Results round-up

AIM-listed housebuilder Inland Homes' full-year revenue fell but the company pointed to a number of developments in the pipeline including a new joint venture with a local authority, adding that it was unaffected by Brexit uncertainty arisen since the referendum result.

For the year ended 30 June, revenue fell nearly 11% to £101.9m, compared to the previous year, which resulted in a 3% fall in pre-tax profit to £32.9m.

Chief executive Stephen Wicks said: "To date, the business has been largely unaffected by the Brexit vote and although it remains too early to deliver a definitive judgement, following the robust full year performance and the ongoing supportive market backdrop, the board has good reasons to be confident in the outlook for Inland Homes."

The company, which specialises in brownfield regenerations, said house sales continued at a normal rate since June’s EU referendum, particularly at its price point and within its geographic focus. Forward sales remain “strong” totalling £22.5m, down about 28%, as of 14 October.

Net asset value increased by 30% to £116m due to an £18m revaluation surplus on investment properties.

Revenue from housebuilding declined 22% to £51.5m due to the deferral of 23 construction projects to the 2017 financial year and a bulk sale of 59 units last year.

Rental income increased 165% to £2.1m as the company leveraged income opportunities across its portfolio.

Cash balances of £16.7m marked a decline of 22% from last year, with net borrowings up 56% to £54.6m.

It said the fundamentals of the housing market and government initiatives such as Help to Buy are supportive of Inland Homes’ strategy and are “contributing to the positive outlook” of the company.

During the year, the company expanded its land bank to a record 6,681 plots including 17 sites under option providing control over 330 acres of strategic land with the potential for over 1,600 residential plots.

About 425 plots across eight sites were sold for £43.3m and 147 private homes were sold at an average price of £337,000, up from £264,000 last year, with a further 321 under construction.

The gross margin from the sale of private homes improved from 20.9% to 21.9%.

The company embarked on its first major joint venture with Southampton City Council to develop an 8.9 acre site with potential for over 450 residential units and a gross development value of over £100m.

The company said development projects were progressing well, including Wilton Park, Beaconsfield and Meridian Waterside Southampton, its first full self-delivery project.

AIM-listed live events agency Aeorema Communications’s full-year revenue fell slightly as a result of a “challenging market”, in part caused by Brexit uncertainty while it gained the MailOnline website as a client.

For the year ended 30 June, revenues fell slightly by 7% to about £4.58m, compared to last year, which resulted in an 11% fall in pre-tax profit to £340,165.

Cash at bank and in hand was down 8% to £1.42m.

Chairman Michael Hale said the company continued to generate profits because the company differentiated itself as a specialty live events company through the development of innovative corporate communication solutions in the UK and internationally.

He said: “The trading environment in the event sector remains challenging, in part caused by the uncertainties of Brexit and its destabilising effects. However, we anticipate that whilst global customers may at first rein in activities, in the longer term Brexit will create new opportunities as those very same organisations look to the UK, including companies like Aeorema, for cost-effective, unique, cutting edge solutions that this country is renowned for.

“I am not saying that it will be a smooth ride, indeed the next six months will be rocky, but we are confident that our long-term strategy and team which delivers creative live events, incorporating screen content and video, will ultimately see Aeorema prosper.”

The company recommended a final dividend of 2p down from 3p last year to be paid on 4 November, which is in addition to the 3p special dividend paid in March.