Supply chain and other unsecured creditors are set to receive nothing from collapsed housebuilder Inland Homes, its administrators have said.
In their third progress report, following previous updates in March and October last year, David Hudson and Phil Armstrong of FRP Advisory said they had received claims from unsecured creditors totalling £38.6m.
This was more than three times higher than the £10.9m figure noted in Inland Homes’ statement of affairs, which was released in December 2023.
“Based on current information and subject to ongoing asset realisation, it is estimated that there will be insufficient funds available to make a distribution to unsecured creditors,” Hudson and Armstrong said in the latest report.
In addition, HMRC is owed £1.2m as a secondary preferential creditor, covering VAT, PAYE (including student loan repayments), Construction Industry Scheme deductions and employees’ National Insurance contributions.
HMRC has so far not submitted a claim, said the administrators. They added that they were clarifying whether the tax agency intended to do this.
“If HMRC submit[s] a claim and if there are sufficient funds available to make a distribution to secondary preferential creditors, the administrators will adjudicate their claim,” they added.
The latest progress report showed that just £26,879 has been recovered in asset realisations since the administration process began in October 2023, including £7,638 since October 2024.
AIM-listed Inland Homes called in the administrators in October last year, after uncertainty related to regulatory compliance meant it could not publish audited accounts for the past two financial years.
Construction subsequently stopped on the £90m Patchworks high-rise scheme in Walthamstow. Work started there in June 2021, and two of the six blocks were completed in mid-2023. Housebuilder Vistry restarted the scheme in January this year.
Inland Homes’ most recent accounts, covering the year ending 30 September 2021, showed turnover of £181.7m with a pre-tax profit of £13.2m delivering a margin of 7.3 per cent.
The firm employed a monthly average of 143 staff during the year.
In their latest progress report, Hudson and Armstrong said they expect to “take the necessary steps to dissolve the company” once the administration process for Inland Homes is completed.