Trading and Financial Update
27 Enero 2009 - 7:24AM
UK Regulatory
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led to the original finance facility being withdrawn and therefore the Company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
mcassidy@ihgroup.co.uk
Roland Cornish, Beaumont Cornish Limited,
0207 628 3396
END
IN House (LSE:IHGP)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
IN House (LSE:IHGP)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
Real-Time news about IN House (London Stock Exchange): 0 recent articles
Más de IN House Artículos de Noticias