REG - Inland Homes PLC - Successful renegotiation of bank covenants

Inland HomesAnnouncement

17/02/2023 11:45

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RNS Number : 3241Q  Inland Homes PLC  17 February 2023

17 February 2023

 

Inland Homes plc

('Inland Homes' or the 'Group')

 

Successful renegotiation of bank covenants

 

Inland Homes plc (AIM: INL), the housebuilder, partnership housing developer
and regeneration specialist focused on the South and South East of England,
today provides an update on the successful renegotiation of two of its
borrowing facilities.

 

In its trading update on 25 January 2023, the Group reported that with revised
financial provisioning and expected IFRS net assets at approximately £90.0m
at 30 September 2022, the Group is a going concern, but had breached the net
assets and gearing covenants with one lender and the gearing covenant for
another lender, where the Group's combined borrowings are currently £48.7m.

 

Inland announces today that it has successfully concluded the waivers with
both lenders and continues to comply with the conditions of each lender with
regards to the respective facility agreement.

 

Land loan facility:

 

The Group has a £26.0m facility with Secure Trust Bank PLC secured on Wilton
Park, Beaconsfield which expires in March 2024.

 

A waiver has been obtained and concluded for a historic breach of the gearing
covenant at 30 September 2022 and a further onward waiver of the test at 31
March 2023.  The covenant will next be tested on 30 September 2023.

 

Revolving Credit Facility:

 

The Group has a Revolving Credit Facility ('RCF') with HSBC UK Bank PLC which
is currently drawn at £22.7m secured on ongoing housebuilding developments at
Meridian Waterside, Southampton and Cressing, Essex and which currently
expires in October 2023.  The Group had already reported the securing of a
waiver in September 2022 from HSBC on the interest cover ratio covenant for
the three quarters ending 30 June 2023.

 

Inland Homes now announces that it has received a waiver to secure relaxations
on its covenants relating to tangible net worth and gearing covenants.  The
tangible net worth covenant has been relaxed for the term of the facility and
the gearing covenant will revert to the original level from 30 June 2023.

 

Nish Malde, Group Finance Director at Inland Homes, commented:

"Whilst the last financial year has been challenging, I am pleased to report
that the Group has renegotiated its banking covenants with two core lenders.
Both lenders have held long term supportive relationships with the Group over
many years and continue to support Inland's delivery of key schemes in the
South and South East, creating much needed homes in a land market that is in
short of consented plots."

 

Enquiries

Inland Homes plc:

Simon Bennett, Non-Executive
Chairman
Tel: 44 (0)1494 762450

Nishith Malde, Group Finance Director

 

Lazard & Co., Ltd (Adviser to the
Group)
Tel: 44 (0)20 7187 2000

William Rucker

Louise
Campbell

 

Panmure Gordon (UK) Limited (Nominated adviser and
broker)             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").

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