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.
In House Group Plc
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