REG - Inland Homes PLC Inland ZDP PLC - Intention to appoint Administrators & Cancellation

Inland HomesAnnouncement

27/09/2023 14:45

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230927:nRSa8773Na&default-theme=true

RNS Number : 8773N  Inland Homes PLC  27 September 2023

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 Wakefield, taking advantage of low Northern
land values and developing the Inland brownfield and strategic land business
in the South, as well as completing Inland's existing construction
commitments.  The proposed acquisition was subject to a number of conditions
including the restoration to trading on AIM of Inland's shares.  For the
reasons set out below, restoration to trading is not likely to occur, and
accordingly this strategy cannot be implemented.

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCBXGDCLDDDGXR