Successful renegotiation of bank covenants

RNS Number : 3241Q

Inland Homes PLC

17 February 2023

 

17 February   2023

Inland Homes plc

('Inland Homes' or the 'Group')

Successful renegotiation of bank covenants

Inland Homes plc (AIM: INL), the housebuilder, partnership housing developer and regeneration specialist focused on the South and South East of England, today provides an update on the successful renegotiation of two of its borrowing facilities.

In its trading update on 25 January 2023, the Group reported that with revised financial provisioning and expected IFRS net assets at approximately £90.0m at 30 September 2022, the Group is a going concern, but had breached the net assets and gearing covenants with one lender and the gearing covenant for another lender, where the Group's combined borrowings are currently £48.7m. 

Inland announces today that it has successfully concluded the waivers with both lenders and continues to comply with the conditions of each lender with regards to the respective facility agreement.

Land loan facility:

The Group has a £26.0m facility with Secure Trust Bank PLC secured on Wilton Park, Beaconsfield which expires in March 2024.

A waiver has been obtained and concluded for a historic breach of the gearing covenant at 30 September 2022 and a further onward waiver of the test at 31 March 2023.  The covenant will next be tested on 30 September 2023.

Revolving Credit Facility:

The Group has a Revolving Credit Facility ('RCF') with HSBC UK Bank PLC which is currently drawn at £22.7m secured on ongoing housebuilding developments at Meridian Waterside, Southampton and Cressing, Essex and which currently expires in October 2023.  The Group had already reported the securing of a waiver in September 2022 from HSBC on the interest cover ratio covenant for the three quarters ending 30 June 2023. 

Inland Homes now announces that it has received a waiver to secure relaxations on its covenants relating to tangible net worth and gearing covenants.  The tangible net worth covenant has been relaxed for the term of the facility and the gearing covenant will revert to the original level from 30 June 2023.

Nish Malde, Group Finance Director at Inland Homes, commented:

"Whilst the last financial year has been challenging, I am pleased to report that the Group has renegotiated its banking covenants with two core lenders.  Both lenders have held long term supportive relationships with the Group over many years and continue to support Inland's delivery of key schemes in the South and South East, creating much needed homes in a land market that is in short of consented plots. "

Enquiries

Inland Homes plc:

Simon Bennett, Non-Executive Chairman  Tel: [phone]

Nishith Malde, Group Finance Director

Lazard & Co., Ltd (Adviser to the Group)  Tel: [phone]

William Rucker

Louise Campbell 

Panmure Gordon (UK) Limited (Nominated adviser and broker)  Tel: [phone]

Dominic Morley / James Sinclair-Ford (Corporate Advisory)

Tom Scrivens (Corporate Broking)

The information contained in this Announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (Regulation 596/2014), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

 

END

 

 

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