Inland Homes to appoint administrators as cash runs out
- Inland Homes expects its shares to be canceled on October 4
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year, told investors it expects trading in its shares to be canceled on October 4 as its latest annual accounts will not be published in time .
The company’s shares have been suspended since April 3 after it failed to report results for the year ended September 30, 2022 by the March 31 deadline.
All changes: Inland Homes has started the process of appointing administrators
Inland Homes has appointed administrators to FRP Advisory, with the group having been tasked with investigating related party relationships and transactions under the previous management team.
The group, which has an annual turnover of £181m, had been forecast to post a loss of £91m for the year.
In a statement this week, Inland Homes said: “Taking into account the current circumstances and including the structure of the group and the current cash resources available to it, Inland has concluded that the appointment of administrators in accordance with the provisions of the Insolvency Law is in the best interests of all interested parties.
‘Consequently, notices of intention to appoint administrators have been lodged today with David Hudson and Phil Armstrong of FRP Advisory Trading Ltd in respect of certain Inland group companies in respect of which there are registered floating charges.
‘It is expected that the formal appointment of Directors with respect to Inland, said subsidiaries and the rest of the companies in the Inland group will take place imminently.’
The group has not been able to announce results for the year until September 2022 amid ongoing investigations into related party transactions.
Inland Homes also confirmed it had failed to obtain a waiver from HSBC in respect of a £13.6m loan.
It said: “The Company remains in active discussions with HSBC regarding waivers for the breaches announced on September 11, 2023.
“Inland also anticipates that it may soon default on agreements with other lenders and has already entered into 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 change in business strategy, “cannot be implemented”.
The proposed deal was designed to save the company’s operations while securing an AIM listing and appointed Jolyon Harrison as chief executive to head a new management team.
Inland Homes was established in 2005 and specializes in brownfield development.