inland plc   annual report and accounts 2008
I n l a n d P L C
T r i n i t y C o u r t
B a t c h w o r t h I s l a n d
C h u r c h S t r e e t
R i c k m a n s w o r t h
H e r t s W D 3 1 R T
T :  0 1 9 2 3 7 1 3 6 0 0
F :  0 1 9 2 3 7 1 3 6 0 1
E :  i n f o @ i n l a n d p l c . c o m
w w w . i n l a n d p l c . c o m
AN N U AL   R E P O R T   AN D   A C C O U N TS
C R E A T I V E   T H I N K I N G   I N   
B R O W N F I E L D   D E V E L O P M E N T Contents
overview
01
01 Highlights
02 Chairman’s statement
05 Chief executive’s review
07 Board of Directors and advisers
governance
08
08 Directors’ report
financial statements
13
13 Report of the independent auditor to the members of Inland PLC
14 Consolidated income statement
15 Consolidated balance sheet
16 Consolidated statement of changes in equity
17 Consolidated cash flow statement
18 n otes to the financial statements
35 Report of the independent auditor to the members of Inland PLC
36 Company balance sheet
37 n otes to the Company’s financial statements
41 n otice of Annual General Meeting
43 explanatory notes of principal changes to the Company’s articles of association
I N L A N D   P L C ARe DYn AMIC DeVeLoPeRs oF URBAn 
ReGene RAt Ion PRoJeCts ARoUn D so Ut HeRn 
en GLAn D. PReDoMIn Ant LY sPeCIALIsIn G In 
BRoWn FIeLD DeVeLoPMents , oUR HIGHLY eXPeRIen CeD 
te AM CAn PRoVIDe so LUt Ions to A VARIet Y oF 
DIFFICULt An D sens It IVe LAn D sIt UAt Ions . 
I N L A N D P L C
Ann UAL RePo Rt A n D ACCo Unts 2008
I N L A N D P L C
Ann UAL RePo Rt A n D ACCo Unts 2008 01
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
revenue
£1 1.01m
operating profit before exceptional costs
£0.71m
pre tax loss
£4.19m
£4.60m
cash
inventories
£47 .68m
HIgHLIgHts
net asset value per share
32.9p 02
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
CHAIrmAN’s 
stAtemeNt
The results for the year ended 30 June 2008 
show an operating profit on operations 
before exceptional costs of £0.708 million 
(2007: £1.357 million) and a loss before tax of 
£4.189 million (2007: profit £1.123 million).
Since floating in March 2007 the Company is operating 
with a strong balance sheet and has now completed 
the purchase of 20 development sites which have the 
potential for 1,360 plots and 253,000 square feet of 
commercial space. During the year, we have secured 
planning consents on four sites for 468 residential 
units and 105,000 square feet of commercial space.
Since the last annual report and accounts there has 
been an unprecedented fall in confidence in the housing 
market with house prices having declined significantly. 
As a result there has been a serious reduction in demand 
for land from both volume and other house builders.
There appears to be little prospect of any material 
improvement in the housing market until mortgage finance 
and consumer confidence returns and with financial 
markets being increasingly volatile and dysfunctional, 
any recovery may be some considerable time away.
We are therefore examining alternative uses on a number of 
our sites and are in discussions with a number of potential 
purchasers with particular interest coming from the housing 
associations and the hotel and nursing home sectors. 
FINANCIAL summAry
Revenue for the year ended 30 June 2008 was 
£11.0 million (2007: £5.5 million). This was principally 
achieved by the sale of 98 development plots across 
three sites which had been successfully taken 
through the planning process, together with a listed 
building suitable for conversion into residential 
units and a commercial building that was let.
Market conditions have seriously declined over the last 
few weeks and as a result the Board decided to carry 
out a further review of the carrying value of its land 
holding. Whilst a number of our sites are still showing 
potential profitability we believe it is appropriate 
to write down the value of part of our portfolio by 
£4.783 million to reflect the values at the lower of cost 
and net realisable value in the current market place.
The Group continued to increase its activity in the course 
of the year with inventories standing at £47.68 million 
(2007: £38.79 million). We had cash of £4.60 million (2007: 
£42.84 million) as at the balance sheet date and net assets 
were £53.32 million (2007: £61.77 million) being 32.9p 
(2007: 38.1p) per share. Further to the announcement 
dated 4 August 2008 we confirm that we are in ongoing 
discussions with our bank to agree the level of security 
required to put in place a bank facility of £15 million. In the 
meantime, our existing overdraft facility stands at £7 million 
secured by way of a debenture and is available until 31 
July 2009. The extension to £15 million requires credit 
committee approval though the Directors are confident 
based on the Group’s substantial assets that this will 
take place once a suitable level of collateral is agreed.
The current portfolio generates residential and 
commercial letting income of £636,000 per annum.
DESPITE ThE CURRENT 
TURBULENT MARkET 
CONDITIONS WE BELIEvE 
Th AT ThE LONG-TERM 
FUNDAMENTALS OF 
ThE LAND MARkET AND 
INLAND’S BUSINESS 
MODEL REMAIN SOUND
Terry r oydon 03
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
LAND
The Group’s main focus at the moment is on 
securing planning consents on the existing portfolio. 
The current market conditions are now presenting 
some potentially attractive propositions which are being 
examined, however due to the extremely difficult trading 
environment we are taking a very cautious approach.
On 4 August 2008, we announced that heads of terms 
had been agreed for the sale of our site at Ashford 
h ospital near h eathrow subject to consent being obtained 
for a hotel. Unfortunately the potential purchaser 
has now withdrawn, but we are in discussions with 
other potential hotel operators regarding the site.
We continue to believe that the fundamentals of our 
business model remain sound because of the overall 
constraints in the supply of development land in the 
United k ingdom and the underlying demand for housing. 
In addition major housebuilders who are not in the land 
market at present and who are currently using up their 
existing land stocks will need to replenish their landbanks 
in due course. The current downturn is also resulting in 
less planning applications being submitted thereby further 
restricting the supply of land with planning consent.
PLANNINg CoNstrAINts
Unfortunately the planning system has continued 
to deteriorate since we reported our interim results.
With a few exceptions, most planning departments seem to 
go out of their way to frustrate development opportunities 
and rarely encourage the initiative, enthusiasm and 
professionalism that Inland puts into its projects.
>
INLAND PROPOSALS FOR REDEv ELOPMENT 
OF Th E QUEEN’S hEAD , FARNBOROUGh 
INCLUDE 16 SEMI-DETACh ED AND TERRACED 
h OUSES AND 4 APARTMENTS.  Th E SITE 
IS LOCATED WITh IN WALk ING DISTANCE 
OF Th E TOWN CENTRE AND BENEFITS 
FROM GOOD PUBLIC TRANSPORT LINk S.
t he Queen’s h ead, f arnborough
RECENT PROJECTS 04
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
The difficulties that the sector continues to experience 
and the resulting delays caused, impairs our ability 
to realise attractive opportunities. This impediment 
is compounded when the rapid decline in the housing 
market has prevented a number of sales being achieved 
at good margins, had consents been received earlier.
We continue to take a robust and tenacious approach 
to the planning problems we are experiencing but the 
process is nevertheless time consuming and frustrating.
INvestmeNts
h owarth h omes PLC where we hold 15% of 
the equity and a further 20% by way of convertible 
loan stock is experiencing challenging conditions in 
line with others in the house building industry.
h owarth had taken a decision to pre sell over £24 million 
of their stock last year and most of those completions 
have now taken place. The focus is on cash generation 
and sales are still being achieved albeit at reduced 
margins. h owarth are currently operating on six 
sites totalling 51 homes. The company has a land and 
development facility of £20 million from Royal Bank of 
Scotland and are currently operating well within this.
Inland are working closely with h owarth on new 
initiatives where land can be sold for social housing by 
Inland with h owarth securing the building contract.
At 30 June 2008 the Group held a stake in M J Gleeson 
PLC representing 3.74% of its issued share capital with 
a carrying value of £3.06 million. The carrying value of 
other listed investments amounted to £0.84 million.
outLook
Despite the current turbulent market conditions 
we believe that the long-term fundamentals of the land 
market and Inland’s business model remain sound. 
t erry r oydon
Chairman
CHAIrmAN’s 
stAtemeNt continued
>
poole, dorset
INLAND h AS PURCh ASED A 9.5 ACRE RIv ERSIDE SITE 
IN LOWER hAMWORT hy, P OOLE. Th E BROWNFIELD 
SITE IS CURRENTLy USED TO MANUFACTURE 
PILk INGTON TILES AND IS A CENTRAL PART OF Th E 
hOLES B Ay BASIN REGENERATION AREA AND Th E 
WIDER POOLE BRIDGE REGENERATION INITIATIv E. 
Th E LOCAL PLAN SEEk S A MIx OF USES ON Th IS 
SITE, WITh RESIDENTIAL , OFFICES AND GROUND 
FLOOR RETAIL AND RESTAURANT/BARS TO ATTRACT 
PEOPLE TO Th E WATERSIDE. Th E SCh EME PROPOSES 
TO INCREASE ACCESS TO Th E WATERFRONT, WITh 
LINk AGES TO ADJOINING WATERFRONT PROPERTIES. 05
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
CHIeF exeCutIve’s 
revIew
2008 has seen a devastating fall in both house 
prices and consumer and investor confidence. 
With severe problems now extending to the 
banking sector and the economy generally, it 
is clear that it will be some considerable time 
before our industry returns to ‘normal’.
What does normal mean? Despite the undoubted 
need for decent homes in the areas in which 
we operate, housebuilding starts are now 
reducing to levels not seen for many years.
It is clear to me that to achieve Government targets to 
provide good affordable homes in substantial numbers a 
radical rethink of how our industry operates is required.
The national obsession with home ownership is likely to 
change; with one of the highest levels of owner occupation 
in the western world it may have already reached its peak.
To move away from the ‘boom and bust’ environment in 
which our industry operates it is necessary to quickly and 
radically change the tenure and structure of housing.
At the moment home ownership is at one end of the 
spectrum with social housing at the other, private 
rental is a ‘twilight zone’ somewhere in the middle 
dominated by buy to let investors who have little regard 
for their tenants and their security of tenure.
Warren r oad, r eigate
WARREN ROAD, REIGATE IS SITUATED ON A FORMER 
DAIRy SITE WITh IN Th REE MINUTES OF Th E RAILWAy 
STATION.  Th E PROPOSALS INCLUDE 40 ONE AND 
TWO BEDROOM RESIDENTIAL APARTMENTS WITh 
LANDSCAPING, PARk ING AND AMENITIES Wh ILST ALSO 
PROv IDING Ov ER 10,000 SQ FT OF COMMERCIAL SPACE.
STephen Wi Ck S
> 06
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
The ‘new housing world’ requires a radical new form 
of lease that will enable a long term rental sector 
to emerge satisfying both the needs of investors 
and occupiers. The Government needs to recognise 
that if offered with more tenant security, the private 
rented sector could be an appropriate affordable or 
intermediate housing option stimulating competition 
for quality and attracting increasing investment.
With most ‘speculative’ house builders no longer 
currently buying development land Inland is seeking 
new ‘customers’ for its development sites as they are 
brought through the planning system. In housing these 
will include registered social landlords and we expect 
to sell some sites for hotel and healthcare operators.
h aving acquired 20 development sites by 30 June 
2008 which have the potential for approximately 
1,460 plots and 253,000 square feet of commercial 
space, we secured planning on four sites totalling 468 
residential plots and 105,000 square feet of commercial 
space. During the year we sold 98 of these plots.
We had hoped to receive planning consent on considerably 
more sites in the year but the planning system has 
continued to deteriorate and whilst all but one of our 
unconsented sites have planning applications submitted an 
unprecedented 50% are now subject to planning appeals, 
a process which is both costly and time consuming.
As set out in the Chairman’s Statement it was 
appropriate to write down £4.783 million from the 
carrying value of our land bank to take account of 
declining market conditions. Accounting standards do 
not allow us to recognise any increase in value on some 
of our sites where we believe we have a surplus.
During the year the Group generated revenue of 
£11.0 million (2007: £5.5 million) principally from the 
sale of 98 plots across three sites. Of particular note 
was the sale of the first 60 plots at our Farnborough 
site where 47 units will be built as affordable housing 
in conjunction with a housing association.
These homes will be built by our associate company, 
h owarth h omes. We expect to increase the amount of activity 
in the affordable homes sector as set out earlier in this 
statement and wherever appropriate we intend to negotiate 
the building of these developments via h owarth h omes.
For the moment our focus is on obtaining planning 
permissions on the balance of our portfolio and 
achieving some further land sales which will generate 
cash to reinvest in new projects at rebased prices.
With an extremely sensitive banking climate it is not 
appropriate to have much more than modest gearing. 
We are fortunate to have a strong balance sheet and 
short term rental income of £636,000 per annum.
Despite the dreadful market conditions our small 
team which has a good track record and considerable 
experience in the sector will adapt to the new environment 
which we find ourselves in and are determined to 
grow the long term value for our shareholders.
ste phen W icks
Chief exeC u Tive
> CHIeF exeCutIve’s 
revIew continued
WE h AvE AN ExCELLENT AND 
CAPABLE TEAM IN PLACE AND 
ARE ThEREFORE CONFIDENT 
OF AChIEvING GOOD RETURNS 
FOR OUR Sh AREhOLDERS 
IN ThE LONGER TERM 07
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
boArD oF DIreCtors 
AND ADvIsers
stephen Wicks
Chief e xe Cu Tive (aged 57)
Mr Wicks was the founding shareholder and chief executive of Country & 
Metropolitan PLC, which was floated on the main market of the London Stock 
Exchange in December 1999 with a market capitalisation of £6.9 million. h e 
directed the growth of Country & Metropolitan PLC until its disposal in April 2005 
to Gladedale h oldings 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 green field and brown field sites.
n ishith Malde
f inan Ce d ire CTor (aged 50) 
Mr Malde qualified as a Chartered Accountant in 1985 with k PMG and 
specialised in advising owner managed businesses. h e left k PMG 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. h e was actively involved in the preparation for 
the flotation of Country & Metropolitan PLC in December 1999 and its further 
development (which included acquisitions and disposals) until it was acquired 
by Gladedale h oldings PLC in April 2005. Mr Malde is on the board of Billam 
PLC and is also a non-executive director of SLR Management Limited, which 
has a successful international environmental consultancy business.
t erry r oydon
n on-exe Cu Tive Chairman (aged 61) 
Mr Roydon holds a B.Sc. in Estate Management from the University of London and 
a Masters in Business Administration from the University of Pittsburgh. h e was 
previously chief executive of Prowting PLC, a Uk house builder, which he led to 
flotation on the London Stock Exchange in 1988. The company was subsequently 
purchased by Westbury PLC in June 2002 for £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 in Uk and continental housebuilding companies, 
including holding non-executive board positions with AIM quoted Engel East 
Europe N.v., Country & Metropolitan PLC (until 2005), Gladedale h oldings PLC 
(until March 2007) and McCann h omes h oldings Limited. From 1995 to 1997 
he was president of the European Union of h ouse Builders and Developers.
siMon b ennett
n on-exe Cu Tive d ire CTor (aged 50) 
Mr Bennett has over 25 years investment banking experience in the City. Mr 
Bennett qualified as a chartered accountant with Saffery Champness in 1977. 
In 1982 he joined stockbrokers Scrimgeour k emp Gee which was subsequently 
acquired by Citicorp (now Citigroup) in 1986. Thereafter, Mr Bennett was 
instrumental in establishing the mid and small cap advisory business of 
Citicorp Scrimgeour v ickers which was focused on fast growing mid and small 
cap companies. In June 1990, Mr Bennett joined Credit Lyonnais Securities 
and, following the defection of a team to a rival company, became h ead of 
Corporate Finance and h ead of the mid and small caps team in June 2000.
In June 2004 Mr Bennett left Credit Lyonnais, following its acquisition 
by Credit Agricole, and established Incremental Capital LLP to provide 
corporate finance advice to mid and small cap companies. In the latter part 
of 2005, Mr Bennett joined Baker Tilly as Managing Director of Baker Tilly 
and Co. Limited. h e left the practice to concentrate full time on growing 
Citicourt & Co. Limited, an independent corporate finance advisory business, 
where he was the Managing Director and the majority shareholder. In 
late 2007 Mr Bennett joined Fairfax IS PLC the independent investment 
bank as h ead of Corporate Broking. Mr Bennett is also non-executive 
chairman of Billam PLC and a number of other private companies.
c ompany registration number
5482990
c ompany secretary
Nishith Malde FCA
r egistered office and website
Trinity Court  
Batchworth Island  
Church Street  
Rickmansworth  
h ertfordshire WD3 1RT
 www.inlandplc.com
n ominated adviser and broker
k BC Peel h unt Ltd 
111 Old Broad Street 
London EC2N 1Ph
solicitors
Dorsey & Whitney LLP 
21 Wilson Street 
London EC2M 2TD
a uditors
Grant Thornton Uk LLP 
Churchill h ouse 
Chalvey Road East 
Slough 
Berkshire SL1 2LS
f inancial pr c onsultants
Buchanan Communications 
45 Moorfields 
London EC2y 9AE
b ankers
Royal Bank of Scotland 
Conqueror h ouse 
Chivers Way 
h iston 
Cambridge CB24 9NL
r egistrars
Capita Registrars  
The Registry 
34 Beckenham Road 
Beckenham 
k ent BR3 4TU 08
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
The Directors present their report and the financial statements of the Group and the Company for the year ended 30 June 2008.
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.
Results and dividends
The trading results for the year are set out in the consolidated income statement on page 14 and the Group’s financial position at  
the end of the year is set out in the consolidated balance sheet on page 15. Further details of the performance during the financial  
year and expected future developments are contained in the Chairman’s Statement, which forms part of the Directors’ report.
The Company has paid no dividends during the year and does not recommend the payment of a final dividend.
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 2 to 4. The Group’s key performance indicators are turnover, profit before tax, net assets per share  
and cash generation. 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 below 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.
To enable shareholders to appreciate what the business considers are the main operational risks, they are briefly outlined below:
Land – the inability to source, acquire and promote land would have a substantial effect on the business.
Planning – increased complexity and delay in the planning process may affect the rate of growth of the business. The proposed 
Community Infrastructure Levy may have a detrimental effect on the supply and pricing of land being marketed by landowners.
Market – to realise maximum value in a timely fashion will depend on the state of the property market in the regions in which the Group 
chooses to operate.
Personnel – the attraction and retention of staff of the highest calibre with appropriate experience is crucial to the growth of the business 
in the highly competitive markets in which we operate.
Interest rates – significant upward changes in interest rates could affect residential land prices as the demand for residential property 
would be affected.
Environmental – the assessment of environmental risk is an important element of the due diligence undertaken when buying land. 
Unexpected liabilities in respect of decontamination works or fines for environmental pollution could affect the outcome of a project.
Regulation – changes in legislation, government regulations, planning policies and guidelines may have a detrimental affect to the  
Group’s business.
Financial risk management objectives and policies
All potential areas of financial risk are regularly monitored and reviewed by Directors and management. Any preventative or corrective 
measures are taken as necessary.
The Group uses various financial instruments. These include loans, cash and trade receivables that arise directly from its operations.  
The main purpose of these financial instruments is to raise finance for the Group’s operations.
The 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 Company’s financial instruments are liquidity risk, interest rate risk, and credit risk. The Directors review 
and agree policies for managing each of these risks and they are summarised below.
DIreCtors’ rePort 09
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
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 bank loans and overdraft facilities.
Interest rate risk
The Group finances its operations through a mixture of retained profits and bank borrowings. The Group exposure to interest rate 
fluctuations on its borrowings is managed by the use of both fixed and floating rate facilities.
Credit risk
The Group’s principal financial asset is cash. The credit risk associated with cash is limited as the counterparties have high credit ratings 
assigned by international credit-rating agencies.
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 28 to the financial statements.
Directors and their interests
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 2008 were as follows:
 As at 30 June 2008 As at 30 June 2007
   Number of Number of Number of Number of
   Ordinary Deferred Ordinary Deferred
   shares shares shares shares
S Wicks   20,125,009 490 20,050,009 490
N Malde   8,174,000 392 8,024,000 392
T Roydon   150,000 – 150,000 –
S Bennett   – – – –
Between 21 July 2008 and 8 October 2008, Stephen Wicks acquired 550,000 ordinary shares.
On 21 July 2008, Nishith Malde acquired 350,000 ordinary shares. 175,000 shares acquired by Nishith Malde were purchased on his 
behalf by the trustees of his personal pension fund and 175,000 shares were purchased by his minor child’s trust.
On 22 July 2008, Simon Bennett acquired 50,000 ordinary shares.
Stephen Wicks and Nishith Malde are retiring by rotation in accordance with the Company’s Articles of Association and have offered 
themselves for re-election.
Directors’ emoluments
The remuneration of the individual Directors was:
       2008 2007
   Salary/fees Bonus Benefits Pension Total Total
   £’000 £’000 £’000 £’000 £’000 £’000
Executive Directors
S D Wicks   270 25 29 – 324 306
N Malde   225 25 28 45 323 305
Non-executive Directors 
T Roydon   30 – – – 30 10
S Bennett   25 – – – 25 8
Qualifying third party indemnity provision
During the financial year, a qualifying third party indemnity provision for the benefit of all of the Directors was in force.  10
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
Substantial shareholding
As at 22 October 2008, 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 %
RMB Asset Management PTY       17,600,000 10.85
Henderson Global Investors Limited       11,251,000 6.94
Brookwell Limited       9,235,000 5.74
Lehman Brothers International (Europe)       7,460,000 4.60
Unique Limited       5,652,329 3.49
M H Dixon       5,500,000 3.39
Purchase of own shares
The Company purchased 1,325,000 of its own shares for a total consideration of £366,000.
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 £19,000. 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. 
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 with the terms and conditions stipulated. At 30 June 2008 the 
Group had an average of 14 days (2007: 27 days) purchases outstanding in trade creditors.
Corporate governance
The Directors recognise the importance of sound corporate governance and the guidelines set out in the Principles of Good Corporate 
Governance and Code of Best Practice (‘the Combined Code’). Whilst AIM companies are not obliged to comply with the Combined 
Code, the Directors intend to comply with the Combined 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 practicable to comply with the Combined 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 and the Finance 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 
separately with the Chief Executive and the other Non-executive Director 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.
During the year ended 30 June 2008 the Board met six times and has met two times since 1 July 2008. At each meeting the Board 
receives inter alia a land report and financial information which is discussed in detail.
Audit committee
The audit committee comprises of 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 and the  
Finance Director.
DIreCtors’ rePort continued 11
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
Since 30 June 2007 the audit committee has met four times to consider the planning of the statutory audit and to review the Group’s 
draft half and full year results prior to Board approval and to consider the external auditor’s detailed reports thereon.
Remuneration committee
The remuneration committee consists of 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. 
During the year the committee met once to review the Executive Directors’ remuneration package.
The Directors comply with Rule 21 of the AIM Rules relating to directors’ dealings and take all reasonable steps to ensure compliance  
by the Company’s applicable employees. The Company has adopted and operates a share dealing code for Directors and employees  
in accordance with the AIM Rules.
Internal control
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 systems 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 regularly 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 Annual General Meeting (‘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 Directors are satisfied that the Company and the Group have adequate resources to continue in operational existence for the 
foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
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 elected to 
prepare financial statements of the Group in accordance with International Financial Reporting Standards (‘IFRS’) as adopted for use in 
the European Union and company financial statements in accordance with United Kingdom Accounting Standards (United Kingdom 
Generally Accepted Accounting Practice). The financial statements are required by law to give a true and fair view of the state of affairs of 
the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors 
are required to:
select suitable accounting policies and then apply them consistently;
make judgments and estimates that are reasonable and prudent;
state whether applicable IFRSs have been followed, subject to any material departures disclosed and explained in the  
financial statements; 
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 proper accounting records that disclose with reasonable accuracy at any time the financial 
position of the Company and the Group and enable them to ensure that the financial statements comply with the Companies Act 1985. 
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.
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• 12
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
In so far as the Directors are aware:
there is no relevant audit information of which the Company’s auditors are 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 auditors are aware of that information.
The Directors are responsible for the maintenance and integrity of the website and accordingly the auditors accept no responsibility  
for the information published. Legislation in the United Kingdom governing the preparation and dissemination of financial statements  
may differ from legislation in other jurisdictions.
Information published on the website is accessible in many countries and legislation in the UK concerning 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 Annual General Meeting (AGM) together with the proposed resolutions is contained in the document 
accompanying this report. The AGM will be held on 26 November 2008.
Auditor
A resolution to re-appoint Grant Thornton UK LLP as auditor for the ensuing year will be proposed at the AGM in accordance with section 
487(2) of the Companies Act 2006.
By order of the Board
N Malde
Company Secretary 
•
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DIreCtors’ rePort continued 13
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
We have audited the Group financial statements of Inland PLC for the year ended 30 June 2008 which comprise the consolidated income 
statement, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated cash flow statement, and 
notes 1 to 30. These Group financial statements have been prepared under the accounting policies set out therein. 
We have reported separately on the parent company financial statements of Inland PLC for the year ended 30 June 2008.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. 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 auditors
The Directors’ responsibilities for preparing the Annual Report and the Group financial statements in accordance with United Kingdom 
law and International Financial Reporting Standards (IFRSs) as adopted by the European Union are set out in the Statement of  
Directors’ Responsibilities.
Our responsibility is to audit the Group financial statements in accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Group financial statements give a true and fair view and whether the Group financial 
statements have been properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion  
the information given in the Directors’ Report is consistent with the financial statements. The information given in the Directors’ Report 
includes that specific information presented in the Chairman’s Statement that is cross referred from the Business Review section  
of the Directors’ Report.
In addition we report to you if, in our opinion, we have not received all the information and explanations we require for our audit,  
or if information specified by law regarding directors’ remuneration and other transactions is not disclosed. 
We read other information contained in the Annual Report and consider whether it is consistent with the audited Group financial 
statements. The other information comprises only the Directors’ Report, the Chairman’s Statement and the Chief Executive’s review.  
We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the 
Group financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the Group financial statements.  
It also includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the Group 
financial statements, and of whether the accounting policies are appropriate to the Group’s circumstances, consistently applied  
and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to 
provide us with sufficient evidence to give reasonable assurance that the Group financial statements are free from material misstatement, 
whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation  
of information in the Group financial statements.
Opinion
In our opinion:
the Group financial statements give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state  
of the Group’s affairs as at 30 June 2008 and of its loss for the year then ended;
the Group financial statements have been properly prepared in accordance with the Companies Act 1985; and 
the information given in the Directors’ Report is consistent with the financial statements.
Separate opinion in relation to IFRS
As explained in note 1 to the Group financial statements, the Group in addition to complying with its legal obligation to comply with IFRSs 
as adopted by the European Union, has also complied with the IFRSs as issued by the International Accounting Standards Board.
In our opinion the Group financial statements give a true and fair view, in accordance with IFRSs, of the state of the Group’s affairs as at 
30 June 2008 and of its loss for the year then ended.
Grant Thornton UK LLP
Registered auditors
Chartered accountants
London Thames Valley Office
Slough
22 October 2008
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rePort of the INDePeNDeNt AuDItor  
to the members of INLAND PLC 14
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
     2008 2008
     Before Exceptional
     exceptional costs
     costs (note 5) 2008 2007
    Note £’000 £’000 £’000 £’000
Revenue     11,006 – 11,006 5,466
Cost of sales    6 (6,565) (4,783) (11,348) (2,603)
Gross profit/(loss)     4,441 (4,783) (342) 2,863
Administrative expenses    6 (2,208) – (2,208) (1,506)
Loss on investments     (1,525) – (1,525) –
Operating profit/(loss)     708 (4,783) (4,075) 1,357
Interest expense    8 (103) – (103) (107)
Notional interest    8 (1,455) – (1,455) (1,265)
Interest receivable and similar income    9 1,427 – 1,427 963
     577 (4,783) (4,206) 948
Share of profit of associate     17 – 17 175
Profit/(loss) before tax     594 (4,783) (4,189) 1,123
Income tax    10   317 (328)
Loss/(profit) for the year       (3,872) 795
Attributable to:
Equity holders of the Company       (3,872) 795
(Loss)/earnings per share for (loss)/profit attributable  
 to the equity holders of the Company during the year 
– basic    11   (2.39)p 0.98p
– diluted    11   (2.39)p 0.98p
  
The accompanying accounting policies and notes form part of these financial statements.
CoNsoLIDAteD INCome stAtemeNt
For the year ended 30 June 2008 15
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
       2008 2007
      Note £’000 £’000
Assets
Non-current assets
Investment property      12 8,801 –
Plant and equipment      12 87 65
Investments      13 825 815
Investment in associate      13 756 385
Available-for-sale financial assets      15 3,064 3,341
Deferred tax      16 6,741 393
       20,274 4,999
Current assets
Inventories      17 47,683 38,791
Trade and other receivables      18 4,752 2,674
Loan to associate      19 475 2,000
Listed investments held for trading (carried at fair value through profit and loss)    20 842 –
Cash and cash equivalents      21 4,600 42,838
       58,352 86,303
Total assets       78,626 91,302
Equity
Capital and reserves attributable to the Company’s equity holders
Share capital      22 16,216 16,216
Share premium account      23 45,184 45,184
Treasury shares      23 (366) –
Retained earnings      23 (3,317) 373
Other reserves      23 (4,397) –
Total equity       53,320 61,773
Liabilities
Current liabilities
Trade and other payables      24 2,697 740
Current tax liabilities       – 454
Other financial liabilities      25 14,040 9,202
Total current liabilities       16,737 10,396
Non-current liabilities
Other financial liabilities      25 8,569 19,133
Total non-current liabilities       8,569 19,133
Total liabilities       25,306 29,529
Total equity and liabilities       78,626 91,302
The financial statements were approved by the Board of Directors on 22 October 2008.
S Wicks 
Chief Executive
N Malde 
Finance Director
The accompanying accounting policies and notes form part of these financial statements.
CoNsoLIDAteD bALANCe sheet
For the year ended 30 June 2008 16
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
   Share Share Treasury Retained Other
   capital premium shares earnings reserves Total
   £’000 £’000 £’000 £’000 £’000 £’000
At 30 June 2006   3,279 699 – (466) – 3,512
Profit attributable to shareholders   – – – 795 – 795
Total recognised income and expense   – – – 795 – 795
Share based compensation   – – – 44 – 44
Issue of equity   12,937 47,343 – – – 60,280
Issue expenses   – (2,858) – – – (2,858)
At 30 June 2007   16,216 45,184 – 373 – 61,773
Fair value adjustment in respect of available for sale financial assets – – – – (4,397) (4,397)
Loss attributable to shareholders   – – – (3,872) – (3,872)
Total recognised income and expense   – – – (3,872) (4,397) (8,269)
Share based payment   – – – 182 – 182
Purchase of own shares   – – (366) – – (366)
At 30 June 2008   16,216 45,184 (366) (3,317) (4,397) 53,320
The accompanying accounting policies and notes form part of these financial statements
CoNsoLIDAteD stAtemeNt of ChANGes IN eQuItY
For the year ended 30 June 2008 17
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
       2008 2007
      Note £’000 £’000
Cash flows from operating activities
(Loss)/profit for the year before tax       (4,189) 1,123
Adjustments for:
– depreciation      12 25 16
– share based compensation       182 44
– fair value adjustment for listed investments       1,863 –
– profit on disposal of listed investments       (338) –
– interest expense       1,558 1,372
– interest and similar income       (1,427) (963)
– share of profit of associate       (17) (175)
– tax paid       (454) –
Changes in working capital (excluding the effects of acquisition):
– increase in inventories       (8,892) (39,064)
– increase in trade and other receivables       (202) (4,212)
– increase in trade and other payables       (5,807) 29,522
Net cash outflow from operating activities       (17,698) (12,337)
Cash flow from investing activities
Interest received       1,115 946
Dividends received       302 11
Purchases of property, plant and equipment      12 (133) (45)
Equity investment in associate       (359) –
Convertible loan stock in associate       – –
Purchase of listed investments       (15,396) (3,342)
Purchase of own shares       (366) –
Sale of listed investments       8,859 –
Acquisition of subsidiary, net of cash acquired      14 (11,267) –
Net cash used in investing activities       (17,245) (2,430)
Cash flow from financing activities
Interest paid       (91) (107)
New bank loans raised       – 1,175
Bank loans repaid       (3,204) (1,700)
Issue of shares       – 57,422
Net cash from financing activities       (3,295) 56,790
Net increase in cash and cash equivalents       (38,238) 42,023
Cash and cash equivalents at beginning of year       42,838 815
Cash and cash equivalents at the end of the year       4,600 42,838
The accompanying accounting policies and notes form part of these financial statements
CoNsoLIDAteD CAsh fLow stAtemeNt
For the year ended 30 June 2008 18
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
1. Accounting policies 
The principal accounting policies adopted in the preparation of the Group’s IFRS financial statements are set out below.
Basis of preparation
The consolidated financial statements have been prepared in accordance with applicable International Financial Reporting Standards 
(‘IFRS’) as adopted by the EU and as issued by the International Accounting Standards Board.
The financial statements have been prepared under the historical cost convention except that they have been modified to include the 
revaluation of certain non-current assets. 
The accounting policies that have been applied in the opening balance sheet 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 2008.
A new Standard, IFRS 7 Financial Instruments: Disclosures has become mandatory for reporting periods beginning on 1 January 2007  
or later. This Standard, which replaces rules previously set out in IAS 32 Financial Instruments: Presentation and Disclosures, has  
been applied by the Group in its 2008 consolidated financial statements. All disclosures relating to financial instruments including all 
comparative information have been updated to reflect the new requirements. The first-time application of IFRS 7 has not resulted in  
any prior-period adjustments of cash-flows, net income or balance sheet line items. 
Standards in issue but not yet effective
IAS 1 Presentation of Financial Statements (revised 2007) (effective 1 January 2009).
IAS 23 Borrowing Costs (revised 2007) (effective 1 January 2009).
IAS 27 Consolidated and Separate Financial Statements (effective 1 July 2009).
Amendment to IAS 32 Financial Instruments: Presentation.
IAS 1 Presentation of Financial Statements – Puttable Financial Instruments and Obligations Arising on Liquidation  
(effective 1 January 2009).
Amendment to IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items (effective 1 July 2009).
IFRS 8 Operating Segments (effective 1 January 2009).
Amendment to IFRS 2 Share-based Payment – Vesting Conditions and Cancellations (effective 1 January 2009).
Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 27 Consolidated and Separate 
Financial Statements – Costs of Investment in a Subsidiary, Jointly Controlled Entity or Associate (effective 1 January 2009).
IFRS 3 Business Combinations (Revised 2008) (effective 1 July 2009).
IFRIC 11 IFRS 2 – Group and Treasury Share Transactions (effective 1 March 2007).
IFRIC 12 Service Concession Arrangements (effective 1 January 2008).
IFRIC 13 Customer Loyalty Programmes (effective 1 July 2008).
IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (effective 1 January 2008).
IFRIC 15 Agreements for the Construction of Real Estate (effective 1 January 2009).
IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective 1 October 2008).
None of these standards will have an impact on the Group’s financial statements except IAS 23 the effect of which is currently being 
evaluated and IAS 1, the effect of which will be that it will have an impact on the presentation of the financial statements going forward.
Basis of consolidation 
The Group’s financial statements consolidate those of the Company and all of its subsidiary undertakings drawn up to 30 June 2008. 
Subsidiaries are entities over which the Group has the power to control the financial and operating policies so as to obtain benefits from 
its activities. The Group obtains and exercises control through voting rights.
Unrealised gains on transactions between the Group and its subsidiaries are eliminated. Unrealised losses are also eliminated unless the 
transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements of subsidiaries 
have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Acquisitions of subsidiaries are dealt with by the purchase method. The purchase 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 consolidated balance sheet at their fair values, which are also used as the bases for subsequent 
measurement in accordance with the Group accounting policies. Goodwill is stated after separating out identifiable intangible assets. 
Goodwill represents the excess of acquisition cost over the fair value of the Group’s share of the identifiable net assets of the acquired 
subsidiary at the date of acquisition.
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Notes to the fINANCIAL stAtemeNts
For the year ended 30 June 2008 19
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
1. Accounting policies continued
Associates
Associates are those entities over which the Group has significant influence 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 purchase 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 
consolidated 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 directly in the associate’s equity are recognised in the consolidated equity of the Group. 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.
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. Revenue is recognised upon transfer of risk to the customer. 
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.
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 is recognised on a straight line basis over the lease term.
Dividends
Dividends are recognised when the shareholders right to receive payment is established.
Exceptional items
Exceptional items are material items which derive from events or transactions that fall within the ordinary activities of the Group and which 
individually or, if of a similar type, in aggregate, need to be disclosed by virtue of their size or incidence if the financial statements are to 
give a true and fair view.
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. The gain or loss arising from the sale or revaluation of held for sale 
assets is included in ‘other income’ or ‘other expense’ in the income statement. Any revaluation surplus remaining in equity on disposal  
of the asset is transferred to the profit and loss reserve.
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• 20
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
1. Accounting policies continued
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 & fittings        25% 
Office and computer equipment        25% 
Motor vehicles        25%
Material residual value estimates are updated as required, but at least annually, whether or not the asset is revalued.
Investment property
The Group measures all of the investment property in accordance with IAS 16’s requirements for the cost model, other than those that 
meet the criteria to be classified as held for sale (or are included as a disposal group that is classified as held for resale). An investment 
property shall be derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic 
benefit is expected from its disposal.
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, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups 
of assets. 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 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 balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they 
relate to items that are charged or credited directly to equity (such as the revaluation of land not included in inventories) in which case the 
related deferred tax is also charged or credited directly to equity.
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.
Notes to the fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 21
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
1. Accounting policies continued
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 financial statements.
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values using the Black-
Scholes options pricing model. Where employees are rewarded using share-based payments, the fair values of employees’ services are 
determined indirectly by reference to the fair value of the instrument granted to the employee. This fair value is appraised at the grant date 
and excludes the impact of any non-market vesting conditions.
All equity-settled share-based payments are ultimately recognised as an expense in the income statement with a corresponding credit  
to reserves brought forward.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best 
available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the 
number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the 
current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to 
that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital, and where 
appropriate share premium.
Financial assets
Financial assets, are divided into the following categories: loans and receivables, financial assets at fair value through profit or loss  
and available for sale financial assets. Financial assets are assigned to the different categories by management on initial recognition, 
depending on the purpose for which they were acquired. The designation of financial assets is re-evaluated at every reporting date  
at which a choice of classification or accounting treatment is available.
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 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  
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 income statement. Financial assets originally 
designated as financial assets at fair value through profit or loss may not be re-classified subsequently.
Financial assets are designated as at fair value through profit or loss where they eliminate or significantly reduce a measurement  
(or recognition) mismatch. 
Available-for-sale financial assets are non-derivative financial assets that 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 other financial assets within this category are subsequently measured at fair value, with changes in value recognised in equity. Gains 
and losses arising from financial instruments classified as available-for-sale are recognised in the income statement when they are sold  
or when the investment is impaired. In the case of impairment, any loss previously recognised in equity is transferred to the income 
statement. Losses recognised in the income statement on equity instruments are not reversed through the income statement.
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 income statement.
Provision against trade receivables is made when there is objective evidence that the Group will not be able to collect all amounts due to 
it in accordance with the original terms of those receivables. The amount of the write-down is determined as the difference between the 
asset’s carrying amount and the present value of estimated future cash flows. 22
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
1. Accounting policies continued
Regular way purchases and sales are accounted for on trade date. 
Interest and other cash flows resulting from holding financial assets are recognised in the income statement when receivable, 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. Financial liabilities categorised as at fair value through profit or loss are recorded initially at fair 
value, all transaction costs are recognised immediately in the income statement. All other financial liabilities are recorded initially at fair 
value, net of direct issue costs.
Financial liabilities categorised as at fair value through profit or loss are remeasured at each reporting date at fair value, with changes in 
fair value being recognised in the income statement. All other 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 income statement. Finance charges, including 
premiums payable on settlement or redemption and direct issue costs, are charged to the 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 on hand and demand deposits, together with other short-term, highly liquid investments that 
are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
Dividends
Dividend distributions payable to equity shareholders are included in ‘other short term financial liabilities’ when the dividends are 
approved in general meeting prior to the balance sheet 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.
‘Other reserves’ represent amounts written off relating to available for sale financial assets through equity.
‘Profit and loss reserve’ represents retained profits.
•
•
•
•
•
Notes to the fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 23
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
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 focuses on the unpredictability of financial markets and seeks 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 balance sheet date, as 
summarised below:
       2008 2007
       £’000 £’000
Classes of financial assets – carrying amounts
Available-for-sale financial assets       3,064 3,341
Listed investments held for trading       842 –
Loan to associate       475 2,000
Cash and cash equivalents       4,600 42,838
Trade and other receivables       6,363 2,674
       15,344 50,853
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 and fair value interest rate risk
The Group’s cash flow interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash 
flow interest rate risk. All the Group’s borrowings are at variable rates but the Group does not consider the risk to be significant.
(d) Price risk
The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated 
balance sheet either as available for sale or at fair value through profit or loss.
For the listed equity securities, an average volatility of 13% has been observed during the year ended 30 June 2008. If the quoted stock 
price of these securities had increased or decreased by that amount, the net result for the year would have been reduced/increased by 
£508,000 (2007: £4,000). Equity would have changed by £508,000 (2007: £4,000). The average volatility has been derived by using the 
movement in the share prices of the underlying securities at each month end and taking the average across all the securities.
The investments in listed equity securities that are held as available-for-sale financial assets are considered long term strategic 
investments. In accordance with the Group’s policies, no specific hedging activities are undertaken in relation to these investments.
3. Segment information
Primary reporting format – business segments
At 30 June 2008, the Group is organised into one business segment in one geographical area consequently there is no segmental 
information presented in these financial statements. 24
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
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) 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.
(b) 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.
(c) Discounting on deferred consideration of inventories
The Group discounts deferred consideration of inventories by discounted cash flow method.
Critical judgements in applying the entity’s accounting policies
(a) Inventories 
The Group values inventories at the lower of cost and net realisable value. The net realisable value is based on the judgement that 
planning consent will be given for each site. The Group believes that, based on the Directors’ experience, planning consent will be given. 
The key judgement in estimating the future profit stream is the evaluation of the likely sales prices. If planning consent was not achieved 
then a provision would be required against inventories. 
(b) Associate
The Group has equity accounted for its 15% investment in Howarth Homes PLC as an associate as the Company has significant 
influence over Howarth Homes PLC through Board representation and participation in policy making.
5. Exceptional costs
The Group conducted a review of the net realisable value of its land bank in view of the deterioration in the UK housing market. Where the 
estimated future net realisable value of the site is less than its carrying value within the balance sheet, the Group has impaired the land 
value. This has resulted in an impairment of £4.783 million. The key judgement in estimating the net realisable value is the evaluation of 
the expected selling prices of residential units and the cost of construction.
6. Expenses by nature
       2008 2007
       £’000 £’000
Depreciation (Note 12)       25 16
Operating lease rentals       40 41
Auditor’s remuneration
– Audit       33 26
– Non-audit (tax, review of interim report and financial due diligence of Poole Investments PLC)   44 41
Cost of sales       11,348 2,603
Other expenses       2,066 1,382
Total       13,556 4,109
Classified as:
– cost of sales       11,348 2,603
– administrative expenses       2,208 1,506
       13,556 4,109
Rental income from investment property       389 268
Notes to the fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 25
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
7. Directors and employees
The employee benefit expense during the year was as follows:
       2008 2007
       £’000 £’000
Wages and salaries       1,120 878
Social security costs       138 72
Pension costs – defined contribution plans       67 52
       1,325 1,002
The average number of employees during the year were as follows:
       2008 2007
       Number Number
Management       4 4
Administration       7 3
       11 7
 
Remuneration in respect of Directors was as follows:
       2008 2007
       £’000 £’000
Emoluments       602 573
Fees       51 20
Pension costs – defined contribution plans       45 38
Share based payment       136 33
       834 664
During the year one Director participated in a money purchase pension scheme.
The amounts set out above include remuneration in respect of the highest paid director as follows:
       2008 2007
       £’000 £’000
Emoluments       324 306
Share based payment       75 18
       399 324
Remuneration in respect of key personnel was as follows:
       2008 2007
       £’000 £’000
Emoluments       330 208
Pension costs – defined contribution plans       15 15
Share based payment       42 10
       387 233
8. Interest expense
       2008 2007
       £’000 £’000
Interest expense:
– bank borrowings       103 107
– notional interest on deferred consideration       1,455 1,265
       1,558 1,372
  26
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
9. Interest receivable and similar income
       2008 2007
       £’000 £’000
Effective interest on loan stock       10 7
Other interest receivable       281 292
Bank interest receivable       834 653
Dividends receivable from listed investments       302 11
       1,427 963
10. Income tax 
       2008 2007
       £’000 £’000
Corporation tax charge       5 (507)
Adjustments in respect of prior year       (206) –
Deferred tax credit       (571) 179
Deferred tax asset written off after initial recognition in respect of Poole Investments PLC    400 –
Change in tax rate       55 –
       (317) (328)
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:
       2008 2007
       £’000 £’000
(Loss)/profit before tax       (4,189) 1,123
(Loss)/profit on ordinary activities multiplied by the standard rate of corporation tax in the UK of 29.5% (2007: 30%) (1,236) 337
Expenses not deductible for tax purposes       7 11
Non utilisation of tax losses       442 –
Change in rate of tax       55 –
Other differences       17 (20)
Initial recognition of Poole Investments PLC       400 –
Losses carried back       204 –
Adjustment in respect of prior periods       (206) –
Tax (credit)/charge       (317) 328
During the year, as a result of the change in the corporation tax rates which are effective from 1 April 2008, deferred tax balances have 
been remeasured.
11. Earnings per share
Basic and diluted
Basic and diluted (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to equity holders of the Company by the 
weighted average number of ordinary shares in issue during the year.
       2008 2007
(Loss)/profit attributable to equity holders of the Company (£’000)      (3,872) 795
Weighted average number of ordinary shares in issue (’000)      162,150 80,944
Dilutive effect of options treated as exercisable at the year end (’000)     – (96)
       162,150 80,848
Basic (loss)/earnings per share in pence       (2.39)p 0.98p
Diluted (loss)/earnings per share in pence       (2.39)p 0.98p
Notes to the fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 27
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
12. Property, plant and equipment
   Investment  Motor Fixtures Office
   property  vehicles & fittings equipment Total
   £’000  £’000 £’000 £’000 £’000
Cost 
At 30 June 2006   –  – 14 28 42
Additions   –  27 15 3 45
At 30 June 2007   –  27 29 31 87
Disposals   –  – – (7) (7)
Additions   83  34 8 8 50
Acquisition of subsidiary   8,718  – – – –
At 30 June 2008   8,801  61 37 32 130
Depreciation 
At 30 June 2006   –  – 1 5 6
Depreciation charge   –  4 5 7 16
At 30 June 2007   –  4 6 12 22
Depreciation charge   –  9 8 8 25
Disposals   –  – – (4) (4)
At 30 June 2008   –  13 14 16 43
Net book value
At 30 June 2008   8,801  48 23 16 87
At 30 June 2007   –  23 23 19 65
All freehold property is stated at valuation. 
The investment property was valued by Edward Symmons & Partners in August 2006 in accordance with the Appraisal and Valuation 
Manual of The Royal Institution of Chartered Surveyors. Investment property continues to be held by the Group for long-term investment. 
Accordingly, the property is recorded as an investment property and is valued on an open market basis by the Directors at £8,801,000. 
The investment property is not depreciated.
The historical cost of the investment property at 30 June 2008 as noted in Poole Investments PLC’s financial statements is £1,252,000 
(2007: nil). 
13. Investments
      Equity in Convertible
      convertible loan at
   Associate   loans fair value Total
   £’000   £’000 £’000 £’000
Cost or fair value
At 30 June 2006   262   39 769 808
Notional interest adjustment   –   – 7 7
Share of profit of associate   123   – – –
At 30 June 2007   385   39 776 815
Notional interest adjustment   –   – 10 10
Share of profit of associate   12   – – –
Additions   359   – – –
At 30 June 2008   756   39 786 825
Net book value
At 30 June 2008   756   39 786 825
At 30 June 2007   385   39 776 815
In December 2005, Inland plc invested £200,000 in Howarth Homes PLC (‘Howarth’) and in return received ordinary shares amounting to 
10% of the issued share capital of Howarth Homes PLC. In January 2008, Inland plc made a further investment of £359,000 in Howarth 
to increase its interest to 15% of the issued share capital of Howarth.
Inland PLC also subscribed for £800,000 convertible loan stock which can be convertible into ordinary shares at the option of Inland PLC. 28
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
13. Investments continued
There are two dates when Inland PLC could convert the loan stock:
a) £350,000 of these notes are convertible into 10% on 30 days notice between 1 October 2006 to 31 December 2008.
b) £450,000 of these notes are convertible into 10% on 30 days notice between 1 October 2006 to 31 December 2010.
As per the terms of the agreement with Howarth, Inland PLC is entitled to receive the full amount invested in these convertible loans, 
should the option to exercise these at the above dates not be taken up. 
At 30 June 2008 the Company held or potentially held 20% or more of the equity of the following:
Company name Country of registration Principal activity Holding Class of shares
Inland Homes Limited England & Wales Real estate development 100% Ordinary
Howarth Homes PLC England & Wales Housebuilder 15% Ordinary
Poole Investments PLC England & Wales Real estate investment 100% Ordinary
Investment in associate includes goodwill of £42,000. 
The Group’s share of the results and its share of assets are as follows:
       Profit 
    Assets Liabilities Revenue after tax % held
Name Country of incorporation £’000 £’000 £’000 £’000
Howarth Homes PLC England and Wales 5,446 4,874 3,767 12 15
The financial statements of Howarth are prepared to 31 July each year. The Group has used the management accounts of Howarth  
to 30 June 2008 to account for its share of results.
14. Acquisition of subsidiary
During the year, the Group acquired the share capital of Poole Investments PLC.
        £’000
Purchase consideration:
– shares purchased        11,097
– direct costs relating to the acquisition        239
        11,336
The assets and liabilities arising from the acquisition are as follows:
       Acquiree’s 
       book value Fair value
       £’000 £’000
Investment property       6,524 8,718
Debtors       144 144
Cash and cash equivalents       18 18
Creditors & other payables       (572) (572)
Loans       (3,205) (3,205)
       2,909 5,103
Deferred tax (tax losses in subsidiary)       – 6,233
Net identifiable assets acquired       2,909 11,336
Notes to the fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 29
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
14. Acquisition of subsidiary continued
        £’000
Outflow of cash to acquire business, net of cash acquired:
Cash consideration        11,336
Cash paid in previous period        (51)
        11,285
Cash and cash equivalents in subsidiary acquired        (18)
Cash outflow on acquisition        11,267
The acquisition of Poole Investments PLC is not an acquisition in terms of a business combination as defined by IFRS 3 but was 
accounted for as a purchase of assets. Poole Investments PLC was accounted for by allocating the cost of the company between the 
individual identifiable assets and liabilities in the company based on their relative fair values at the acquisition date. The fair value of the 
consideration was allocated to the assets (property and tax losses) in the appropriate category. The property met the requirements  
of an investment property and was accounted for in accordance with IAS 40 – Investment Property.
15. Available-for-sale financial assets
        £’000
At 1 July 2007        3,341
Transferred to investment in Group undertakings        (51)
Additions        4,171
Provision        (4,397)
At 30 June 2008        3,064
All the listed investments have been issued by publicly traded companies in the Euro zone. Fair values for these securities have been 
determined by reference to their quoted mid prices at the balance sheet date.
16. Deferred tax
The net movement on the deferred tax account is as follows:
        £’000
At 1 July 2007        393
Acquisition of Poole Investments PLC        6,232
Income statement credit        116
At 30 June 2008        6,741
The movement in deferred tax assets is as follows:
     Accelerated tax
     depreciation Losses Other Total
     £’000 £’000 £’000 £’000
At 1 July 2007     – – 393 393
Acquisition of Poole Investments PLC     – 6,232 – 6,232
Deferred tax asset written off after initial recognition in respect of Poole Investments PLC  – (400) – (400)
Change in tax rate     – (4) (51) (55)
Credited to income statement     (3) 108 466 571
At 30 June 2008     (3) 5,936 808 6,741
The deferred tax asset is recoverable as follows:
       2008 2007
       £’000 £’000
Deferred tax asset to be recovered after 12 months       6,741 393
       6,741 393
Deferred income tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit 
through future taxable profits is probable. The Group did not recognise deferred income tax assets of £2,527,000 that can be carried 
forward against future taxable income. 30
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
17. Inventories
       2008 2007
       £’000 £’000
Stock and work in progress       47,683 38,791
During the period a total of £11,348,000 (2007: £2,603,000) of inventories was included in the consolidated income statement as  
an expense.
The Group conducted a review of the net realisable value of its carrying values of its land in the light of the current deterioration in the UK 
housing market. Where the estimated future net present realisable value of the site was less than its carrying value within the balance 
sheet, the Group has impaired the land values. This has resulted in an exceptional impairment of £4.783 million. The key judgement in 
estimating the future profit stream is the evaluation of the likely sales prices.
18. Trade and other receivables
       2008 2007
       £’000 £’000
Corporation tax recoverable       206 –
Prepayments       52 35
Other       4,494 2,639
       4,752 2,674
Other receivable includes an amount of £3.65 million due from Howarth Homes PLC in respect of a site sold to that company. At 30 June 
2008, the Group held a first legal charge over the site as security.
The carrying value of trade and other receivables is considered a reasonable approximation of fair value. There were no unimpaired trade 
receivables that are past due at the reporting date.
All of the Group’s trade and other receivables have been reviewed for indicators of impairment.
19. Loan to associate
       2008 2007
       £’000 £’000
Advances to associate       475 2,000
The Company has granted a secured rolling facility of up to £2 million to its associate.
20. Listed investments held for trading
        £’000
At 1 July 2007        –
Additions        11,226
Sales
– proceeds        (8,858)
– realised gains        338
Unrealised losses        (1,864)
At 30 June 2008        842
21. Cash and cash equivalents
       2008 2007
       £’000 £’000
Cash at bank and in hand       4,600 42,838
The Group has a revolving facility of £7 million secured by way of a debenture over its assets.
Notes to the fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 31
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
22. Share capital
       2008 2007
       £’000 £’000
Authorised
239,990,000 ordinary shares of 10p each       23,999 23,999
1,000 deferred shares of £1 each       1 1
       24,000 24,000
       2008 2007
       £’000 £’000
Allotted, issued and fully paid
162,150,059 ordinary shares of 10p each       16,215 16,215
1,000 deferred shares of £1 each       1 1
       16,216 16,216
All issued shares are fully paid.
The deferred 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 deferred shares will receive £1 per share unless the conditions described below are met, in which event the entitlement of 
holders of deferred 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 deferred 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 deferred shares will become entitled to 
redeem their shares at a price which is calculated so as to attribute to all the deferred shares the difference between the takeover offer 
price per share and 35p (or such other sum as is agreed with HM Revenue & Customs) multiplied by 11,350,504; or
(ii) on a winding up, the assets attributable to the deferred shares will likewise be calculated to be such amount as would represent the 
difference between the amount attributable to each ordinary share and 35p (or such other sum as is agreed with HM Revenue & 
Customs) multiplied by 11,350,504.
The Company operates an unapproved share option scheme. Awards under each scheme are made periodically to employees.
The Company has used the Black-Scholes-Merton formula to calculate the fair value of outstanding options and deferred shares. The 
assumptions applied to the Black-Scholes-Merton formula for share options issued and the fair value per option are as follows:
       Share Deferred
       options shares
Expected life of options based on options exercised to date      3 years 5 years
Volatility of share price       30% 30%
Dividend yield       0% 0%
Risk free interest rate       5.38% 5.38%
Share price at date of grant       50p 35p
Exercise price       50p 35p
Fair value per option       £0.08 £0.07
The charge calculated for the year ended 30 June 2008 is £182,000 with a corresponding deferred tax asset at that date of £51,000.
Volatility was assessed over the period since the shares have been listed. 32
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
22. Share capital continued
A reconciliation of option movements over the year ended 30 June 2008 is shown below:
       Number Exercise
       000’s price
Outstanding at 30 June 2008 and 30 June 2007       1,160 50p
Exercisable at 30 June 2008       – –
There were no options granted or lapsed during the year.
At 30 June 2008 outstanding options granted over 10p ordinary shares were as follows:
Share option scheme   Option price Number Dates exercisable
Company unapproved   50p 1,160,000 28 Mar 10 to 27 Mar 17 
23. Movement on reserves
     Share
     premium Treasury Profit and Other
     account shares loss account reserves
     £’000 £’000 £’000 £’000
At 1 July 2007     45,184 – 373 –
Loss for the year     – – (3,872) –
Share based compensation     – – 182 –
Purchase of own shares     – (366) – –
Loss on available-for-sale financial assets     – – – (4,397)
At 30 June 2008     45,184 (366) (3,317) (4,397)
24. Trade and other payables
       2008 2007
       £’000 £’000
Trade payables       735 624
Social security and other taxes       1,689 35
Accruals and deferred income       273 81
       2,697 740
The carrying value of trade and other payables are considered to be a reasonable approximation of fair value. 
25. Other financial liabilities
       2008 2007
       £’000 £’000
Deferred purchase consideration on inventories falling due within one year     14,040 9,202
Deferred purchase consideration on inventories falling due
between one and two years       4,179 10,661
between two and three years       4,390 4,370
between three and four years       – 4,102
       8,569 19,133
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Flexibility is achieved  
by bank loans and overdraft facilities.
A first charge on property included within inventories has been granted to some of the vendors.
Notes to the fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 33
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
26. Contingencies
There were no contingent liabilities at 30 June 2008 (2007: None).
27. 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:
       2008 2007
       £’000 £’000
Expiring in one year       – 7
Expiring in one to two years       47 –
Expiring in two to five years       8 11
       55 18
28. Capital management policies and procedures
The Group’s capital management objectives are to ensure the Group’s ability to continue as a going concern and to provide an adequate 
return to shareholders.
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 balance sheet.
The movement in the capital to overall financial ratio is shown below.
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.
       2008 2007
       £’000 £’000
Equity       53,320 61,773
Less: cash and cash equivalents       (4,600) (42,838)
Capital       48,720 18,935
       2008 2007
       £’000 £’000
Equity       53,320 61,773
Borrowings       – –
Overall financing       53,320 61,773
Capital to overall financing       91.4% 30.7% 34
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
29. Related party transactions
The investment undertaken in Howarth Homes PLC (‘Howarth’) is a related party transaction as S Wicks and N Malde are both directors 
of Howarth. As at 30 June 2008 Inland PLC had invested £557,000 in ordinary share capital and a further £800,000 in convertible loan 
stock. These amounts are included within investments.
As at 30 June 2008 there was an amount due from Howarth amounting to £475,000. This is included within loan to associate and is in 
respect of a rolling facility provided to Howarth for a maximum balance of £2 million. The balance outstanding attracts interest of 4% 
above the National Westminster Bank plc base rate. The interest received from Howarth for the year ended 30 June 2008 amounted  
to £207,000.
The Group sold some land to Howarth on an arms length basis for £3.65 million. At 30 June 2008, this amount remained outstanding 
and was secured by a legal charge over the land.
On 11 April 2008 Howarth contracted to purchase a site for a total consideration of £7 million which includes a deposit of £1 million 
payable on exchange of contracts and a further deposit of £1 million was paid on 30 September 2008. Inland PLC has provided a 
guarantee for the total consideration and has a charge over the contract by way of security. The Company has also provided a £2 million 
facility in respect of the two deposits at 12% per annum. As at 30 June 2008, no amounts were due from Howarth under this facility. 
Inland PLC advanced £1 million to Howarth on 30 September 2008 under this facility. The Company has not charged a premium in 
respect of the guarantee. The net liability is not expected to arise as the value of the land is in excess of the liability.
During the year the Group incurred fees from SLR Consulting Limited (an environmental consultancy) of £161,000 (2007: £77,000) a 
subsidiary of SLR Management Limited. The company is related by the fact that N Malde is director of SLR Management Limited.
30. Company information
The Company is a public limited company registered in England and Wales. The registered office and principal place of business is  
Trinity Court, Batchworth Island, Church Street, Rickmansworth, Hertfordshire, WD3 1RT.
The principal activity of the Group is to acquire residential and mixed use sites and seek planning consent for development.
Notes to the fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 35
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
We have audited the parent company financial statements of Inland PLC for the year ended 30 June 2008 which comprise the balance 
sheet and notes 1 to 12. These parent company financial statements have been prepared under the accounting policies set out therein. 
We have reported separately on the Group financial statements of Inland PLC for the year ended 30 June 2008.
This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. 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 auditors
The Directors’ responsibilities for preparing the Annual Report and the parent company financial statements in accordance with United 
Kingdom law and Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of 
Directors’ Responsibilities.
Our responsibility is to audit the parent company financial statements in accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the parent company financial statements give a true and fair view and whether the parent 
company financial statements have been properly prepared in accordance with the Companies Act 1985. We also report to you whether 
in our opinion the information given in the Directors’ Report is consistent with the financial statements. The information given in the 
Directors’ Report includes that specific information presented in the Chairman’s Statement that is cross referred from the Business 
Review section of the Directors’ Report.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not received all the 
information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other 
transactions is not disclosed. 
We read other information contained in the Annual Report and consider whether it is consistent with the audited parent company financial 
statements. The other information comprises only the Directors’ Report, the Chairman’s Statement and the Chief Executive’s review. We 
consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the parent 
company financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the parent company financial 
statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the preparation of the 
parent company financial statements, and of whether the accounting policies are appropriate to the Company’s circumstances, 
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to 
provide us with sufficient evidence to give reasonable assurance that the parent company financial statements are free from material 
misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy  
of the presentation of information in the parent company financial statements.
Opinion
In our opinion:
the parent company financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting 
Practice, of the state of the Company’s affairs as at 30 June 2008;
the parent company financial statements have been properly prepared in accordance with the Companies Act 1985; and 
the information given in the Directors’ Report is consistent with the financial statements.
Grant Thornton UK LLP
Registered auditors
Chartered accountants
London Thames Valley Office
Slough
22 October 2008
•
•
•
rePort of the INDePeNDeNt AuDItor  
to the members of INLAND PLC
For the year ended 30 June 2008 36
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
       2008 2007
      Notes £’000 £’000
Fixed assets
Investments      5 16,843 5,426
Deferred tax       51 –
       16,894 5,426
Current assets   
Debtors      6 34,662 14,651
Listed investments       842 –
Cash at bank and in hand       4,639 42,627
       40,143 57,278
Creditors: amounts falling due within one year      7 (134) (677)
Net current assets       40,009 56,601
Total assets less liabilities       56,903 62,027
Capital and reserves   
Called up share capital      8 16,216 16,216
Share premium      9 45,184 45,184
Treasury shares       (366) –
Profit and loss account      9 (4,131) 627
Shareholders’ funds       56,903 62,027
The financial statements on pages 36 to 40 were approved by the Board of Directors on 22 October 2008 and signed on its behalf by
Stephen Wicks
Director
Nishith Malde
Director
The accompanying accounting policies and notes form part of these financial statements.
ComPANY bALANCe sheet
At 30 June 2008 37
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
Notes to the ComPANY’s fINANCIAL stAtemeNts
For the year ended 30 June 2008
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 income statement with a corresponding credit  
to reserves brought forward.
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best 
available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the 
number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the 
current period. No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to 
that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital, and where 
appropriate share premium.
Deferred 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 230 of the Companies Act 1985, the parent company has not presented its own profit and loss account.
The Company’s loss for the year of £4,940,000 (2007: profit of £548,000) has been transferred to reserves.
Auditor’s remuneration
The audit fees for the Company were £5,000 (2007: £5,000). Auditor’s remuneration for other services is disclosed in note 6 to the 
consolidated financial statements.
Fees paid to the Company’s auditor, Grant Thornton UK LLP, and its associates for services other than statutory audit of the Company 
are not disclosed in Inland PLC’s accounts since the consolidated accounts of Inland plc are required to disclose non-audit fees on a 
consolidated basis. 38
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
3. Directors and employees
Staff costs during the year were as follows:
       2008 2007
       £’000 £’000
Share based payment       182 44
       2008 2007
       Number Number
The average number of employees (including Directors) during the year was:  
Management       4 4
Administration       7 3
       11 7
4. Directors remuneration
See note 7 of the consolidated financial statements.
5. Investments
    Investments   Investments
    in Group  Listed other than
    undertakings investments loans Loans Total
    £’000 £’000 £’000 £’000 £’000
Cost
At 1 July 2007    1,085 3,341 200 800 5,426
Transfer to investments in Group undertakings    51 (51) – – –
Additions    11,285 4,170 359 – 15,814
At 30 June 2008    12,421 7,460 559 800 21,240
Amortisation     
At 1 July 2007    – – – – –
Provision    – (4,397) – – (4,397)
At 30 June 2008    – (4,397) – – (4,397)
Net book amount at 30 June 2008    12,421 3,063 559 800 16,843
Net book amount at 30 June 2007    1,085 3,341 200 800 5,426
The provision against listed investments represents the diminution in value of the assets based on the market prices at the balance  
sheet date.
See note 13 of the consolidated financial statements for details on the Group undertakings.
6. Debtors 
       2008 2007
       £’000 £’000
Amounts owed by Group undertakings       34,180 12,501
Loan to associate       475 2,000
Other debtors       7 150
       34,662 14,651
Notes to the ComPANY’s fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 39
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
7. Creditors: amounts falling due within one year
       2008 2007
       £’000 £’000
Trade creditors       89 430
Accruals       45 –
Corporation tax       – 247
       134 677
8. Share capital
       2008 2007
       £’000 £’000
Authorised
239,990,000 ordinary shares of 10p each       23,999 23,999
1,000 deferred shares of £1 each       1 1
       24,000 24,000
       2008 2007
       £’000 £’000
Allotted, issued and fully paid
162,150,059 ordinary shares of 10p each       16,215 16,215
1,000 deferred shares of £1 each       1 1
       16,216 16,216
The deferred 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 deferred shares will receive £1 per share unless the conditions described below are met, in which event the entitlement of 
holders of deferred 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 deferred 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 deferred shares will become entitled to 
redeem their shares at a price which is calculated so as to attribute to all the deferred shares the difference between the takeover offer 
price per share and 35p (or such other sum as is agreed with HM Revenue & Customs) multiplied by 11,350,504; or
(ii) on a winding up, the assets attributable to the deferred shares will likewise be calculated to be such amount as would represent the 
difference between the amount attributable to each ordinary share and 35p (or such other sum as is agreed with HM Revenue & 
Customs) multiplied by 11,350,504.
The Company operates an unapproved share option scheme. Awards under each scheme are made periodically to employees.
The Company has used the Black-Scholes-Merton formula to calculate the fair value of outstanding options and deferred shares.  
The assumptions applied to the Black-Scholes-Merton formula for share options issued and the fair value per option are as follows:
       Share Deferred 
       options shares
Expected life of options based on options exercised to date      3 years 5 years
Volatility of share price       30% 30%
Dividend yield       0% 0%
Risk free interest rate       5.38% 5.38%
Share price at date of grant       50p 35p
Exercise price       50p 35p
Fair value per option       £0.08 £0.07
The charge calculated for the year ended 30 June 2008 is £182,000 with a corresponding deferred tax asset at that date of £51,000.
Volatility was assessed over the period since the shares have been listed. 40
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
8. Share capital continued
A reconciliation of option movements over the year ended 30 June 2008 is shown below:
       Number Exercise
       000’s price
Outstanding at 30 June 2008 and 30 June 2007       1,160 50p
Exercisable at 30 June 2008       – –
There were no options granted or lapsed during the year.
At 30 June 2008 outstanding options granted over 10p ordinary shares were as follows:
Share option scheme   Option price Number Dates exercisable
Company unapproved   50p 1,160,000 28 Mar 10 to 27 Mar 17 
9. Reserves
       Share Profit and
       premium loss account
       £’000 £’000
At 30 June 2007       45,184 627
Issue of shares       – –
Issue expenses       – –
Retained loss for the year       – (4,940)
Employee share based compensation       – 182
At 30 June 2008       45,184 (4,131)
10. Capital commitments
The Company had no outstanding capital commitments at 30 June 2008 or 30 June 2007.
11. Contingent liabilities
There were no contingent liabilities for the Company at 30 June 2008 or 30 June 2007.
12. Reconciliation of movements in shareholders’ funds
       2008 2007
       £’000 £’000
(Loss)/profit for the year       (4,940) 548
Issue of shares       – 57,422
Purchase of own shares       (366) –
Share based compensation       182 44
Net (decrease)/increase in shareholders’ funds       (5,124) 58,014
Opening shareholders’ funds       62,027 4,013
Closing shareholders’ funds       56,903 62,027
Notes to the ComPANY’s fINANCIAL stAtemeNts continued
For the year ended 30 June 2008 41
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
NOTICE IS HEREBY GIVEN that the annual general meeting of the Company (the ‘Annual General Meeting’) will be held at 11.00 a.m. on 
26 November 2008 at the offices of KBC Peel Hunt Limited at 111 Old Broad Street, London EC2N 1PH for the purpose of considering 
and, if thought fit, passing the following resolutions 1, 2, 3, 4, 5 and 7 as ordinary resolutions and resolutions 6 and 8 as special 
resolutions of the Company:
Ordinary business:
1. THAT the audited accounts of the Company for the financial year ended 30 June 2008 and the Directors’ report and auditors’ report 
on those accounts be received and adopted.
2. THAT Grant Thornton UK LLP be appointed auditors of the Company to hold office from the conclusion of the Annual General 
Meeting until the conclusion of the next general meeting at which audited accounts are laid and to authorise the Directors to  
fix their remuneration.
3. THAT Stephen Wicks be re-appointed as a Director of the Company in accordance with the Articles of Association of the Company.
4. THAT Nishith Malde be re-appointed as a Director of the Company in accordance with the Articles of Association of the Company.
Special business:
As an ordinary resolution:
5. THAT in substitution for all existing authorities under that section, the Directors be and they are hereby generally and unconditionally 
authorised pursuant to Section 80 of the Companies Act 1985 (‘the Act’) to exercise all the powers of the Company to allot, grant 
options over, offer or otherwise deal with or dispose of any relevant securities (as defined in Sections 80(2) of the Act) of the Company 
up to a maximum aggregate nominal amount of £5,405,000, or 33.33% of the current issued share capital or, if less, the authorised 
but unissued share capital from time to time to such persons, at such times and generally on such terms and conditions as the 
Directors (subject to the Articles of Association of the Company from time to time) in their absolute discretion may determine during 
the period commencing on the date of the passing of this resolution and expiring (unless previously renewed, varied or revoked by  
the Company in general meeting) 15 months from the date of the passing of this resolution or, of earlier, on the conclusion of the next 
annual general meeting of the Company save that the Company may make an offer or agreement which would or might require 
relevant securities to be allotted after the expiry of this authority and the Directors may allot relevant securities pursuant to such  
an offer or agreement as if the authorities hereby conferred had not expired.
As a special resolution:
6. THAT in substitution for all existing authorities and subject to the passing of resolution 5 above, the Directors be and they are hereby 
empowered, pursuant to Section 95 of the Act to allot equity securities (within the meaning of Section 94 of the Act) for cash pursuant 
to the authority conferred by resolution 5 above as if Section 89(1) of the Act did not apply to any such allotment provided that this 
power shall be limited:
(a) to the allotment of equity securities where the equity securities respectively attributable to the interests of all relevant shareholders 
are proportionate (as nearly as may be) to the respective numbers of shares held by them on the record date for such allotment 
subject only to such exclusions or other arrangements as the Directors may consider necessary or expedient to deal with fractional 
entitlements or legal or practical problems under the laws of, or the requirements of any regulatory body or stock exchange in, any 
territory; or
(b)  to the allotment (otherwise than pursuant to sub-paragraph (a) above) of equity securities for cash up to an aggregate nominal 
amount not exceeding £1,621,500 or 10% of the current issued share capital from time to time, and shall expire on the conclusion 
of the next annual general meeting of the Company or 15 months after the passing of this resolution, whichever is earlier, save that 
the Company may before such expiry make an offer or agreement which would or might require equity securities to be allotted after 
such expiry and the Directors may allot equity securities in pursuance of such offer or agreement after such expiry as if the power 
conferred hereby had not expired.
As an ordinary resolution:
7. THAT the principal terms (as defined in section 536(4) Companies Act 2006) produced to the Annual General Meeting and initialled by 
the chairman of the Annual General Meeting for the purpose of identification of a liability limitation agreement (as defined in section 
534 Companies Act 2006) for the financial period beginning 1 July 2008 proposed to be entered into by the Company and Grant 
Thornton UK LLP be and are hereby approved.
As a special resolution:
8. THAT new articles of association in the form of the draft to be tabled to the Annual General Meeting, initialled by the Chairman  
for the purpose of identification, be adopted in substitution for the Company’s existing articles of association.
By order of the Board Registered Office
 Trinity Court
Nishith Malde Batchwood Island
Company Secretary Church Street
31 October 2008 Rickmansworth, Herts.
 WD3 1RT
NotICe of ANNuAL GeNerAL meetING 42
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
Notes:
1. A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy(ies) to attend, speak and vote  
on his behalf. A proxy need not be a member of the Company.
2. To be effective, the instrument appointing a proxy and any authority under which it is executed (or a notarially certified copy of  
such authority) must be deposited at the offices of the Company’s Registrars, Capita Registrars, The Registry, 34 Beckenham  
Road, Beckenham, Kent BR3 4TU not later than 11.00 a.m. on 24 November 2008. A form of proxy is enclosed with this notice. 
Completion and return of the form of proxy will not preclude shareholders from attending, speaking and voting in person at the  
Annual General Meeting.
3. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the 
Annual General Meeting and any adjournment(s) thereof by using the procedures described in the CREST manual. CREST personal 
members or other CREST sponsored members, and those CREST members who have appointed a voting service provider(s), should 
refer to their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.
4. In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message (a  
‘CREST Proxy Instruction’) must be properly authenticated in accordance with Euroclear UK & Ireland Limited’s (formerly CRESTCo’s) 
specifications and must contain the information required for such instructions, as described in the CREST manual. The message, 
regardless of whether it constitutes the appointment of a proxy or an amendment to the instruction given to a previously appointed 
proxy must, in order to be valid, be transmitted so as to be received by Capita Registrars (ID RA 10) by no later than 11.00 a.m. on  
24 November, 2008. No such message received through the CREST network after this time will be accepted. For this purpose, the 
time of receipt will be taken to be the time (as determined by the timestamp applied to the message by the CREST applications host) 
from which the registrars are able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time 
any change of instructions to proxies appointed through CREST should be communicated to the appointee through other means.
5. CREST members and, where applicable, their CREST sponsors or voting service providers should note that Euroclear UK & Ireland 
Limited does not make available special procedures in CREST for any particular message. Normal system timings and limitations will 
therefore apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, 
if the CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s), to procure 
that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted 
by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST 
sponsors or voting service providers are referred, in particular, to those sections of the CREST manual concerning practical limitations 
of the CREST system and timings.
6. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the Uncertificated 
Securities Regulations 2001.
7. Copies of (i) all Directors’ service contracts or, where any such contract is not reduced to writing, a memorandum of the terms thereof; 
(ii) the principal terms of the liability limitation agreement for the financial period beginning 1 July 2008 proposed to be entered into by 
the Company and Grant Thornton UK LLP (referred to in resolution 7); and (iii) a copy of the memorandum and articles of association  
of the Company together with the articles showing the proposed changes, will be available for inspection at the registered office of the 
Company during normal business hours on any weekday (Saturdays and public holidays excluded) from the date of this notice until the 
date of the Annual General Meeting and at the offices of KBC Peel Hunt Limited, 111 Old Broad Street, London EC2N 1PH for at least 
15 minutes prior to and at the Annual General Meeting.
8. The Company, pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, specifies that only those shareholders 
registered in the register of securities of the Company at 6.00 p.m. on 24 November 2008 shall be entitled to attend and vote at the 
Annual General Meeting (or, if the Annual General Meeting is adjourned, 6.00 p.m. on the date being two days prior to the date fixed 
for the adjourned meeting) in respect of the number of Ordinary Shares registered in their name at the time. Changes to entries on  
the relevant register of securities after 6.00 p.m. on the relevant date shall be disregarded in determining the right of any person to  
attend or vote at the Annual General Meeting.
NotICe of ANNuAL GeNerAL meetING continued 43
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
1. Articles which duplicate statutory provisions
Provisions in the current articles which replicate provisions contained in the Companies Act 2006 are in the main amended to bring them 
into line with the Companies Act 2006. Certain examples of such provisions include provisions as to the form of resolutions, the variation 
of class rights and provisions regarding the period of notice required to convene general meetings. The main changes made to reflect this 
approach are detailed below.
2. Form of resolution
The current articles contain a provision that, where for any purpose an ordinary resolution is required, a special or extraordinary resolution 
is also effective and that, where an extraordinary resolution is required, a special resolution is also effective. This provision is being 
amended as the concept of extraordinary resolutions has not been retained under the Companies Act 2006.
3. Convening extraordinary and annual general meetings
The provisions in the current articles dealing with the convening of general meetings and the length of notice required to convene general 
meetings are being amended to conform to new provisions in the Companies Act 2006. In particular a general meeting to consider a 
special resolution can be convened on 14 days’ notice whereas previously 21 days’ notice was required. The term ‘extraordinary general 
meeting’ has also been replaced by the new term ‘general meeting’.
4. Votes of members
Under the Companies Act 2006 proxies are entitled to vote on a show of hands whereas under the current articles proxies are only 
entitled to vote on a poll. Multiple proxies may be appointed provided that each proxy is appointed to exercise the rights attached  
to a different share held by the shareholder. Multiple corporate representatives may also be appointed. The proposed articles reflect  
all of these new provisions.
5. Age of directors on appointment
As a provision limiting the age at which a director can be appointed could now fall foul of the Employment Equality (Age) Regulations 
2006, the provision in the current articles providing for no retirement on account of age is unnecessary so has been removed from the 
proposed articles.
6. Conflicts of interest
The Companies Act 2006 sets out directors’ general duties which largely codify the existing law but with some changes. Under the 
Companies Act 2006, from 1 October 2008 a director must avoid a situation where he has, or can have, a direct or indirect interest that 
conflicts, or possibly may conflict with the company’s interests. The requirement is very broad and could apply, for example, if a director 
becomes a director of another company or a trustee of another organisation. The Companies Act 2006 allows directors of public 
companies to authorise conflicts and potential conflicts, where appropriate, where the articles of association contain a provision to this 
effect. The Companies Act 2006 also allows the articles of association to contain other provisions for dealing with directors’ conflicts  
of interest to avoid a breach of duty. The proposed articles give the directors authority to approve such situations and to include other 
provisions to allow conflicts of interest to be dealt with in a similar way to the current position with respect to conflicts arising on or  
after 1 October 2008.
There are safeguards which will apply when directors decide whether to authorise a conflict or potential conflict. First, only directors  
who have no interest in the matter being considered will be able to take the relevant decision, and secondly, in taking the decision the 
directors must act in a way they consider, in good faith, will be most likely to promote the success of the company for the benefit of its 
members as a whole. The directors will be able to impose limits or conditions when giving authorisation if they think this is appropriate.
It is also proposed that the new articles should contain provisions relating to confidential information, attendance at board meetings and 
availability of board papers to protect a director being in breach of duty if a conflict of interest or potential conflict of interest arises. These 
provisions will only apply where the position giving rise to the potential conflict has previously been authorised by the directors. It is the 
Board’s intention to report annually on the Company’s procedures for ensuring that the Board’s powers to authorise conflicts are 
operated effectively.
eXPLANAtorY Notes of PrINCIPAL ChANGes  
to the ComPANY’s ArtICLes of AssoCIAtIoN 44
INLAND PLC
ANNUAL REPORT AND ACCOUNTS 2008
7. Notice of board meetings
Under the current articles, when a Director is abroad he can request that notice of directors’ meetings are sent to him at a specified 
address and if he does not do so he is not entitled to receive notice while he is away. This provision has been removed, as modern 
communications mean that there may be no particular obstacle to giving notice to a director who is abroad. It has been replaced with  
a more general provision that a director is treated as having waived his entitlement to notice unless he supplies the company with the 
information necessary to ensure that he receives notice of a meeting before it takes place.
8. Directors’ indemnities and loans to fund expenditure
The Companies Act 2006 has in some areas widened the scope of the powers of a company to indemnify directors and to fund 
expenditure incurred in connection with certain actions against directors. In particular, a company that is a trustee of an occupational 
pension scheme can now indemnify a director against liability incurred in connection with the company’s activities as trustee of the 
scheme. In addition, the existing exemption allowing a company to provide money for the purpose of funding a director’s defence  
in court proceedings now expressly covers regulatory proceedings and applies to associated companies.
9. Electronic and website communications
The current articles contain provisions of the Companies Act 2006 which came into force in January 2007 to enable companies to 
communicate with members electronically and/or via a company’s website. These provisions were enacted in order to facilitate 
communications with shareholders as well as to enable companies to adopt a more environmentally friendly approach to sending 
documents to shareholders. The new articles continue to allow communications to members in electronic form and they also permit the 
company to take advantage of the new provisions relating to website communications. Before the company can communicate with a 
member by means of website communication, the relevant member must be asked by the company to agree that the company may send 
or supply documents or information to him by means of a website and/or by email, and the company must either have received a positive 
response or have received no response within the period of 28 days beginning with the date on which the request was sent. A letter 
seeking consent to the company sending or supplying documents and information to members via its website and/or by email is 
enclosed with this document. The company will notify the member (either in writing, or by other permitted means) when a relevant 
document or information is placed on the website and a member can always request a hard copy version of the document or information. 
10. Generally the opportunity has been taken to bring clearer language into the proposed articles and in some areas to conform the 
language of the proposed articles.
eXPLANAtorY Notes of PrINCIPAL ChANGes  
to the ComPANY’s ArtICLes of AssoCIAtIoN continued Contents
overview
01
01 Highlights
02 Chairman’s statement
05 Chief executive’s review
07 Board of Directors and advisers
governance
08
08 Directors’ report
financial statements
13
13 Report of the independent auditor to the members of Inland PLC
14 Consolidated income statement
15 Consolidated balance sheet
16 Consolidated statement of changes in equity
17 Consolidated cash flow statement
18 n otes to the financial statements
35 Report of the independent auditor to the members of Inland PLC
36 Company balance sheet
37 n otes to the Company’s financial statements
41 n otice of Annual General Meeting
43 explanatory notes of principal changes to the Company’s articles of association
I N L A N D   P L C ARe DYn AMIC DeVeLoPeRs oF URBAn 
ReGene RAt Ion PRoJeCts ARoUn D so Ut HeRn 
en GLAn D. PReDoMIn Ant LY sPeCIALIsIn G In 
BRoWn FIeLD DeVeLoPMents , oUR HIGHLY eXPeRIen CeD 
te AM CAn PRoVIDe so LUt Ions to A VARIet Y oF 
DIFFICULt An D sens It IVe LAn D sIt UAt Ions . 
I N L A N D P L C
Ann UAL RePo Rt A n D ACCo Unts 2008
I N L A N D P L C
Ann UAL RePo Rt A n D ACCo Unts 2008 inland plc   annual report and accounts 2008
I n l a n d P L C
T r i n i t y C o u r t
B a t c h w o r t h I s l a n d
C h u r c h S t r e e t
R i c k m a n s w o r t h
H e r t s W D 3 1 R T
T :  0 1 9 2 3 7 1 3 6 0 0
F :  0 1 9 2 3 7 1 3 6 0 1
E :  i n f o @ i n l a n d p l c . c o m
w w w . i n l a n d p l c . c o m
AN N U AL   R E P O R T   AN D   A C C O U N TS
C R E A T I V E   T H I N K I N G   I N   
B R O W N F I E L D   D E V E L O P M E N T