In House Group Plc
LSE : IHGP

February 01, 2010 11:26 ET

Interim results at 31 October 2009

                                          IN HOUSE GROUP PLC
                                         CHAIRMAN'S STATEMENT
                               FOR THE SIX MONTHS ENDED 31 OCTOBER 2009
                                                   
                                                   
                                                   
Introduction

We present the Group's interim results for the six month period ended 31 October 2009.

Results

The Group had Revenues of GBP7,000 (2008 - GBP37,000) for the period under review.  The operating loss on ordinary
activities for the period amounted to GBP137,000 (2008- GBP140,000).

The loss per share for the period was 4.5p (2008 - 0.068p).

Current Trading

The  period  under review continued to be one of consolidation for the Group, no further properties were  acquired
and,  as  part  of cost reduction measures put in place, the activities of In House Estates were  ceased  and  the
management of the Group's properties transferred to a third party manager.

Following  extensive discussions with creditors and potential investors, shares were issued  to  creditors  and  a
private  placing  arranged to raise funds to settle creditors and to finance refurbishment  of  a  number  of  the
Group's properties.

During  the  period  four  tranches of the private placing were received, totalling GBP153,350  and  Creditors  of
GBP148,404 were settled by issuing of shares.

As  a  consequence  of the significant level of shares being issued, the Company's Nominated Advisers  recommended
that  the  shares be consolidated and to this end a General Meeting was held on 24 August at which the  resolution
consolidating the shares on a 1 for 1,000 basis was carried.

Prospects

Clearly  the  current economic climate is bringing uncertainty to the property sector.  Two particular implications
would appear to result from the current conditions.

First,  it is a very difficult market in which to sell properties; this means the Group will be less likely  to  be
able to sell its existing stock but conversely will be able to acquire new stock at particularly keen prices.

Second,  it  is  expected that the rental market will strengthen as a result and thus the income the Group  obtains
from  the  housing stock that is held should increase. Due to this the Group is still looking at acquiring  further
property  portfolios  and is also looking to acquire a business that purchases properties  from  householders  with
mortgage arrears.




Alan Burdon-Cooper
Chairman
29 January 2009
                                          
                                
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2009
                                                   
                                                            Unaudited        Unaudited            Audited
                                                       6 months ended   6 months ended         Year ended
                                                           31 October       31 October           30 April
                                                                 2009             2008               2009
                                                              GBP'000          GBP'000            GBP'000
                                                                                                         
Revenue                                                           7                37                  63
Cost of sales                                                    (1)              (10)             (1,253)
                                                              ______            ______             ______
Gross profit (loss)                                               6                27              (1,190)
                                                                                                         
Administrative expenses                                        (161)             (271)               (661)
Operating income                                                217               335                 580
Operating expenses                                             (199)             (231)               (328)
                                                              ______            ______             ______
Operating loss                                                 (137)            (140)             (1,599)
                                                                                                         
Investment Income                                                 0                1                   1
Other gains and losses                                            0             (115)                118
Finance costs                                                  (107)            (437)               (611)
                                                              ______            ______             ______
Loss on ordinary activities before taxation                    (244)            (691)             (2,091)
                                                                                                         
Taxation                                                          0                0                  96
                                                              ______            ______             ______
Loss for the Period attributable to the equity                 (244)             (691)            (1,995)
holders of the parent company                                 ======            ======             ======     

Loss per share: basic (pence)                                  (4.5)           (0.068)             (0.095)
                                                               =====            =====              =====
 
1.    Loss per share
      The  calculation  of  basic loss per share is based upon the loss for the period and  the  weighted  average
      number  of 5,424,401 (shares were consolidated on 24 August 2009) (30 April 2009 - 2,190,856,318, 31 October
      2008  1,022,109,220)  shares in issue during the period.  Given the loss for the period,  no  fully  diluted
      earnings per share are disclosed.
                                       
                               
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 31 OCTOBER 2009

                                                              Unaudited        Unaudited          Audited
                                                             31 October       31 October         30 April
                                                                   2009             2008             2009
                                                                GBP'000          GBP'000          GBP'000
NON-CURRENT ASSETS                                                                                       
Intangible assets                                                     0                9                0
Plant and equipment                                                   0                2                0
                                                                 ______           ______           ______
                                                                      0               11                0
CURRENT ASSETS                                                                                           
Trading Properties                                               12,789           11,958           12,789
Trade and other receivables                                         167              227              160
Cash and cash equivalents                                             0               44               22
                                                                 ______           ______           ______
                                                                 12,956           12,229           12,971
CURRENT LIABILITIES                                                                                      
Borrowings                                                          (49)            (102)            (231)
Trade and other payables                                           (696)            (583)            (586)
                                                                 ______           ______           ______
                                                                   (745)            (685)            (817)
                                                                 ______           ______           ______
NET CURRENT ASSETS/(LIABILITIES)                                 12,211           11,544           12,154
                                                                                                         
NON-CURRENT LIABILITIES                                                                                  
Borrowings                                                      (13,371)         (12,458)         (13,371)
Deferred tax liabilities                                           (846)               0             (846)
                                                                 ______           ______           ______
NET LIABILITIES                                                  (2,006)            (903)          (2,063)
                                                                 ======           ======           ======
                                                                                                         
EQUITY                                                                                                   
Share capital                                                     1,676            1,625            1,650
Share premium account                                             2,171            1,777            1,896
Retained earnings                                               (5,853)          (4,305)          (5,609)
                                                                 ______           ______           ______
TOTAL EQUITY ATTRIBUTABLE TO THE                                (2,006)            (903)          (2,063)
EQUITY HOLDERS OF THE PARENT COMPANY                             ======           ======           ======
                                       
                             
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
 FOR THE SIX MONTHS ENDED 31 OCTOBER 2009
                                                   
                                                              Unaudited        Unaudited          Audited
                                                         6 months ended   6 months ended       Year ended
                                                             31 October       31 October         30 April 
                                                                   2009             2008             2009
                                                                GBP'000          GBP'000          GBP'000

NET CASH (OUTFLOW)/INFLOW FROM                                     (34)            (139)              108
OPERATING ACTIVITIES
                                                                                                         
INVESTING ACTIVITIES                                                                                     
Interest received                                                    0                1                 1
Acquisition of Subsidiary                                            0                0              (647)
Purchase of plant and equipment                                      0               (1)                0
                                                                 ______           ______           ______
NET CASH GENERATED                                                   0                0              (646)
FROM INVESTING ACTIVITIES
                                                                                                         
FINANCING ACTIVITIES                                                                                     
Interest paid                                                     (107)             (437)            (611)
Proceeds on issue of share capital (net of costs)                  301               309              443
Net new (repayments of) borrowings                                (182)              385              566
                                                                 ______           ______           ______
NET CASH INFLOW/(OUTFLOW)                                            12              257              398
FINANCING ACTIVITIES
                                                                                                         
NET INCREASE IN CASH AND CASH EQUIVALENTS                           (22)            (118)            (140)
                                                                 ======           ======           ======
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE                    22              162              162
PERIOD
                                                                 ======           ======           ======
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD                    0               44               22
                                                                 ======           ======           ======
                                                                                                         
Cashflows from Operating Activities                                                                      
Operating loss                                                     (137)            (140)          (1,599)
Depreciation of plant and equipment                                   0                2                3
Amortisation of intangibles                                           0                3               12
Movement in trading properties                                        0             (648)           1,182
Movement in receivables                                              (7)             502              570
Movement in payables                                                110              142              (60)
                                                                 ______           ______           ______
Cash (absorbed)/generated by operations                             (34)            (139)             108
Income taxes paid                                                     0                0                0
                                                                 ______           ______           ______
NET CASH (OUTFLOW)/INFLOW FROM                                      (34)            (139)            (108)
OPERATING ACTIVITIES
                                                                 ======           ======           ======

                                                                                                         
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 31 OCTOBER 2009
                                                   
For the Period to 31 October 2009                      Share        Share     Retained        Total
                                                     Capital      Premium     Earnings       Equity
                                                     GBP'000      Account      GBP'000      GBP'000
                                                                  GBP'000                          
                                                                                                   
Opening                                                1,650        1,896      (5,609)      (2,063)
                                                                                                   
New Share Capital Subscribed                              26          275           0          301
Loss for the period attributable to the                    0            0        (244)        (244)
Equity holders of the parent company
                                                      ______       ______       ______       ______
Closing                                                1,676        2,171      (5,853)      (2,006)
                                                      ======       ======       ======       ======
                                                                                                   
                                                                                                   
For the Year to 30 April 2009                          Share        Share     Retained        Total
                                                     Capital      Premium     Earnings       Equity
                                                     GBP'000      Account      GBP'000      GBP'000
                                                                  GBP'000                          
                                                                                                   
Opening                                                1,614        1,479      (3,614)        (521)
                                                                                                   
New Share Capital Subscribed                              36          417           0          453
Loss for the period attributable to the                    0            0      (1,995)      (1,995)
Equity holders of the parent company
                                                      ______       ______       ______       ______
Closing                                                1,650        1,896      (5,609)      (2,063)
                                                      ======       ======       ======       ======

NOTES TO INTERIM REPORT
FOR THE SIX MONTHS ENDED 31 OCTOBER 2009

1.    Basis of preparation
    
      The  accounting  policies  used  are consistent with those that will be  adopted  in  the  annual  financial
      statements for the year ending 30 April 2010, subject to any changes to IFRS that may be implemented in  the
      mean time.
      
      The  preparation  of the interim financial statements required management to make estimates and  assumptions
      that  affect  the reported amounts of revenues, expenses, assets, liabilities and disclosure  of  contingent
      liabilities  at  the  date  of  the  interim financial statements. If  in  the  future  such  estimates  and
      assumptions,  which  are  based upon the management's best judgement at the date of  the  interim  financial
      statements,  deviate from the actual circumstances, the original estimates and assumptions will be  modified
      as appropriate in the period in which the circumstances change.
      
2.    Status of Accounts

      The  interim  financial information is unaudited.  The financial information does not  constitute  statutory
      accounts as defined by Section 240 of the Companies Act 1985.

3.    Period of accounts

      The financial statements include the results of the Group for the period from 1 May 2009 to 31 October 2009.
      The  comparatives cover the periods from 1 May 2008 to 30 April 2009, and from 1 May 2008 to 31 October 2008
      respectively.
      
4.    Going Concern
      
      In  determining the appropriate basis of preparation of the Financial Statements, the Directors are required
      to consider whether the Group can continue in operational existence for the foreseeable future.
      
      The  Board  has prepared projected cash flow information for the period ending 12 months from  the  date  of
      approval  of  these Financial Statements ("the Projections") based on the Group continuing to  let  out  its
      existing property portfolio to meet its finance and operating costs.
      
      These  Projections assume that the current negotiations with regard to additional short term and  long  term
      funding will be successful.

      Having reviewed these Projections and having made reasonable enquiries in making the underlying assumptions,
      together with assessing the position of current lenders, the Directors have reasonable expectation that  the
      Group  will be able to meet its liabilities moving forward as they fall due.  It is on this basis  that  the
      Directors  consider it appropriate to prepare the Group's Financial Statements on the going  concern  basis.
      However, for the reasons described above, the Directors recognise that there are material uncertainties that
      may cast significant doubt on the Group's ability to continue as a going concern, and therefore, that it may
      be unable to realise its assets and discharge its liabilities in the normal course of business.
      
      There  is  a  risk that the above material uncertainties as to the Group's ability to continue  as  a  going
      concern  may  not be resolved satisfactorily.  The Financial Statements do not include the adjustments  that
      would  result if the Group were unable to continue as a going concern, which would include writing down  the
      carrying value of assets to their recoverable amount and providing any further liabilities that might arise,
      as it is not practicable to determine or quantify them.
      
5.    Trading Properties
      
      Trading properties include development properties and property interests held for re-sale.  They
      are  valued  at  the  lower  of cost and net realisable value. Cost  includes  all  expenses  of
      acquisition  and  development.  Trading properties acquired on  the  acquisition  of  Berrymount
      Developments Limited and Avanti Properties are valued at fair value in accordance with  IFRS3  -
      Business Combinations.
      
6.    Post Balance Sheet Events

      On  10  November  374,166 warrants for shares exercisable at 40p were issued to directors  and  staff  in
      recognition of salaries foregone.
      
      On  24  December  the shares were suspended on the AIM Market following the company mutually  agreeing  with
      Beaumont Cornish that they would cease to be the Company's nominated adviser
      
      The following share issues have also been made:
      
      On  10  November 2009 the company has issued 169,844 ordinary shares of 1p at a price of 30p to a number  of
      related party creditors in settlement of debts of GBP50,953 as agreed in general meeting of 24 August 2009.
      
      On  22 January 2010 the company has issued 900,000 ordinary shares of 1p at par to UEB Consulting Limited on
      conversion of GBP9,000 of the loans for working capital purposes.
      

7.    Copies of the report

      Copies  of  this  interim  statement  will  be  made available  to  the  public  on  the  Group's  Website
     (www.ihgroup.co.uk)  and  will  be  available at Number One, Birchwood One  Business  Park,  Dewhurst  Road,
      Warrington WA3 7GB.
      
      

Contact Information

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