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This was another outstanding year of progress for Inland Homes.

We are benefiting from better market conditions with improved mortgage availability, together with a boost for homebuyers from the Government's Help to Buy initiative. Of the 114 private legal completions, 62 purchasers used the funding provided by the scheme. The core activity of our business remains the acquisition of predominantly brownfield land acquired without planning permission. We have also made a decision to supplement our brownfield activities with a number of longer term strategic sites where land is secured under a long term option at a discount to market value. The land portfolio includes six such sites with the potential for 620 plots.

Since last year's report a number of substantial milestones were achieved in our site acquisition programme, namely:

RAF Stanbridge, Leighton Buzzard, Bedfordshire

  • Former MoD site with consent now achieved for 175 plots plus commercial space

Reading Road, Henley, Oxfordshire

  • Former commercial site with scope for 55 plots

Lily's Walk, High Wycombe, Buckinghamshire

  • Former gasworks with scope for 200 plots plus commercial space

Queens Road, High Wycombe, Buckinghamshire

  • Consent secured for 14 units

The Vale, Acton, West London

  • Builders' merchants with scope for 100 plots plus commercial space

Rainsford Road, Chelmsford, Essex

  • Former public house where we have secured consent for 14 units

Tiptree, Essex

  • Former sports ground with scope for 40 plots

Meridian, Southampton, Hampshire

  • Former TV studios on seven acres with scope for 350 plots

Aylesbury, Buckinghamshire

  • Joint venture with another developer. A 50 acre site to be acquired jointly with scope for in excess of 300 plots plus commercial space

Loudwater, Buckinghamshire

  • A five acre investment property site producing income and having development potential and of strategic importance for the development of a wider area

Wilton Park, Beaconsfield

  • Financial partners of Inland have now completed the purchase of this 100 acre site from the Ministry of Defence, who were being challenged by a third party by way of a Judicial Review in respect of the sale. This Judicial Review has now been withdrawn. Shareholders may recall that Inland Homes own the preferred access to this site which has been allocated in the Local Plan for in excess of 300 new homes. An agreement will be concluded with our financial partners in the near future now that the Judicial Review has been withdrawn.

The number of residential plots in the land bank of the Group and those separately held by DGVL is currently as follows:

Our performance this year demonstrates that we have the right strategy going forward. The Group is in an excellent shape with tremendous momentum behind it as we move into the new financial year

Stephen Wicks

Chief Executive

620

We now have six strategic sites with the potential for 620 plots

436

Homes under construction over nine development sites

152

Of particular note in the year was our development at West Plaza, Ashford in Middlesex of 152 apartments

Owned or contracted with planning consent1,070
Drayton Garden Village with planning consent248
Owned or contracted without planning consent605
Plots controlled or terms agreed1,811
Total plots3,734

Whilst commercial investment and development is not a core activity, current annual rental income generated by the land bank now exceeds £600,000. This has been bolstered by the lease to Sainsbury's at DGV that was let on a 15 year term with a starting rent of £64,000 per annum.

Of particular note in the year was our development at West Plaza, Ashford in Middlesex of 152 apartments. This project is nearing completion with total anticipated revenue of approximately £33.0m. 90% of the development is either contracted for sale or legally completed.

Number of plots with and without planning consent

Residential plots sold (number)

*Includes plots sold with DGVL.

Planning permission was received for our development of 152 apartments and commercial space at Callis Yard, Woolwich in London. This is a brownfield site which is opposite a new Crossrail station and close to the town centre. This planning consent has resulted in a very significant increase in the value of the site over its carrying value.

The strategy of acquiring sites in the outer boroughs of London is gathering momentum and we were particularly pleased with the unconditional purchase of a builder's yard in Acton, West London which should yield over 100 residential units along with some commercial space.

Significant planning approvals or resolutions to grant planning permission gained in the year are as follows:

Europa Way, Ipswich94
Callis Yard, Woolwich152
Vale Road, Bushey41
Station Road, Gerrards Cross30
Queensgate, Farnborough26
Other smaller sites35
Total plots378

One of our intentions is to make forward sales of the units we construct to organisations that specialise in building up private rented portfolios. Heads of terms have recently been signed for a substantial development at Drayton Garden Village of over 200 homes with an institution seeking to build a private rented portfolio in the UK. Construction is intended to be financed via the Government's "Build to Rent" scheme.

We believe that with home ownership now being out of the reach of an increasingly large group of the younger population, private rented homes which are properly managed by long term landlords will become very popular with home occupiers as well as forming an exciting new asset class for institutional investors. Inland expects to have substantial involvement in this sector using sites from its well located land bank.

As mentioned in the Chairman's Statement, these are excellent results but the key factor is that we have created a sound platform for growth. In addition, our performance this year demonstrates that we have the right strategy going forward.

The Group is in an excellent shape with tremendous momentum behind it as we move into the new financial year.

The considerable progress which is being made at Inland is entirely due to our small, highly motivated team. I would like to thank them for their continued hard work, commitment and support in ensuring we deliver our strategy of growth and value for our shareholders.

Stephen Wicks

Chief Executive

15 October 2014

New Sainsbury's Local at Drayton Garden Village, West Drayton in Middlesex

378

Planning approvals or resolutions to grant planning permission gained in the year