Rentals only income for In House

IN HOUSE Group made no property sales in the first half of its financial year, resulting in revenue of just £37,000.

The figure for the six months to the end of October 2008 is a significant fall on the £934,000 recorded in the same period a year earlier and the Warrington-based company made a pre-tax loss of £691,000 for the period, compared with a loss of £243,000 in 2007.

However, operating income – mainly from rental income – increased significantly to £335,000 from £87,000 in 2007. Chairman David Meddings said in the company’s interim report that this was due to the property acquisitions the company made in the autumn of 2007.

Mr Meddings said the economic climate has brought uncertainty to the property sector and that the group is concentrating on managing its existing stock of residential properties – many of which are rented to asylum seekers or benefits claimants with the rents paid directly by local authorities.

“It is a very difficult market in which to sell properties; this means the group has been unable to sell its existing stock.

“Second, it has been difficult to complete any further acquisitions of property portfolios due to the uncertain economic climate,” he said.

But he added that declining interest rates had helped the group’s margins, as its interest charges are linked to base rate.

On eight separate occasions since the half year results – between November 4, 2008 and January 7, 2009 – In House has issued a total of 1.27 billion ordinary shares worth £93,500 for conversion of loans for working capital, payment for services and in settlement of a three month exclusivity period to acquire Breatheasy Finance.

On January 27, the group announced it was in talks with a number of parties to arrange short-term and long-term funding.