Inland Homes Share Discussion Threads

[kumbuka] 30/8/2023 21:28

Another bully boy pj FAILURE.

[bsdjj] 30/8/2023 20:31

The sellers of North County Homes are taking 40m in Inland Homes shares in lieu so I am not sure how they profit if the Inland ordinaries are worthless?

[grahamg8] 30/8/2023 17:18

Skyracer the related question is how do the Directors justify a cash and asset strapped business like INL paying £4m for North Country Homes? Other than the rather obvious fact that they are the ones selling the business so that they directly profit from the deal.

[skyracer] 30/8/2023 09:50

Inland ZDP PLC

30 August 2023

Inland ZDP PLC

Possible breach of loan covenant

30 August 2023

Inland Homes PLC is considering possible provisions to be made against certain asset values in its accounts with its auditors. The amounts of any such provisions, which have not yet been determined, appear likely to trigger a breach of the asset cover covenant applicable to the loan between Inland ZDP PLC and Inland Homes PLC.

A further announcement will be made as soon as the asset values (net of any relevant provisions) have been determined.


I guess as certain Inland assets covenanted as security against the INLZ loan are revalued downwards they cause the breach. How are Inland going to pay this loan off ?? INLZ shareholders will probably have to accept a rollover or get nothing but that rollover will be expensive for INL. If INL can get any half decent offer for the company they should accept IMHO.

[grahamg8] 28/7/2023 17:18

Just so long as INL don’t lend him the £4m to pay for the shares. Thus transferring his debt from NorthCountry to Inland. Surely the size of the transaction relative to INL MCap plus it being a related party deal would trigger an EGM.

The logic of the deal as explained is for NorthCounty to build low cost homes er in the North. And by implication asset strip INL in order to pay for it. As a shareholder I would prefer the business to be asset stripped and the proceeds given to me.

Vote NO, NO, NO unless a very convincing explanation is provided that benefits the INL shareholders.

[stemis] 28/7/2023 13:38

Well, to be fair, Jolyon's wife has already stuck £1.25m into INL, as has one of the other owners of NorthCountry Homes...

[cc2014] 28/7/2023 13:26

I think what that's telling you is that as of this date the unpaid share capital in NorthCountry Homes remains unpaid but there is a committment to pay it up if all sorts of conditions are resolved and I would suggest Jolyon doesn't get scared by what he learns now he's close to the company.

Without him paying up the £4m the non-exec directors are never going to agree to it and the deal would fall apart.

[stemis] 28/7/2023 13:03

If anybody has the email address of the INL company secretary they could always ask if the £4m outstanding in NorthCountry Homes for subscription for shares was paid before the acquisition by INL. I tried various permutations of his name as an email but they all bounced back undelivered.

OK. Managed to get a reply from the company secretary through investor relations. Points out that the acquisition is proposed and is subject to all sorts of conditions, basically repeating the announcement:-

The proposed acquisition is subject to legal and financial due diligence, agreement of a formal sale agreement, the obtaining of any required shareholder and regulatory approvals, restoration to trading on AIM of Inland Homes' existing shares and the admission to trading of the new ordinary shares to be issued for the proposed acquisition.

Goes on to say the question will doubtlessly be raised as part of the financial due diligence and will require a satisfactory response (in the view of the non-conflicted Inland directors) for the transaction to complete. Other than that it is commercially confidential.

Basically I don't know, but if I did I wouldn't tell you, however the independent directors will certainly want to know for it to complete. Bit weird...

[camerongd53] 28/7/2023 11:19

Which banco1 is basically the point I made!!

[banco1] 28/7/2023 10:03

The shares will only be relisted after the accounts have been signed off.

[stemis] 27/7/2023 13:55

I'll try investor relations

[camerongd53] 27/7/2023 13:52

ANybody any idea when we get the listing back
I tthink it can only happen when the audited accounts are issued.
Any rumours when this is likely to happen?

Then the question will be, at what price we will re-list?

[stemis] 27/7/2023 09:55

If anybody has the email address of the INL company secretary they could always ask if the £4m outstanding in NorthCountry Homes for subscription for shares was paid before the acquisition by INL. I tried various permutations of his name as an email but they all bounced back undelivered.

[arthur_lame_stocks] 27/7/2023 08:12

Thanks, I hadn't noticed that. So it looks like a way for Jolyon Harrison to increase his stake by the backdoor. I'm not sure that's really cricket.

[nicholasblake] 27/7/2023 08:06

@arthur the RNS says 10p.

[arthur_lame_stocks] 27/7/2023 07:59

So in effect it'll be a cash shell which will almost certainly be bought with shares. In that case it'll be especially interesting to see what price the shares are issued at considering the last quoted price was at a very large discount to estimated NAV.

[nicholasblake] 27/7/2023 07:48

I’d put money on the company having the £4m paid in by the time INL acquires it.

[oi_oi_savaloy] 27/7/2023 07:14

He probably wanted a golden hello and this was the easiest way of doing it........ Or it's possibly a way of getting money out of INL (to give to the departing directors) without directly doing so to the outcry of the shareholders. Cynic? Moi? Never. They've run it as a private fiefdom all this time........they aint changing. the last hurrah before they leave possibly.

[arthur_lame_stocks] 27/7/2023 06:18

Thanks for that okosling. It does seem a very strange deal. I thought the focus at the moment was on reducing debt. If that's the case then I presume they are planning on paying in shares rather than cash. We'll have to see what price the shares are issued at before deciding whether it's a land grab or not.

[okosling] 26/7/2023 23:09

NorthCountry Homes Ltd (the company being bought by Inland Homes for £4m), information from the Companies House record:

Incorporated on 19 July 2020 with a share capital of £1.

First period end was an extended year, to 30 Sept 2021, in which they made a loss of £111,592. Then in the year ending 30 Sept 2022 they made a loss of £693,686. During that year, they issued 5.88m new shares for £6m, but only £2m was paid in cash, and the accounts show a debtor of £4m for called up share capital not paid.

Whether this £4m has been paid since 30 Sept 2022 is anybody's guess. Also the profit since Sept 2022 is anybody's guess - but they had never made any profit up until then, so no positive track record at all. The acquisition doesn't look like a good deal for Inland shareholders unless good things have happened since the last published accounts. The net assets of the company at Sept 2022 were over £5m (of which £4m is the called up share capital not paid), so on that basis, £4m purchase price could be ok, but a lot depends on what has happened since then, and we haven't been shown any evidence that it can be a profitable business.

[davidosh] 26/7/2023 22:27

I presume the current board, advisers and any major shareholder has looked at this to ensure there is some value in the company involved in this reverse takeover.

[arthur_lame_stocks] 26/7/2023 21:46

Just had another look and the company now appears to have net assets of £5m. I'm not sure how there could be such a large change in the balance sheet of what appears to be a very small company but I may have been mistaken with my earlier post.

[geckotheglorious] 26/7/2023 21:02

Nicholas

Indeed.
Altho normally said placees would be paying, not using assets of questionable value to back their stake!!!

[nicholasblake] 26/7/2023 20:50

@Gecko it’s just a way if the two individuals taking a placement of 20m shares each at 10p.