Trading and Financial Update

 
TIDMIHGP 
 
For Immediate Release 27 January 2009 
 
                              IN HOUSE GROUP PLC 
 
                         ("In House" or the "Company") 
 
                         TRADING AND FINANCIAL UPDATE 
 
Initiative Update 
 
On 28 October 2008, the Company announced an issue of shares to an architect 
with regard to a proposed new venture. The Company advises discussions are 
still ongoing with regard to this venture. 
 
On 18 November 2008, the Company announced it had agreed to acquire a 75% 
interest in Breatheasy Finance Limited and issued shares in settlement of a GBP 
25,000 payment for a three month exclusivity period. The Company advises that 
it still intends to complete the acquisition but that there may be an agreed 
delay in the acquisition while the two parties negotiate with funders that need 
to be in place to finance the acquisition of properties identified by 
Breatheasy for acquisition. 
 
In addition, as previously announced, the Company is still in negotiation to 
acquire property management companies. However, the current economic climate 
led to the original finance facility being withdrawn and therefore the Company 
continues to seek alternative funding for these transactions. 
 
Existing Business 
 
The Group had expected to make further property acquisitions and is still 
looking for appropriate opportunities but the current economic uncertainty is 
impacting on the ability to complete such deals. The Group retains its existing 
funding facility with Dunfermline Building Society and expects to be able to 
acquire further properties using this facility once the current economic 
uncertainty has eased. 
 
The Group is, therefore, currently concentrating on managing its existing stock 
of residential properties on which rental yields are being maintained while at 
the same time finance costs are being reduced as the interest rates to which 
finance costs are linked have fallen. In addition, a number of properties are 
currently let to asylum seekers or benefits claimants with the rents paid 
directly by either local authorities or other agencies and therefore provide a 
high quality of income to the Group. There are currently around 25 properties 
that require some refurbishment before they can be relet which the Directors 
estimate would cost some GBP140,000 in total. The Group does not currently have 
the funds to do this; but is seeking ways to do so as the Directors believe 
that these properties can readily be rented and will provide a good payback on 
the investment required. 
 
Funding Position 
 
With the falling finance costs, the existing portfolio will more than cover the 
interest cost. The Group is arranging short term funding to meet its immediate 
cash needs and is currently in discussions with a number of parties in relation 
to long term funding to address the refurbishment requirements, restart 
property acquisitions and, once these have been arranged, finance the 
acquisition of the property management companies. 
 
Contact: Marcus Cassidy, In House Group Plc on 0845 061 9999 
 
[e-mail] 
 
Roland Cornish, Beaumont Cornish Limited, 
 
0207 628 3396 
 
 
 
END