In a trading update released in September of last year, the housebuilder forewarned that losses would total £37.1 million as it began a strategic evaluation of the company guided by financial consultants Lazard & Co. In response to a new examination of all ongoing building projects, predicted losses have now skyrocketed once more, with provisions at the contract income division—which provides partnership housing—rising from £15.4 million to £28.8 million.
The losses were attributed to “unforeseen costs, cost inflation, and extended construction durations,” and declining sales and prices in the homebuilding sector were made worse by rising build costs. Because of the rising losses, Inland has broken financial agreements with some of its lenders. The board also approved the sale of 2,822 plots, mostly on green belt land, comprising its “strategic land portfolio,” garnering £9.5 million and netting a profit of £3.5 million. After only five weeks in the position, Donagh O’Sullivan, the newly appointed Inland chief executive, resigned last week.
Simon Bennett, the group’s chairman, declared: “The Group had a very dismal year. In the South and South East of the UK, we do, however, continue to see strong demand in our new homes and valued permitted land.
