UK-based house builder and brownfield developer Inland Homes has announced the filing of its notices of intent to appoint the administrators.
The company has initiated the process of appointing David Hudson and Phil Armstrong of FRP Advisory Trading as joint administrators. The formal appointment of these administrators will be made imminently.
In a stock market filing, the company said: “Inland has reviewed options to continue its policy of seeking to complete existing construction projects at the same time as undertaking a comprehensive programme of disposals of its land assets, most of which are held as inventory.
“Taking into account the current circumstances and including the group structure and the current cash resources available to it Inland has concluded that the appointment of administrators in accordance with the provisions of the Insolvency Act is in the best interests of all stakeholders.”
The company has not been able to report its financial results for the year ending 30 September 2022 before the 31 March deadline.
Earlier this year, FRP reviewed ‘related party relationships and transactions’ within Inland’s business.
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The review was called for in April after the company’s then-chair Simon Bennett alongside board members Carol Duncomb and Brian Johnson resigned.
FRP found ‘significant and repeated failures in board-level corporate governance’. It also discovered that Alternative Investment Market (AIM) rules were not followed by Inland, involving transactions related to First Place Nurseries.
Former Inland CEO Stephen Wicks and CFO Nish Malde owned 40% stakes in FPN, which is an education business.
Furthermore, a limited FRP review indicated that ‘material judgements and estimates applied to the financial statements both for the year to 30 September 2022 and for the year to 30 September 2021’ needed further work.
Inland added: “The extent of further work and cost required to complete the preparation of the financial statements and the audit for FY22 cannot be certain at this stage, and the timeframe within which this might be feasible is not known.”
Since 3 April 2023, the company’s shares on the AIM have been suspended. Inland expects admission of its shares to the AIM will be cancelled on 4 October later this year.