Cable ‘incorrect’ on In House says boss
THE boss of North West property business In House has hit back after Vince Cable singled out the firm to illustrate dodgy lending practices at the Dunfermline Building Society.
Speaking in the House of Commons the Liberal Democrat Treasury spokesman said Dunfermline’s decision to lend £10m to “loss-making and insolvent” In House was typical of the “disastrous management” at the failed Scottish society which has been sold to Nationwide after racking up huge debts.
In House’s managing director Marcus Cassidy insisted his firm has never been declared insolvent and said the MP’s information was incorrect.
Addressing MPs on Monday Mr Cable said: “This morning I was sent a copy of some details of the kind of business that the building society was transacting almost two years ago.
“It refers to a loan of £10m to a company based in Lancashire called In-House plc — described as a company that was loss-making and insolvent, which had never filed any properly audited accounts. Substantial numbers of loans of that kind were taking place.”
Warrington-based In House borrowed a total of £20m from the society, agreeing its most recent loan on April 3, 2008. This £10m three-year, interest only facility was used to buy more properties.
In a statement Mr Cassidy said: “Firstly our company is in Cheshire! We are called In House Group Plc! Secondly we had £20m facility from the Dunfermline! We have never been declared insolvent.
“We are a listed company on the London stock market and to infer we never submit audited accounts would mean that the London stock exchange, the FSA and our nominated advisors were all wrong. On the stock market, if you do not submit accounts you are suspended, and then removed, and seeing we have been there for over four years it means that the information is incorrect.”
The AIM-listed business has a stock of residential properties, many of which are rented to asylum seekers or benefits claimants with the rents paid directly by local authorities.
Part of the company’s strategy is to re-sell properties, a plan hampered by the downturn. It made a pre-tax loss of £691,000 in the half-year to October on revenue of £37,000. In the past six months it has issued more than one billion new shares to generate working capital and pay for services.
Nationwide has now bought the profitable core of the Dunfermline after it was dragged down by £900m of toxic property assets. Chancellor Alistair Darling told MPs yeaterday that the mutual was close to insolvency. It was due to post annual losses of £24m.
