22901.04     4 November 2013 12:25 PM     Proof 5
Inland Homes plc  Annual Report and Accounts for the year ended 30 June 2013
Annual Report and Accounts  
for the year ended 30 June 2013
Stock code: INL
Creative thinking in 
brownfield development 22901.04     4 November 2013 12:25 PM     Proof 5
As a leading brownfield regeneration 
specialist, we focus in buying 
brownfield sites and enhancing their 
value through obtaining planning 
permissions for residential and mixed 
use developments.
42
Read more about
Corporate Responsibilities
Sustainability  
is at the heart of 
everything we do.
Burleigh Place, Mytchett 22901.04     4 November 2013 12:25 PM     Proof 5
Inland Homes is an established land regeneration business, 
focused on developing sites in southern England for residential 
and mixed use projects. Our foundations have been built on a 
proactive and decisive approach to identifying the right land 
opportunities, and our ability to navigate the complex planning 
system and maximise the potential of the final development.
Our versatile structure, relatively small team, local insight 
and opportunistic approach give us a competitive advantage, 
ensuring we can react fast to secure the sites we want at a price 
that works. Once secured, our knowledge of and relationships 
with local authorities, and the wealth of experience in our land 
team, is reflected in our 100% record of securing planning 
consent for our sites.
Our ambitious developments, combining style, comfort and 
sustainability for a wide social demographic, deliver for our 
business, our stakeholders, our shareholders and the local 
community. 
Increasingly, we are utilising our own land bank to grow as 
a housebuilder and this growth will continue to change our 
revenue profile.
Land Portfolio
The land portfolio consists of 2,306 plots across the 
south of England, owned, controlled or managed by 
Inland Homes.
Amersham
Chesham
Gerrards Cross
Wooburn Green
West Drayton
Iver
Mytchett
Little Chalfont
Farnborough
Southampton Poole
Henley on Thames
Ashford
Beaconsﬁeld
Markyate
Bushey Chelmsford
Woolwich
Ipswich
Who We Are
Our Business
01 Who We Are
02 Financial and Operational Highlights
04 Our Business Model
08 Group at a Glance
10 Our Marketplace
11 Our Strategy
Our Performance
12 Chairman’s Statement
15 Chief Executive’s Review
18 Case Studies
30 Risk and Risk Management
Our Governance
32 Board of Directors
34 Directors’ Report
39 Directors’ Remuneration Report
42 Corporate, Social, Ethical and 
Environmental Responsibilities
Our Accounts
Group Financial Statements
43 Independent Auditor’s Report
44 Group Income Statement
44 Group Statement of Comprehensive 
Income
45 Group Statement of Financial Position
46 Group Statement of Changes in Equity
47 Group Statement of Cash Flows
48 Notes to the Group Financial Statements
Company Financial Statements
75 Independent Auditor’s Report
76 Company Balance Sheet
77 Notes to the Company 
Financial Statements
Shareholder Information
IBC Company Information and Advisers
Getting Around
A guide to the signposting  
tools used in this report:
00
Indicates additional 
information within the report
Indicates additional
information online
Our Business
Our Performance
Our Governance
Our Accounts
Stock code: INL www.inlandplc.com  01
Shareholder Information 22901.04     4 November 2013 12:25 PM     Proof 5
Financial and Operational Highlights
Strong performance delivers 
record annual results
Group highlights:
•	 Record results reflect a combination of 
increased plot sales to developers and 
growing focus on housebuilding activity 
in order to maximise the value of the 
Group’s land bank
•	 Significant increase in housebuilding 
activity with 55 (2012: 9) homes sold 
generating revenue of £11.4 million 
(2012: £1.7 million)
•	 Strong developer and housing 
association demand for consented land; 
375 (2012: nil) plots sold generating  
revenue of £16.4 million. Drayton Garden 
Village Limited (“DGVL”) separately sold 
a further 76 (2012: 116) plots realising 
revenue of £5.3 million (2012: £6.7 
million)
•	 Land bank increased to 2,306 plots with 
1,057 consented
•	 Planning permission granted at Carter’s 
Quay, Poole and St John’s Hospital, 
Chelmsford
•	 Strengthened capital base through 
successful fundraisings totalling  
£13.7 million
•	 Fourfold increased dividend reflects 
balance sheet strength 
Post year end highlights:
•	 DGVL exchanged contracts to sell 107 
apartments at Drayton Garden Village 
(‘DGV’) for £21 million on a turnkey 
package, which the Group is managing 
on behalf of DGVL 
•	 Purchased office to residential 
conversion site in Gerrards Cross, 
Buckinghamshire
Outlook:
The Group’s housebuilding activity has had 
a strong start to the year; forward sales 
(Inland and DGVL) of £46.3 million secured 
and 486 units under construction; expect 
significant increase in number of homes 
sold 
•	 Experiencing robust demand for 
consented land
•	 Market supported by Government 
initiatives; Group well placed to exploit 
opportunities
20
Read our case study on
Drayton Garden Village
15
Find out more within
Chief Executive’s Review
12
Find out more within
Chairman’s Statement
“It has been a very good year 
for Inland Homes. Our strategic 
move to increase the Group’s 
housebuilding activity has proved 
to have been well timed, while 
we continue to make progress in 
growing our land bank in terms of 
both size and quality.
“The Group is well financed and  
with market conditions in our  
favour, we are confident that 
we will make further progress 
throughout the course of this 
financial year and beyond.”
Stephen Wicks  
Chief Executive
Construction of 32 private homes at Drayton Garden Village
02 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Revenue
up 410% 
at £31.1m 
(2012: £6.1m)
 
2011 2012 2013
£21.4m
£6.1m
£31.1m
Earnings per 
share
up 383% 
at 1.98p 
(2012: 0.41p)
2011 2012 2013
2.10p
0.41p
1.98p
Profit before tax
up 225% 
at £5.2m 
(2012: £1.6m)
2011 2012 2013
£3.5m
£1.6m
£5.2m
Net asset value 
per share
1
up 6% 
at 28.7p 
(2012: 27.0p)
2011 2012 2013
26.5p
27.0p
28.7p
Year end cash 
balances
up 1,933% 
at £12.2m 
(2012: £0.6m)
1. Excludes the Group’s interest in 
Drayton Garden Village Limited  
(‘DGVL’) from which Inland  
expects to derive a further 5.0p  
per share.
2011 2012 2013
£0.6m
£12.2m
£2.2m
Dividend per 
share
up 303% 
at 0.27p 
(2012: 0.067p)
2012 2013
0.067p
0.27p
0.00p
2011
Our Business
Our Performance
Our Governance
Our Accounts
Stock code: INL www.inlandplc.com  03
Shareholder Information 22901.04     4 November 2013 12:25 PM     Proof 5
Inland Homes has a defined business model for 
delivering value in the short, medium and long 
term. In the recent past, the model has changed to 
accommodate our growing housebuilding programme, 
which will deliver greater margins and more regular 
returns in the medium and long term.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinvest
Return value 
to shareholders
Value
 
 
Medium term returns Long term returns Short term returns
28
Read our case study on
West Plaza, Ashford
24
Read our case study on
Queensgate, Farnborough
Adding and 
creating value 
right through the 
value chain
Our Business Model
Creating short, medium 
and long term value
Identify land
Our local insight and 
established relationships 
mean that Inland Homes 
is always aware of 
opportunities to increase 
our land bank. 
Acquire land
Our flexible structure and 
motivated, close-knit team 
combine to make us a swift 
and astute land buyer. 
Achieve 
planning 
permission
Once a site is acquired, 
work begins to achieve 
planning permission. 
Our record of achieving 
planning permissions on 
our sites is second  
to none.
04 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reinvest
Return value 
to shareholders
Value
 
 
Medium term returns Long term returns Short term returns
28
Read our case study on
West Plaza, Ashford
24
Read our case study on
Queensgate, Farnborough
Adding and 
creating value 
right through the 
value chain
Read more online 
www.inlandplc.com
Sell land with 
planning 
permission to 
developers
Once consent is achieved, 
Inland Homes has the 
opportunity  to sell the 
site with outline planning 
permission to developers 
or housing associations for 
a short term return. 
Develop all or 
part of the site
By selling parts of a 
site while carrying out 
infrastructure works and 
our own housebuilding 
on other parts, we are 
delivering revenue in the 
medium term. 
Retain all or 
part of the site, 
build using main 
contractors  
and JVs 
Building a whole 
development ourselves 
takes longer but 
 maximises the revenue a 
site can deliver over the 
long term.
30
Read about
Risk and Risk Management
11
Read about Inland Homes’
Strategy
“Sites acquired can often deliver short 
term returns through the sale of surplus 
assets or rent from tenants.”
Des Wicks 
Land Manager
Our Business
Our Performance
Our Governance
Our Accounts
Stock code: INL www.inlandplc.com  05
Shareholder Information 22901.04     4 November 2013 12:25 PM     Proof 5
Our Business Model continued 
We are proud of the developments we plan and design, 
and are always looking to create communities attractive 
to future residents. Delivering on our commitment to 
quality and comfort, developed sites feature open 
spaces, play areas and immaculate landscaping to suit 
the needs of a wide variety of people.
Identify land
Our local insight and established 
relationships mean that Inland Homes is 
always aware of opportunities to increase 
its land bank. We have particularly strong 
ties with central London agents, the MOD 
and other Government organisations, which 
frequently lead to new deals. 
Sites of varying value and size located 
in the south of England, the south east 
and around the M25 are our priority, but 
other locations are investigated where 
appropriate. Intensive legal, financial 
and land research is carried out at the 
identification stage, supported by our  
in-house architect and a number of 
planning/architectural consultants.  
Research into key factors such as local 
employment and transport links also 
influences our decisions.
Our appraisals and due diligence  
minimises risk and reinforces the land’s 
potential, ensuring that we fully  
understand the opportunity and that only 
sites with the right risk/reward balance are 
chosen. Payment terms for land can be 
up to three to four years with land being 
released to Inland Homes as and when 
payment is made.
Acquire land
Our flexible structure and motivated,  
close-knit team combine to make us a 
swift and astute land buyer. As well as 
typical sites for development, strategic 
parcels of land — the value of which may 
come from being key to securing further 
land or development in the future — may 
also be purchased. 
Government organisations and vendors 
generally sell to developers that can make 
a success of the land acquired and meet 
potential future contractual terms such as 
overage. In that respect, Inland Homes has 
a reputation for meeting and exceeding 
these expectations, thus strengthening 
our case when making offers on new land 
acquisitions.
Sites acquired can often deliver short 
term returns through the sale of surplus 
assets or rent from tenants (acquiring sites 
can sometimes mean that Inland Homes 
becomes a short term landlord until new 
development can begin).
Achieve planning 
permission
Once a site is acquired, work begins to 
achieve planning permission. Our record 
of achieving planning permissions on 
our sites is second to none. We place 
the needs of all affected parties — 
Government, Local Authorities, local 
residents, potential end users, local 
wildlife and the environment — alongside 
our own. 
Our expertise in designing sites involves 
detailed surveys, public consultations and 
presentations to create developments that 
naturally blend into the local environment. 
Plans produced by Inland Homes are 
designed to deliver the maximum value 
for our stakeholders.
Inland Homes produces comprehensive 
development proposals that are 
supported by robust financial viability 
assessments and a strong track record. 
Applications are further leveraged by our 
ability and experience in delivering ‘green’ 
sites that are energy efficient and offer 
carbon reductions. We typically allow 
18 to 24 months to secure a planning 
permission for a site.
06 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
“Plans produced by Inland Homes are 
designed to deliver the maximum value for our 
stakeholders.”
Matt Corcoran 
Planning Manager
Read more online 
www.inlandplc.com
 
Sell land with planning 
permission to developers
Historically, once consent has been 
achieved, Inland Homes would sell the 
site with outline planning permission to 
developers or housing associations for 
a short term return. Depending on our 
interests as an expanding housebuilder, this 
will still continue where appropriate. 
We have good relationships with our  
land-buying customers and most 
transactions happen once the necessary 
ground remediation (removal of pollution 
and contaminants) has happened and 
the infrastructure has been installed. A 
‘serviced site’ contains all the necessary 
drainage and roads, etc. already in place. 
As housebuilders ourselves, we know how 
to meet the needs of potential developers in 
order for them to be able to move quickly. 
Those developing on our sites are  
required to follow our ‘Design Code’  
for consistency. This ensures the site 
has a look and feel in keeping with the 
development as a whole and with the  
local area.
Develop all or part of  
the site
While portions of our sites are still sold 
to other developers, Inland Homes is 
increasingly using its land bank to grow  
as a housebuilder. By installing 
infrastructure and selling parts of a site, 
whilst carrying out our own housebuilding 
on other parts, we are delivering revenue 
in the medium term. 
Our customers for land are typically 
major housebuilders, medium tier and 
smaller local developers and our homes 
are acquired by private purchasers as 
owner occupiers and investors. We also 
have strong relationships with Housing 
Associations and investors in the Private 
Rented Sector. 
Value is returned to Inland Homes either 
as milestone payments as construction 
takes place, or as payments when units 
are completed, both of which provide 
regular cash flow. Large projects usually 
require a ‘mixed use scheme’, where 
Inland Homes will develop the commercial 
plots that are let to tenants. Value is 
realised by managing the asset for a 
short period of time before selling the 
investment to a third party.
Retain all or part of the 
site, build using main 
contractors and joint 
ventures
With greater gross margins achieved on 
our own housebuilding, building a whole 
development ourselves takes longer but 
maximises the revenue a site can deliver 
over the long term. Inland Homes has 
substantially increased its housebuilding 
activities over the recent past and we 
expect this to continue.
We have forged strong relationships 
with main contractors and third parties 
that have a reputation and track record 
for delivering stunning homes. By 
agreeing fixed-price contracts up front 
we are minimising risk in the construction 
stage, with payments only being made 
on ‘valuation certificates’ provided by 
surveyors checking progress on projects.
As well as delivering value, we are 
proud of the developments we plan and 
design, and are always looking to create 
communities attractive to future residents. 
Delivering on our commitment to quality 
and comfort, developed sites feature 
open spaces, play areas and immaculate 
landscaping to suit the needs of a wide 
variety of people.
Our Business
Our Performance
Our Governance
Our Accounts
Stock code: INL www.inlandplc.com  07
Shareholder Information 22901.04     4 November 2013 12:25 PM     Proof 5
Plots added Planning permission 
gained during the year

496
Group at a Glance
966
Artist’s impression of Carter’s Quay, Poole
“The strengthening of our 
land portfolio to over 2,300 
plots is key to the continued 
growth of the business.”
Paul Brett 
Land Director
08 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Number of plots  Total residential plots sold
Residential home sales
Rental income generated
Forward sales
(either agreed or contracted)
•	 Housing Associations as affordable 
homes
•	 Housing Associations for private rented 
sector (PRS)
•	 Private purchasers as owner occupiers
•	 UK and overseas investors
with 
planning
without 
planning
Total
1,057
1,249
2,306
+
=
2011 2012 2013
256
183
375
2012 2013
9
55
35
2011
2011 2012 2013
£374k
£322k
£300k



Generating
£16.4m
375
*
Generating
£11.4m
55
£300,000
£46.3m

* In addition, 76 plots were sold on behalf of DGVL.
Our Business
Our Performance
Our Governance
Our Accounts
Stock code: INL www.inlandplc.com  09
Shareholder Information 22901.04     4 November 2013 12:25 PM     Proof 5
Our Marketplace
Throughout 2013, the UK housing market has 
shown significant signs of revival. The number 
of transactions has increased and the pent up 
demand has subsequently seen prices rise. 
In the south of England where Inland Homes 
operates, the Office for National Statistics 
(ONS) found that property prices in and around 
London and the south east have soared in 
2013, more so than in any other area of the 
country. With growth in employment expected 
in the south east over the next decade, housing 
demand and prices are set to continue rising.
Government schemes such as last year’s Get 
Britain Building investment fund (which provided 
a £2 million facility to the Queensgate project) 
have seen new housing supply rising, with the 
Government estimating 334,000 new homes will 
be built in the three years up to August 2013.
However, there are currently insufficient houses 
to keep up with the growing demand, which 
is estimated at over 250,000 units p.a. With 
110,530 units built in the 12 months up to June 
2013 (7% up on same time in 2012), demand 
is currently more than double what is being 
built. With an ageing population meaning fewer 
occupants per property, the long term lack of 
homes is likely to continue.
In terms of buyers, Government schemes such 
as Help to Buy are building on these signs of 
recovery. The Help to Buy home ownership 
scheme has been launched in England and 
runs for three years. 
There is also the Build to Rent Fund, which 
was launched to stimulate new private 
rented housing supply. The HCA (Homes and 
Community Agency) which controls all the RSLs 
(Registered Social Landlords) has allocated a 
£15 million facility for Inland Homes and DGVL 
to assist in the development of Build to Rent 
plots being delivered.
The UK Government’s reforms to make the 
planning system less complex and easier to 
understand has recently resulted in a change 
of legislation to promote office to residential 
conversion under “prior approval notification” 
procedures, which will be useful on one of the 
Group’s projects.
Inland Homes has also started to engage with 
lucrative overseas investors, recently selling 
12 apartments from the West Plaza, Ashford, 
Middlesex development to customers in Hong 
Kong. There is evidence that overseas demand 
for UK property is growing, with over half of all 
new buildings in London now purchased by 
foreign buyers.
Customer service is an integral part of our business
“Inland Homes has 
also started to engage 
with lucrative overseas 
investors, recently 
selling 12 apartments 
from the West Plaza, 
Ashford, Middlesex 
development to 
customers during a  
trip to Hong Kong.”
Vicki Noon 
Sales and Marketing Director
10 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Our Strategy
With strong demand for land in the south and 
south east, we will continue to capture land 
trading margin by selling brownfield land, with 
planning permission, to developers. At the 
same time we are growing and utilising our 
capabilities as a housebuilder (486 units now 
under construction). We will look to extract 
value using the appropriate option available 
to us through the value chain, with a focus on 
the cash needs of the business. Making use 
of equity, debt funding and vendor financing, 
we will entrepreneurially grow the business 
by capitalising on buoyant market conditions, 
achieving higher margins through our 
housebuilding, whilst being fanatic about our 
cash position and levels of borrowing. 
With short, medium and long term value 
releasing options available, we will support our 
strategy by adding plots to the land bank year 
on year. We will continue to meet the needs 
of our customers and build on our strong 
relationships with Housing Associations. Our 
outsourcing model makes the business agile 
and quick to capitalise on market conditions, 
enabling us to easily scale-up or scale-down 
when appropriate.  
Adding to our team of industry experts we 
have invested in additional resources including 
planners, architectural designers, project 
managers, and sales and marketing people 
to build extra capacity to support our growth 
journey as housebuilders, which will provide 
more regular earnings for shareholders.
Inland Homes has a clear strategy focused on maximising the value 
of our land bank, realising value at appropriate stages during the 
development cycle to support ongoing sustainable growth and 
therefore delivering shareholder value. 
Our strategy focuses on four key goals:
1
To increase the size of 
our land bank year on 
year
2
Continue the core 
activity of plot sales 
to other developers to 
generate cash to fund 
our operations
3
Maximise the value 
from our land bank 
by expanding our 
housebuilding 
programme
4
Maintain borrowings 
at a relatively low level 
through a strong focus 
on cash management 
and vendor financing
30
Read about
Risk and Risk Management
Our Business
Our Performance
Our Governance
Our Accounts
Stock code: INL www.inlandplc.com  11
Shareholder Information 22901.04     4 November 2013 12:25 PM     Proof 5
Chairman’s Statement
A strong performance in improving market 
conditions
I am delighted to report a very strong set of 
results for Inland Homes, driven by an increased 
number of plots sold to other developers 
as well as a significant contribution from the 
development and sale of new homes built by 
the Group.
We are conscious that we work in an extremely 
cyclical industry and it is therefore crucial that 
we are ‘in the right place at the right time’.  
Our strategy to extract the maximum value from 
our land bank by building more developments 
ourselves appears to have been well timed 
given the improvement in market conditions and 
the increasing volume of housing transactions 
recorded in the UK.
As a result of this increased activity, total Group 
revenue, which includes revenue from land 
and house sales, rental income and project 
management fees, increased by over 400% to 
£31.12 million (2012: £6.11 million). Gross profit 
was nearly doubled to £7.69 million (2012: 
£3.89 million) with a margin of 24.7% and 
operating profit was up over 370% at  
£5.08 million (2012: £1.06 million). 
Profit before tax was up over 225% at  
£5.21 million (2012: £1.60 million) translating 
into a near fivefold increase in earnings per 
share of 1.98p (2012: 0.41p). 
Net asset value per share increased to 28.7p 
(2012: 27.0p). These financial results exclude 
the future value from the development services 
provided by the Group to DGVL where Inland 
Homes’ profit share is expected to increase 
from the current level of 74% to 90% by the end 
of March 2014 once the outstanding deferred 
consideration of £6.7 million for DGV has 
been paid. The Board anticipates that Inland 
Homes’ share of the future profits from DGV 
should be in the order of £10.1 million net of tax 
which is equivalent to 5.0p per ordinary share. 
Shareholders will appreciate that the unrealised 
profit, resulting from the difference between 
the market and carrying values of the Group’s 
land bank, is significant. The Group finished the 
period with cash reserves of £12.2 million, with 
net gearing reduced to 6.7% (2012: 13.0%).
I am pleased to report that during the period 
DGVL sold 76 plots for a total consideration of 
£5.3 million.
Successful fundraisings strengthen  
capital base
During the year the Group strengthened its 
financial position through two successful  
fundraisings: the first raised £8.94 million net of 
costs through the placement of approximately 
9.35 million Zero Dividend Preference shares 
(“ZDPs”), which have a redemption yield of  
7.3% per annum and will be repaid on or before 
10 April 2019 and the second, in May 2013, 
raised £4.73 million net of costs through a 
placing of approximately 18.3 million ordinary 
shares. These fundraisings have increased the 
Group’s financial flexibility and have strengthened 
the Group’s longer term capital base.
Increased dividend reflects progressive 
dividend policy
At the time of our 2012 results, the Board 
announced its intention to adopt a progressive 
dividend policy. In line with this policy, and 
reflecting these strong results, the Board is 
recommending a fourfold increase in the final 
proposed dividend of 0.27p (2012: 0.067p) 
per share if approved by shareholders at the 
“Inland Homes has had a highly productive 
financial year. The Group is well positioned 
to grow its land bank whilst our expanding 
housebuilding activity will help to ensure 
we maximise the profit potential from the 
Group’s asset base.”
Terry Roydon 
Non-executive Chairman
08
Read about Inland Homes
Group at a Glance
KPI
Revenue
up 410%
at £31.1m
(2012: £6.1m)
2011 2012 2013
£21.4m
£6.1m
£31.1m
12 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Showhome at Drayton Garden Village
Stock code: INL www.inlandplc.com  13
Shareholder Information
Our Performance
Our Governance
Our Accounts
Our Business 22901.04     4 November 2013 12:25 PM     Proof 5
Chairman’s Statement continued
Annual General Meeting which is expected to 
be called for Thursday 5 December 2013. The 
final dividend will be paid on 6 January 2014 
to shareholders on the register at the close of 
business on 6 December 2013. The  
ex-dividend date will be 4 December 2013.
Consistent progress against clear  
strategic goals
Our strategy going forward is demanding but 
we believe achievable and is:
1. To increase the size of our land bank year on 
year;
2. Continue the core activity of plot sales to 
other developers to generate cash to fund 
our operations; 
3. Maximise the value from our land bank by 
expanding our housebuilding programme; 
and
4. Maintain borrowings at a relatively low level 
through a strong focus on cash management 
and vendor financing.
The increase in housebuilding will lead to an 
increase in the Group’s net gearing because 
of the increased working capital requirements 
that this entails. However, this is envisaged to 
reduce over time as legal completions of unit 
sales and land disposals are achieved and the 
Board is focused on keeping net gearing under 
control. In this regard the Group has a good 
level of forward sales on both residential homes 
and development land with planning consent.
The number of residential plots in the land bank 
of the Group and those separately held by 
DGVL is currently as follows:
Owned with planning consent 753
Drayton Garden Village 311
Owned or contracted without 
planning consent 300
Plots controlled or terms agreed 942
Total plots 2,306
Well positioned to exploit market 
opportunities
Inland Homes currently has 348 homes under 
construction on seven sites and a further 138 
units are being developed by DGVL. The Group 
is managing the programme of developing 
some of Drayton Garden Village and this  
should further enhance the returns we expect 
from this project. 
Our housebuilding activity has had a strong 
start to the new financial year with 34 
reservations across three active sites since  
1 July 2013. Forward sales for both Inland 
Homes and DGVL either agreed or contracted 
currently stand at £46.3 million.
The Board believes that, for the foreseeable 
future, the market for new homes will remain 
strong in the areas in which we operate, 
particularly in the price range of £160,000 to 
£400,000 where sales are supported by the 
Government’s “Help to Buy” scheme and the 
continuing fundamental shortfall of housing 
availability in the country. As such, we would 
expect a substantial increase in the number 
of units sold in the current financial year when 
compared with 2013.
In addition, we have a strong land pipeline 
with a number of attractive sites in London 
and the south east already secured and are 
experiencing robust demand for land with 
planning consent.
Inland Homes has had a highly productive 
financial year. The Group is well positioned 
to grow its land bank whilst our growing 
housebuilding activity will help to ensure we 
maximise the profit potential from the Group’s 
asset base. Inland Homes is well placed 
to meet the challenges and opportunities 
presented by the market and we look to the 
future with confidence. 
Terry Roydon 
Non-executive Chairman 
31 October 2013
04
Read about Inland Homes
Business Model
KPI
Profit before tax
up 225%
at £5.2m
(2012: £1.6m)
2011 2012 2013
£3.5m
£1.6m
£5.2m
14 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Chief Executive’s Review
This has been a “watershed” year for Inland 
Homes. The Group has made significant 
progress on all fronts including the land bank, 
housebuilding, profitability and financing.
Our operational focus is in the south of England 
with an emphasis on creating well designed 
homes in sustainable communities. The land 
portfolio meets the needs of a wide range of 
purchasers, from first time buyers to investors, 
with a product range that includes houses, 
apartments, commercial units and the sale of 
selected building plots to other developers.
Not only have we delivered a strong set of 
results but have put in place the foundations for 
further growth. We have implemented a clear 
strategy alongside a substantially improved 
housing market in the areas of our operations.
As stated in the Chairman’s Statement, we 
have dramatically increased the scale of our 
housebuilding activities, with 348 homes being 
constructed by Inland Homes and a further 138 
homes by DGVL with forward sales of in the 
order of £46.3 million. Our homes range from 
£160,000 to £400,000 making them ideal for first 
time buyers and investors alike. This price band 
is ideal for demand from purchasers using the 
Government’s “Help to Buy” funding initiative.
Whilst the planning system remains difficult, we 
secured our goals on the following key sites 
where valuable planning permissions were 
achieved:
Carter’s Quay, Poole, Dorset
268 homes with no affordable housing as well 
as 100,000 sq ft of commercial space.
St John’s Hospital, Chelmsford
101 homes including 12 substantial detached 
houses backing on to the golf course.
Drayton Garden Village, West Drayton 
(managed by Inland Homes)
A 4,000 sq ft neighbourhood store pre-let to 
Sainsbury’s.
Despite the considerable management time 
taken up in increasing the housebuilding 
programme to these new levels, I am pleased 
to say that our land acquisition programme has 
continued unabated. Notable sites secured in 
the course of the year were:
Markyate, St Albans, Hertfordshire
Consent for 40 residential units.
High Street, Amersham, Buckinghamshire
Strategic land with an option over 4.8 acres.
Callis Yard, Woolwich, London
Acquired with a lapsed resolution to grant 
planning consent for 177 units — acquired from 
receivers.
Wooburn Green, Buckinghamshire
Consent for 26 residential units.
Europa Way, Ipswich
Acquired with an expired consent for 218 units 
 — acquired from receivers. 
Vale Road, Bushey, Hertfordshire
Option land assembly — planning application 
submitted for 41 units.
Swallow Street, Iver, Buckinghamshire
Option over former garden centre with potential 
for 18 houses.
Station Road, Gerrards Cross, 
Buckinghamshire
Two existing vacant office blocks to be 
converted into 33 units under the Government’s 
“prior approval notification” procedure. Read more online 
www.inlandplc.com
“Inland Homes is a leading developer of 
sustainable mixed use communities with a 
strong focus on brownfield regeneration on 
complex sites. Our strategic move to increase 
the Group’s housebuilding activities has 
proved to be particularly well timed.”
Stephen Wicks 
Chief Executive
KPI
Net asset value 
per share
1
up 6%
at 28.7p
(2012: 27.0p)
2011 2012 2013
26.5p
27.0p
28.7p
1. Excludes the Group’s interest in 
Drayton Garden Village (‘DGV’) from 
which Inland Homes expects to 
derive a further 5.0p per share.
Stock code: INL www.inlandplc.com  15
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Our Business 22901.04     4 November 2013 12:25 PM     Proof 5
Chief Executive’s Review continued
The Winter Gardens, Bournemouth
Acquisition of two key office buildings forming 
part of a major mixed use proposal in the  
town centre.
Former pub, Farnborough, Hampshire
Option over a site suitable for 60 units.
Reading Road, Henley on Thames
Acquisition of a 1.3 acre brownfield site with 
scope for up to 50 units.
Chessmount Rise, Chesham, 
Buckinghamshire
A 0.9 acre site secured under an option. Site 
allocated for development with a scheme for  
14 units already submitted.
The growth in activity during the year has 
resulted in an increase in the number of staff 
(including Directors) to 22. The increase is 
primarily due to new project managers and  
sales staff.
During the course of the year a decision was 
made by management to terminate discussions 
regarding a joint venture to develop 152 units 
with a major housebuilder on our Ashford 
Hospital project (now branded as “West Plaza”). 
We are now building this scheme as principals 
and have already achieved a good level of 
forward sales prior to the opening of a sales 
centre. The construction is fully funded by a 
senior debt bank facility.
Another major project taking up considerable 
amounts of management time was our 
“flagship” development proposal at Wilton 
Park, Beaconsfield. As shareholders will recall, 
Inland Homes acquired the only viable access 
supported by the Local Authority and achieved 
“special purchaser status” with the Ministry of 
Defence, being the owners of the development 
land (the former Defence School of Languages). 
This site is allocated in the local plan for up 
to 300 homes and a substantial amount of 
commercial space. Work is now advanced 
on the production of a planning brief for the 
development of the land in conjunction with the 
Local Authority, South Bucks District Council.
It is envisaged a planning permission will be 
achieved by the spring of 2015.
Drayton Garden Village (managed by  
Inland Homes)
During the course of the year, the installation 
of major infrastructure and landscaping works 
continued at Drayton Garden Village and the 
Garden Village concept that was envisaged is 
becoming a reality.
Notable events were the sale of 76 plots to 
Bellway Homes, a pre-let of commercial space 
to a leading food retailer and a forward sale of 
107 units to Paradigm Housing Association.
Inland Homes is also managing the 
development of 32 residential units for private 
sale, of which 80% are sold. DGVL is planning 
to keep development continuity by starting a 
further phase of 41 units for sale in this  
calendar year.
Shareholders will be aware that we decided 
to sell our stake in Howarth Homes plc 
(“Howarth”) which was achieved at a profit of 
£292,000. We successfully completed our joint 
venture with Howarth at Croxley Green, Herts 
with the last unit being sold in October 2013. 
The Group has also achieved the repayment 
of all loans to Howarth. Howarth will continue 
as one of our main contractors as part of our 
housebuilding programme.
Summary and prospects
2013 has laid the foundations to deliver a 
successful set of results for the new financial 
year. There is a strong pipeline of new land 
opportunities being investigated by our team, 
although we are extremely discerning as to 
which projects fit our criteria for purchase. We 
are confident that a number of high quality new 
sites will be secured in the current financial year 
and will continue to add value to our projects by 
navigating them through the intricate planning 
system. Inland Homes will also capture the 
development margin on some of its sites by 
delivering successful housing schemes.
In summary, I am confident that our strategy 
will increase the value of our asset base in the 
medium term and deliver sound prospects for 
our shareholders.
Stephen Wicks 
Chief Executive 
31 October 2013
KPI
Number of plots 
with and without 
planning consent
up 19%
at 2,306
(2012: 1,942)
2011
With planning permission
2012 2013
481
727
1,249
1,109
1,215
1,057
1,590
1,942
2,306
Without planning permission
16 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Show house at Drayton Garden Village, Middlesex
Stock code: INL www.inlandplc.com  17
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Drayton Garden Village, Middlesex
Case Study
Drayton Garden Village, managed by Inland Homes, is an 
eco-friendly neighbourhood of 773 family homes located 
near Heathrow in Middlesex and is perhaps the best 
example to date of Inland Homes putting sustainability at 
the heart of a development.
20
Read our case study on
Drayton Garden Village
Nishith Malde and Stephen Wicks at the Sales Centre at Drayton Garden Village
18 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Spring Green at Drayton Garden Village, Middlesex
Stock code: INL www.inlandplc.com  19
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Case Study
Drayton Garden Village (“DGV”), managed by Inland Homes, is 
an eco-friendly neighbourhood of 773 family homes located near 
Heathrow in Middlesex. The 31 acre site, which also features 
a care home and commercial properties, is perhaps the best 
example to date of Inland Homes putting sustainability at the 
heart of a development. The site is green in both appearance and 
functionality, typified by its energy centre.
The story of DGV began in 2008, when the former RAF West 
Drayton site was identified as an excellent opportunity given 
its familiar location and proximity to Central London. DGVL 
recognised that Inland Homes could add value to the site and 
appointed the Group to manage the project.
The site was bought from the MOD in January 2009 by DGVL to 
which the Group provides property services in consideration for a 
share of the profit, which has increased from 35% to 74%, and is 
anticipated to increase further. 
Once the site was purchased by DGVL, work began to plan a 
development that would enhance the local area and meet market 
need. In the nine months the outline planning application took 
to compile, a number of consultants were brought on board, 
opinions from local residents and politicians were canvassed, and 
sustainable energy providers were met with.
While this lengthy planning stage was in motion, on behalf of 
DGVL, Inland Homes creatively generated revenue by selling 
a wide variety of surplus assets that had been left on site, 
including excavating a very large amount of copper cables. This 
opportunism meant that by the time the planning was complete, 
the costs of the process had largely been covered by revenue 
generated from the site.
In October 2010, planning consent was granted for the site, 
and the first 59 plots were quickly sold for affordable housing. In 
January 2011, a further 89 plots were sold for private homes. 
In March 2011, DGV gained the prestigious Land Award in 
recognition of Code for Sustainable Homes (Code 4), “zero” waste 
target and the district heating network being built on site with an 
energy centre. The energy centre will use combined heat and 
power (CHP) units and gas boilers to supply heat and hot water 
to every property on site, one of the first times such a system 
has been used across a development of houses and commercial 
units. The centre will benefit not only the environment, with a 40% 
reduction in carbon emissions, but also the residents will receive 
hot water and heat on demand.
During 2012, another 106 plots were sold, as well as the plot of 
land for a care home. July 2013 saw the start of construction on 
the first properties on site to be built by DGVL; of these 32 units 
80% have sold.
As of October 2013, major infrastructure works on the site were 
substantially complete. 340 plots have been sold to date, with 
a further 107 contracted for sale. 326 residential plots remain, 
including the 32 properties that DGVL are building.
Read more online 
www.inlandplc.com
Location
Drayton Garden Village, Middlesex
Challenge 
Creating a comfortable but sustainable community
The site is green in both appearance  
and functionality, typified by its  
energy centre.
Gatekeepers at Drayton Garden Village, Middlesex
20 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
In March 2011, Drayton Garden 
Village gained the prestigious 
Land Award in recognition of Code 
for Sustainable Homes (Code 4), 
“zero” waste target and the district 
heating network being built on site 
with an energy centre.
Inside of the Energy Centre at Drayton Garden Village, Middlesex
Visit by Dominic Grieve QC MP and Attorney General (centre) with Planning Director  
Mark Gilpin (left) and a representative from E.ON
Stock code: INL www.inlandplc.com  21
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Our Business 22901.04     4 November 2013 12:25 PM     Proof 5
Queensgate, Farnborough
Case Study
Queensgate features classic family homes and modern 
apartments set in a beautiful landscaped environment 
located close to Farnborough Airfield.
24
Read our case study on
Queensgate, Farnborough
22 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Artist’s impression of apartments at Queensgate, Farnborough
Stock code: INL www.inlandplc.com  23
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Read more online 
www.inlandplc.com
Case Study
Queensgate was the first large site acquired by Inland Homes, in 
August 2006. Previously an RAF base, the development of the 
24.5 acre site in Farnborough, Hampshire was hugely affected by 
the financial crisis, but is now well on its way to completion.
Prior to acquiring the site, the MOD were unsuccessful in gaining 
planning permission. Inland Homes acquired the site and secured 
planning consent for 399 residential homes and 100,000 sq ft of 
commercial properties within a year. This is a testament to the 
team’s experience and capability in negotiating the potentially 
tricky planning and design stage.
Queensgate features classic family homes and modern 
apartments set in a beautiful landscaped environment located next 
to Farnborough Airfield. In planning for the site, Inland Homes took 
into account the needs of the local community, which led to the 
employment-generating consent for a care home.
Once consent had been secured, there were a number of issues 
to resolve on the site. Solutions were found for contamination 
due to the site’s previous use and a number of ecological issues. 
The site is home to the UK’s only human centrifuge, which is 
housed in a listed building. While Inland Homes can generate 
revenue from renting this in-demand piece of technology, its listed 
status was another hurdle to overcome in planning the residential 
development in the surrounding areas. Other income has been 
generated from the site throughout the planning process, including 
renting land to Farnborough International Airport.
The Queensgate project was the second that Inland Homes has 
used to expand its operations as a housebuilder. To date, 76 plots 
have been constructed by the Group, with another 60 under way. 
The success of the construction of a phase of 19 houses and 
apartments was a particular milestone in Inland Homes developing 
as a housebuilder. 
150 other plots in the development have been sold to two major 
housebuilders and a Housing Association. As of October 2013, 
113 plots and 100,000 sq ft of commercial space remain.
The success of the construction of a 
phase of 19 houses and apartments was 
a particular milestone in Inland Homes 
developing as a housebuilder.
Location
Queensgate, Farnborough
Challenge 
Delivering a cohesive project through a number of developers
Queensgate was a key project that has  
helped Inland Homes to expand its operations  
as a housebuilder.
Homes constructed at Queensgate, Farnborough
24 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Showhome at Queensgate, Farnborough
“We create a Design Code 
to ensure our vision for a 
development is followed 
by our contractors and 
other housebuilders. The 
document governs the look 
and feel of the buildings to 
bring consistency across the 
site. We believe in creating 
communities built around 
quality and comfort, that fit 
seamlessly into the local area.”
Mark Gilpin 
Planning Director
Stock code: INL www.inlandplc.com  25
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Our Business 22901.04     4 November 2013 12:25 PM     Proof 5
West Plaza, Ashford, Middlesex
Case Study
West Plaza is a development of two modern apartment 
complexes in Ashford, Middlesex. Set around two formal 
courtyards for an attractive and relaxed environment.
28
Read our case study on
West Plaza, Ashford
26 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Artist’s impression of West Plaza, Ashford, Middlesex
Stock code: INL www.inlandplc.com  27
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Read more online 
www.inlandplc.com
Case Study
West Plaza is a development of two modern apartment complexes 
in Ashford, Middlesex. Set around two formal courtyards for an 
attractive and relaxed environment, the site is within two miles 
of Heathrow Airport and two other large employers, as well as 
Ashford and St Peter’s Hospital, and has excellent transport links 
to Central London.
The 1.5 acre site of the former Ashford Hospital was purchased 
from the NHS in 2007. It is one of the last sites Inland Homes 
acquired before, and subsequently held up by, the financial crisis. 
Planning consent was secured for 152 apartments — three three-
bedroom and 149 one and two-bedroom apartments — in two 
complexes, with a basement car park.
West Plaza is another development that Inland Homes is using to 
expand its housebuilding operation. The Group has subcontracted 
the building of the development on a fixed price, minimising 
the construction risk to Inland Homes. Phase 1 of the site has 
commenced with the underground car park and the construction 
of the eastern building up to second floor level. 
The first handover of properties for West Plaza is expected to take 
place in June 2014, with the entire development expected to be 
completed by June 2015.
The site will be sustainable, with a large number of Photovoltaic 
(PV) cells on the roof which will power the communal areas of the 
buildings and the excess will be returned to the national grid in 
exchange for revenue. This revenue will help to offset the costs of 
the building’s management, benefitting the tenants financially.
West Plaza is an example of Inland Homes utilising the overseas 
property market to sell its properties for the first time. A recent visit 
to Hong Kong saw the Group’s team sell 12 apartments.
Location 
West Plaza, Ashford, Middlesex 
Challenge 
Constructing a basement car park for 153 cars with 4 to 6 storey 
buildings above
The site is within just two miles of Heathrow  
Airport and two other large employers, as well as 
Ashford and St Peter’s Hospital, and has excellent 
transport links to Central London.
Construction of basement car park at West Plaza
28 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Artist’s impression of the Courtyard at West Plaza
Stock code: INL www.inlandplc.com  29
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Our Business 22901.04     4 November 2013 12:25 PM     Proof 5
To enable shareholders to appreciate what the business considers are the main operational risks, they are briefly outlined below:
Risk Potential impact Strategy/Mitigation
Land The inability to source, acquire, 
promote and dispose of land
The Group would not be able to 
generate profit and cash flow for 
the longer term
May 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 
mitigates this risk
Planning Increased complexity and delay in the 
planning process
The adoption of the Community 
Infrastructure Levy by local authorities
May impede sales and thus affect 
the rate of growth of the business
May have a detrimental effect on 
the supply and pricing of land 
being marketed by landowners
The Group undertakes extensive 
pre-acquisition due diligence 
on planning, technical and 
environmental issues together with 
acquiring housing sites identified in 
councils’ Local Plans
Market A severe fall in the housing market 
in the regions in which the Group 
chooses to operate
Inability to realise maximum value 
in a timely fashion
Adverse effect on land values
Adverse effect on the timing of 
sales
The Group ensures that its sites are 
in good locations thus providing 
some protection against any 
downturn in the market
Personnel Loss of/inability to source high calibre, 
experienced staff
The Group would have difficulty 
growing the business in the highly 
competitive markets in which it 
operates
The Group maintains good 
morale in the workplace and sets 
remuneration packages at attractive 
levels
Interest rates Significant upward changes in interest 
rates
May affect residential land prices 
as the demand for residential 
property would be affected
Would 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 Unexpected contamination being 
found on a site
Liabilities in respect of 
decontamination works or fines 
for environmental pollution could 
affect the outcome of a project
The assessment of environmental 
risk is an important element of the 
due diligence undertaken when 
buying land. 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 effect 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
Delays
May 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 availability of bank funding for 
land acquisition
May have an adverse effect on 
the Group’s progress
The Group continues to seek 
finance from alternative lending 
sources to improve its liquidity
Risk and Risk Management
30 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
“We take pride in the homes we build, 
focusing on attractive design and 
sustainability. We incorporate a range of 
property types and sizes to suit a wide 
customer base.”
Pedro Longras 
Development Director
Artist’s impression of apartments at Drayton Garden Village, Middlesex
Stock code: INL www.inlandplc.com  31
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Our Business 22901.04     4 November 2013 12:25 PM     Proof 5
Board of Directors
Terry Roydon
Non-executive Chairman
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 
housebuilder, which he led to flotation on 
the London Stock Exchange in 1988. The 
company was subsequently purchased by 
Westbury plc in June 2002 for  
£140 million. 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 with UK and 
Continental housebuilding companies, 
including holding non-executive board 
positions with AIM quoted Kimberly 
Resources N.V., Country & Metropolitan 
plc (until 2005), Gladedale Holdings plc 
(until March 2007) and Larkfleet Limited. 
From 1995 to 1997 he was President of 
the European Union of Housebuilders and 
Developers.
 
Stephen Wicks
Chief Executive
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  
£6.9 million. He directed the growth of 
Country & Metropolitan plc until its disposal 
in April 2005 to Gladedale Holdings plc for 
approximately £72 million.  
Mr Wicks has worked in the construction 
and housebuilding sector all of his working 
life and has extensive knowledge of local 
and national policies on both greenfield 
and brownfield sites.
Nishith Malde
Finance Director
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.
32 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 12:25 PM     Proof 5
Simon Bennett
Non-executive Director
Qualified as a Chartered Accountant in 
1981 and has over 25 years’ investment 
banking experience in the City. Mr Bennett 
was the Head of Corporate Finance and 
Head of the Mid and Small Caps team at 
Credit Lyonnais Securities and, following 
its acquisition by Credit Agricole, he 
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. In late 2007 Mr Bennett 
joined Fairfax IS plc, the independent 
investment bank, as Head of Corporate 
Broking. Mr Bennet is currently Head of 
Corporate Broking at Sanlam Securities 
and is also Non-executive Chairman of 
Energiser Investments plc and a number of 
other private companies.
 
Paul Brett
Land Director
Has been involved in the housebuilding 
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.
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.
 Member of the Audit Committee 
 Member of the Remuneration Committee
Stock code: INL www.inlandplc.com  33
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Our Accounts 22901.04     4 November 2013 2:31 PM     Proof 5
The Directors present their report and the financial statements of 
the Group and the Company for the year ended 30 June 2013.
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 develops a 
number of the plots for private sale and sells consented plots to 
housebuilders.
Results and dividends
The trading results for the year are set out in the Group Income 
Statement on page 44 and the Group’s financial position at the 
end of the year is set out in the Group Statement of Financial 
Position on page 45. 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 Directors propose to recommend the payment of a final 
dividend of 0.27p per share (2012: 0.067p).
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 12 to 14. The Group’s key 
performance indicators are revenue, 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 on page 30 the principal risks facing 
the business. 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.
Financial risk management objectives and policies
All potential areas of financial risk are regularly monitored and 
reviewed by the Directors and management. Any preventative or 
corrective measures are taken as necessary.
The Group uses various financial instruments. These include loans, 
cash and trade receivables that arise directly from its operations. 
The main purpose of these financial instruments is to raise finance 
for the Group’s operations.
The 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 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. Some of the Group’s borrowings are 
at variable rates but the Group does not consider the risk to be 
significant.
Interest rate 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.
Directors’ Report
34 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
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Our Accounts
Directors and their interests
Each of the Directors listed on pages 32 and 33 held office as at 30 June 2013. 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 2013 were as follows:
As at 30 June 2013 As at 30 June 2012
Number of
ordinary 
shares 
Number of
deferred 
shares
Number of 
share 
options
Number of
ordinary 
shares 
Number of
deferred 
shares
Number of 
share 
options
Ordinary Shares
S D Wicks 16,237,332 490 1,500,000 16,237,332 490 1,500,000
N Malde 11,220,500 392 1,500,000 11,072,400 392 1,500,000
P Brett 3,444,214 98 1,100,000 3,444,214 98 1,100,000
T Roydon 325,000 — — 325,000 — —
S Bennett 110,000 — — 110,000 — —
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.
Capital risk management
The Group’s objectives when managing capital are to safeguard 
the Group’s ability to continue as a going concern in order 
to provide returns for shareholders and benefits for other 
stakeholders and to maintain an optimal capital structure to reduce 
the cost of capital.
In order to maintain or adjust the capital structure, the Group may 
adjust the amount of dividends paid to shareholders, return capital 
to shareholders, issue new shares or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital 
in relation to overall financing. Further information can be found in 
Note 27 to the Group financial statements.
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. 
No share options were exercised in the period. Further information 
on share options can be found in Note 21 to the Group financial 
statements.
Directors’ emoluments
Details of Directors’ remuneration can be found in the Directors’ 
Remuneration Report on pages 39 to 41.
Qualifying third party indemnity provision
During the financial year, a qualifying third party indemnity provision 
for the benefit of all the Directors was in force. 
Stock code: INL www.inlandplc.com  35 22901.04     4 November 2013 2:31 PM     Proof 5
Directors’ Report continued
Substantial shareholding
As at 31 October 2013, 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 21,000,000 10.50
Karoo Investment Fund SCA SICAV SIF 13,502,280 6.75
A K Brett 11,500,000 5.75
Henderson Global Investors Limited 9,844,395 4.92
Ennismore Fund Management Limited 7,559,259 3.78
Downing LLP 6,935,512 3.47
Employee involvement
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 £12,000  
(2012: £23,000). 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 (2012: £nil). 
Payment policy and practice
The Group’s policy is for all companies within the Group to agree 
terms and conditions with their suppliers. Payments are then 
generally made on the basis of this agreement, providing the 
suppliers conform to the terms and conditions stipulated.  
At 30 June 2013 the Group had an average of 57 days’  
(2012: 93 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.
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. 
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.
36 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
Audit Committee
The Audit Committee comprises Terry 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 2012 the Audit Committee has met three 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 Terry 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 and the Finance Director. During the year 
the committee met six times 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 AGM. 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.
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. The Group has 
significant forward sales of residential units and is in discussions 
for the sale of some of the land within its projects and expects to 
make sufficient disposals in the foreseeable future to ensure it has 
adequate working capital for its requirements. The Group is also 
in discussions with a number of funders to raise debt finance in 
order to both supplement its working capital and expand its land 
portfolio. The Directors are satisfied that the Group will generate 
sufficient cash to meet its liabilities as and when they fall due for 
a period of 12 months from signing these financial statements. 
The Directors therefore can consider it appropriate to prepare the 
financial statements on the going concern basis.
Stock code: INL www.inlandplc.com  37 22901.04     4 November 2013 2:31 PM     Proof 5
Directors’ Report continued
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 adopted by 
the European Union and have elected to prepare Parent Company 
financial statements in accordance with United Kingdom Generally 
Accepted Accounting Practice (United Kingdom Accounting 
Standards and applicable laws). Under company law the Directors 
must not approve the financial statements unless they are satisfied 
that they give a true and fair view of the state of affairs and profit or 
loss of the Company and Group for that period. In preparing these 
financial statements, the Directors are required to:
•	 select suitable accounting policies and then apply them 
consistently;
•	 make judgements and estimates that are reasonable and 
prudent;
•	 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
•	 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.
The Directors confirm that:
•	 so far as each Director is aware there is no relevant audit 
information of which the Company’s auditor is unaware; and
•	 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 AGM together with the proposed 
resolutions is contained in the document accompanying this 
report. The AGM will be held on 5 December 2013.
Auditor
A resolution to reappoint Grant Thornton UK LLP as auditor for 
the ensuing year will be proposed at the AGM in accordance with 
Section 489 of the Companies Act 2006.
By order of the Board
Nishith Malde 
Company Secretary 
31 October 2013
38 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
Directors’ Remuneration Report
There is no requirement for companies quoted on AIM to 
produce a formal remuneration report. As a consequence, this 
Remuneration Report is produced for information purposes 
in order to give shareholders and other users of the financial 
statements greater transparency about the way in which the 
Directors of Inland Homes are remunerated.
This report sets out the remuneration paid to the Directors for the 
year ended 30 June 2013 and the remuneration policy for the 
forthcoming financial year and beyond. 
Composition and role of the Remuneration Committee 
The Board have established a Remuneration Committee 
which currently consists of Simon Bennett, independent Non-
executive Director, who is Chairman of the committee and Terry 
Roydon, the Company’s Non-executive Chairman. The role 
of the Remuneration Committee is to determine the specific 
remuneration package for each of the Executive Directors and 
no Director is involved in any decisions that will affect his own 
remuneration. The Remuneration Committee has access to 
information provided by the Chief Executive, Stephen Wicks and 
the Finance Director, Nishith Malde and independent advice from 
external consultants (currently MM&K) where it considers this to  
be appropriate.
The Remuneration Committee meets formally three times a year 
and on such other occasions as may be required.
Policy for Executive Directors’ remuneration
The policy for Executive Directors’ remuneration is designed 
to attract, motivate and retain high calibre individuals with a 
competitive remuneration package. The remuneration policy takes 
into account the overall performance of the Company and the 
individual Executive Directors and the prevailing pay structures in 
the markets in which Inland Homes operates.
The Executive Directors’ remuneration is designed to provide 
a balance between fixed and variable rewards, although it 
is recognised that it is common industry practice for total 
remuneration to be significantly influenced by annual bonuses and 
long term incentive plans. Consequently, remuneration packages 
for individual Executive Directors comprise a basic salary, 
discretionary annual bonuses, long term incentive awards and 
benefits in kind. In agreeing the basic salary and annual bonuses, 
in addition to the factors outlined above, the Remuneration 
Committee takes into account the aggregate remuneration to be 
received by the individual Executive. 
Basic salary
The basic salaries of the Executive Directors are reviewed on an 
annual basis. The Remuneration Committee seeks to establish a 
basic salary for each position commensurate with the individual’s 
responsibilities and performance, and takes into account 
comparable salaries for similar companies of a similar size in the 
same market.
Annual discretionary bonuses
The award of an annual bonus to an Executive Director is on  
a discretionary basis and takes into account the performance 
of the Company on a number of different criteria against the 
performance of its peers in the markets in which Inland Homes 
operates and the contribution of each individual Director towards 
this performance. 
Executive Directors can earn up to 100% of basic annual salary as 
an annual bonus. 
Long Term Incentive Plan
The Company operates both an unapproved share option scheme 
and a Long Term Incentive Plan (“LTIP”).
Awards under the unapproved share option scheme are made on 
a periodic basis to the Company’s employees. The share options 
in this scheme vest three years after the date of grant and have an 
exercise period of seven years. This scheme is cash settled.
The Company’s existing LTIP (the “2007 LTIP”) has been in 
existence since the Company was floated on AIM in April, 2007. 
At the time the three Executive Directors of Inland Homes, 
namely Stephen Wicks, Chief Executive, Nishith Malde, Finance 
Director and Paul Brett, Land Director, were awarded a number 
of redeemable shares of £1 each. The redeemable shares are not 
entitled to receive any dividends but in the event of a takeover (or 
return of capital to shareholders on a winding up), the holders of 
the redeemable shares would be able to redeem these shares at 
a price which is calculated so as to attribute to all the redeemable 
shares a value equivalent to the difference between the takeover 
price per ordinary share (or the total to be returned to shareholders 
on a winding up) and 35p multiplied by 11,123,494. The rights 
to these redeemable shares would be exercisable provided 
the Executive was still employed by the Company and that the 
total return to ordinary shareholders exceeds 10% per annum 
compound annually over a base price of 50p (equivalent to the 
placing price on the Company’s flotation) per ordinary share. 
Further details of the existing redeemable shares are set out in 
Note 21 on page 68. 
The remuneration committee no longer considers that the 2007 
LTIP provides sufficient incentive to the Executive Directors. 
The original strategy of Inland Homes was to build up a land 
bank which would be attractive to a major industry buyer. The 
bankruptcy of Lehman Brothers in 2008 was followed by a 
subsequent global financial crisis where the provision of credit 
by lending banks became increasingly scarce and the ability to 
borrow funds on land with no planning consent disappeared 
completely. Share prices of companies in the housebuilding and 
property sectors were particularly hard hit at that time and many of 
these companies went into liquidation. 
Stock code: INL www.inlandplc.com  39 22901.04     4 November 2013 2:31 PM     Proof 5
In order to achieve any benefit from the 2007 LTIP , the value of an 
ordinary share on a takeover (or a return of capital to shareholders 
on a winding up) would have to be 88.6p (as compared with 
a price per ordinary share of 47.5p on 30 October 2013, the 
latest practical date before the publication of these financial 
statements). As a consequence the Remuneration Committee, 
having taken advice from independent remuneration consultants, 
have concluded that the 2007 LTIP no longer provides any realistic 
incentive to the Executive Directors and should therefore be 
scrapped and a new scheme introduced. Details of the proposed 
changes to the LTIP will be sent to shareholders in due course. 
Other benefits
Depending on the exact terms of the individual Executive’s service 
contract with the Company, they are entitled to a range of benefits 
including either a car allowance or a fully expensed company car, 
contributions to pension schemes, private fuel, private health care 
insurance, permanent and death in service insurance.
Service contracts and notice periods 
Each of the Executive Directors are employed on rolling contracts 
subject to one year’s notice from either Inland Homes or the 
Executive Director in relation to Nishith Malde and Stephen 
Wicks and three months’ notice in relation to Paul Brett and 
contain confidentiality provisions and restrictive covenants for 
the Company’s protection. The current service contracts of the 
Executive Directors are available for inspection at the Company’s 
registered office during normal office hours and at Inland Homes’ 
Annual General Meeting (“AGM”) until the conclusion of the AGM. 
The Executive Directors’ service contracts do not provide 
specifically for any termination payments, although the Company 
might make payments in lieu of notice. For this purpose, such 
payments would consist of basic salary and other benefits for the 
relevant period excluding any annual discretionary bonus. 
Non-executive Directors 
Inland Homes has two independent Non-executive Directors, 
namely Terry Roydon, the Chairman and Head of the Audit 
Committee and Simon Bennett, Head of the Remuneration 
Committee. Both Non-executive Directors have letters of 
appointment, initially for a three year period and thereafter on six 
months’ notice from either Inland Homes or the individual and 
contain confidentiality provisions for the Company’s benefit.
The Non-executive Directors’ letters of appointment do not 
provide specifically for any termination payments, although the 
Company might make payments in lieu of notice. The current 
letters of appointment of the Non-executive Directors are available 
for inspection at the Company’s registered office during normal 
office hours and at Inland Homes’ Annual General Meeting 
(“AGM”) until the conclusion of the AGM.
Non-executive Directors’ fees are determined by the Executive 
Directors, having regard to the requirement to attract high calibre 
individuals with the right experience, the time requirements and 
the responsibilities incumbent on an individual acting as a Non-
executive Director for a company, such as Inland Homes, listed 
on AIM. The Non-executive Directors are not eligible for annual 
discretionary bonuses and do not participate in the Company’s 
long term incentive plans. 
Directors’ emoluments for the year ended 30 June 2013 
A review of the financial results for the year ended 30 June 
2013, as more fully set out in the Chairman’s Statement and the 
Chief Executive’s Review, demonstrates the robustness of the 
Company’s business model and strategy. With turnover up by 
over 400%, operating profit up by over 370%, profit before tax 
up by over 225% and earnings per share up nearly fivefold, the 
Company comprehensively beat its market forecasts. 
Executive Directors at Inland Homes are permitted to earn 
up to 100% of basic annual salary as an annual bonus. As a 
consequence of the strong overall performance of the Company, 
the Remuneration Committee made annual discretionary bonus 
awards to Stephen Wicks and Nishith Malde of £75,000 each 
(approximately 27% of basic annual salary) and to Paul Brett an 
award of £50,000 (approximately 27% of basic annual salary). 
Half of these annual discretionary awards (after the deduction of 
income tax and national insurance contributions) were to be used 
to buy shares in the Company. As announced in October 2013 
Stephen Wicks, Nishith Malde and Paul Brett bought respectively 
50,000, 49,529 and 60,000 ordinary shares in Inland Homes plc. 
In addition, there having been no basic salary increases for the 
Executive Directors for the last 18 months, the Remuneration 
Committee awarded each of the Executive Directors an annual 
salary increase of approximately 5% with effect from 1 July 2013.
In June 2013 a total of 550,000 options were awarded to the 
Company’s staff under the unapproved share option scheme. No 
options were granted to the Executive Directors. 
Directors’ Remuneration Report continued
40 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
The remuneration of each Director during the year ended 30 June 2013 is set out in detail in the table below:
Directors’ remuneration table 
2013 2012
Salary/fees
£000
Bonus
£000
Benefits
£000
Pension
£000
Total 
remuneration 
£000
Social 
security 
costs
£000
Total 
remuneration 
& social 
security
£000
Total
£000
Executive 
Directors
S D Wicks* 330 75 31 — 436 57 493 519
N Malde 280 75 26 50 431 50 481 506
P Brett 187 50 12 10 259 33 292 251
Non-executive 
Directors
T Roydon 45 — — — 45 — 45 38
S Bennett 35 — — — 35 — 35 30
* S D Wicks has taken his pension entitlement as part of his salary.
Stock code: INL www.inlandplc.com  41 22901.04     4 November 2013 2:31 PM     Proof 5
Corporate, Social, Ethical  
and Environmental Responsibilities
All our developments are designed to ensure 
that our residents can live as sustainably as 
possible. We install renewable energy in our 
homes which ensures cheaper energy.
At Inland Homes we are committed to sustainable development 
as we understand the new homes we build today are going to 
be around for many years to come, and building quality homes 
means respecting the environment. We consider the whole 
life cycle of development from site preparation, responsible 
procurement use during construction through to how the home 
operates over the lifetime of the house.
All our developments are designed to ensure that our residents 
can live as sustainably as possible. So our homes are built with 
materials with the lowest possible environmental impact, we 
provide cycle parking so residents can choose more sustainable 
transport modes, there is dedicated space in all our kitchens for 
recycling bins, we ensure our homes use water efficiently and 
that energy consumption is reduced as far as possible. Energy 
reduction is achieved through good levels of natural daylight 
in living rooms, kitchens and bedrooms, low energy lighting 
is installed throughout every home, and we build to very high 
standards of insulation to minimise heat loss through walls, 
windows and roofs. We install renewable energy in our homes 
which ensures cheaper energy bills for our residents.
We have received prestigious awards recognising the sustainable 
credentials of the developments we work on, such as “zero” waste 
to landfill during demolition and construction of DGV along with 
the Land Award sponsored by the Land Trust, at the 2011 Sustain 
Magazine Awards for achieving 40% carbon reduction across the 
same development. 
Play area on Spring Green at Drayton Garden Village, Middlesex
Dominic Grieve QC MP and Attorney General (right) with a representative  
from E.ON at the Energy Centre at DGV
No two sites are the same and on each 
scheme, we tailor the scheme to achieve our 
carbon and energy standards in the most 
appropriate manner.
DGV was planned on the basis of Garden City principles and the 
district heating system that provides heat to all the homes gives 
an added dimension to the idea of neighbourhoods working as 
communities. People are now living on the site which is one of 
the first private sector schemes to be built in London with such a 
system since it was advocated by the London Plan. The scheme 
has become an exemplar of its type and is visited regularly by MPs 
and interested experts.
No two sites are the same and on each scheme, we tailor the 
scheme to achieve our carbon and energy standards in the most 
appropriate manner. All schemes are delivered through the Code 
for Sustainable Homes or BREEAM accreditation systems.
42 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
Independent Auditor’s Report
to the members of Inland Homes plc
We have audited the Group financial statements of Inland Homes plc for the year ended 30 June 2013 which comprise the Group 
Income Statement, the Group Statement of Comprehensive Income, Group Statement of Financial Position, 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 Part 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. To 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 set out on page 38, 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 Financial Reporting Council’s website at  
www.frc.org.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion the Group financial statements:
•	 give a true and fair view of the state of the Group’s affairs as at 30 June 2013 and of its profit for the year then ended; 
•	 have been properly prepared in accordance with IFRSs as adopted by the European Union; and
•	 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 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:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
•	 certain disclosures of Directors’ remuneration specified by law are not made; or
•	 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 Homes plc for the year ended 30 June 2013. 
Robert Napper 
Senior Statutory Auditor 
for and on behalf of Grant Thornton UK LLP 
Statutory Auditor, Chartered Accountants 
Reading 
31 October 2013
Stock code: INL www.inlandplc.com  43 22901.04     4 November 2013 2:31 PM     Proof 5
Group Income Statement
for the year ended 30 June 2013
Continuing operations Note
2013
£000
2012
£000
Revenue 6 31,116 6,110
Cost of sales 7 (23,431) (2,224)
Gross profit 7,685 3,886
Administrative expenses (2,652) (2,679)
Profit/(loss) on investments 48 (145)
Operating profit 5,081 1,062
Finance cost – interest expense 9 (1,419) (698)
Finance cost – notional interest 9 (270) (115)
Finance income – notional interest 10 226 237
Finance income – interest receivable and similar income 10 83 87
3,701 573
Share of profit from Howarth (former associate) 14 330 307
Reverse impairment of investment in Howarth (former associate) 14 — 500
Profit on disposal of investment in Howarth (former associate) 14 292 —
Share of profit of joint venture 14 889 217
Profit before tax 5,212 1,597
Income tax 11 (1,559) (838)
Profit for the year 3,653 759
Attributable to:
Equity holders of the Company 3,653 759
Earnings per share for profit attributable to the equity holders 
of the Company during the year 
– basic 12 1.98p 0.41p
– diluted 12 1.97p 0.41p
The accompanying accounting policies and notes form part of these financial statements.
Group Statement of Comprehensive Income
for the year ended 30 June 2013
Note
2013
£000
2012
£000
Profit for the year 22 3,653 759
Other comprehensive income — —
Total comprehensive income for the year 3,653 759
The accompanying accounting policies and notes form part of these financial statements.
44 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
Group Statement of Financial Position
at 30 June 2013
Note
2013
£000
2012
£000
ASSETS
Non-current assets
Investment property 13 7,681 8,801
Property, plant and equipment 13 173 68
Investments 14 1,363 1,114
Joint ventures 14 243 2,563
Investment in Howarth (former associate) 14 — 822
Receivables due in more than one year 17 55 55
Deferred tax 15 3,414 4,275
Total non-current assets 12,929 17,698
Current assets
Inventories 16 44,736 43,776
Trade and other receivables 17 15,085 2,632
Loan to Howarth (former associate) 18 1,000 1,000
Listed investments held for trading (carried at fair value through profit and loss) 19 1 1
Cash and cash equivalents 20 12,154 575
Total current assets 72,976 47,984
Total assets 85,905 65,682
EQUITY
Capital and reserves attributable to the Company’s equity holders
Share capital 21 20,131 18,301
Share premium account 22 33,695 30,794
Treasury shares 22 (366) (366)
Special reserve 22 6,059 6,059
Retained earnings 22 (1,789) (5,382)
Total equity 57,730 49,406
LIABILITIES
Current liabilities
Bank loans and overdrafts 28 1,613 1,111
Other loans 28 4,710 5,875
Trade and other payables 23 3,559 2,522
Corporation tax 23 625 —
Other financial liabilities 24 7,947 6,768
Total current liabilities 18,454 16,276
Non-current liabilities
Zero dividend preference shares 24 9,721 —
Total non-current liabilities 9,721 —
Total equity and liabilities 85,905 65,682
The financial statements were approved and authorised for issue by the Board of Directors on 31 October 2013.
Stephen Wicks 
Director
Nishith Malde 
Director
Company number 
5482990
The accompanying accounting policies and notes form part of these financial statements.
Stock code: INL www.inlandplc.com  45 22901.04     4 November 2013 2:31 PM     Proof 5
Group Statement of Changes in Equity
for the year ended 30 June 2013
Share 
capital
£000
Share 
premium
£000
Treasury 
shares
£000
Special 
reserve
£000
Retained 
earnings
£000
Total
£000
At 30 June 2011 18,301 45,794 (366) — (15,248) 48,481
Share-based payment — — — — 166 166
Capital reduction — (15,000) — 6,059 8,941 —
Transactions with owners — (15,000) — 6,059 9,107 166
Total comprehensive income for the year — — — — 759 759
Total changes in equity — (15,000) — 6,059 9,866 925
At 30 June 2012 18,301 30,794 (366) 6,059 (5,382) 49,406
Share-based payment — — — — 62 62
Dividend payment — — — — (122) (122)
Issue of equity 1,830 2,901 — — — 4,731
Transactions with owners 1,830 2,901 — — (60) 4,671
Total comprehensive income for the year — — — — 3,653 3,653
Total changes in equity 1,830 2,901 — — 3,593 8,324
At 30 June 2013 20,131 33,695 (366) 6,059 (1,789) 57,730
The accompanying accounting policies and notes form part of these financial statements.
46 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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Group Statement of Cash Flows
for the year ended 30 June 2013
Note
2013
£000
2012
£000
Cash flow from operating activities
Profit for the year before tax 5,212 1,597
Adjustments for:
– depreciation 13 49 38
– profit on disposal of property, plant and equipment (9) —
– share-based compensation 62 166
– fair value adjustment for movement in value of DGVL investment (48) 145
– interest expense 1,689 813
– interest and similar income (308) (324)
– share of profit of Howarth (former associate) (330) (307)
– reverse impairment of investment in Howarth (former associate) — (500)
– profit on disposal of investment in Howarth (former associate) (292) —
– share of profit in joint venture (889) (217)
Changes in working capital:
– increase in investments 219 (250)
– decrease/(increase) in inventories 161 (19,672)
– (increase)/decrease in trade and other receivables (12,228) 7,904
– decrease in receivables due in more than one year — 15
– increase in trade and other payables 1,744 4,330
Net cash outflow from operating activities (4,968) (6,262)
Cash flow from investing activities
Interest received 83 87
Purchases of property, plant and equipment 13 (156) (30)
Sale of property, plant and equipment 11 —
Distribution from joint venture 2,995 —
Net proceeds on sale of investment in Howarth (former associate) 1,364 —
Net cash inflow from investing activities 4,297 57
Cash flow from financing activities
Interest paid (1,072) (677)
Repayment of borrowings (6,531) —
New loans 15,244 4,323
Equity dividends paid to ordinary shareholders (122) —
Net proceeds on issue of ordinary shares 4,731 —
Receipt of loan repayment from Howarth (former associate) — 895
Net cash inflow from financing activities 12,250 4,541
Net increase/(decrease) in cash and cash equivalents 11,579 (1,664)
Net cash and cash equivalents at beginning of year 575 2,239
Net cash and cash equivalents at end of year 12,154 575
The accompanying accounting policies and notes form part of these financial statements.
Stock code: INL www.inlandplc.com  47 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements
for the year ended 30 June 2013
1. Accounting policies 
The principal accounting policies adopted in the preparation of the Group financial statements are set out below.
Basis of preparation
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 Position 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 2013.
At the date of approval of these financial statements, certain new standards, amendments and interpretations to existing standards have 
been published by the IASB but are not yet effective, and have not been adopted early by the Group.
Management anticipates that all of the relevant pronouncements will be adopted in the Group’s accounting policies for the first period 
beginning after the effective date of the pronouncement. Information on new standards, amendments and interpretations that are 
expected to be relevant to the Group’s financial statements is provided below. 
Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Group’s 
financial statements.
Standards, amendments and interpretations to existing standards that are not yet effective and have not been adopted early by 
the Group
•	 IFRS10 Consolidated Financial Statements
•	 IFRS11 Joint Arrangements
•	 IFRS12 Disclosure of Interests in Other Entities
•	 IAS27 (Revised) Separate Financial Statements
•	 IAS28 (Revised) Investments in Associates and Joint Ventures
Standards in issue but not yet effective
•	 IFRS9 Financial Instruments (effective 1 January 2015)
•	 IFRS13 Fair Value Measurement (effective 1 January 2013)
•	 IAS19 Employee Benefits (Revised June 2011) (effective 1 January 2013)
•	 Disclosures — Offsetting Financial Assets and Financial Liabilities — Amendments to IFRS7 (effective 1 January 2013)
•	 Offsetting Financial Assets and Financial Liabilities — Amendments to IAS32 (effective 1 January 2014)
The Directors are currently considering the potential impact of IFRS10, 11 and 12 on the accounting for the Group’s investment in 
Drayton Garden Village. Full details of the impact, if any, will be included in the Interim Financial Statements prepared for the six month 
period ending 31 December 2013.
None of the other standards above are expected to have an impact on the Group’s financial statements.
Basis of consolidation
The Group’s financial statements consolidate the financial statements of the Company and all of its subsidiary undertakings drawn up to 
30 June 2013. 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.
48 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
Our Business
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1. Accounting policies continued
Basis of consolidation continued
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 Position 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. The Group has significant forward sales of residential units and is in discussions for the sale 
of some of the land within its projects and expects to make sufficient disposals in the foreseeable future to ensure it has adequate 
working capital for its requirements. The Group is also in discussions with a number of funders to raise debt finance in order to both 
supplement its working capital and expand its land portfolio. The Directors are satisfied that the Group will generate sufficient cash to 
meet its liabilities as and when they fall due for a period of 12 months from signing these financial statements. The Directors therefore can 
consider it appropriate to prepare the financial statements on the going concern basis.
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.
Stock code: INL www.inlandplc.com  49 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
1. Accounting policies continued
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:
•	 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;
•	 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;
•	 the amount of revenue can be measured reliably;
•	 it is probable that the economic benefits associated with the transaction will flow to the Group; and
•	 the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Sale of residential units
Turnover 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, 
in accordance with IAS18.
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.
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.
Depreciation
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 shorter of lease term and useful economic life
Material residual value estimates are updated as required, but at least annually, whether or not the asset is revalued.
50 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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1. Accounting policies continued
Investment property
Investment properties are measured at cost and are reviewed annually for impairment. 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. As a result, 
investment properties are not depreciated.
Inventories
Inventories consist of land and work in progress and are 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.
Taxation
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. Temporary 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.
Stock code: INL www.inlandplc.com  51 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
1. Accounting policies continued
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.
Employee 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 payment
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 and financial assets at fair value through profit or  
loss. 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 reclassified subsequently.
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 reclassified 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. 
Trade 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.
52 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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Our Governance
Our Accounts
1. Accounting policies continued
Financial assets continued
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 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 equivalents
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 a 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:
•	 ‘Share capital’ represents the nominal value of equity shares;
•	 ‘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;
•	 ‘Treasury 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 reissued, any consideration received is included in total equity;
•	 ‘Special reserve’ represents the distributable surplus created by the transfer of an amount from the share premium to rectify the deficit 
on the profit and loss reserve; and
•	 ‘Profit and loss reserve’ represents retained profits.
Stock code: INL www.inlandplc.com  53 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
2. Financial risk management
Financial risk factors
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:
2013
£000
2012
£000
Classes of financial assets – carrying amounts
Listed investments held for trading 1 1
Loan to Howarth (former associate) 1,000 1,000
Cash and cash equivalents 12,154 575
Trade and other receivables 15,085 2,632
Receivables due in more than one year 55 55
28,295 4,263
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 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.
3. Segment information
In accordance with IFRS8, 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, housebuilding, fee income and other income. These 
segments are based on the information reported to the chief operating decision maker. An analysis of the Group’s results by segment are 
disclosed in Note 6.
54 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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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.
Critical accounting estimates
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 land bank 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. Critical accounting estimates relate to the profit forecasts used to determine the extent to 
which deferred tax assets are recognised from available losses.
(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
Investment properties are reviewed annually for impairment; critical accounting estimates relate to the forecasts prepared in order to 
assess the carrying value.
(e) Discounting on deferred consideration of inventories
The Group discounts deferred consideration of inventories by discounted cash flow method; the Group considers that the cost of debt 
capital is the most appropriate discount rate.
Critical judgements in applying 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. 
Zero Dividend Preference shares
The Group has in issue Zero Dividend Preference shares which are accounted for as debt. ZDP shares are repayable, plus accrued 
interest to date, in the event of a takeover. The Directors consider that the potential early repayment meets the definition of a derivative 
instrument under IAS39. However, they consider that this instrument is closely related to the host contract and therefore have not 
accounted for the embedded derivative separately.
Stock code: INL www.inlandplc.com  55 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
4. Critical accounting estimates and judgements continued
Critical judgements in applying the entity’s accounting policies continued
Investments
The Group has entered into an Option and Development Services Agreement (The Agreement) with DGVL. The Directors have considered 
the requirements of IAS27 ‘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 advisers, 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.
The Group’s relationship with DGVL is further explained in Note 14 and balances in Note 17.
Because the final decision on the financial and operational activities of DGVL resides with the director of DGVL, the Directors of Inland 
Homes plc do not consider that they have significant influence over DGVL and therefore DGVL is not considered to be an associate or a 
subsidiary undertaking.
At 30 June 2013 the funding arrangements in place for the satisfaction of deferred consideration entitled Inland to 74.4% of the profits 
expected to be realised from the sale of the property over the life of the project. In accordance with The Agreement, 67.44% 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 IAS18. 6.96% of the profits would be due to the Group for the provision of finance to 
DGVL and would be accounted for under IAS39 as notional interest income.
In calculating the fee for the provision of planning application and property services to DGVL recognised in the year, under IAS18 the 
Group has estimated the following:
•	 total profits (total expected sales less total estimated development costs to completion) to be realised from the sale of the property;
•	 profits would be realised over six years from 1 July 2010;
•	 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
•	 the fair value of completed service components at the year end.
During the year ended 30 June 2013 the Group has recognised £3.00 million (2012: £3.65 million) in revenue within the Group Income 
Statement for such services to DGVL.
In calculating the fee for the provision of finance to DGVL, under IAS39 the Group has estimated the following:
•	 total profits (total expected sales less total estimated development costs to completion) to be realised from the sale of the property; 
and
•	 profits would be realised over six years from 1 July 2010.
Under IAS39 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 2013 the Group has recognised £0.25 million (2012: £0.24 million) within notional interest income in the 
Group Income Statement in respect of such fees.
56 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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4. Critical accounting estimates and judgements continued
Critical judgements in applying the entity’s accounting policies continued
Investments continued
The table below shows the revenue and notional interest recognised by Inland under IAS18 and IAS39 in comparison to the results 
recognised by DGVL on its sales under UK GAAP:
2013
£000
2012
£000
Cumulative
£000
Total revenue and notional interest recognised by Inland under IAS18 and 39 3,252 3,885 11,154
Results in DGVL (unaudited)
Residential and commercial plots sold 76 118 342
Revenue (£000) 5,300 8,460 24,846
Gross profit (£000) as per DGVL’s unaudited management accounts 1,668 2,801 10,098
74.4% of gross profit (£000) 1,241 2,084 7,513
The accounting policy for revenue recognition by DGVL is as follows:
Turnover comprises the sale of land acquired for resale, the sale of equipment and materials and amounts receivable by the Company in 
respect of other services rendered during the period excluding value added tax. Turnover in respect of the sale of land is recognised at 
the point of completion, when the title passes. Turnover from other services is recognised as the service is delivered. Turnover on the sale 
of equipment is recognised on the completion of the sale.
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 Position, the Group has 
impaired the land value. This has resulted in an impairment of £1.5 million (2012: £nil) during the year which is recognised in cost of sales.
6. Income and segmental analysis
The Group generates income by way of land sales. It also generates income from housebuilding, 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:
Segmental analysis by activity
2012
Revenue
£000
Cost of 
sales
£000
Gross 
profit
£000
Admin 
costs
£000
Other
£000
Operating 
profit
£000
Finance
(cost)/
income
£000
Other
£000
Profit
before
tax
£000
Segment 
Land sales — (554) (554) — — (554) (115) — (669)
Housebuilding 1,708 (1,475) 233 — — 233 — — 233
Fee income 3,885 (166) 3,719 — — 3,719 237 — 3,956
Rental income 322 (29) 293 — — 293 — — 293
Other property sale 195 — 195 — — 195 — — 195
Other
– Profit/(loss) on investments — — — — (145) (145) — — (145)
– Share of profit of associate — — — — — — — 307 307
– Reverse impairment of
 investment in associate — — — — — — — 500 500
– Share of profit of joint venture — — — — — — — 217 217
– Unallocated — — — (2,679) — (2,679) (611) — (3,290)
6,110 (2,224) 3,886 (2,679) (145) 1,062 (489) 1,024 1,597
Stock code: INL www.inlandplc.com  57 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
6. Income and segmental analysis continued
Segmental analysis by activity continued
2013
Revenue
£000
Cost of 
sales
£000
Gross 
profit
£000
Admin 
costs
£000
Other
£000
Operating 
profit
£000
Finance
(cost)/
income
£000
Other
£000
Profit
before
tax
£000
Segment 
Land sales 16,353 (14,400) 1,953 — — 1,953 (1,054) — 899
Housebuilding 11,426 (9,020) 2,406 — — 2,406 (288) — 2,118
Fee income 3,027 — 3,027 — — 3,027 254 — 3,281
Rental income 300 (11) 289 — — 289 — — 289
Other property sale 10 — 10 — — 10 — — 10
Other
– Profit/(loss) on investments — — — — 48 48 — — 48
–  Share of profit from Howarth 
(former associate) — — — — — — — 330 330
– Profit on sale of investment in 
Howarth (former associate) — — — — — — — 292 292
– Share of profit of joint venture — — — — — — — 889 889
– Unallocated — — — (2,652) — (2,652) (292) — (2,944)
31,116 (23,431) 7,685 (2,652) 48 5,081 (1,380) 1,511 5,212
All activities arose solely in the United Kingdom.
Transactions with customers making up 10% or more of revenue
2013
£000
2012
£000
Land sales customer 1 3,135 —
Land sales customer 2 7,410 —
Land sales customer 3 3,330 —
Fee income customer 4 — 3,452
13,875 3,452
58 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
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6. Income and segmental analysis continued
Segmental analysis by activity continued
2013
£000
2012
£000
Segment assets
Land:
Non-current assets — investment property 7,681 8,801
Non-current assets — deferred tax 3,159 4,275
Current assets – inventories 37,221 35,901
Current assets – other 341 35
48,402 49,012
Housebuilding:
Non-current assets — deposit match debtor 55 55
Current assets — inventories 7,515 7,875
Current assets — other 498 9
8,068 7,939
Fees:
Non-current assets — investment 1,363 1,114
Current assets — debtor 12,870 1,507
Current assets — other 808 808
15,041 3,429
Other:
Non-current assets — joint venture 243 3,385
Non-current assets — other 173 68
Non-current assets — deferred tax 255 —
Current assets — loan to Howarth (former associate) 1,000 1,000
Current assets — other 569 274
Cash 12,154 575
14,394 5,302
Total segmental and entity assets 85,905 65,682
Stock code: INL www.inlandplc.com  59 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
6. Income and segmental analysis continued
Segmental analysis by activity continued
2013
£000
2012
£000
Segment liabilities
Land:
Current liabilities — trade creditors 851 460
Current liabilities — loans 832 5,875
Current liabilities — other 1,056
Current liabilities — purchase consideration 7,947 6,768
10,686 13,103
Housebuilding:
Current liabilities — trade creditors 1,216 943
Current liabilities — other loans 3,878 —
Current liabilities — bank loans 1,613 1,111
Current liabilities — other creditors 363 —
7,070 2,054
Fees:
Current liabilities — trade creditors — 45
Current liabilities — other creditors 200 250
200 295
Other:
Current liabilities — trade creditors 65 88
Current liabilities — other creditors 433 736
Non-current liabilities — zero dividend preference shares 9,721 —
10,219 824
Total segmental and entity liabilities 28,175 16,276
7. Expenses by nature
Note
2013
£000
2012
£000
Depreciation 13 49 38
Operating lease rentals 68 68
Auditor’s remuneration:
— audit 41 39
— non-audit fees Parent Company 16 28
— non-audit fees Subsidiaries 10 10
Cost of sales 23,431 2,224
Other expenses 2,468 2,496
Total 26,083 4,903
Classified as:
— cost of sales 23,431 2,224
— administrative expenses 2,652 2,679
26,083 4,903
Included within Revenue is rental income from investment property of £nil (2012: £10,000).
60 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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8. Directors and employees
The employee benefit expense during the year was as follows:
2013
£000
2012
£000
Wages and salaries 1,637 1,577
Social security costs 206 191
Pension costs — defined contribution plans 80 79
1,923 1,847
The average number of employees during the year was as follows:
2013
Number
2012
Number
Management 4 4
Administration 10 9
14 13
Remuneration in respect of Directors was as follows:
2013
£000
2012
£000
Wages and salaries 866 821
Bonuses 200 246
Social security costs 140 141
Fees 80 68
Pension costs — defined contribution plans 60 68
1,346 1,344
During the year two Directors participated in a money purchase pension scheme. 
Stock code: INL www.inlandplc.com  61 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
8. Directors and employees continued
The amounts set out above include remuneration in respect of the highest paid Director as follows:
2013
£000
2012
£000
Emoluments 436 458
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 were as follows:
2013
£000
2012
£000
Wages and salaries 989 924
Bonuses 215 254
Social security costs 156 155
Pension costs — defined contribution plans 65 66
Share-based payment 58 161
1,483 1,560
Other long term benefits in respect of key personnel and the Directors were as follows:
As at 30 June 2013 As at 30 June 2012
Number of 
deferred 
shares
Number of 
share 
options
Number of 
deferred 
shares
Number of 
share
 options
Key personnel and Directors 980 4,350,000 980 4,200,000
9. Finance cost
2013
£000
2012
£000
Interest expense:
— bank borrowings 169 60
— other loan interest 881 454
— notional interest on deferred consideration 270 115
— costs associated with arrangement of new facilities 369 184
1,689 813
10. Finance income
2013
£000
2012
£000
Other interest receivable 78 86
Bank interest receivable 5 1
Notional interest 226 237
309 324
62 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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11. Income tax 
2013
£000
2012
£000
Tax charge on associate and joint venture profits 73 137
Current tax charge 625 —
Deferred tax charge due to change of corporation tax rate — 382
Deferred tax charge 861 319
1,559 838
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:
2013
£000
2012
£000
Profit before tax 5,212 1,597
Profit on ordinary activities multiplied by the standard rate
of corporation tax in the UK of 24% (2012: 26%) 1,251 415
Expenses not deductible for tax purposes 122 (77)
Profit on disposal of associate (207) —
Other temporary differences 9 126
Utilisation of tax losses (554) (327)
Difference between capital allowances and depreciation 4 (1)
Tax charge 625 136
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.
2013 2012
Profit attributable to equity holders of the Company (£000) 3,653 759
Net assets attributable to equity holders of the Company (£000) 57,730 49,406
Weighted average number of ordinary shares in issue (000) 184,860 182,999
Dilutive effect of options (000) 872 51
Weighted average number of ordinary shares used in determining diluted EPS (000) 185,732 183,050
Basic earnings per share in pence 1.98p 0.41p
Diluted earnings per share in pence 1.97p 0.41p
Shares in issue (000) 201,299 182,999
Net asset value per share in pence 28.68p 27.00p
Stock code: INL www.inlandplc.com  63 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
13. Property, plant and equipment
Investment 
property
£000
Leasehold 
property 
£000
Motor 
vehicles 
£000
Office 
equipment 
£000
Fixtures and 
fittings 
£000
Total
 £000
Cost or fair value
At 30 June 2011 8,801 5 49 75 80 209
Additions — — — 21 9 30
At 30 June 2012 8,801 5 49 96 89 239
Additions — — 106 48 2 156
Disposals — — (32) — — (32)
Transfer to inventories (1,120) — — — — —
At 30 June 2013 7,681 5 123 144 91 363
Depreciation
At 30 June 2011 — 2 38 40 53 133
Depreciation charge — 1 9 15 13 38
At 30 June 2012 — 3 47 55 66 171
Depreciation charge — 1 16 20 12 49
Disposals — — (30) — — (30)
At 30 June 2013 — 4 33 75 78 190
Net book value
At 30 June 2013 7,681 1 90 69 13 173
At 30 June 2012 8,801 2 2 41 23 68
At 30 June 2011 8,801 3 11 35 27 76
All investment property is stated at cost and reviewed annually for impairment.
The Investment Property was valued by CBRE Ltd in March 2013 in accordance with the current edition of the RICS Valuation 
Professional Standards, published by the Royal Institution of Chartered Surveyors, at £11.05 million. 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, as 
it is reviewed annually for impairment. 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 2013 as noted in Poole Investments plc’s (Poole) financial statements is 
£1,092,673 (2012: £1,252,000). 
The direct operating expenses for the period arising from the investment property was £11,000 (2012: £29,000). The investment property 
generated no rental income during the period.
64 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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14. Investments
Investment 
in Howarth 
(former 
associate)
£000
Option
£000
Investment 
in joint 
venture 
£000
Total
£000
Cost or fair value
At 30 June 2011 96 1,009 2,401 3,506
Additions — 250 — 250
Share of profit after tax 226 — 162 388
Reverse impairment of investment in Howarth (former associate) 500 — — 500
Fair value adjustment — (145) — (145)
Movement during the year to 30 June 2012 726 105 162 993
At 30 June 2012 822 1,114 2,563 4,499
Additions — 200 — 200
Share of profit after tax 250 — 676 926
Net proceeds on disposal of investment in Howarth (former associate) (1,364) — — (1,364)
Realised gain on sale of investment in Howarth (former associate) 292 — — 292
Distributions from joint ventures — — (2,996) (2,996)
Fair value adjustment — 49 — 49
Movement during the year to 30 June 2013 (822) 249 (2,320) (2,893)
Net book value
At 30 June 2013 — 1,363 243 1,606
At 30 June 2012 822 1,114 2,563 4,499
During the year ended 30 June 2012, the Directors reviewed the valuation of the investment on the fair value less costs to sell basis and 
concluded that a £500,000 reversal of the impairment is required, based on a indicative offer received during the year. During the year 
ended 30 June 2013 Howarth purchased Inland’s holding in that company for a consideration of £1.4 million.
On 18 December 2008, Inland entered into an Option and Development Services Agreement with DGVL which granted Inland 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, 2011, 2012 and 2013, the option period was extended to expire on  
15 January 2019 in consideration of £1,200,000. In accordance with the Group’s accounting policy for financial assets, the option has 
been measured at fair value at 30 June 2013, which resulted in a fair value gain of £49,000 (2012: loss of £145,000) that has been 
recognised in the Group Income Statement, resulting in the option being valued at £163,000 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 £nil (2012: 
£2,302,000). 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 for the period to 30 June 2013 amounts to £676,000 (2012: £162,000) that has 
been recognised in the Group Income Statement. The related tax amounts to £213,000 (2012: £55,000).
Stock code: INL www.inlandplc.com  65 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
14. Investments continued
At 30 June 2013 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 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
Inland Homes (Essex) Limited England & Wales Real estate 
development
100% Ordinary
Inland Homes Developments Limited England & Wales Real estate 
development
100% Ordinary
Inland New Homes Limited England & Wales Real estate 
development
100% Ordinary
Inland ZDP plc England & Wales Provision of finance 100% Ordinary
15. Deferred tax
The net movement on the deferred tax account is as follows:
£000
At 1 July 2012 4,275
Income statement charge (861)
At 30 June 2013 3,414
The movement in deferred tax assets is as follows:
Accelerated 
tax 
depreciation 
£000
Losses
£000
Other
£000
Total
£000
At 1 July 2012 (3) 3,407 871 4,275
Charged to income statement 3 (771) (93) (861)
At 30 June 2013 — 2,636 778 3,414
The deferred tax asset is recoverable as follows:
2013
£000
2012
£000
Deferred tax asset to be recovered after twelve months 2,512 2,724
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 has capital losses amounting to £17,162,000 (2012: £17,162,000) that have not 
been recognised as the Directors consider the realisation of the losses is not expected to crystallise in the future.
66 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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16. Inventories
2013
£000
2012
£000
Stock and work in progress 44,736 43,776
During the year a total of £23,431,000 (2012: £2,151,000) 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 Position, the Group has 
impaired the land value. This has resulted in an impairment of £1.5 million (2012: £nil). Included in the value of inventories above is  
£18.2 million (2012: £15.2 million) which is carried at fair value less costs to sell (net realisable value). The amount of inventories pledged 
as security against borrowings is £29.5 million (2012: £23.8 million).
17. Trade and other receivables
2013
£000
2012
£000
Prepayments and accrued income 870 891
Other receivables 14,215 1,741
Other receivables due in more than one year 55 55
15,140 2,687
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 £13.7 million (2012: £1.5 million) 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.
All of the Group’s trade and other receivables have been reviewed for indicators of impairment.
18. Loan to Howarth (former associate)
2013
£000
2012
£000
Advances to Howarth (former associate) 1,000 1,000
£500,000 is repayable on 30 June 2014 and the final £500,000 is repayable a year later. The loan attracts interest of 8% per annum 
above the National Westminster Bank PLC base rate.
19. Listed investments held for trading
£000
At 1 July 2012 1
Movements during the year —
At 30 June 2013 1
20. Cash and cash equivalents
2013
£000
2012
£000
Cash at bank and in hand 12,154 575
Stock code: INL www.inlandplc.com  67 22901.04     4 November 2013 2:31 PM     Proof 5
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
21. Share capital
2013
£000
2012
£000
Authorised
239,990,000 (2012: 239,990,000) ordinary shares of 10p each 23,999 23,999
1,000 (2012: 1,000) redeemable shares of £1 each 1 1
24,000 24,000
2013
£000
2012
£000
Allotted, issued and fully paid
201,299,432 (2012: 182,999,484) ordinary shares of 10p each 20,130 18,300
980 (2012: 980) redeemable shares of £1 each 1 1
180 (2012: 180) deferred shares of 10p each — —
20,131 18,301
The Company currently holds 1,325,000 (2012: 1,325,000) of its own shares in treasury.
During the year ended 30 June 2013 18,299,948 shares were issued at a cash consideration of 27p per share, generating a premium  
of 17p per share.
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 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 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.
68 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
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21. Share capital continued
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 options 
2012/13 grant
Share options 
2011/12 grant
Share options 
2010/11 grant
Share options 
2009/10 grant
Redeemable 
shares
Expected life of options based on options exercised to date 3 years 3 years 3 years 3 years 5 years
Volatility of share price 67% 67% 76% 69% 30%
Dividend yield 0% 0% 0% 0% 0%
Risk free interest rate 2.05% 2.05% 2.05% 2.11% 5.38%
Share price at date of grant 32.5p 17.5p 18.25p 16.5p 35.0p
Exercise price 32.5p 17.5p 18.25p 16.5p 35.0p
Fair value per option £0.14 £0.05 £0.09 £0.05 £0.07
The charge calculated for the year ended 30 June 2013 is £62,000 with a corresponding deferred tax asset at that date of £15,000.
Volatility was assessed using the closing prices on the first business day of each month over the period since the shares have been listed.
A reconciliation of option movements over the year ended 30 June 2013 is shown below:
Number
000s
Exercise 
price pence
Outstanding at 30 June 2011 4,690
Granted during the year 305 17.5p
Lapsed during the year (275)
Outstanding at 30 June 2012 4,720
Granted during the year 550 32.5p
Lapsed during the year (100)
Outstanding at 30 June 2013 5,170
Exercisable at 30 June 2013 1,315
Exercisable at 30 June 2012 710
There were 550,000 options granted during the year.
At 30 June 2013 outstanding options granted over 10p ordinary shares were as follows:
Share option scheme
Option price 
pence Number Dates exercisable
Company unapproved 50.0p 710,000 28 March 2010 to 27 March 2017
Company unapproved 16.5p 605,000 17 December 2012 to 16 December 2019
Company unapproved 18.25p 3,000,000 22 November 2013 to 21 November 2020
Company unapproved 17.5p 305,000 25 June 2015 to 24 June 2022
Company unapproved 32.5p 550,000 18 June 2016 to 17 June 2023
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Notes to the Group Financial Statements continued
for the year ended 30 June 2013
22. Movement on reserves
Share 
premium 
£000
Treasury 
shares
£000
Special 
reserve
£000
Profit and loss 
account
£000
At 30 June 2011 45,794 (366) — (15,248)
Profit for the year — — — 759
Share-based compensation — — — 166
Capital reduction (15,000) — 6,059 8,941
At 30 June 2012 30,794 (366) 6,059 (5,382)
Profit for the year — — — 3,653
Ordinary shares issued during the year 2,901 — — —
Dividends paid to ordinary shareholders — — — (122)
Share-based compensation — — — 62
At 30 June 2013 33,695 (366) 6,059 (1,789)
A resolution was passed at the AGM in November 2011 for the capitalisation of the Parent Company’s reserves to allow for the possibility 
of distributions in the future. A copy of this resolution is available from Companies House.
23. Trade and other payables
2013
£000
2012
£000
Trade payables 2,131 1,536
Other creditors 745 120
Social security, other taxes and VAT 47 174
Corporation tax 625 —
Accruals and deferred income 636 692
4,184 2,522
The carrying value of trade and other payables is considered to be a reasonable approximation of fair value. 
24. Other financial liabilities
2013
£000
2012
£000
Purchase consideration on inventories falling due within one year 7,947 6,768
Zero dividend preference shares 9,721 —
17,668 6,768
During the year the Group’s subsidiary, Inland ZDP PLC issued 9,349,900 zero dividend preference (ZDP) shares of 10p each for a  
total cash consideration of £9.38 million. The ZDP shares have a redemption yield of 7.3% per annum and will be repaid on or before  
10 April 2019. 
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.
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Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
25. Contingencies
The Group has the following contingent liability as at 30 June 2013:
•	 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.
No provisions have been made in these financial statements in respect of this contingent liability.
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:
2013
£000
2012
£000
Due in less than one year 72 68
Due later than one year and not later than five years 10 61
82 129
The rental contract for the office building rented since 28 April 2009 at 2 Anglo Office Park, 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:
•	 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
•	 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 to 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 Position.
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.
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Notes to the Group Financial Statements continued
for the year ended 30 June 2013
27. Capital management policies and procedures continued
2013
£000
2012
£000
Equity 57,730 49,406
Less: cash and cash equivalents (12,154) (575)
Capital 45,576 48,831
2013
£000
2012
£000
Equity 57,730 49,406
Borrowings 16,044 6,986
Overall financing 73,774 56,392
Capital to overall financing 61.8% 86.6%
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 Position relate to the following categories of assets and liabilities:
Note
2013
£000
2012
£000
Financial assets
Listed investments held for trading 19 1 1
Loans and receivables
Loan to Howarth (former associate) 18 1,000 1,000
Trade and other receivables 17 14,270 1,796
Cash and cash equivalents 20 12,154 575
 27,424 3,371
Financial liabilities
Financial liabilities measured at amortised cost:
— current borrowings 6,323 6,986
— trade and other payables 23 2,923 1,830
— zero dividend preference shares 9,721 —
— other financial liabilities 24 7,947 6,768
26,914 15,584
The fair values are presented in the related notes.
Current borrowings consist of housebuilding loan facilities of £16.3 million, of which £5.5 million (2012: £1.1 million) is drawn down, and 
further loans of £0.8 million secured against land (2012: £5.9 million). The loans attract interest at varying rates.
72 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
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. 
2013 2012
Trade and 
other 
payables 
£000
Zero 
Dividend 
Preference 
shares 
£000
Purchase 
consideration 
£000
Trade and 
other 
payables
£000 
Purchase 
consideration
£000 
Less than one year 9,199 — 8,004 8,643 7,000
Over five years — 9,721 — — —
9,199 9,721 8,004 8,643 7,000
The following table presents financial assets and liabilities measured at fair value in the Group Statement of Financial Position 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 Position are grouped into the fair value 
hierarchy as follows:
Note
Level 1
£000
Level 2
£000
Level 3
£000
Total
£000
Net fair value at 1 July 2012 28(a) & (b) 1 — 1,114 1,115
Movements during the year — — 249 249
Net fair value at 30 June 2013 1 — 1,363 1,364
(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.
(b) Assets not based on observable market data
The option to purchase the share of Drayton Garden Village Ltd is measured at fair value annually. 
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29. Related party transactions
The Group had an investment in Howarth which it sold in April 2013. As at 30 June 2013 there was a sum due from Howarth amounting 
to £1,000,000 (2012: £1,000,000). The balance outstanding attracts interest of 8% per annum above the National Westminster Bank 
PLC base rate. The interest received from Howarth for the year ended 30 June 2013 amounted to £78,000 (2012: £84,000).
During the year ended 30 June 2013, 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 £2,372,000 (2012: £635,000).
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 2013 the Group had invested £nil (2012: £2,302,000). The Group’s 50% share of the profits 
after tax for the period to 30 June 2013 amounts to £676,000 (2012: £162,000) 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:
2013
£000
2012
£000
Net assets 373 132
Net result 676 162
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 Park, 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 
develops a number of the plots for private sale and sells consented plots to housebuilders.
Notes to the Group Financial Statements continued
for the year ended 30 June 2013
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Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
Independent Auditor’s Report
to the members of Inland Homes plc
We have audited the Parent Company financial statements of Inland Homes plc for the year ended 30 June 2013 which comprise the 
Company 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 Part 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. To 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 set out on page 38, 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 Parent 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:
•	 give a true and fair view of the state of the Company’s affairs as at 30 June 2013; 
•	 have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	 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:
•	 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; or
•	 the Parent Company financial statements are not in agreement with the accounting records and returns; or
•	 certain disclosures of Directors’ remuneration specified by law are not made; or
•	 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 Homes plc for the year ended 30 June 2013. 
Robert Napper
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Reading
31 October 2013
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Company Balance Sheet
at 30 June 2013
Note
2013
£000
2012
£000
Fixed assets
Investments 4 12,472 15,224
12,472 15,224
Current assets
Debtors 5 36,385 39,684
Listed investments 1 1
Deferred tax 246 223
Cash at bank and in hand 12,169 25
48,801 39,933
Creditors: amounts falling due within one year 6 (210) (157)
Net current assets 48,591 39,776
Total assets less liabilities 61,063 55,000
Capital and reserves
Called up share capital 7 20,131 18,301
Share premium 8 33,695 30,794
Treasury shares 8 (366) (366)
Special reserve 8 6,059 6,059
Profit and loss account 8 1,544 212
Shareholders’ funds 61,063 55,000
The financial statements on pages 76 to 80 were approved and authorised for issue by the Board of Directors on 31 October 2013 and 
signed on its behalf by:
Stephen Wicks 
Director
Nishith Malde 
Director
Company number 
5482990
The accompanying accounting policies and notes form part of these financial statements. 
76 Inland Homes plc  Annual Report and Accounts 2013 22901.04     4 November 2013 2:31 PM     Proof 5
Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
Notes to the Company Financial Statements
for the year ended 30 June 2013
1. Principal accounting policies
Basis of preparation
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 payment
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 profit and loss account 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 taxation
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 profit for the year of £1.4 million (2012: £46,000) has been transferred to reserves.
Auditor’s remuneration
The audit fees for the Company were £5,000 (2012: £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 Homes plc’s financial statements since the Group financial statements of Inland Homes plc are required to 
disclose non-audit fees on a consolidated basis.
3. Directors’ remuneration
See Note 8 to the Group financial statements.
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Notes to the Company Financial Statements continued
for the year ended 30 June 2013
4. Investments
Investment in 
joint venture 
£000
Investment 
in Group 
undertakings 
£000
Investment 
in Howarth 
(former 
associate) 
£000
Total
£000
Cost
At 1 July 2012 2,302 12,422 1,359 16,083
Additions — 50 — 50
Net proceeds on disposal of investment in Howarth (former associate) — — (1,359) (1,359)
Distribution from joint venture (2,302) — — (2,302)
At 30 June 2013 — 12,472 — 12,472
Amortisation
At 1 July 2012 — — 859 859
Reversal of impairment in Howarth (former associate) — — (859) (859)
At 30 June 2013 — — — —
Net book amount to 30 June 2013 — 12,472 — 12,472
Net book amount to 30 June 2012 2,302 12,422 500 15,224
See Note 14 of the Group financial statements for details on the Group undertakings.
5. Debtors
2013
£000
2012
£000
Amounts owed by Group undertakings 34,923 38,673
Loan to Howarth (former associate) 1,000 1,000
Other debtors 462 11
36,385 39,684
6. Creditors: amounts falling due within one year
2013
£000
2012
£000
Trade creditors 65 13
Accruals and other creditors 145 144
210 157
7. Share capital
2013
£000
2012
£000
Authorised
239,990,000 (2012: 239,990,000) ordinary shares of 10p each 23,999 23,999
1,000 (2012: 1,000) redeemable shares of £1 each 1 1
24,000 24,000
2013
£000
2012
£000
Allotted, issued and fully paid
201,299,432 (2012: 182,999,484) ordinary shares of 10p each 20,130 18,300
980 (2012: 980) redeemable shares of £1 each 1 1
180 (2012: 180) deferred shares of 10p each — —
20,131 18,301
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Shareholder Information
Our Business
Our Performance
Our Governance
Our Accounts
7. Share capital continued
During the year ended 30 June 2013 18,299,948 shares were issued at a cash consideration of 27p per share, generating a premium  
of 17p per share.
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 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 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.
8. Reserves
Share 
premium
£000
Treasury 
shares
£000
Special 
reserve
£000
Profit and loss 
account
£000
At 30 June 2012 30,794 (366) 6,059 212
Retained profit for the year — — — 1,392
Dividends paid to ordinary shareholders — — — (122)
Issue of shares 2,901 — — —
Employee share-based compensation — — — 62
At 30 June 2013 33,695 (366) 6,059 1,544
A resolution was passed at the AGM in November 2011 for the capitalisation of the Parent Company’s reserves to allow for the possibility 
of distributions in the future. A copy of this resolution is available from Companies House.
9. Capital commitments
The Company had no outstanding capital commitments at 30 June 2013 or 30 June 2012.
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10. Contingent liabilities
The Company has the following contingent liabilities as at 30 June 2013:
a. Inland Homes plc has guaranteed any shortfall of interest payable by Inland Housing Limited in respect of borrowings relating to the 
subsidiary undertaking’s developments. In the Directors’ opinion there is unlikely to be any such shortfall.
b. Inland Homes plc has guaranteed the obligations of Inland Limited in respect of a housebuilding facility relating to the subsidiary 
undertaking’s development at Chelmsford.
c. Inland Homes plc has guaranteed any cost overruns and shortfall of interest payable by Inland Homes Developments Limited in 
respect of borrowings relating to the subsidiary undertaking’s developments. In the Directors’ opinion there is unlikely to be any such 
shortfall.
No provisions have been made in these financial statements in respect of these contingent liabilities.
11. Reconciliation of movements in shareholders’ funds
2013
£000
2012
£000
Profit for the year 1,392 46
Issue of shares 4,731 —
Payment of dividend to ordinary shareholders (122) —
Share-based compensation 62 166
Net increase in shareholders’ funds 6,063 212
Opening shareholders’ funds 55,000 54,788
Closing shareholders’ funds 61,063 55,000
12. 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 FRS8.3 Related Party Disclosures.
Notes to the Company Financial Statements continued
for the year ended 30 June 2013
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Company Information and Advisers
Company registration number
5482990
Company Secretary
Nishith Malde FCA
Registered office and website
2 Anglo Office Park 
67 White Lion Road 
Amersham 
Buckinghamshire, HP7 9FB 
www.inlandplc.com
Nominated adviser and broker
finnCap Limited
60 New Broad Street 
London, EC2M 1JJ
Solicitor
Dorsey & Whitney LLP
199 Bishopsgate 
London, EC2M 3UT
Auditor
Grant Thornton UK LLP
Chartered Accountants 
Statutory Auditor 
1020 Eskdale Road 
IQ Winnersh 
Wokingham 
Berkshire, RG41 5TS
Banker
Barclays Bank PLC
Fourth Floor 
Apex Plaza 
Forbury Road 
Reading 
Berkshire, RG1 1AX
Registrar
Capita Registrars
The Registry 
34 Beckenham Road 
Beckenham 
Kent, BR3 4TU 22901.04     4 November 2013 12:25 PM     Proof 5
Inland Homes plc  Annual Report and Accounts for the year ended 30 June 2013
Inland Homes plc
2 Anglo Office Park
67 White Lion Road
Amersham
Buckinghamshire 
HP7 9FB
Tel: 01494 762450
Fax: 01494 765897
Email: info@inlandplc.com
www.inlandplc.com