Inland Homes plc ("Inland" or the "Company")
Notice of intention to appoint Administrators
Cancellation of admission
The directors of Inland Homes plc advise that they have resolved to proceed with the process of appointing David Hudson and Phil Armstrong of FRP Advisory Trading Ltd as Administrators of the Company and that certain of its subsidiaries which have granted floating charges have today filed notices of intention to appoint Administrators. This announcement provides background to this decision.
Financial statements preparation process
On 24 July 2023, Inland announced the outcome of a review by FRP Advisory Trading Ltd (FRP) into related party relationships and transactions and other matters. As part of the process to complete the audit for the year to 30 September 2022 ("FY22"), Inland commissioned a further limited review by FRP designed to identify, amongst other matters, whether control breaches or incomplete disclosures impacted other areas of corporate governance and financial reporting in the period 1 October 2020 to 30 September 2022 including material judgements and estimates.
The review conducted by FRP, on which they reported on 22 September 2023, has provided sufficient indication that further work is still required into material judgements and estimates applied to the financial statements both for the year to 30 September 2022 and for the year to 30 September 2021 ("FY21") before the preparation of the financial statements could be completed and then audited.
The extent of further work and cost required to complete the preparation of the financial statements and the audit for FY22 cannot be certain at this stage, and the timeframe within which this might be feasible is not known.
The Company continues to be in active discussions with HSBC regarding waivers for the breaches announced on 11 September 2023. Inland also anticipates that it is likely to be in breach of covenants with other lenders shortly and it has already initiated discussions with such lenders.
Strategy
On 24 July 2023, Inland announced the proposed acquisition of NorthCountry Homes Limited ("NorthCountry") as part of a strategy to develop a low cost homes business model, based in
Appointment of administrators
Inland has reviewed options to continue its policy of seeking to complete existing construction projects at the same time as undertaking a comprehensive programme of disposals of its land assets, most of which are held as inventory.
Taking into account the current circumstances and including the group structure and the current cash resources available to it Inland has concluded that the appointment of Administrators in accordance with the provisions of the Insolvency Act is in the best interests of all stakeholders.
Accordingly notices of intention to appoint David Hudson and Phil Armstrong of FRP Advisory Trading Ltd as Administrators have today been filed in respect of certain Inland group companies over which there are registered floating charges. It is intended that the formal appointment of Administrators in respect of Inland, those subsidiaries and the remaining Inland group companies will be made imminently.
Cancellation of admission
As set out above, the extent and cost of the work necessary to complete the preparation of the financial statements and the audit for FY22 and the timeframe within which this might be feasible is not known. In light of the circumstances set out above regarding the financial position of the Company, the Company considers that it may be difficult to complete the work necessary for the preparation of financial statements and the audit for FY22. Trading of the Company's shares on AIM was suspended on 3 April 2023 and pursuant to AIM Rule 41 admission of a company's shares to AIM will be cancelled where trading in its shares has been suspended for six months. Accordingly, Inland anticipates that admission of its shares to AIM will be cancelled on 4 October 2023.
Contacts:
Inland Homes plc Tel: 44 (0)1494 762450
Matthew Robinson, Chair
Jolyon Harrison, CEO
FRP Tel: 44 (0)20 3005 4000
David Hudson
Justin Matthews
Panmure Gordon (UK) Limited Tel: 44 (0)20 7886 2500
Dominic Morley / James Sinclair-Ford (Corporate Advisory)
Tom Scrivens (Corporate Broking)
The information contained in this Announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (Regulation 596/2014), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). The person responsible for arranging for the release of this announcement on behalf of Inland Homes plc is Matthew Robinson, Chair.
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