Inland Homes to suspend shares and delay results again

Troubled AIM-listed housebuilder and land promoter Inland Homes is to suspend shares and delay its results for a second time to investigate “related party issues”. 

In a trading update this morning the firm said its board was in the final stages of commissioning a report to investigate the issues and other relevant matters. 

As a result of the unresolved matters the company was “not in a position to publish its audit results before 31 March 2023”, Inland Homes said. AIM rules stipulate Inland’s audited results must be published by the end of March, which means its shares must be suspended from 7.30am on 3 April. This is the second time its annual accounts have been delayed. Last month it announced it had agreed with PricewaterhouseCoopers LLP that “they both require additional time to finalise and complete the accounts and related audit procedures”. 

Inland Homes also announced today it is considering fundraising up to £5m, which would be implemented at 10p per share - the nominal value of its shares. 

Newly appointed chair Matthew Robinson is leading the work to find options for completing the audit and possible changes to internal management procedures to find a practical way forward, and the review. PwC will audit these procedures when completed.  Chartered accountant Robinson was appointed chair last month, which avoided the company being suspended from the exchange after the discovery of the “related party issues”. 

The suspension of the shares also comes after the resignation of three other board members, Simon Bennett, Carol Duncumb and Brian Johnson as the so far publicly undisclosed “related party issues” were revealed to auditors. 

The independent report will confirm the details of the transactions involved in the “related party issues” and update the company’s internal registers. 

Inland Homes appointed PwC as the group’s auditors on 3 August last year following an independent competitive tender process and the final audit of the results for the year ending 30 September 2022 started in November last year.  

In January the firm revealed a deteriorating housing market and ballooning construction costs had led it to revise the amount of pre-tax loss it expected to post in 2022’s accounts to more than £90m from £37m. This was after it had said in September it would make a loss of around £37m for the year, which led to the resignation of the company’s founder and chief executive, Stephen Wicks. The housebuilder had said Wicks may return to the firm but this is as yet unconfirmed. Housing Today has asked the firm again this morning if Wicks is likely to return. His replacement, former Galliard boss Don O’Sullivan resigned after just over a month in the job. 

Inland Home’s audit committee has regularly met with PwC with the last meeting being on 23 February. The housebuilder announced on 1 March the “related party issues” had been uncovered. 

The company said it “intends to request a restoration of trading in its shares on publication of its full year 2022 audited results”. 

It added: “The group’s audit committee will continue to meet with PwC to review all other aspects of the audit as appropriate and the board will issue a further update in due course.” Inland Homes said it would make further updates “as appropriate”.  

The fundraising of its shares had already “received indicative support for around half” of the £5m and the firm was “progressing discussions in this regard,” the trading update stated. 

Any completion of the fundraising would be “subject to customary formalities and launch”.