Financial

Strategic focus

Revenue from housebuilding activities is expected to increase significantly and this will be supplemented by land sales and contracting income.

Performance

There were two sales of land during the year which flow through gain on sale of subsidiary or joint venture rather than revenue and gross margin. If they had been direct land sales revenue would have been £117.7m, representing a 16% increase on the prior year.

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Strategic focus

The Board's expectation is to continue to build on the recurring profitability achieved over the last two years and will seek to secure this by the planned expansion of housebuilding and the sale of consented building plots.

Performance

Demand for consented land was once again strong during the year and this resulted in several highly profitable land sales.

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Profit before tax

Strategic focus

The value added to the land bank by the planning process will continue to be the Group's key focus. Further value will be extracted from the land bank through housebuilding. Details can be found in the Chairman's Statement.

Performance

The more modest increase in this measure is due to the introduction in the prior year. The use of the adjusted EPRA net asset value measurement exposes how much 'hidden' value is held within inventories.

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Strategic focus

It is the Group's intention to progressively increase the dividend annually as profits rise.

Performance

The Group paid an interim dividend of 0.5p per share in June 2017 and has proposed a final dividend of 1.2p per share payable in January 2018.

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Strategic focus

The increase in profitability mentioned above will have a proportional impact on earnings per share which should continue to improve.

Performance

This is less than last year due to a large revaluation on the Wilton Park investment properties in 2016.

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Strategic focus

The Group is keen to maintain gearing at a reasonable level, taking into account the net asset value.

Performance

Net gearing has increased from 46.9% to 52.1% in line with management's expectations.

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Non-financial

Strategic focus

The Group's target is to have a land bank of approximately 10,000 residential plots in the medium term.

Performance

The land bank now stands at a record level of 6,936 plots, including 2,137 plots with planning permission or resolution to grant planning permission.

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Strategic focus

The Group's objective is to sell consented plots that are unlikely to be developed by Inland Homes to realise profits and to raise working capital.

Performance

There was a strong demand for consented plots from housebuilders during the year so a substantial number of plots were sold.

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Strategic focus

The Group expects to sell a larger number of residential units in the year to June 2018 and the plan is to increase this target over the medium term to approximately 500 units.

Performance

The Group sold 188 private residential units during the year, which was a 28% increase over the previous year.

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Strategic focus

The core activity of the Group is to acquire sites without planning consent and to secure consent on the majority of them within two years from purchase.

Performance

The Group gained planning permission or a resolution to grant planning permission on 1,856 plots during the year ended 30 June 2017.

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Strategic focus

The average number of employees to rise only modestly as the volume of housebuilding increases.

Performance

Due to the increase in housebuilding activities the average number of employees increased during the year.

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* Due to the introduction of IFRS 10 the Group has consolidated the results of DGVL for the years ending 30 June 2016, 2015 and 2014. Prior years were accounted for under IAS 27 and SIC 12 and these standards did not require the consolidation of DGVL.

** Further information can be found in note 29 to the accounts

† The Group adopted the performance measures of the European Public Real Estate Association (EPRA) from December 2015, therefore prior year comparatives consist of net asset value only, without the uplift of the underlying asset value. Further details on the EPRA net asset value can be found in the Chairman's Statement.

‡ Net gearing is defined as loans and accrued ZDP liability less cash as a proportion of net asset value.