Inland Homes will appoint managers as money dries up
- Inland Homes expects its shares to be canceled on October 4
Brownfield developer Inland Homes has started appointing administrators amid mounting losses.
The AIM-listed housebuilder, which has had four CEOs in the past year, told investors it expects trading in its shares to cease on October 4 because its latest accounts will not be published on time.
The company’s shares have been suspended since April 3 after it failed to report results for the year ending September 30, 2022 before the March 31 deadline.
All change: Inland Homes has started appointing managers
Inland Homes has appointed FRP Advisory as administrators, with the group under the previous management team tasked with investigating related party relationships and transactions.
The group, which has an annual turnover of £181 million, was expected to make a loss of £91 million this year.
In a statement this week, Inland Homes said: ‘Taking into account the current circumstances, including the group structure and current available cash resources, Inland has concluded that the appointment of receivers 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 been filed today in respect of certain Inland group companies over which floating charges are registered.
‘It is the intention that the formal appointment of Trustees with regard to Inland, those subsidiaries and the other group companies of Inland will take place in the short term.’
The group was unable to announce results for the year to September 2022 due to ongoing investigations into related party transactions.
Inland Homes also confirmed it had failed to obtain a waiver from HSBC in relation to a £13.6 million loan.
It said: ‘The company remains in active discussions with HSBC regarding waivers for the breaches announced on September 11, 2023.
“Domestic also expects it will soon breach covenants with other lenders and has already initiated discussions with such lenders.”
Inland Homes said that given the decision to file for administration, the proposed acquisition of North Country Homes, together with a change in business strategy, ‘cannot be implemented’.
The proposed deal was intended to save the company’s operations while obtaining an AIM listing. Jolyon Harrison was appointed CEO to lead a new management team.
Inland Homes was founded in 2005 and specializes in the development of brownfield sites.