Chamberlin PLC Sale and Leaseback of RDC Property (4933K)
05 Mayo 2022 - 7:13AM
UK Regulatory
TIDMCMH
RNS Number : 4933K
Chamberlin PLC
05 May 2022
5 May 2022
Chamberlin plc
("Chamberlin" or the "Company")
Sale and Leaseback of RDC Property
Chamberlin plc (AIM: CMH.L), the specialist castings and
engineering group, is pleased to announce that it has exchanged
contracts on a sale and leaseback of its freehold property held by
Russell Ductile Castings Ltd in Scunthorpe with Prospect Estates
Limited (the "Property").
The Company announced on 16 September 2021, that it had
commenced a review of the use of its substantial property assets
with the objective of strengthening the balance sheet and improving
operational and investment returns from Group resources. On 2
February 2022, the Company announced that the review was continuing
and that the Board remained focused on ensuring that the Group had
the necessary resources to deliver on its growth strategy.
The sale proceeds are GBP1.25 million in cash and Chamberlin has
a 10 year lease for the Property at an initial rent of GBP125k per
annum for the first 5 years, increasing to GBP150k per annum for
years 6 to 10.
The Property had a net book value of GBP700k as at 31 May 2021.
Under IFRS 16, a right of use asset of approximately GBP600k and
associated lease liabilities worth approximately GBP1.0 million
will be reflected on the Group's balance sheet and approximately
GBP400k of the book profit on the disposal will be deferred and
recognised in the Group's income statement over the period of the
lease.
The proceeds will be used to reduce the Company's pension fund
deficit by GBP600k in satisfaction of the Chamberlin & Hill
Life Assurance Scheme's charge over the property, with the balance
of the proceeds to be applied to the Group's growth strategies and
provide working capital. Following completion, the Group will hold
property assets with a net book value of approximately GBP800k.
Completion of the sale and leaseback is expected to occur on 6
May 2022.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596) which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
Enquiries:
Chamberlin plc T: 01922 707100
Kevin Price, Chief Executive Officer
Alan Tomlinson, Finance Director
Cenkos Securities plc (Nominated Adviser T: 020 7397 8900
and Joint Broker)
Katy Birkin
Stephen Keys
Peterhouse Capital Limited (Joint Broker) T: 020 7469 0930
Lucy Williams
Duncan Vasey
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END
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May 05, 2022 08:13 ET (12:13 GMT)
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