitted a planning 
application on our regeneration project 
in Poole, Dorset for approximately 
270 homes and over 100,000 sq ft of 
mixed use space. This project is part 
of the Holes Bay regeneration scheme, 
one of the largest brownfield projects 
in the south west of England, and we 
are very enthusiastic about the 
prospects for this development.
A revised planning application on 
our land at Queensgate, Farnborough 
has been submitted, for a scheme of 
approximately 270 units with an improved 
mix that should enhance the value of 
this development.
We have recently secured a resolution 
to grant consent on one of our first 
‘asset management agreements’ for 
67 units in the London Borough of 
Hounslow. We expect to earn project 
management fees and reimbursement 
of our costs when this land is sold. 
We are working hard to secure further, 
similar agreements which will enable 
Inland to use its planning expertise to 
create additional income streams with 
a low capital outlay.
I endorse our Chairman’s comments 
on the appointment of my colleague 
Paul Brett to the Board. This promotion 
is much deserved and, having worked 
with Paul for the last 16 years, I can 
assure shareholders that he is a great 
asset to our business. Bearing in mind 
my advancing age it is good to see 
some ‘younger blood’ coming in!
Inland has demonstrated over the last 
two years that, despite the constraints 
I have outlined in my review, we have 
been able to grow the business, return 
to profitability, reduce our gearing and 
adapt our strategy accordingly.
I feel very confident that Inland will 
make considerable progress during 
the current financial year.
Stephen Wicks
CHieF exeCUTive
17 October 2011
“ I am delighted with the strong performance of Inland 
over the last twelve months. Despite the ongoing 
difficulties of the planning system, we are able to 
secure favourable consents, but, more importantly, 
generate profitable outcomes which will continue 
to underpin the prospects for Inland.” Inland plc Annual Report and Accounts 2011
2. Stephen Wicks
 Chief executive
3. Nishith Malde
 Finance Director
12 | CORPORATe GOveRNANCe
Directors
1. Terry Roydon
 Non-executive Chairman
5. Paul Brett
 Land Director
4. Simon Bennett
 Non-executive Director Annual Report and Accounts 2011 Inland plc
Overview Business review Corporate governance Group financial statements Company financial statements
13 13
1. Terry Roydon, Non-executive Chairman aged 64 holds 
a BSc in estate Management from the University of 
London and a Masters in Business Administration from the 
University of Pittsburgh. He was previously chief executive of 
Prowting plc, a UK house builder, which he led to flotation 
on the London Stock exchange in 1988. The company was 
subsequently purchased by westbury plc in June 2002 for 
£140m. Since 1998, Mr Roydon has been a consultant and 
member of the board of Dom Development S.A., a major 
quoted Polish residential developer, together with a number 
of non-executive and consultancy positions in the UK and 
continental house building companies, including holding  
non-executive board positions with AiM quoted engel 
east europe N.v ., Country & Metropolitan plc (until 2005), 
Gladedale Holdings plc (until March 2007) and McCann 
Homes Holdings Limited (until May 2011). From 1995 to 
1997 he was President of the european Union of House 
Builders and Developers.
2. Stephen Wicks, Chief Executive aged 60 was the founding 
shareholder and chief executive of Country & Metropolitan 
plc, which floated on the main market of the London Stock 
exchange in December 1999 with a market capitalisation of 
£6.9m. He directed the growth of Country & Metropolitan plc 
until its disposal in April 2005 to Gladedale Holdings plc for 
approximately £72m. Mr wicks has worked in the construction 
and house building sector all of his working life and has 
extensive knowledge of local and national policies on both 
greenfield and brownfield sites.
3. Nishith Malde, Finance Director aged 53 qualified as a 
Chartered Accountant in 1985 with KPMG and specialised in 
advising owner managed businesses. He left KPMG in 1989 
to set up a consultancy firm which later merged with an audit 
practice where he was the partner responsible for the affairs 
of Country & Metropolitan plc. Mr Malde joined Country & 
Metropolitan plc as finance director and company secretary 
in 1998. He was actively involved in the preparation for the 
flotation of Country & Metropolitan plc in December 1999 and 
its further development until it was acquired by Gladedale 
Holdings plc in April 2005. Mr Malde is also on the board of 
energiser investments plc, an AiM listed company.
4. Simon Bennett, Non-executive Director aged 53 has 
over 25 years’ investment banking experience in the City. 
Mr Bennett qualified as a Chartered Accountant with 
Saffery Champness in 1981. in 1982 he joined stockbrokers 
Scrimgeour Kemp Gee which was subsequently acquired by 
Citicorp in 1986. Thereafter, Mr Bennett was instrumental 
in establishing the mid and small cap advisory business 
of Citicorp Scrimgeour vickers which was focused on 
fast growing mid and small cap companies. in June 1990, 
Mr Bennett joined Credit Lyonnais Securities and, following 
the defection of a team to a rival company, became head of 
corporate finance and head of the mid and small caps team 
in June 2000.
in June 2004, Mr Bennett left Credit Lyonnais, following its 
acquisition by Credit Agricole, and established incremental 
Capital LLP to provide corporate finance advice to mid and 
small cap companies. in the latter part of 2005, Mr Bennett 
joined Baker Tilly as managing director of Baker Tilly and 
Co. Limited. He left the practice to concentrate full time on 
growing Citicourt & Co. Limited, an independent corporate 
finance advisory business, where he was the managing 
director and the majority shareholder . in late 2007 Mr Bennett 
joined Fairfax iS plc the independent investment bank as 
head of corporate broking. Mr Bennett is also non-executive 
chairman of energiser investments plc and a number of 
other private companies.
5. Paul Brett, Land Director aged 35 has been involved 
in the housing sector all of his working life, acquiring and 
master planning brownfield sites at Country & Metropolitan plc 
for ten years during which time he was promoted to Land 
Director of its Southern Region. Mr Brett joined the inland 
Group in August 2005. He has extensive experience in 
identifying brownfield land and the necessary knowledge 
of the complexities of the planning system. Inland plc Annual Report and Accounts 2011
14 | CoRpoRA te goveRnAnCe
Directors’ report
the Directors present their report and the financial statements of the group and the Company for the year ended 30 June 2011.
PRINCIPAL ACTIVITY
the principal activity of the Company and its subsidiaries, together called the group, is to acquire residential and mixed use sites 
and seek planning consent for development. the group also develops a number of plots for private sale.
RESULTS AND DIVIDENDS
the trading results for the year are set out in the group Income Statement on page 20 and the group’s financial position at the end 
of the year is set out in the group Statement of Financial p osition on page 21. Further details of the performance during the financial 
year and expected future developments are contained in the Chairman’s Statement which forms part of the Directors’ Report.
the Company has paid no dividends during the year (2010: £nil) and does not recommend the payment of a final dividend (2010: £nil). 
the Board intends to eliminate the deficit in reserves and a resolution will be proposed at the next A gM for the capitalisation of the 
parent Company’s reserves to pave the way for distributions in the future.
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 on pages 8 and 9. the group’s key performance indicators are turnover, profit before tax, net assets per share 
and the number of plots with and without planning consent. these indicators are monitored closely by the Board and the details of 
performance against these are given in the Chairman’s Statement.
PRINCIPAL RISKS AND UNCERTAINTIES
the management of the business and the nature of the group’s strategy are subject to a number of risks.
the Directors have set out the principal risks facing the business below. Where possible, processes are in place to monitor and 
mitigate such risks. 
these are general in nature and include: obtaining business on competitive terms; retaining key personnel; and market competition. 
the group operates a system of internal control and risk management in order to provide assurance that the Board is managing risk 
whilst achieving its business objectives. no system can fully eliminate risk and, therefore, the understanding of operational risk is 
central to the management process.
t o enable shareholders to appreciate what the business considers are the main operational risks, they are briefly outlined below:
Land – the inability to source, acquire and promote land would result in the business not being able to generate profit and cash flow 
for the longer term and accordingly this could have a detrimental effect on the financial position of the group. the group has an 
experienced management team with a strong track record in the industry which should mitigate this risk.
Planning – increased complexity and delay in the planning process may impede sales and thus affect the rate of growth of the 
business. the adoption of the Community Infrastructure Levy by local authorities may have a detrimental effect on the supply and 
pricing of land being marketed by landowners. the group manages planning risk by acquiring most of its sites within the Local 
Development plan and, where appropriate, through the use of extensive public consultations prior to making planning applications.
Market – to realise maximum value in a timely fashion will depend on the state of the property market in the regions in which the 
group chooses to operate. A severe fall in the housing market would have an adverse effect on land values and would also affect 
timing of sales. the group tries to ensure that its sites are in good locations thus providing some protection against any downturn 
in the market.
Personnel – the attraction and retention of staff of the highest calibre with appropriate experience is crucial to the growth of the 
business in the highly competitive markets in which the group operates. this is achieved by maintaining a good morale in the work 
place and setting remuneration packages at attractive levels.
Interest rates – significant upward changes in interest rates could affect residential land prices as the demand for residential property 
would be affected. It will also lead to increased borrowing costs and thus have a detrimental effect on profit. the group mitigates any 
adverse exposure to interest rate changes by controlling its gearing and, if necessary, by using hedging instruments.
Environmental – the assessment of environmental risk is an important element of the due diligence undertaken when buying land. 
Unexpected liabilities in respect of decontamination works or fines for environmental pollution could affect the outcome of a project. 
the group uses reputable environmental consultancy firms to assist in this area.
Regulation – changes in legislation, government regulations, planning policies and guidelines may have a detrimental affect on the group’s 
business. the group keeps abreast of potential changes in these areas and wherever possible allows for these in appraising its projects.
Construction – cost overruns, material shortages and delays can adversely impact margins on infrastructure and housebuilding. 
the group tries to build strong relationships with subcontractors and projects are reviewed frequently in order to mitigate these risks.
Finance – the lack of availability of bank finance could have an adverse effect on the group’s progress. the group continues to seek 
finance from alternative lending sources to improve its liquidity. Annual Report and Accounts 2011 Inland plc
15
Overview Business review Corporate governance Group financial statements Company financial statements
 
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
All potential areas of financial risk are regularly monitored and reviewed by 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 group also provides finance to DgvL as part of its arrangement with that company. the main purpose of this financial instrument 
is to enhance the group’s return from this project.
the existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below.
the main risks arising from the group’s financial instruments are liquidity risk, interest rate risk, credit risk and capital risk. the Directors 
review and agree policies for managing each of these risks and they are summarised below.
LIqUIDIty RISk
the group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash 
assets safely and profitably.
Flexibility is achieved by loans and overdraft facilities.
CASh FLoW FAIR vALUe InteReSt RA te RISk
the group’s cash flow interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the group to 
cash flow interest rate risk. All of the group’s borrowings are at variable rates but the group does not consider the risk to be significant.
InteReSt RA te RISk
the group finances its operations through a mixture of equity and bank and other borrowings. the group controls the exposure to 
interest rate fluctuations by ensuring that the level of gearing is maintained at a reasonable level.
CReDIt RISk
the group’s principal financial assets are trade and other receivables, loans to associates and cash and cash equivalents. the group 
trades and deals with counterparties after having considered their credit rating. In certain circumstances the group may seek 
additional security.
CApIt AL RISk MAnA geMent
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 27 to the group financial statements.
DIRECTORS AND THEIR INTERESTS
each of the Directors listed on pages 12 and 13 held office as at 30 June 2011, with the exception of Mr p Brett who joined the Board 
as Land Director on 3 october 2011. the Directors of the Company and their respective beneficial interests (including that of their 
respective families) in the shares of the Company as at 30 June 2011 were as follows:
As at 30 June 2011 As at 30 June 2010
Number of Number of Number of number of number of number of
ordinary deferred share ordinary deferred share
 shares shares options shares shares options
Ordinary Shares
S D Wicks 20,179,732 490 1,500,000 22,510,009 490 —
n Malde 10,905,000 392 1,500,000 10,475,000 392 —
p Brett 3,374,214 98 1,100,000 3,374,214 98 1,100,000
t Roydon 250,000 — — 250,000 — —
S Bennett 50,000 — — 50,000 — —
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. In addition, p Brett will also retire at the AgM and offer himself for election having been appointed by the Board since 
the last AgM.
no share options were exercised in the period. Further information on share options can be found in note 21 to the group financial statements. Inland plc Annual Report and Accounts 2011
16 | CoRpoRA te goveRnAnCe
Directors’ report continued
DIRECTORS’ EMOLUMENTS
the remuneration of the individual Directors was:
 
  2011 2010
Salary/fees Benefits Pension Total t otal
 £000 £000 £000 £000 £000
Executive Directors
S D Wicks 300 28 — 328 297
n Malde 250 26 50 326 296
p Brett 180 11 17 208 197
Non-executive Directors 
t Roydon 30 — — 30 30
S Bennett 25 — — 25 25
p Brett was appointed to the Board on 3 october 2011. his salary, benefits and pension are included above for 2011 and 2010 for ease 
of reference. p Brett was considered to be key management up until his appointment.
QUALIFYING THIRD PARTY INDEMNITY PROVISION
During the financial year, a qualifying third party indemnity provision for the benefit of all of the Directors was in force. 
SUBSTANTIAL SHAREHOLDING
As at 14 october 2011, 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:
name Shareholding %
M h Dixon 24,000,000 13.11
karoo Investment Fund SCA SICAv SIF 22,700,000 12.40
A k Brett 11,500,000 6.28
henderson global Investors Limited 10,098,143 5.52
Unique Limited 5,652,329 3.09
eMpL oyee InvoL veMent
the group places considerable value on the involvement of its employees and keeps them informed of all relevant matters on a regular 
basis. the group is an equal opportunities employer and all applications for employment are considered fully on the basis of suitability 
for the job.
CHARITABLE AND POLITICAL CONTRIBUTIONS
Donations to charitable organisations amounted to £11,000 (2010: £2,000). these donations were made to a number of different 
charities supporting a broad range of causes. there were no political donations made during the year (2010: £nil). 
PAYMENT POLICY AND PRACTICE
the group’s policy is for all companies within the group to agree terms and conditions with their suppliers. p ayments are then 
generally made on the basis of this agreement, providing the suppliers conform to the terms and conditions stipulated. At 30 June 2011 
the group had an average of 62 days’ (2010: 60 days’) purchases outstanding in trade payables.
CORPORATE GOVERNANCE
the Directors recognise the importance of sound corporate governance and the guidelines set out in the Uk Corporate governance 
Code 2010. Whilst AIM companies are not obliged to comply with the Code, the Directors intend to comply with the Code so far as is 
appropriate having regard to the size and nature of the various companies making up the group. the Board will take such measures 
so far as considered appropriate for the group to comply with the Code and in addition, the quoted Companies Alliance (qCA) 
guidelines for AIM Companies. Annual Report and Accounts 2011 Inland plc
17
Overview Business review Corporate governance Group financial statements Company financial statements
 
BOARD COMPOSITION
the group is managed through its Board of Directors. the Board comprises the non-executive Chairman, one other non-executive 
Director, the Chief executive, Finance Director and a Land Director (appointed 3 october 2011). the Board’s main roles are to create 
value for the shareholders, to approve the group’s strategic objectives and to ensure that the necessary financial and other resources 
are made available to enable them to meet these objectives.
Specific responsibilities reserved to the Board include: setting group strategy; reviewing operational and financial performance; 
approving certain land acquisitions; approving appointments to the Board; and approving policies relating to Directors’ and senior 
management’s remuneration. In addition the Board reviews the risk profile of the group and ensures that an adequate system of 
internal control is in place.
the roles of the Chairman and the Chief executive are separate. the Chairman is responsible for running the Board and he meets 
the Chief executive and the other non-executive Director separately as and when required to discuss matters of the Board.
one-third of the Directors retire annually by rotation in accordance with the Company’s Articles of Association and this enables the 
shareholders to decide on the election of their Company’s Board.
AUDIT COMMITTEE
the audit committee comprises t erry Roydon (Chairman) and Simon Bennett. the audit committee meets at least three times a year 
and is responsible for ensuring that the financial performance of the group is properly reported and monitored and for meeting the 
auditor and reviewing their reports in relation to the financial statements and internal control systems. the group’s auditor provides 
some non-audit services, but these are not considered to threaten their independence. the committee reviews the level of non-audit 
fees on an annual basis. the audit committee meetings are also attended by invitation by representatives of the group’s auditor, 
the Finance Director and the Chief executive.
Since 30 June 2010 the audit committee has met four times to consider the planning of the statutory audit and to review the group’s 
draft half and full year results prior to Board approval and to consider the external auditor’s detailed reports thereon.
REMUNERATION COMMITTEE
the remuneration committee comprises Simon Bennett (Chairman) and t erry Roydon. the principal functions of the committee 
are to determine the group’s policy on the remuneration of the executive Directors and senior management and to determine the 
remuneration package of each executive Director. the committee also determines the allocation of share options to the executive 
Directors and other employees. the remuneration committee meetings are also attended by invitation by the Chief executive. 
During the year the committee met once to review the executive Directors’ remuneration package.
the Directors comply with Rule 21 of the AIM Rules relating to Directors’ dealings and take all reasonable steps to ensure compliance 
by the Company’s applicable employees. the Company has adopted and operates a share dealing code for Directors and employees 
in accordance with the AIM Rules.
INTERNAL CONTROLS
the Board is responsible for maintaining a sound system of internal control to safeguard shareholders’ investment and the group’s 
assets and for reviewing its effectiveness. Such a system is designed to manage, but not eliminate, the risk of failure to achieve 
business objectives. there are inherent limitations in any control system and accordingly even the most effective system can provide 
only reasonable, not absolute, assurance against material misstatement or loss.
the Board reviews the effectiveness of the group’s system of internal control on an ongoing basis. Annual budgets are prepared and 
detailed management reports are presented to the Board and used to monitor financial performance and compliance with the group’s 
policies and procedures. All controls are covered including financial and operational controls to manage risk. the Board meetings are 
also used to consider the group’s major risks.
RELATIONS WITH SHAREHOLDERS
the Company has institutional shareholders and is, where practicable, willing to enter into a dialogue with them. the Chief executive 
and Finance Director meet with institutional investors within the confines of relevant legislation and guidance.
the Board invites communication from its private investors and encourages participation by them at the A gM. All Board members are 
present at the AgM and are available to answer questions from shareholders.
INTERNAL AUDIT 
the Board reviews from time to time the need for an internal audit function and remains of the opinion that the systems of internal 
financial control are appropriate to the group’s present activities and that such a function is unnecessary. Inland plc Annual Report and Accounts 2011
18 | CoRpoRA te goveRnAnCe
Directors’ report continued
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. 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 an increase in demand for consented 
land in the areas in which it operates. A significant part of the group’s land portfolio is unencumbered and the group is in discussions 
with several parties to arrange debt finance secured against some of its sites. the group is also 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 twelve months from signing these financial statements. the Directors therefore can 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 law 
and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have 
to prepare group financial statements in accordance with International Financial Reporting Standards (IFRSs) as elected by the 
european Union and have elected to prepare p arent 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 and profit or 
loss of the Company and group for that period. In preparing these financial statements, the Directors are required to:
Î Î select suitable accounting policies and then apply them consistently;
Î Î make judgements and estimates that are reasonable and prudent;
Î Î state whether applicable IFRSs have been followed in relation to the group accounts and applicable Uk Accounting Standards 
have been followed in relation to the parent Company accounts, subject to any material departures disclosed and explained in 
the financial statements; and
Î Î 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 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.
Insofar as each of the Directors is aware:
Î Î there is no relevant audit information of which the Company’s auditor is unaware; and
Î Î the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and 
to establish that the auditor is aware of that information.
the Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s 
website. Legislation in the United kingdom governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions.
POST BALANCE SHEET EVENTS
there are no events subsequent to the balance sheet date that need to be disclosed.
ANNUAL GENERAL MEETING
the notice covering the A gM together with the proposed resolutions is contained in the document accompanying this report. the A gM 
will be held on 23 november 2011.
AUDITOR
A resolution to reappoint grant thornton Uk LLp as auditor for the ensuing year will be proposed at the A gM in accordance with 
Section 489 of the Companies Act 2006.
By order of the Board
Nishith Malde
CoMp Any SeCRet ARy
17 october 2011 Annual Report and Accounts 2011 Inland plc
19
 
Overview Business review Corporate governance Group financial statements Company financial statements
Independent auditor’s report to the members of Inland plc
We have audited the group financial statements of Inland plc for the year ended 30 June 2011 which comprise the group Income 
Statement, the group Statement of Comprehensive Income, the group Statement of Financial p osition, the group Statement of 
Changes in equity, the group Statement of Cash Flows and the related notes. the financial reporting framework that has been applied 
in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the european Union.
this report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of p art 16 of the Companies Act 2006. 
our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to 
them in an auditor’s report and for no other purpose. t o the fullest extent permitted by law, we do not accept or assume responsibility 
to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we 
have formed. 
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR
As explained more fully in the Directors’ Responsibilities Statement in the Directors’ Report, the Directors are responsible for the 
preparation of the group financial statements and for being satisfied that they give a true and fair view. our responsibility is to audit 
and express an opinion on the group financial statements in accordance with applicable law and International Standards on Auditing 
(Uk and Ireland). those standards require us to comply with the Auditing practices Board’s (ApB’s) ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
A description of the scope of an audit of financial statements is provided on the ApB’s website at www.frc.org.uk/apb/scope/private.cfm.
OPINION ON FINANCIAL STATEMENTS
In our opinion the group financial statements:
Î Î give a true and fair view of the state of the group’s affairs as at 30 June 2011 and of its profit for the year then ended; 
Î Î have been properly prepared in accordance with IFRSs as adopted by the european Union; and
Î Î have been prepared in accordance with the requirements of the Companies Act 2006.
SEPARATE OPINION IN RELATION TO IFRSs
As explained in note 1 to the group financial statements, the group, in addition to complying with its legal obligation to comply 
with IFRSs as adopted by the european Union, has also complied with IFRSs as issued by the International Accounting Standards 
Board (IASB).
In our opinion the group financial statements comply with IFRSs as issued by the IASB.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the Directors’ Report for the financial year for which the group financial statements are 
prepared is consistent with the group financial statements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, 
in our opinion:
Î Î certain disclosures of Directors’ remuneration specified by law are not made; or
Î Î we have not received all the information and explanations we require for our audit.
OTHER MATTER
We have reported separately on the parent Company financial statements of Inland plc for the year ended 30 June 2011.
Robert Napper
SenIoR St AtUtoRy AUDItoR 
FoR AnD on BehALF oF gRAnt thoRnton Uk LLp 
St AtUtoRy AUDItoR, ChARteReD A CCoUnt AntS 
SLoUgh
17 october 2011 Inland plc Annual Report and Accounts 2011
20 | gRoUp FInAnCIAL St AteMentS
Group income statement for the year ended 30 June 2011
2011 2010
Continuing operations note  £000 £000
Revenue 6 21,372 16,542
Cost of sales 7 (15,699) (12,875)
Gross profit 5,673 3,667
Administrative expenses (2,207) (1,945)
profit on investments 46 321
Operating profit 3,512 2,043
Finance cost – interest expense 9 (577) (807)
Finance income – notional interest 10 207 (324)
Finance income – interest receivable and similar income 10 131 139
 3,273 1,051
Share of profit of associate 132 —
Share of profit of joint venture 138 —
profit before tax 3,543 1,051
Income tax 11 303 141
Profit for the year 3,846 1,192
Attributable to:
equity holders of the Company 3,846 1,192
Earnings per share for profit attributable to the equity holders  
of the Company during the year 
– basic 12 2.10p 0.68p
– diluted 12 2.07p 0.68p
Group statement of comprehensive income for the year ended 30 June 2011
2011 2010
 note £000 £000
profit for the year 22 3,846 1,192
other comprehensive income — —
Total comprehensive income for the year 3,846 1,192
the accompanying accounting policies and notes form part of these financial statements. Annual Report and Accounts 2011 Inland plc
21
Overview Business review Corporate governance Group financial statements Company financial statements
Group statement of financial position at 30 June 2011
2011 2010
 note £000 £000
ASSETS
Non-current assets
Investment property 13 8,801 8,801
property, plant and equipment 13 76 58
Investments 14 1,009 729
Joint ventures 14 2,401 2,269
Investment in associate 14 96 —
Receivables due in more than one year 17 70 —
Deferred tax 15 4,976 4,597
Total non-current assets 17,429 16,454
Current assets
Inventories 16 24,105 35,151
t rade and other receivables 17 10,299 5,691
Loan to associate 18 1,895 1,895
Listed investments held for trading (carried at fair value through profit and loss) 19 1 131
Cash and cash equivalents 20 2,239 2,519
Total current assets 38,539 45,387
Total assets 55,968 61,841
EQUITY
Capital and reserves attributable to the Company’s equity holders
Share capital 21 18,301 18,301
Share premium account 22 45,794 45,806
t reasury shares 22 (366) (366)
Retained earnings 22 (15,248) (19,280)
Total equity 48,481 44,461
LIABILITIES
Current liabilities
Bank loans and overdrafts 28 663 9,242
other loans 28 2,000 —
t rade and other payables 23 4,824 2,173
other financial liabilities 24 — 5,965
Total liabilities 7,487 17,380
Total equity and liabilities 55,968 61,841
the financial statements were approved and authorised for issue by the Board of Directors on 17 october 2011.
Stephen Wicks  Nishith Malde Company number
ChIeF exeCUtIve  FInAnCe DIReC toR 5482990
the accompanying accounting policies and notes form part of these financial statements. Inland plc Annual Report and Accounts 2011
22 | gRoUp FInAnCIAL St AteMentS
Share Share t reasury Retained other
capital premium shares earnings reserves t otal
 £000 £000 £000 £000 £000 £000
At 30 June 2009 16,216 45,184 (366) (15,848) (4,806) 40,380
Share-based payment — — — 182 — 182
Issue of equity 2,085 622 — — — 2,707
t ransactions with owners 2,085 622 — 182 — 2,889
t otal comprehensive income for the year — — — 1,192 — 1,192
Reserves transfer — — — (4,806) 4,806 —
t otal changes in equity 2,085 622 — (3,432) 4,806 4,081
At 30 June 2010 18,301 45,806 (366) (19,280) — 44,461
Share-based payment — — — 186 — 186
Issue of equity — (12) — — — (12)
t ransactions with owners — (12) — 186 — 174
t otal comprehensive income for the year — — — 3,846 — 3,846
t otal changes in equity — (12) — 4,032 — 4,020
At 30 June 2011 18,301 45,794 (366) (15,248) — 48,481
the accompanying accounting policies and notes form part of these financial statements.
Group statement of changes in equity for the year ended 30 June 2011 Annual Report and Accounts 2011 Inland plc
23
Overview Business review Corporate governance Group financial statements Company financial statements
2011 2010
 note £000 £000
Cash flow from operating activities
profit for the year before tax 3,543 1,051
Adjustments for:
– depreciation 13 38 34
– share-based compensation 186 182
– fair value adjustment for listed investments (30) (31)
– profit on disposal of listed investments (16) (60)
– interest expense 577 1,131
– interest and similar income (338) (139)
– share of profit of associate (132) —
– share of profit in joint venture (138) —
Changes in working capital (excluding the effects of acquisition):
– decrease in inventories 11,046 6,505
– increase in trade and other receivables (4,400) (2,094)
– decrease in receivables due in more than one year (70) —
– decrease in trade and other payables (3,365) (6,788)
Net cash inflow/(outflow) from operating activities 6,901 (209)
Cash flow from investing activities
Interest received 131 120
purchases of property, plant and equipment 13 (56) (11)
purchase of investments (283) (2,717)
Sale of investments 146 628
Net cash outflow from investing activities (62) (1,980)
Cash flow from financing activities
Interest paid (527) (748)
Repayment of borrowings (2,410) —
new loans 2,000 2,657
Costs on issue of ordinary shares during prior year (12) —
net proceeds on issue of ordinary shares — 2,707
Net cash (outflow)/inflow from financing activities (949) 4,616
Net increase in cash and cash equivalents 5,890 2,427
Net cash and cash equivalents at beginning of year (3,651) (6,078)
Net cash and cash equivalents at the end of year 2,239 (3,651)
Cash and cash equivalents 2,239 2,519
Bank overdraft — (6,170)
  2,239 (3,651)
the accompanying accounting policies and notes form part of these financial statements.
Group statement of cash flows for the year ended 30 June 2011 Inland plc Annual Report and Accounts 2011
24 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements for the year ended 30 June 2011
1. ACCOUNTING POLICIES 
the principal accounting policies adopted in the preparation of the group financial statements are set out below.
BASIS oF pRep ARAtIon
the group financial statements have been prepared under the historical cost convention, except for financial instruments and the 
investment property which are measured at fair value, and in accordance with applicable International Financial Reporting Standards 
(IFRS) as adopted by the eU and as issued by the International Accounting Standards Board.
the accounting policies that have been applied in the opening Statement of Financial p osition have also been applied throughout all 
periods presented in these financial statements. these accounting policies comply with each IFRS that is mandatory for accounting 
periods ending on 30 June 2011.
the following new standards are in issue and have had no effect on these statements:
Î Î IFRS 2 (Amendment): group Cash-settled Share-based p ayment t ransactions;
Î Î Improvements to IAS 1, 7, 17, IFRS 5 and IFRS 8; 
Î Î IAS 27 (Revised): Consolidated and Separate Financial Statements;
Î Î IAS 32 (Amendment): Classification of Rights Issues; and
Î Î IFRIC 19 extinguishing Financial Liabilities with equity Instruments. 
St AnDARDS In ISSUe BUt not yet eFFeC tIve
Î Î IFRS 9: Financial Instruments (effective 1 January 2013);
Î Î IAS 24 (Revised 2009): Related party Disclosures (effective 1 January 2011);
Î Î IFRIC 14 (Amendment): pre-payments of a Minimum Funding Requirement (effective 1 January 2011);
Î Î Improvements to IFRS issued May 2010 (some changes effective 1 July 2010, others effective 1 January 2011);
Î Î IAS 19 (Revised) employee Benefits (effective 1 January 2013);
Î Î IFRS 10 Consolidated Financial Statements (effective 1 January 2013);
Î Î IFRS 11 Joint Arrangements (effective 1 January 2013);
Î Î IFRS 12 Disclosure of Interests in other Companies (effective 1 January 2013); and
Î Î IFRS 13 Fair value Measurement (effective 1 January 2013).
none of these standards will have an impact on the group’s financial statements.
BASIS oF ConSoLIDA tIon 
the group’s financial statements consolidate the financial statements of the Company and all of its subsidiary undertakings drawn 
up to 30 June 2011. Subsidiaries are entities over which the group has the power to control the financial and operating policies so 
as to obtain benefits from its activities. the group obtains and exercises control through voting rights.
Unrealised gains on transactions between the group and its subsidiaries are eliminated. Unrealised losses are also eliminated 
unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements 
of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the group.
Acquisitions of subsidiaries are dealt with by the acquisition method. the method involves the recognition at fair value of all identifiable 
assets and liabilities, including contingent liabilities of the subsidiary, at the acquisition date, regardless of whether or not they were 
recorded in the financial statements of the subsidiary prior to acquisition. on initial recognition, the assets and liabilities of the subsidiary 
are included in the group Statement of Financial p osition at their fair values, which are also used as the basis for subsequent 
measurement in accordance with the group accounting policies. goodwill is stated after separating out identifiable intangible assets. 
goodwill represents the excess of the fair value of the consideration transferred over the fair value of the group’s share of the 
identifiable net assets of the acquired subsidiary at the date of acquisition.
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. 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 an increase in demand 
for consented land in the areas in which it operates. A significant part of the group’s land portfolio is unencumbered and the group 
is in discussions with several parties to arrange debt finance secured against some of its sites. the group is also 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 twelve months from signing these financial statements. the Directors therefore 
can consider it appropriate to prepare the financial statements on the going concern basis. Annual Report and Accounts 2011 Inland plc
25
 
Overview Business review Corporate governance Group financial statements Company financial statements
1. ACCOUNTING POLICIES continued
ASSoCIAteS
Associates are those entities over which the group has significant influence through Board representation but which are neither 
subsidiaries nor interests in joint ventures. Investments in associates are recognised initially at cost and subsequently accounted for 
using the equity method. Acquired investments in associates are also subject to acquisition method accounting. however, any goodwill 
or fair value adjustment attributable to the share in the associate is included in the amount recognised as investment in associates.
All subsequent changes to the share of interest in the equity of the associate are recognised in the group’s carrying amount of the 
investment. Changes resulting from the profit or loss generated by the associate are reported in ‘share of profits of associates’ in the 
group Income Statement and therefore affect net results of the group. these changes include subsequent depreciation, amortisation 
or impairment of the fair value adjustments of assets and liabilities. 
Items that have been recognised by the associate in other Comprehensive Income are recognised in other Comprehensive Income. 
however, when the group’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured 
receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the 
associate. If the associate subsequently reports profits, the investor resumes recognising its share of those profits only after its share 
of the profits equals the share of losses not recognised.
Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group’s interest in the 
associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. 
Amounts reported in the financial statements of associates have been adjusted where necessary to ensure consistency with the 
accounting policies adopted by the group.
JoInt ventUReS
Investments in joint ventures are recognised initially at cost and subsequently accounted for using the equity method.
All subsequent changes to the share of interest in the equity of the joint venture are recognised in the group’s carrying amount of the 
investment. Changes resulting from the profit or loss generated by the joint venture are reported in ‘share of profits of joint venture’ 
in the group Income Statement and therefore affect net results of the group. these changes include subsequent depreciation, 
amortisation or impairment of the fair value adjustments of assets and liabilities.
RevenUe 
Revenue is measured by reference to the fair value of consideration received or receivable by the group for goods supplied, excluding 
vAt and trade discounts. 
Sale of land
Revenue from the sale of land is recognised when all the following conditions have been satisfied:
Î Î the group has transferred to the buyer the significant risks and rewards of ownership of the goods which is generally when 
contracts have been completed;
Î Î the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control 
over the land sold which is generally when the contract has been completed;
Î Î the amount of revenue can be measured reliably;
Î Î it is probable that the economic benefits associated with the transaction will flow to the group; and
Î Î the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Sale of residential units
t urnover is recognised on legal completion, which is generally when the title passes.
Fee income
the group provides planning and property management services to third parties for a fee. the group recognises revenue based 
on the fair value and stage of completion of the planning and property management services provided to these customers as at the 
period end.
Interest
Interest is recognised using the effective interest method which calculates the amortised cost of a financial asset and allocates the 
interest income over the relevant period. the effective interest rate is the rate that exactly discounts estimated future cash receipts 
through the expected life of the financial asset to the net carrying amount of the financial asset. 
Rental income
Rental income derived from operating leases is recognised on a straight line basis over the lease term.
Dividends
Dividends are recognised when the shareholders’ right to receive payment is established. Inland plc Annual Report and Accounts 2011
26 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
1. ACCOUNTING POLICIES continued
ex CeptIonAL IteMS
exceptional items are material items which derive from events or transactions that fall within the ordinary activities of the group 
and which individually or, if of a similar type, in aggregate, need to be disclosed by virtue of their size or incidence if the financial 
statements are to give a fair presentation.
pRopeRty, pLAnt AnD eqUIpMent 
property, plant and equipment is stated at cost or valuation, net of depreciation and any provision for impairment. 
DISpoSAL oF ASSetS
the gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying 
amount of the asset and is recognised in the income statement. Any revaluation surplus remaining in equity on disposal of the asset 
is transferred to the profit and loss reserve.
DepReCIA tIon
Depreciation is calculated to write down the cost less estimated residual value of all property, plant and equipment by the straight line 
method where it reflects the basis of consumption of the asset. the rates generally applicable are:
Fixtures and fittings  – 25% 
office equipment  – 25% 
Motor vehicles  – 25%
Leasehold property – over the term of the lease
Material residual value estimates are updated as required, but at least annually, whether or not the asset is revalued.
InveStMent pRopeRty
Investment properties are initially accounted for using the cost model and then held under the revaluation model. Investment 
properties are revalued annually and are included in the group Statement of Financial p osition at their open market values. Any gain 
or loss resulting from the sale of an investment property is immediately recognised in profit or loss. An investment property shall be 
derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are 
expected from its disposal.
InventoRIeS
Inventories consist of land and work in progress and valued at the lower of cost and net realisable value. net realisable value is 
estimated based upon the future expected selling price, less estimated costs to sell.
IMpAIRMent teStIng oF pRopeRty, pLAnt AnD eqUIpMent
the group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication 
exists, or when annual impairment testing for an asset is required, the group makes an estimate of the asset’s recoverable amount. 
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use 
and is determined for an individual asset. If the asset does not generate cash inflows that are largely independent of those from other 
assets or groups of assets, the recoverable amount is determined for the cash-generating unit to which it belongs. Where the carrying 
amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that 
reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses on continuing 
operations are recognised in the group Income Statement in those expense categories consistent with the function of the impaired asset.
An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses 
may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised 
impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since 
the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. 
that increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment 
loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued 
amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted 
in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining 
useful life. Annual Report and Accounts 2011 Inland plc
27
 
Overview Business review Corporate governance Group financial statements Company financial statements
1. ACCOUNTING POLICIES continued
tAxA tIon
Current tax is the tax currently payable based on taxable profit for the period.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on 
the difference between the carrying amounts of assets and liabilities and their tax bases. however, deferred tax is not provided on 
the initial recognition of goodwill, nor on the initial recognition of an asset or liability unless the related transaction is a business 
combination or affects tax or accounting profit. t emporary differences include those associated with shares in subsidiaries and joint 
ventures unless reversal of these temporary differences can be controlled by the group and it is probable that reversal will not occur 
in the foreseeable future. In addition, tax losses available to be carried forward as well as other income tax credits to the group are 
assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable 
that the underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax 
assets and liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are 
enacted or substantively enacted at the year end date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the group Income Statement except 
where they relate to items that are recognised in other comprehensive income (such as the revaluation of the investment property not 
included in inventories) or directly in equity in which case the related deferred tax is also recognised in other comprehensive income 
or equity respectively.
LeASeD ASSetS 
Lease payments (excluding costs for services such as insurance and maintenance) applicable to operating leases where substantially 
all the benefits and risks of ownership remain with the lessor are recognised as an expense on a straight line basis over the lease term.
eMpL oyee BeneFItS
Defined contribution pension scheme
the pension costs charged against operating profits are the contributions payable to the scheme in respect of the accounting period. 
eqUIty-SettLeD ShARe-BASeD p AyMent
All share-based payment arrangements are recognised in the group financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values using the 
Black-Scholes options pricing model. Where employees are rewarded using share-based payments, the fair values of employees’ 
services are determined indirectly by reference to the fair value of the instrument granted to the employee. this fair value is 
appraised at the grant date and excludes the impact of any non-market vesting conditions.
All equity-settled share-based payments are ultimately recognised as an expense in the group Income Statement with a corresponding 
credit to retained earnings.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best 
available estimate of the number of share options expected to vest. estimates are subsequently revised if there is any indication 
that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is 
recognised in the current period. no adjustment is made to any expense recognised in prior periods if share options ultimately 
exercised are different to that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital and, where 
appropriate, share premium.
FInAnCIAL ASSetS
Financial assets are divided into the following categories: loans and receivables; financial assets at fair value through profit or loss; 
and available-for-sale financial assets. Financial assets are assigned to the different categories by management on initial recognition, 
depending on the purpose for which they were acquired. 
All financial assets are recognised when the group becomes a party to the contractual provisions of the instrument. Financial assets 
other than those categorised as at fair value through profit and loss are initially recognised at fair value plus finance costs. Financial 
assets categorised as at fair value through profit or loss are recognised initially at fair value with transaction costs expensed through 
the group Income Statement.
Financial assets at fair value through profit or loss include financial assets that are either classified as held for trading or are 
designated by the entity as at fair value through profit or loss upon initial recognition. Subsequent to initial recognition, the financial 
assets included in this category are measured at fair value with changes in fair value recognised in the group Income Statement. 
Financial assets originally designated as financial assets at fair value through profit or loss may not be re-classified subsequently. Inland plc Annual Report and Accounts 2011
28 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
1. ACCOUNTING POLICIES continued
FInAnCIAL ASSetS continued
Available-for-sale financial assets are non-derivative financial assets that are either designated to this category or do not qualify for 
inclusion in any of the other categories of financial assets. the group’s available-for-sale financial assets include listed securities.
All financial assets within this category are subsequently measured at fair value with changes in value recognised in other Comprehensive 
Income. gains and losses arising from financial instruments classified as available-for-sale are initially recognised in other Comprehensive 
Income then re-classified from equity to profit or loss when they are sold. 
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. 
t rade receivables and loans to associate are classified as loans and receivables. Loans and receivables are measured subsequent to 
initial recognition at amortised cost using the effective interest method, less provision for impairment. Any change in their value 
through impairment or reversal of impairment is recognised in the group Income Statement.
provision against trade receivables is made when there is objective evidence that the group will not be able to collect all amounts due 
to it in accordance with the original terms of those receivables. the amount of the write down is determined as the difference between 
the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.
Interest and other cash flows resulting from holding financial assets are recognised in the group Income Statement, regardless of 
how the related carrying amount of financial assets is measured.
A financial asset is derecognised only where the contractual rights to the cash flows from the asset expire, or the financial asset 
is transferred and that transfer qualifies for derecognition. A financial asset is transferred if the contractual rights to receive the 
cash flows of the asset have been transferred or the group retains the contractual rights to receive the cash flows of the asset, but 
assumes a contractual obligation to pay the cash flows to one or more recipients. A financial asset that is transferred qualifies for 
derecognition if the group transfers substantially all the risks and rewards of ownership of the asset, or if the group neither retains 
nor transfers substantially all the risks and rewards of ownership but does transfer control of that asset.
FInAnCIAL LIABILItIeS
Financial liabilities are obligations to pay cash or other financial assets and are recognised when the group becomes a party to the 
contractual provisions of the instrument. All other financial liabilities are recorded initially at fair value, net of direct issue costs.
All financial liabilities are recorded at amortised cost using the effective interest method, with interest-related charges recognised 
as an expense in finance cost in the group Income Statement. Finance charges, including premiums payable on settlement or 
redemption and direct issue costs, are charged to the group Income Statement on an accruals basis using the effective interest 
method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
Financial liabilities are categorised as at fair value through profit or loss where they are classified as held-for-trading or designated 
as at fair value through profit or loss on initial recognition (including deferred purchase consideration). Financial liabilities are designated 
as at fair value through profit or loss where they eliminate or significantly reduce a measurement (or recognition) mismatch.
A financial liability is derecognised only when the obligation is extinguished, that is, when the obligation is discharged or cancelled 
or expires.
CASh AnD CASh eqUIv ALentS
Cash and cash equivalents comprise cash in hand and demand deposits, together with other short-term, highly liquid investments 
that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
DIvIDenDS
Dividend distributions payable to equity shareholders are included in other short term financial liabilities when the dividends are 
approved in general meeting prior to the year end date.
eqUIty
An equity instrument is a contract which evidences a residual interest in the assets after deducting all liabilities. equity comprises 
the following:
Î Î ‘Share capital’ represents the nominal value of equity shares;
Î Î ‘Share premium’ represents the excess over nominal value of the fair value of consideration received for equity shares, net of 
expenses of the share issue;
Î Î ‘t reasury shares’ represent the purchase of the Company’s own shares and are deducted from total equity as treasury shares until 
they are sold or cancelled where such shares are subsequently sold or re-issued, any consideration received is included in total equity;
Î Î ‘other reserves’ represent amounts recognised in other Comprehensive Income relating to available-for-sale financial assets 
through equity; and
Î Î ‘profit and loss reserve’ represents retained profits. Annual Report and Accounts 2011 Inland plc
29
 
Overview Business review Corporate governance Group financial statements Company financial statements
2. FINANCIAL RISK MANAGEMENT
FInAnCIAL RISk FAC toRS
the group’s activities expose it to a variety of financial risks: credit risk; liquidity risk; cash flow risk; and fair value interest-rate risk. 
the group’s overall risk management programmes focus on the unpredictability of financial markets and seek to minimise potential 
adverse effects on the group’s financial performance.
Risk management is carried out centrally under policies approved by the Board of Directors.
(a) Credit risk
the group has no significant concentrations of credit risk. It has policies in place to ensure that sales of products and services 
are made to customers with an appropriate credit history.
the group’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the year end date, 
as summarised below:
2011 2010
 £000 £000
Classes of financial assets – carrying amounts
Listed investments held for trading 1 131
Loan to associate 1,895 1,895
Cash and cash equivalents 2,239 2,519
t rade and other receivables 10,299 5,691
Receivables due in more than one year 70 —
 14,504 10,236
the group’s policy is to deal with creditworthy counterparties.
the group’s management considers that all the above financial assets that are not impaired for each of the reporting dates under 
review are of good credit quality.
Some of the group’s financial assets are secured by collateral.
the credit risk for liquid funds and other short-term financial assets is considered negligible, since the counterparties are reputable 
banks with high quality credit ratings.
(b) Liquidity risk
prudent liquidity risk management implies maintaining sufficient cash balances and ensuring availability of funding through an 
adequate amount of credit facilities. the group aims to maintain flexibility in funding by keeping credit lines available. the group also 
purchases property under deferred consideration arrangements.
(c) Cash flow fair value interest rate risk
the group’s cash flow interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the group to 
cash flow interest rate risk. All the group’s borrowings are at variable rates but the group does not consider the risk to be significant.
(d) Price risk
the group is exposed to equity securities price risk because of investments held by the group and classified on the group Statement 
of Financial position either as available-for-sale or at fair value through profit or loss.
For the listed equity securities, an average volatility of 0% has been observed during the year ended 30 June 2011. If the quoted stock 
price of these securities had increased or decreased by that amount, the net result for the year would have been increased/reduced by 
£nil (2010: £4,000). equity would have changed by £nil (2010: £4,000). the average volatility has been derived by using the movement in 
the share prices of the underlying securities at each month end and taking the average across all the securities.
the investments in listed equity securities that are held as available-for-sale financial assets are considered long-term strategic 
investments. In accordance with the group’s policies, no specific hedging activities are undertaken in relation to these investments.
3. SEGMENT INFORMATION
In accordance with IFRS 8, information is disclosed to enable users of financial statements to evaluate the nature and financial effects 
of the business activities in which the group engages.
In identifying its operating segments, management differentiates between land sales, house building, fee income and other income. 
these segments are based on the information reported to the chief operating decision maker. the group’s results to date are 
substantially derived from the sale of land.
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
estimates and judgements are continually evaluated and are based on historic experience and other factors, including expectations 
of future events that are believed to be reasonable under the circumstances. Inland plc Annual Report and Accounts 2011
30 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
CRItICAL ACCoUntIng eStIMA teS
the group makes estimates and assumptions concerning the future. the resulting accounting estimates will, by definition, rarely 
equal the related actual results. the estimates and assumptions that have a significant risk of causing a material adjustment to the 
carrying amounts of assets and liabilities within the next financial year are outlined below.
(a) Valuation of inventories
In applying the group’s accounting policy for the valuation of inventories the Directors are required to assess the expected selling 
price and costs to sell each of the plots or units that constitute the group’s landbank and work in progress. estimation of the selling 
price is subject to significant inherent uncertainties, in particular the prediction of future trends in the market value of land.
Whilst the Directors exercise due care and attention to make reasonable estimates taking into account all available information in 
estimating the future selling price, the estimates will, in all likelihood, differ from the actual selling prices achieved in future periods 
and these differences may, in certain circumstances, be very significant. the critical judgement in respect of planning consent 
(see below) further increases the level of estimation uncertainty in this area.
(b) Income taxes
the group recognises tax/deferred tax assets and liabilities for anticipated tax based on estimates of when the tax/deferred tax will 
be paid or recovered. When the final outcome of these matters is different from the amounts initially recorded, such differences 
impact the period in which the determination is made.
(c) Fair value of derivatives and other financial instruments
the fair value of instruments that are not traded in an active market is determined by using valuation techniques. the group uses 
its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing.
(d) Investment properties
properties are classified as investment properties if there are significant rentals and the intention is to hold those properties for 
a significantly longer time than inventory property, i.e. not for sale in the ordinary course of business.
(e) Discounting on deferred consideration of inventories
the group discounts deferred consideration of inventories by discounted cash flow method, using the cost of debt capital as the 
discount rate.
CRItICAL JUDgeMentS In AppL yIng the entIty’S ACCoUntIng poLICIeS
Inventories 
the group values inventories at the lower of cost and net realisable value. the net realisable value is based on the judgement of the 
probability that planning consent will be given for each site. the group believes that, based on the Directors’ experience, planning 
consent will be given. If planning consent was not achieved then a provision may be required against inventories. 
Investments
the group has entered into a Development Services Agreement with DgvL. the Directors have considered the requirements of IAS 27 
‘Consolidated and separate financial statements’ (revised 2008) and ‘SIC 12 Consolidation – special purpose entities’ and do not believe 
that the group has the power to control DgvL. DgvL makes its own decisions regarding the development of the site even though the 
director of DgvL receives property advice to consider and property services from the group. the Directors also consider that the 
group does not have the decision making powers to obtain the majority of the benefits and the risks of the activities of DgvL as the 
shareholder of DgvL maintains control as to whether he finances the deferred land consideration payments the key requirement in 
influencing Inland’s profit share is the basis on which deferred consideration is satisfied. this is at the discretion of the DgvL director 
and hence he can improve his profit share, or allow Inland to arrange the funding. therefore the Directors do not believe that DgvL 
should be consolidated within the group’s financial statements.
the group is entitled to receive a fee for the provision of planning application services, assistance in obtaining statutory and third party 
consents, assistance in entering into development and construction agreements, assistance in achieving sales, assistance in engaging 
professional advisors, seeking opportunities to generate interim revenues and the potential provision of finance to DgvL in respect of 
the site known as Drayton garden village. Under the agreement the group has the potential to earn up to 90% of the profits realised 
from the sale of the property over the life of the project.
Because the final decision on the financial and operational activities of DgvL reside with the director of DgvL, the Directors of Inland plc 
do not consider that they have significant influence over DgvL and therefore DgvL is not considered to be an associate. Annual Report and Accounts 2011 Inland plc
31
 
Overview Business review Corporate governance Group financial statements Company financial statements
4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS continued
CRItICAL JUDgeMentS In AppL yIng the entIty’S ACCoUntIng poLICIeS continued
At 30 June 2011 the funding arrangements in place for the satisfaction of deferred consideration entitled Inland to 58.19% of the 
profits expected to be realised from the sale of the property over the life of the project. In accordance with the option and Development 
Services Agreement with DgvL (the Agreement), 51.23% of the total profits would be due to the group for the provision of planning 
application and property management services completed at the balance sheet date and this has to be accounted for under IAS 18. 
6.96% of the profits would be due to the group for the provision of finance to DgvL and would be accounted for under IAS 39 as 
notional interest income.
In calculating the fee for the provision of planning application and property services to DgvL recognised in the year, under IAS 18 the 
group has estimated the following:
Î Î total profits (total expected sales less total estimated development costs to completion) to be realised from the sale of the property;
Î Î profits would be realised over six years from 1 July 2010;
Î Î percentage, where the stage of completion is an appropriate basis for evaluating fair value, of planning application and property 
services provided to DgvL as at the period end with the balance to be provided over the remaining life of the project (i.e. in future 
accounting periods); and
Î Î the fair value of completed service components at the year end.
During the year ended 30 June 2011 the group has recognised £3.77m (2010: £0.8m) in revenue within the group Income Statement 
for such services to DgvL.
In calculating the fee for the provision of finance to DgvL, under IAS 39 the group has estimated the following:
Î Î total profits (total expected sales less total estimated development costs to completion) to be realised from the sale of the property; and
Î Î profits would be realised over six years from 1 July 2010.
Under IAS 39 the group has a choice as to how to account for the asset. the Directors consider the most appropriate classification for 
the asset to be ‘loans and receivables’ due to the underlying asset being a ‘non derivative’ financial asset with fixed or determinable 
payments. the effective interest rate method has been applied in calculating the income in the period. See note 17. 
During the year ended 30 June 2011 the group has recognised £0.24m (2010: £nil) within notional interest income in the group Income 
Statement in respect of such fees.
the table below shows the revenue and notional interest recognised by Inland under IAS 18 and IAS 39 in comparison to the results 
recognised by DgvL on its sales:
2011 2010
 £000 £000
t otal revenue and notional interest recognised under IAS 18 and 39 4,217 —
Land sales in DgvL – year to 30 June 2011 (unaudited)  
plots sold 148
Revenue (£000) 15,186
gross profit (£000) as per DgvL ’s draft accounts 5,378
Inland’s share of fees at 58.19% as per the Agreement (£000) 3,130
5. EXCEPTIONAL COSTS
the group conducted a review of the net realisable value of its land bank in view of current market conditions. Where the estimated 
future net realisable value of the site is less than the carrying value within the group Statement of Financial p osition, the group has 
impaired the land value. this has resulted in an impairment of £0.9m (2010: £0.2m) which the Directors do not consider to be exceptional. Inland plc Annual Report and Accounts 2011
32 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
6. INCOME AND SEGMENTAL ANALYSIS
the group generates income by way of land sales. It also generates income from house building, fees from planning and property 
management services and other related services. these operating segments are monitored and strategic decisions are made on 
the basis of segment operating results. the segmental analysis of operations is as follows:
SegMent AL AnALySIS By ACtIvIty
Finance profit
Cost of gross Admin operating (cost)/ before
Revenue sales profit costs other profit income other tax
2010 £000 £000 £000 £000 £000 £000 £000 £000 £000
Segment 
Land sales 12,837 (10,993) 1,844 — — 1,844 (324) — 1,520
house building 2,142 (1,868) 274 — — 274 — — 274
Fee income 893 — 893 — — 893 — — 893
Rental income 670 (14) 656 — — 656 — — 656
profit on investments — — — — 321 321 — — 321
other — — — (1,945) — (1,945) (668) — (2,613)
 16,542 (12,875) 3,667 (1,945) 321 2,043 (992) — 1,051
2011         
Segment 
Land sales 9,399 (8,724) 675 — — 675 (35) — 640
house building 7,324 (6,629) 695 — — 695 — — 695
Fee income 3,975 — 3,975 — — 3,975 242 — 4,217
Rental income 374 (14) 360 — — 360 — — 360
other property sale 300 (332) (32) — — (32) — — (32)
profit on investments — — — — 46 46 — — 46
Share of profit of associate — — — — — — — 132 132
Share of profit of joint venture — — — — — — — 138 138
other — — — (2,207) — (2,207) (446) — (2,653)
 21,372 (15,699) 5,673 (2,207) 46 3,512 (239) 270 3,543
All activities arose solely in the United kingdom. 
2011 2010
Transactions with customers making up 10% or more of revenue £000 £000
Land sales customer 1 2,347 —
Land sales customer 2 5,000 —
Land sales customer 3 — 5,950
Fee income customer 4 3,930 —
 11,277 5,950 Annual Report and Accounts 2011 Inland plc
33
 
Overview Business review Corporate governance Group financial statements Company financial statements
6. INCOME AND SEGMENTAL ANALYSIS continued
SegMent AL AnALySIS By ACtIvIty continued
2011 2010
 £000 £000
Segment assets
Land:
non-current assets – investment property 8,801 8,801
non-current assets – deferred tax 4,976 4,452
Current assets – inventories 22,294 29,709
Current assets – other 151 151
36,222 43,113
house building:
non-current assets – deposit match debtor 70 —
Current assets – inventories 1,811 5,442
Current assets – other 8 10
1,889 5,452
Fees:
non-current assets – investment 1,009 729
Current assets – debtor 9,034 4,437
Current assets – other 848 848
10,891 6,014
other:
non-current assets – investments 2,497 2,269
non-current assets – other 76 203
Current assets – loan to associate 1,895 1,895
Current assets – other 259 376
Cash 2,239 2,519
 6,966 7,262
Total segmental and entity assets 55,968 61,841
  Inland plc Annual Report and Accounts 2011
34 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
6. INCOME AND SEGMENTAL ANALYSIS continued
SegMent AL AnALySIS By ACtIvIty continued
2011 2010
 £000 £000
Segment liabilities
Land:
Current liabilities – trade creditors 204 220
Current liabilities – loans 2,000 6,170
Current liabilities – other creditors — 235
Current liabilities – deferred land — 5,965
2,204 12,590
house building:
Current liabilities – trade creditors 163 617
Current liabilities – bank loans 663 3,072
826 3,689
Fees:
Current liabilities – trade creditors 35 98
Current liabilities – other creditors 2,915 —
Current liabilities – vAt creditors 1,104 —
4,054 98
other:
Current liabilities – trade creditors 62 275
Current liabilities – other creditors 341 728
 403 1,003
Total segmental and entity liabilities 7,487 17,380
7. EXPENSES BY NATURE
2011 2010
  note £000 £000
Depreciation 13 38 34
operating lease rentals 76 63
Auditor’s remuneration:
– audit 35 35
– non-audit 28 31
Cost of sales 15,699 12,875
other expenses 2,030 1,782
t otal 17,906 14,820
Classified as:
– cost of sales 15,699 12,875
– administrative expenses 2,207 1,945
  17,906 14,820
Included within Revenue is rental income from investment property of £374,000 (2010: £663,000). Annual Report and Accounts 2011 Inland plc
35
 
Overview Business review Corporate governance Group financial statements Company financial statements
8. DIRECTORS AND EMPLOYEES
the employee benefit expense during the year was as follows:
2011 2010
 £000 £000
Wages and salaries 1,197 1,020
Social security costs 145 126
pension costs – defined contribution plans 77 71
 1,419 1,217
the average number of employees during the year was as follows:
2011 2010
 Number number
Management 4 3
Administration 9 8
 13 11
Remuneration in respect of Directors was as follows:
2011 2010
 £000 £000
Wages and salaries 604 548
Social security costs 74 68
Fees 55 55
pension costs – defined contribution plans 50 45
 783 716
During the year one Director participated in a money purchase pension scheme. Mr p Brett was appointed to the Board on 3 october 2011. 
his emoluments and pension are not included above as he did not serve as a Director during the year.
the amounts set out above include remuneration in respect of the highest paid Director as follows:
2011 2010
 £000 £000
emoluments 328 297
Further information in respect of AIM rules regarding Directors’ remuneration disclosures can be found in the Directors and their 
interests section of the Directors’ Report.
Short term employee benefits and share-based payments in respect of key personnel and the Directors was as follows:
2011 2010
 £000 £000
Wages and salaries 795 728
Social security costs 98 91
pension costs – defined contribution plans 67 62
Share-based payment 181 149
 1,141 1,030
other long term benefits in respect of key personnel and the Directors were as follows:
 As at 30 June 2011 As at 30 June 2010
Number of Number of number of number of
deferred share deferred share
 shares options shares options
key personnel and Directors 980 4,100,000 980 1,100,000 Inland plc Annual Report and Accounts 2011
36 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
9. FINANCE COST
2011 2010
 £000 £000
Interest expense:
– bank borrowings 215 297
– other loan interest 161 —
– deferred land payments 91 145
– notional interest on deferred consideration — 324
– costs associated with arrangement of new facilities 110 365
 577 1,131
10. FINANCE INCOME
2011 2010
 £000 £000
other interest receivable 130 138
Bank interest receivable 1 1
notional interest 207 —
 338 139
11. INCOME TAX 
2011 2010
 £000 £000
t ax charge on associate and joint venture profits 76 —
Deferred tax credit (379) (141)
 (303) (141)
the tax on the group’s profit before tax differs from the theoretical amount that would arise using the tax rate applicable to profits of 
the consolidated companies as follows:
2011 2010
 £000 £000
profit before tax 3,543 1,051
profit on ordinary activities multiplied by the standard rate 
of corporation tax in the Uk of 28% (2010: 28%) 992 294
expenses not deductible for tax purposes 35 28
other timing differences 109 —
Utilisation of tax losses (1,439) (465)
Losses not recognised — 2
t ax credit (303) (141) Annual Report and Accounts 2011 Inland plc
37
 
Overview Business review Corporate governance Group financial statements Company financial statements
12. EARNINGS AND NET ASSET VALUE PER SHARE
BASIC AnD DILUteD epS
Basic and diluted earnings per share is calculated by dividing the earnings attributable to equity holders of the Company by the 
weighted average number of ordinary shares in issue during the period.
 2011 2010
profit attributable to equity holders of the Company (£000) 3,846 1,192
net assets attributable to equity holders of the Company (£000) 48,481 44,461 
Weighted average number of ordinary shares in issue (000) 182,999 174,965
Dilutive effect of options (000) 2,575 —
Weighted average number of ordinary shares used in determining diluted epS (000) 185,574 174,965
Basic earnings per share in pence 2.10p 0.68p
Diluted earnings per share in pence 2.07p 0.68p
net asset value per share in pence 26.49p 24.30p
13. PROPERTY, PLANT AND EQUIPMENT
Investment Leasehold Motor office Fixtures and
property property vehicles equipment fittings t otal
 £000 £000 £000 £000 £000 £000
Cost or fair value
At 30 June 2009 8,801 — 49 37 56 142
Additions — 5 — 1 5 11
At 30 June 2010 8,801 5 49 38 61 153
Additions — — — 37 19 56
At 30 June 2011 8,801 5 49 75 80 209
Depreciation
At 30 June 2009 — — 13 23 25 61
Depreciation charge — 1 12 9 12 34
At 30 June 2010 — 1 25 32 37 95
Depreciation charge — 1 13 8 16 38
At 30 June 2011 — 2 38 40 53 133
Net book value      
At 30 June 2011 8,801 3 11 35 27 76
At 30 June 2010 8,801 4 24 6 24 58
At 30 June 2009 8,801 — 36 14 31 81
All freehold property is stated at revaluation. 
the investment property was valued by edward Symmons & p artners in August 2006 in accordance with the Appraisal and valuation 
Manual of the Royal Institution of Chartered Surveyors. Investment property continues to be held by the group for long-term investment. 
the property is recorded as an investment property and is valued by the Directors on a deemed cost basis at £8,801,000, which was 
the fair value of the property on acquisition. the investment property is not depreciated. the Directors do not consider the current 
fair value to be significantly different to the carrying value.
the historical cost of the investment property at 30 June 2011 as noted in p oole Investments plc’s (poole) financial statements is 
£1,252,000 (2010: £1,252,000). 
the direct operating expenses for the period arising from the investment property that generated rental income was £13,000 
(2010: £13,000). there are no investment properties that did not generate rental income during the period.
the investment property is currently let on monthly rolling licences generating approximately £4,000 per month. Inland plc Annual Report and Accounts 2011
38 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
14. INVESTMENTS 
Investment
in joint
Associate option venture t otal
 £000 £000 £000 £000
Cost or fair value
At 30 June 2009 — 250 — 250
Additions — 250 2,269 2,519
Fair value adjustment — 229 — 229
At 30 June 2010 — 729 2,269 2,998
Additions — 250 33 283
Share of profit after tax 96 — 99 195
Fair value adjustment — 30 — 30
Movement during the year to 30 June 2011 96 280 132 508
Net book value
At 30 June 2011 96 1,009 2,401 3,506
At 30 June 2010 — 729 2,269 2,998
In December 2005, Inland plc invested £200,000 in its associate, howarth and in return received ordinary shares amounting to 10% 
of the issued share capital of howarth. In January 2008, Inland plc made a further investment of £359,000 in howarth to increase 
its interest to 15% of the issued share capital of howarth. Inland plc also subscribed for £800,000 convertible loan stock which was 
converted on 31 July 2009 into 864,583 ordinary shares, thus increasing Inland’s interest to 33% of the issued share capital of howarth. 
A provision of £1,426,000 was made against the equity investment in howarth and the convertible loan stock during the year ended 
30 June 2009. During the year ended 30 June 2011 £96,000 (2010: £nil) was recognised in the group Income Statement, being the 
group’s 33% share of profits after tax reported by howarth. the provision will be reversed when howarth demonstrates a sustainable 
future profit stream.
on 18 December 2008, Inland entered into an option and Development Services Agreement with Drayton garden village Limited 
(DgvL) which granted Inland homes Limited an option for a consideration of £250,000 to purchase the share capital of DgvL at an 
exercise price of £1. the initial period of the option was for one year from the date of the agreement and this can be extended on 
up to four occasions to a maximum period of ten years by making further payments. During the years ended 30 June 2010 and 2011, 
the option period was extended by a further period of two years in consideration of two payments of £250,000. In accordance with the 
group’s accounting policy for financial assets, the option has been measured at fair value at 30 June 2011, which resulted in a fair 
value adjustment of £30,000 (2010: £229,000) that has been recognised in the group Income Statement over and above the actual 
consideration paid for the option. the option is not currently exercisable and only becomes exercisable when the development 
owned by DgvL is completed.
During the year ended 30 June 2010, the group entered into a joint venture with howarth for the development of 51 units at a site 
in Croxley green, hertfordshire in a company called harvey Road (Rickmansworth) Limited. the group has invested £2,302,000 
(2010: £2,269,000). Although howarth owns 100% of the issued share capital of harvey Road (Rickmansworth) Limited, Inland Directors 
constitute 50% of the Board of Directors and therefore control 50% of the entity and Inland is entitled to 50% of the profits made by 
the entity. the group’s 50% share of the profits after tax to 30 June 2011 amounts to £99,000 that has been recognised in the group 
Income Statement.
At 30 June 2011 the Company held or potentially held 10% or more of the equity of the following:
Company name Country of registration principal activity holding Class of shares
Inland homes Limited england & Wales Real estate development 100% ordinary
poole Investments plc england & Wales Real estate investment 100% ordinary
Inland housing Limited england & Wales Real estate development 100% ordinary
Inland Finance Limited england & Wales provision of alternative finance 100% ordinary
Inland Developments Limited england & Wales Real estate development 100% ordinary
howarth homes plc england & Wales housebuilder 33% ordinary Annual Report and Accounts 2011 Inland plc
39
 
Overview Business review Corporate governance Group financial statements Company financial statements
14. INVESTMENTS continued
the group’s share of the results and its share of assets of its associate for the 11 months to 30 June 2011 are as follows:
Assets Liabilities Revenue profit after tax
name Country of incorporation £000 £000 £000 £000 % held
howarth homes plc england & Wales 3,428 2,811 6,777 84 33
the financial statements of howarth are prepared to 31 July each year. the group has used the management accounts of howarth for 
the year to 30 June 2011 to account for its share of results.
15. DEFERRED TAX
the net movement on the deferred tax account is as follows:
 £000
At 1 July 2010 4,597
Income statement credit 693
Adjustment in respect of corporation tax to 26% (314)
At 30 June 2011 4,976
the movement in deferred tax assets is as follows:
Accelerated
tax depreciation Losses other t otal
 £000 £000 £000 £000
At 1 July 2010 (7) 3,612 992 4,597
Credited/(charged) to income statement 5 483 (109) 379
At 30 June 2011 (2) 4,095 883 4,976
the deferred tax asset is recoverable as follows:
2011 2010
 £000 £000
Deferred tax asset to be recovered after twelve months 3,225 4,597
Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit 
through future taxable profits is probable. the group did not recognise deferred tax assets on losses of £nil (2010: £5,800,000) that 
can be carried forward against future taxable income. the group has capital losses amounting to £20,449,000 (2010: £19,983,000) 
that have not been recognised as the Directors consider the realisation of the losses is not expected to crystallise in the future.
16. INVENTORIES
2011 2010
 £000 £000
Stock and work in progress 24,105 35,151
During the year a total of £15,699,000 (2010: £12,747,000) of inventories was included in the group Income Statement as an expense.
the group conducted a review of the net realisable value of its land bank in view of current market conditions. Where the estimated 
future net realisable value of the site is less than the carrying value within the group Statement of Financial p osition, the group has 
impaired the land value. this has resulted in an impairment of £0.9m (2010: £0.2m). Included in the value of inventories above is 
£8.1m (2010: £15.1m) which is carried at fair value less costs to sell (net realisable value). the amount of inventories pledged as 
security against borrowings is £9.6m (2010: £34.8m). Inland plc Annual Report and Accounts 2011
40 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
17. TRADE AND OTHER RECEIVABLES
2011 2010
 £000 £000
prepayments and accrued income 1,073 976
other receivables 9,226 4,715
other receivables due in more than one year 70 —
 10,369 5,691
the carrying value of trade and other receivables is considered a reasonable approximation of fair value. no trade receivables are 
considered to be impaired. there were no unimpaired trade receivables that were past due at the reporting date.
other receivables includes an amount of £5.0m (2010: £4.2m) accrued in respect of costs and sales invoices that will be reimbursed 
by DgvL. the carrying value is considered a reasonable approximation of fair value.
other receivables includes an amount for £3.2m (2010: £3.0m) lent to DgvL in respect of financing arrangements referred to in note 4 
‘Critical judgements in applying the entities accounting policies’.
All of the group’s trade and other receivables have been reviewed for indicators of impairment.
18. LOAN TO ASSOCIATE
2011 2010
 £000 £000
Advances to associate 1,895 1,895
the Company has granted a secured rolling facility of up to £2,000,000 to its associate.
19. LISTED INVESTMENTS HELD FOR TRADING
 £000
At 1 July 2010 131
Sales:
– proceeds (146)
– realised gains 16
At 30 June 2011 1
20. CASH AND CASH EQUIVALENTS
2011 2010
 £000 £000
Cash at bank and in hand 2,239 2,519
21. SHARE CAPITAL
2011 2010
 £000 £000
Authorised
239,990,000 (2010: 239,990,000) ordinary shares of 10p each 23,999 23,999
1,000 (2010: 1,000) redeemable shares of £1 each 1 1
 24,000 24,000 Annual Report and Accounts 2011 Inland plc
41
 
Overview Business review Corporate governance Group financial statements Company financial statements
21. SHARE CAPITAL continued
2011 2010
 £000 £000
Allotted, issued and fully paid
182,999,484 (2010: 182,999,484) ordinary shares of 10p each 18,300 18,300
980 (2010: 980) redeemable shares of £1 each 1 1
180 (2010: 180) deferred shares of 10p each — —
 18,301 18,301
Inland currently holds 1,325,000 (2010: 1,325,000) of its own shares in treasury.
the redeemable shares are not entitled to receive any dividends and carry one vote per share in general meetings. on a return of 
capital, the holders of redeemable shares will receive £1 per share unless the conditions described below are met, in which event 
the entitlement of holders of redeemable shares will be enhanced as described below.
In the event that: (i) the return to holders of ordinary shares (calculated as dividends received, together with the increase in share 
price over 50p exceeds 10% per annum compounded annually); and (ii) the relevant holder of redeemable shares has not voluntarily 
ceased to be employed by or engaged to provide services to the Company or any group company or been dismissed for cause then 
the following provisions will apply:
(i)  on a takeover (including a takeover effected by a scheme of arrangement) the holders of the redeemable shares will become entitled 
to redeem their shares at a price which is calculated so as to attribute to all the redeemable shares the difference between the 
takeover offer price per share and 35p (or such other sum as is agreed with hM Revenue & Customs) multiplied by 11,123,494; or
(ii)  on a winding up, the assets attributable to the redeemable shares will likewise be calculated to be such amount as would represent 
the difference between the amount attributable to each ordinary share and 35p (or such other sum as is agreed with hM Revenue 
& Customs) multiplied by 11,123,494.
According to the Company’s Articles of Association, the redeemable shares can convert into deferred shares of 10p each. the deferred 
shares shall not confer the right to be paid a dividend or to receive notice of or attend or vote at a general meeting. on a winding up, 
after the distribution of the first £10,000,000 of the assets of the Company, the holders of the deferred share (if any) shall be entitled 
to receive an amount equal to the nominal value of such deferred shares pro rata to their respective holdings.
the Company operates an unapproved share option scheme. Awards under each scheme are made periodically to employees. Share 
options vest three years after the date of grant and have an exercise period of seven years. the schemes are all cash-settled.
the Company has used the Black-Scholes formula to calculate the fair value of outstanding options and deferred shares. the assumptions 
applied to the Black-Scholes formula for share options issued and the fair value per option are as follows:
Share Share Share 
options options options
2010/11 2009/10 2006/7 Redeemable
 grant grant grant shares
expected life of options based on options exercised to date 3 years 3 years 3 years 5 years
volatility of share price 76% 69% 30% 30%
Dividend yield 0% 0% 0% 0%
Risk free interest rate 2.05% 2.11% 5.38% 5.38%
Share price at date of grant 18.5p 16.5p 50.0p 35.0p
exercise price 18.5p 16.5p 50.0p 35.0p
Fair value per option £0.09 £0.05 £0.08 £0.07
the charge calculated for the year ended 30 June 2011 is £186,000 with a corresponding deferred tax asset at that date of £52,000.
volatility was assessed using the closing prices on the first business day of each month over the period since the shares have been listed. Inland plc Annual Report and Accounts 2011
42 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
21. SHARE CAPITAL continued
A reconciliation of option movements over the year ended 30 June 2011 is shown below:
exercise
number price
 000s pence
outstanding at 30 June 2009 860 50p
granted during the year 830 16.5p
outstanding at 30 June 2010 1,690 
granted during the year 3,000 18.5p
Outstanding at 30 June 2011 4,690 
Exercisable at 30 June 2011 and 30 June 2010 860 
there were 3,000,000 options granted during the year.
At 30 June 2011 outstanding options granted over 10p ordinary shares were as follows:
option  
price Dates
Share option scheme pence number exercisable
Company unapproved 50.0p 860,000 28 March 2010 to 27 March 2017
Company unapproved 16.5p 830,000 17 December 2012 to 16 December 2019
Company unapproved 18.5p 3,000,000 22 november 2013 to 21 november 2020
22. MOVEMENT ON RESERVES
  profit and loss 
Share premium t reasury shares account other reserves
 £000 £000 £000 £000
At 1 July 2009 45,184 (366) (15,848) (4,806)
profit for the year — — 1,192 —
Share-based compensation — — 182 —
Reserves transfer — — (4,806) 4,806
Shares issued during the year 622 — — —
At 30 June 2010 45,806 (366) (19,280) —
profit for the year — — 3,846 —
Share-based compensation — — 186 —
Share issue expenses for shares issued in prior year (12) — — —
At 30 June 2011 45,794 (366) (15,248) —
23. TRADE AND OTHER PAYABLES
2011 2010
 £000 £000
t rade payables 464 1,210
other creditors 2,996 271
Social security, other taxes and vAt 1,124 213
Accruals and deferred income 240 479
 4,824 2,173
the carrying value of trade and other payables is considered to be a reasonable approximation of fair value.  Annual Report and Accounts 2011 Inland plc
43
 
Overview Business review Corporate governance Group financial statements Company financial statements
24. OTHER FINANCIAL LIABILITIES
2011 2010
 £000 £000
Deferred purchase consideration on inventories falling due within one year — 5,965
the group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. the lack of availability 
of bank funding has resulted in the group seeking finance from alternative lending sources to improve liquidity.
25. CONTINGENCIES
the group has the following contingent liabilities:
a)  upon the sale of an investment property, a payment of £550,000 is due to two parties;
b)  a subsidiary undertaking, poole Investments plc, ceased to participate in its operating subsidiary’s pension scheme when it 
disposed of former subsidiaries in May 2004. the Scheme’s principal employer, pilkington’s tiles Limited went into administration 
on 14 June 2010 and as a result poole may be liable for a share of the cost of securing the liabilities of the Scheme pertaining to 
its two former employees should there be a deficit on the Scheme’s fund. the Directors consider that, as at the balance sheet date, 
material uncertainty exists over the basis and calculation of any obligation that may fall due to poole. Advice is being sort to clarify 
the Company’s position. A provision has therefore not been made in the financial statements as the basis of any provision cannot 
be reliably established; and
c)  Inland plc has guaranteed the obligations of howarth homes plc to Investec Bank plc in respect of cost and interest overruns in 
relation to the borrowings of the joint venture with howarth for the site at Croxley green, hertfordshire. the potential exposure is 
limited to £1m. 
no provisions have been made in these financial statements in respect of these contingent liabilities.
26. COMMITMENTS
the group leases an office and some plant and machinery under non-cancellable operating lease agreements. the leases have 
varying terms, escalation clauses and renewal rights.
the future aggregate minimum lease payments under non-cancellable operating leases are as follows:
2011 2010
 £000 £000
expiring not later than one year — —
expiring later than one year and not later than five years 203 267
expiring later than five years — —
 203 267
the rental contract for the office building rented since 28 April 2009 at 2 Anglo office p ark, 67 White Lion Road, Amersham hp7 9FB 
has a non-cancellable term of five years.
27. CAPITAL MANAGEMENT POLICIES AND PROCEDURES
the group’s objectives when managing capital are:
Î Î to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits 
for other stakeholders; and
Î Î to ensure sufficient liquid resources are available to meet the funding requirement of its projects and to fund new projects 
where identified.
this is achieved through ensuring sufficient bank and other facilities are in place and further details are given in note 28 of the group 
accounts. the group monitors capital on the basis of the carrying amount of the equity less cash and cash equivalents as presented 
on the face of the group Statement of Financial p osition. Inland plc Annual Report and Accounts 2011
44 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
27. CAPITAL MANAGEMENT POLICIES AND PROCEDURES continued
the movement in the capital to overall financial ratio is shown below. the target capital to overall financing ratio has been set by the 
Directors at 50% and results over this amount are considered to be a good performance against the target.
2011 2010
 £000 £000
equity 48,481 44,461
Less: cash and cash equivalents (2,239) (2,519)
Capital 46,242 41,942
 2011 2010
 £000 £000
equity 48,481 44,461
Borrowings 2,663 9,242
overall financing 51,144 53,703
Capital to overall financing 90.4% 78.1%
the group manages the capital structure and makes adjustments in light of changes in economic conditions and the risk characteristics 
of the underlying assets. In order to maintain or adjust the capital structure, the group may adjust the level of dividends paid to shareholders, 
return capital to shareholders, issue new shares or sell assets to reduce debt.
28. FINANCIAL ASSETS AND LIABILITIES
the carrying amounts presented in the Statement of Financial p osition relate to the following categories of assets and liabilities:
2011 2010
 note £000 £000
Financial assets
Listed investments held for trading 19 1 131
Loans and receivables   
Loan to associate 18 1,895 1,895
t rade and other receivables 17 9,296 4,715
Cash and cash equivalents 20 2,239 2,519
  13,430 9,129
Financial liabilities
Financial liabilities designated fair value through profit or loss:
– current borrowings  2,663 9,242
Financial liabilities measured at amortised cost:
– trade and other payables 23 4,584 1,694
– other financial liabilities 24 — 5,965
  4,584 7,659
the fair values are presented in the related notes.
During the year ended 30 June 2011 the group entirely repaid its revolving credit facility (2010: £6.2m). Current borrowings consist 
of a house building loan facility of £3.9m, of which £0.67m (2010: £3.1m) is drawn down, and a further loan of £2.0m secured against 
land (2010: £nil). the housebuilding loan facility was due for repayment by 30 September 2011 and the other loan by 17 December 2011. 
the loans attract interest of between 6% and 15% per annum. Annual Report and Accounts 2011 Inland plc
45
 
Overview Business review Corporate governance Group financial statements Company financial statements
28. FINANCIAL ASSETS AND LIABILITIES continued
the table below analyses the group’s financial contractual liabilities into relevant maturity groupings based on the remaining period 
at the Statement of Financial position date to the contractual maturity date. the amounts disclosed are the contractual undiscounted 
cash flows. 
2011 2010
Trade and Deferred t rade and Deferred
other purchase other purchase
payables consideration payables consideration
 £000 £000 £000 £000
Less than one year 6,123 — 10,725 6,000
Between one and two years — — — —
 6,123 — 10,725 6,000
the group adopted the amendments to IFRS 7 Improving Disclosures about Financial Instruments effective from 1 January 2009. 
these amendments require the group to present certain information about financial instruments measured at fair value in the group 
Statement of Financial position. 
the following table presents financial assets and liabilities measured at fair value in the group Statement of Financial p osition 
in accordance with the fair value hierarchy. this hierarchy groups financial assets and liabilities into three levels based on the 
significance of inputs used in measuring the fair value of the financial assets and liabilities. the fair value hierarchy has the 
following levels:
– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
–  Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) 
or indirectly (i.e. derived from prices); and 
– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
the level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair 
value measurement.
the financial assets and liabilities measured at fair value in the group Statement of Financial p osition are grouped into the fair value 
hierarchy as follows:
Level 1 Level 2 Level 3 t otal
 note £000 £000 £000 £000
net fair value at 1 July 2010 28(A) 131 — — 131
Sales:
– proceeds (146) — — (146)
– realised gains on sales 16 — — 16
Net fair value at 30 June 2011 1 — — 1
(A) LISteD SeCURItIeS AnD DeBentUReS
All the listed equity securities and debentures are denominated in Sterling and are publicly traded in the United kingdom. Fair values 
have been determined by reference to their quoted mid prices at the reporting date. Inland plc Annual Report and Accounts 2011
46 | gRoUp FInAnCIAL St AteMentS
Notes to the group financial statements continued for the year ended 30 June 2011
29. RELATED PARTY TRANSACTIONS
As at 30 June 2011 there was a sum due from howarth amounting to £1,895,000. this is included within loan to associate and is in 
respect of a rolling facility provided to howarth for a maximum balance of £2,000,000. the balance outstanding attracts interest of 
8% per annum above the national Westminster Bank plc base rate for the first £1,000,000 and 15% per annum on amounts over this. 
the interest received from howarth for the year ended 30 June 2011 amounted to £130,000.
During the year ended 30 June 2011, howarth carried out construction work on sites owned by the group. the total amount, charged 
on an arm’s length basis by howarth for this work, was £1,399,000.
During the year ended 30 June 2010 the group entered into a joint venture with howarth for the development of 51 units at a site in 
Croxley green, hertfordshire. At 30 June 2011 the group had invested £2,302,000. the group’s 50% share of profit after tax to date 
amounts to £99,000 that has been recognised in the group Income Statement.
the group’s share of the results and its share of net assets of the joint venture are as follows: 
2011 2010
 £000 £000
net assets 158 83
net result 99 —
30. COMPANY INFORMATION
the Company is a public limited company registered in england and Wales. the registered office and principal place of business is 
2 Anglo office p ark, 67 White Lion Road, Amersham, Buckinghamshire hp7 9FB.
the principal activity of the group is to acquire residential and mixed use sites and seek planning consent for development. the group 
also develops a number of plots for private sale. Annual Report and Accounts 2011 Inland plc
47
Overview Business review Group financial statements Company financial statements Corporate governance
We have audited the parent Company financial statements of Inland plc for the year ended 30 June 2011 which comprise the 
parentCompany Balance Sheet and the related notes. the financial reporting framework that has been applied in their preparation 
is applicable law and United kingdom Accounting Standards (United kingdom generally Accepted Accounting practice).
this report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of p art 16 of the Companies Act 2006. 
our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to 
them in an auditor’s report and for no other purpose. t o the fullest extent permitted by law, we do not accept or assume responsibility 
to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we 
have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR
As explained more fully in the Directors’ Responsibilities Statement in the Directors’ Report, the Directors are responsible for the 
preparation of the parent Company financial statements and for being satisfied that they give a true and fair view. 
our responsibility is to audit and express an opinion on the p arent Company financial statements in accordance with applicable law 
and International Standards on Auditing (Uk and Ireland). those standards require us to comply with the Auditing practices Board’s 
(ApB’s) ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
A description of the scope of an audit of financial statements is provided on the ApB’s website at www.frc.org.uk/apb/scope/private.cfm.
OPINION ON FINANCIAL STATEMENTS
In our opinion the parent Company financial statements:
Î Î give a true and fair view of the state of the Company’s affairs as at 30 June 2011;
Î Î have been properly prepared in accordance with United kingdom generally Accepted Accounting practice; and
Î Î have been prepared in accordance with the requirements of the Companies Act 2006.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is 
consistent with the parent Company financial statements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
Î Î adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received 
from branches not visited by us; 
Î Î the parent Company financial statements are not in agreement with the accounting records and returns;
Î Î certain disclosures of Directors’ remuneration specified by law are not made; or
Î Î we have not received all the information and explanations we require for our audit.
OTHER MATTER
We have reported separately on the group financial statements of Inland plc for the year ended 30 June 2011.
Robert Napper
SenIoR St AtUtoRy AUDItoR 
FoR AnD on BehALF oF gRAnt thoRnton Uk LLp 
St AtUtoRy AUDItoR, ChARteReD A CCoUnt AntS
SLoUgh
17 october 2011 
Independent auditor’s report to the members of Inland plc Inland plc Annual Report and Accounts 2011
48 | CoMp Any FInAnCIAL St AteMentS
Company balance sheet at 30 June 2011
 2011 2010
 note £000 £000
Fixed assets
Investments 5 14,724 14,691
14,724 14,691
Current assets
Debtors 6 41,022 46,098
Listed investments 1 131
Deferred tax 198 146
Cash at bank and in hand 368 822
  41,589 47,197
Creditors: amounts falling due within one year 7 (1,525) (6,488)
Net current assets 40,064 40,709
Total assets less liabilities 54,788 55,400
Capital and reserves
Called up share capital 8 18,301 18,301
Share premium 9 45,794 45,806
t reasury shares 9 (366) (366)
profit and loss account 9 (8,941) (8,341)
Shareholders’ funds 54,788 55,400
the financial statements on pages 48 to 52 were approved and authorised for issue by the Board of Directors on 17 october 2011 and 
signed on its behalf by:
Stephen Wicks Nishith Malde Company number
DIReCtoR DIReCtoR 5482990
the accompanying accounting policies and notes form part of these financial statements.  Annual Report and Accounts 2011 Inland plc
49
Overview Business review Group financial statements Company financial statements Corporate governance
Notes to the company financial statements for the year ended 30 June 2011
1. PRINCIPAL ACCOUNTING POLICIES
BASIS oF pRep ARAtIon
the financial statements have been prepared in accordance with applicable United kingdom accounting standards and under 
the historical cost convention. the Directors have reviewed the principal accounting policies and consider they remain the most 
appropriate for the Company. the principal accounting policies of the Company have remained unchanged from the previous year.
InveStMentS
Investments are included at cost less amounts written off.
eqUIty-SettLeD ShARe-BASeD p AyMent
All share-based payment arrangements are recognised in the financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values using the 
Black-Scholes options pricing model. Where employees are rewarded using share-based payments, the fair values of employees’ 
services are determined indirectly by reference to the fair value of the instrument granted to the employee. this fair value is appraised 
at the grant date and excludes the impact of any non-market vesting conditions.
All equity-settled share-based payments are ultimately recognised as an expense in the income statement with a corresponding credit 
to reserves brought forward.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best 
available estimate of the number of share options expected to vest. estimates are subsequently revised if there is any indication 
that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is 
recognised in the current period. no adjustment is made to any expense recognised in prior periods if share options ultimately 
exercised are different to that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital and, where 
appropriate, share premium.
DeFeRReD t AxAtIon
Deferred tax is recognised on all timing differences where the transactions or events that give the Company an obligation to pay more 
tax in the future, or a right to pay less tax in the future, have occurred by the balance sheet date. Deferred tax assets are recognised 
when it is more likely than not that they will be recovered. Deferred tax is measured using rates of tax that have been enacted or 
substantively enacted by the balance sheet date on an undiscounted basis.
2. PROFIT ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY
As permitted by Section 408 of the Companies Act 2006, the parent Company has not presented its own profit and loss account.
the Company’s loss for the year of £786,000 (2010: loss of £628,000) has been transferred to reserves.
AUDItoR’S ReMUneRA tIon
the audit fees for the Company were £5,000 (2010: £5,000). Auditor’s remuneration for other services is disclosed in note 7 to the 
group financial statements.
Fees paid to the Company’s auditor, grant thornton Uk LLp, and its associates for services other than statutory audit of the Company 
are not disclosed in Inland plc’s financial statements since the group financial statements of Inland plc are required to disclose 
non-audit fees on a consolidated basis.
3. EMPLOYEES
Staff costs during the year were as follows:
2011 2010
 £000 £000
Share-based payment 186 182
the average number of employees (including Directors) during the year was:
2011 2010
 Number number
Management 2 2 Inland plc Annual Report and Accounts 2011
50 | CoMp Any FInAnCIAL St AteMentS
Notes to the company financial statements continued for the year ended 30 June 2011
4. DIRECTORS’ REMUNERATION
See note 8 of the group financial statements.
5. INVESTMENTS
Investment Investment Investments 
in joint in group other than 
venture undertakings loans t otal
 £000 £000 £000 £000
Cost
At 1 July 2010 2,269 12,422 1,359 16,050
Additions 33 — — 33
At 30 June 2011 2,302 12,422 1,359 16,083
Amortisation
At 1 July 2010 — — 1,359 1,359
At 30 June 2011 — — 1,359 1,359
Net book amount to 30 June 2011 2,302 12,422 — 14,724
net book amount to 30 June 2010 2,269 12,422 — 14,691
See note 14 of the group financial statements for details on the group undertakings.
6. DEBTORS 
2011 2010
 £000 £000
Amounts owed by group undertakings 39,109 44,168
Loan to associate 1,895 1,895
other debtors 18 35
 41,022 46,098
7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2011 2010
 £000 £000
Bank loans and overdraft — 6,130
t rade creditors 20 38
Accruals and other creditors 1,505 320
 1,525 6,488
In the prior year bank loans and overdrafts were secured on the assets held by its subsidiaries. See note 28 of the group Financial 
Statement for further details. Annual Report and Accounts 2011 Inland plc
51
 
Overview Business review Group financial statements Company financial statements Corporate governance
8. SHARE CAPITAL
2011 2010
 £000 £000
Authorised
239,990,000 (2010: 239,990,000) ordinary shares of 10p each 23,999 23,999
1,000 (2010: 1,000) redeemable shares of £1 each 1 1
 24,000 24,000
2011 2010
 £000 £000
Allotted, issued and fully paid
182,999,484 (2010: 182,999,484) ordinary shares of 10p each 18,300 18,300
980 (2010: 980) redeemable shares of £1 each 1 1
180 (2010: 180) deferred shares of 10p each — —
 18,301 18,301
the redeemable shares are not entitled to receive any dividends and carry one vote per share in general meetings. on a return of 
capital, the holders of redeemable shares will receive £1 per share unless the conditions described below are met, in which event the 
entitlement of holders of redeemable shares will be enhanced as described below.
In the event that: (i) the return to holders of ordinary shares (calculated as dividends received, together with the increase in share price 
over 50p exceeds 10% per annum compounded annually); and (ii) the relevant holder of redeemable shares has not voluntarily ceased 
to be employed by or engaged to provide services to the Company or any group company or been dismissed for cause then the following 
provisions will apply:
(i)  on a takeover (including a takeover effected by a scheme of arrangement) the holders of the redeemable shares will become entitled 
to redeem their shares at a price which is calculated so as to attribute to all the redeemable shares the difference between the 
takeover offer price per share and 35p (or such other sum as is agreed with hM Revenue & Customs) multiplied by 11,123,494; or
(ii)  on a winding up, the assets attributable to the redeemable shares will likewise be calculated to be such amount as would represent 
the difference between the amount attributable to each ordinary share and 35p (or such other sum as is agreed with hM Revenue 
& Customs) multiplied by 11,123,494.
According to the Company’s Articles of Association, the redeemable shares can convert into deferred shares of 10p each. the deferred 
shares shall not confer the right to be paid a dividend or to receive notice of or attend or vote at a general meeting. on a winding up, 
after the distribution of the first £10,000,000 of the assets of the Company, the holders of the deferred share (if any) shall be entitled 
to receive an amount equal to the nominal value of such deferred shares pro rata to their respective holdings.
Details of the Company’s share option schemes can be found in note 21 to the group accounts.
9. RESERVES
profit
Share t reasury and loss
premium shares account
 £000 £000 £000
At 30 June 2010 45,806 (366) (8,341)
Retained loss for the year — — (786)
Shares issue expenses for shares issued in prior year (12) — —
employee share-based compensation — — 186
At 30 June 2011 45,794 (366) (8,941) Inland plc Annual Report and Accounts 2011
52 | CoMp Any FInAnCIAL St AteMentS
Notes to the company financial statements continued for the year ended 30 June 2011
10. CAPITAL COMMITMENTS
the Company had no outstanding capital commitments at 30 June 2011 or 30 June 2010.
11. CONTINGENT LIABILITIES
the Company has the following contingent liabilities:
a)  Inland plc has guaranteed the obligations of howarth homes plc to Investec Bank plc in respect of costs and interest overruns 
in relation to the borrowings of the joint venture with howarth for the site at Croxley green, hertfordshire. the potential exposure 
is limited to £1m; 
b)  Inland plc has guaranteed any shortfall of interest payable by Inland housing Limited in respect of borrowings relating to the 
subsidiary undertaking’s development at Farnborough. In the Directors’ opinion there is unlikely to be any such shortfall; and
c)  Inland plc has guaranteed the obligations of Inland homes Limited to a private lender in respect of a £2m loan taken out during 
the year ended 30 June 2011. 
no provisions have been made in these financial statements in respect of these contingent liabilities.
12. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
2011 2010
 £000 £000
Loss for the year (786) (628)
Issue of shares (12) 2,707
Share-based compensation 186 182
net (decrease)/increase in shareholders’ funds (612) 2,261
opening shareholders’ funds 55,400 53,139
Closing shareholders’ funds 54,788 55,400
13. RELATED PARTY TRANSACTIONS
the Company is exercising its right to withhold disclosure of related party transactions between itself and its wholly owned subsidiary 
undertakings in line with FRS 8.3 Related party Disclosures. Company information and advisers
company regIstratIon number
5482990
company secretary
nishith Malde F ca
regIstered offIce and websIte
2 anglo office p ark 
67 White lion road 
amersham 
Buckinghamshire hp7 9FB 
www.inlandplc.com
nomInated advIser and broker
Finnc ap liMited
60 new Bond street 
london ec2M 1JJ
solIcItor
dorsey & Whitney llp
21 Wilson street 
london ec2M 2td
audItor
Grant thornton uK llp
chartered accountants 
statutory auditor 
churchill house 
chalvey road east 
slough 
Berkshire sl1 2ls
banker
Barclays BanK plc
Gatwick & sussex t eam 
90/92 high street 
crawley 
rh10 1Bp
regIstrar
c apita reGistrars
the registry 
34 Beckenham road 
Beckenham 
Kent Br3 4tu
sustainability is at the heart of everything we do.
Inland plc is a leading brownfield regeneration specialist. 
We specialise in buying brownfield sites and enhancing 
their value through obtaining planning permissions for 
residential and mixed use developments.
Inland’s highly experienced land team has extensive knowledge of the 
complexities of the planning system which in turn enables it to unlock 
added value in property that others cannot.
we recognise the significant impact our activities can have on the 
environment and the communities in which we work.
we believe that managing these activities responsibly brings long 
term benefits to our shareholders as well as our other stakeholders.
at the heart of our business is the principle of sustainability – the need 
to conserve scarce resources for the benefit of future generations.
overvIew
01 highlights
02  delivering innovative and pioneering 
state of the art homes
04  ensuring our solutions meet local needs
06  providing quality homes with an 
emphasis on design and sustainability
08 chairman’s statement
busIness revIew
10 chief executive’s review
corporate governance
12 directors
14 directors’ report
group fInancIal statements
19 independent auditor’s report
20 Group income statement
20  Group statement of 
comprehensive income
21 Group statement of financial position
22 Group statement of changes in equity
23 Group statement of cash flows
24 notes to the group financial statements
company fInancIal statements
47  independent audit or’ s r eport
48  company balance sheet
49  notes to the company financial statements
Ibc company information and advisers Creative thinking in brownfield development
annual report and accounts 2011
Inland plc
2 Anglo Office Park 
67 White Lion Road 
Amersham 
Buckinghamshire HP7 9FB
T: 01494 762450 
F: 01494 765897 
E: info@inlandplc.com
www.Inlandplc.com
Inland plc annual report and accounts 2011