Inland Homes to appoint administrators as cash dries up
- Inland Homes expects its shares to be cancelled on 4 October
Brownfield developer Inland Homes has begun the process of appointing administrators amid mounting losses.
The AIM-listed housebuilder, which has had four chief executives in the last year, told investors it expects trading in its shares to be cancelled on 4 October as its latest annual accounts will not be published on time.
The firm’s shares have been suspended since 3 April after it failed to report results for the year ended 30 September 2022 before the 31 March deadline.
All change: Inland Homes has begun the process of appointing administrators
Inland Homes has appointed FRP Advisory as administrators, with the group having been charged with the probe of related party relations and transactions under the previous management team.
The group, which has annual turnover of £181million, had been forecast to make a £91million loss for the year.
In a statement this week, Inland Homes, said: ‘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.’
The group has been unable to announce results for the year to September 2022 amid ongoing investigations into related party transactions.
Inland Homes also confirmed it had not managed to secure a waiver from HSBC regarding a £13.6million loan.
It said: ‘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.’
Inland Homes said that given the decision to file for administration, its proposed acquisition of North Country Homes, along with a business strategy shift, ‘cannot be implemented.’
The proposed deal was designed to salvage the firm’s operations while gaining an AIM listing and saw Jolyon Harrison appointed as chief executive to head a new management team.
Inland Homes was incorporated in 2005 and specialises in the development of brownfield sites.