Eatonfield issues going-concern warning

Eatonfield Group has warned that its ability to continue beyond the end of January depends on a variety of factors including continued support of lenders. Others were the likely requirement to raise further equity, the successful sale of some of its land assets and agreement of related housebuilding contracts.

The warning came on the announcement of full-year pre-tax losses of £15.4m compared with £5.69m losses the previous year on revenues down from £8.46m to £5.71m. Negotiations are continuing for the structured disposal of a large part of the group’s residential land portfolio and agreement of follow-on house building contracts.

Brian Corfe, chairman, said: “Fundamental to the group’s ability to continue as a going concern is the finalisation of negotiations with the potential purchaser of the Welsh sites, the agreement of the related follow-on house building contract as well as similar arrangements next year for the Corus and Birkwood sites, the likely equity fundraising required and the continuing support of the group’s banks. “While the board acknowledges the ongoing challenges facing Eatonfield, we will continue to work very hard to secure a meaningful future for the group.”