9th best 2015 AIM performer

lse:inl

#1

According to the Telegraph of 2nd Jan 2016, although their AIM list doesnt appear to include all AIM companies by any means.

It gives INL 2015 figures as a share price rise of 45.4%, a yield of 1.2% and a P/E of 5.9 (five point nine).

Taylor Wimpey came in as the top FTSE 100 performer in their 2015 Winners and Losers list with Barratts 3rd and Persimmon 8th.

In discussions about construction performance I wrote this about INL on the BDEV board:

Might I also add, Inland Homes, one of my STRONG BUY recommendations this year as a ‘late comer to the party’, is placed as 9th best overall AIM performer in the Telegraph’ list. (I’m not quite sure about their selection criteria for that particular list. Whether winners or losers, there are some very obvious ommissions from the Telegraph table printed in the 2nd Jan edition).

INL are shown in this list with a 2015 rise of 45.4%, a yield of 1.2% and a P/E of 5.9 (five point nine).

"For the curious, INL have an interesting diversification within the confines of the construction sector. While only completing approx 240 homes (from memory) in their last full year trading statement, they are brownfield specialists with a land bank of over 5000 plots (over 1000 with planning permission).

That is because they also make money through consultancy on gaining planning permission as well as selling land bank plots that they have achieved planning permission on.

Another intresting twist is that when they sell a group of plots for development, they often retain an area for themselves for building, Eg. a convenience store to service the occupiers of the new development. They then rent out that store and have fast growing revenues from this aspect of the business, often based on long term leases. I believe local convenience stores are going to be a growth area over the next few years as the super-supermarket model appears to have fallen foul of many shoppers.

The other reason I gave for liking them to mitigate the fact they are a relatively small AIM company, is that the board of directors own approx 25% of the share capital between them. This fact couples with the relatively low dividend yield suggests to me that they have great belief in the future of the company.

I don’t have any hesitation in recommending them again for 2016. I should say that I am currently a holder (if you hadn’t guessed) and that if I were buying more I would hope to get in at a better price than the current @86.5p per share [so take that into account with my STRONG BUY recommendation and also that all my figures regarding INL, other than those printed in the Telegraph, are from memory only].

I also hold PSN, BKG, TEF in the sector and ESP, which has at least one foot in the sector. Please do your own research if any of the above interests you. "