Inland Homes Share Discussion Threads

[andy246] 01/2/2023 12:13

Inland ZDPs annual report has been published.
The company announced it may buy back ZDPs ahead of maturity at a discount to the redemption value.
Hopefully they get started soon and start buying back their debt at a 35% discount to the notional value.

[volsung] 27/1/2023 10:45

I do not want an inland home. I want a coastal one
That is why these are failing.
They should rename themselves as Coastal Homes

[sahina123] 26/1/2023 11:42

This has been down 50 percent in last 2 days.

[hatfullofsky] 25/1/2023 21:58

The value here is too good to refuse. Cashed up house builders will buy INL. They can get a portfolio of assets that has taken years to build in one simple transaction. Net Assets of £90m MCAP £23 bonkers

[finkie] 25/1/2023 16:34

I think it will fold fairly soon so certainly wouldn’t buy in at current prices. It’s a complex business also managing large BTR sites for fees, so any insolvency company would take time to asses rather than just diving in and pulling the rug from under them.

[volsung] 25/1/2023 16:21

Do not build inland homes because the sea level might rise and come in to flood people
This is v important because global warming
Trees might also die and malaria may come
This is fact why these have fallen

[sbb1x] 25/1/2023 16:11

Looks like it might drop to 10s

[comedy] 25/1/2023 12:45

thanks guys. best to just leave it.

[daneswooddynamo] 25/1/2023 11:19

The banks are in control and someone will pick over the carcass to nab any decent parts

[suetballs] 25/1/2023 10:52

Comedy no idea - waiting hasn’t done me much good. At least I haven’t bought on the way down. But we could be near the bottom - but who the hell knows!
Suet

[my retirement fund] 25/1/2023 10:50

I think the Banks will be ahead of the pref holders!

[comedy] 25/1/2023 10:36

buy? or wait?

[davebowler] 25/1/2023 10:22

At this rate the Zero Div shareholders will own the lot!

[babbler] 25/1/2023 09:15

the Group is a going concern, but it does mean that the Group will have breached the net assets and gearing covenants with one lender and the net asset and quick asset ratio covenants for another lender, where the Group's combined borrowings are currently GBP49.3m. These represent the only breaches of financial covenants on any of the Group's borrowings and Inland Homes have already had discussions with the lenders concerned to procure waivers for both the existing and any forecast expected future covenant breaches for the two lenders concerned. Whilst the Board believes that these waivers will be forthcoming, they consider that if required, these borrowings can be refinanced.

[sbb1x] 25/1/2023 09:13

Stock on ask at 11.70 on L2

[oi_oi_savaloy] 25/1/2023 09:10

Just a small thing - they don't need to buy sites outright, before getting planning and selling them; they can take a conditional contract (effectively an agreed price, subject to planning) over a site (subject to agreeing terms with the owner of course) for relatively little. Then they'll need £150k for the planning (at risk) but compared to buying a site outright and then going for planning.....cheap as chips.

I don't think they'll do much of that however. They need to rinse their existing land portfolio now, particularly the 3,680 plots they've got with planning.

Say they sold each plot off at £25,000 a plot (cheap, v cheap imo) that's £92,000,000. That would leave them debt free and another 4,898 plots to work through and sell off over the next 2 to 5 years.

I'd like to think that those plots are worth more than £25,000 a plot, a hell of a lot more......but when buyers smell blood.....

'Land portfolio

The Group ended at 30 September 2022 with a land portfolio of 8,578 plots that presents opportunities in the short and medium term including 3,680 plots that have planning consent or a resolution to grant planning consent. Inland Homes' sites are in attractive and highly sought after locations.'

[babbler] 25/1/2023 09:07

I mean why anyone still held when the new CEO left after a month is a mystery to me. Big red flag.

[cc2014] 25/1/2023 09:01

I'm sorry but they can't build their way out of this as they don't have the capital to do so. They are in the death throws of having to sell off assets to generate cash and they can't buy new assets to develop.

The debt is now £100m but the provisions to complete them are £29m. That's cash they've got to find to generate the income for the sale. I think they are going to have/are having issues with working capital and that leads to even more costs.

It's just a badly run zombie company kept alive by super low interest rates and loose credit which meant the issues weren't noticeable. Now they are. The debt cannot be refinanced at any suitable rate which INL are able to pay.

[suetballs] 25/1/2023 08:58

Extremely disappointing but in truth we knew it was coming. They say they are still a going concern but boy survival is going to be tough. A lot of companies will go to the wall this year but that is little comfort. Reputational damage is huge too and we don’t have a CEO. The end could be in sight unless a white knight appears for a knockdown price.
Suet

[oi_oi_savaloy] 25/1/2023 08:50

INL also own a load of houses that they rent out (Beaconsfield from memory but there are probably others too) - they'll be sold next I'm guessing. They can then wind down the management internally of those houses etc through redundancy. Imperative to get costs down.

[cc2014] 25/1/2023 08:09

On 6 September 2022 the Group announced a Trading Update which cautioned that the Group's financial performance for the second half of its financial year was dependent on the completion of planned land sales and on the timing of planning approvals to support those planned land sales. As a result, the Group reported an anticipated loss before taxation of approximately GBP37.1 million and a revised forecast for net assets at 30 September 2022 of approximately GBP145.9 million.

As a result of the items referred to above, the expected loss before tax for the year ending 30 September 2022 is now approximately GBP91.0m and the net assets at the balance sheet date approximately GBP90.0m, which represents an IFRS net asset value of approximately 40p per ordinary share, which excludes any EPRA uplift.

That's a significant move.


Have they kitchen-sinked it this time? Maybe but given they don't seem to know what's going on and were spending their cash on buying back shares only a few months ago who knows? Presumably the new CEO who lasted less than a month wasn't in full agreement with this statement or alternatively couldn't get the Board to agree his plan to deal with it.

[oi_oi_savaloy] 17/1/2023 10:49

Here's hoping Lazard have a debt dept that can re-organise (on longer terms perhaps, and even better if at a lower rate) the debt.

Not sure how much they know about land if I'm honest.

Of massive concern (for me) is the main contracting side of the business. Costs, particularly labour, show no real signs of falling.