Inland repays RBS loan

20th Dec 2010 15:07

Brownfield land developer Inland has repaid all its borrowings from RBS so that it does not incur any penalty.The revolving facility with of £9.3m with RBS reduced periodically and expired on 30 June 2011. Inland says that RBS would "receive inordinately high fees" if the loan were not paid off by the end of 2010. If the outstanding balance of £1.9m had not been paid then RBS would have enforced total charges in excess of 95% per annum. This means that Inland could have saved nearly £500,000 from paying off this debt. Gearing was 34% at the end of June 2010 and it had fallen to 19% when the full year figures were published in October. That includes deferred consideration, which was still £5.96m at the end of June - £2m has been paid since. Net debt is currently £3.5m, which is equivalent to gearing of 8% on the June net asset value. Inland more than trebled its revenues to £16.5m - including £13m of land sales - in the year to June 2010 and there are already £20m of sales in hand for this year. Inland reported a profit of £1.05m for the year. The net asset value was 24.3p a share at the end of June 2010.