Northamber PLC Sale of Warehouse Facility for £16.4 million (0396E)
01 Julio 2019 - 8:00AM
UK Regulatory
TIDMNAR
RNS Number : 0396E
Northamber PLC
01 July 2019
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
1 July 2019
Northamber PLC
("Northamber" or the "Company")
Sale of warehouse for cash consideration of GBP16.4 million
Northamber (AIM: NAR) announces that it has exchanged contracts
on the sale of its warehouse facility located in Weybridge, Surrey
(the "Warehouse") to OXW Catalina (Logisitics XVI) Limited ("OXW")
for GBP16.4 million, with the consideration to be paid in cash (the
"Sale"). The Sale is expected to complete by the end of July.
The Warehouse comprises approximately 80,000 square feet on a
five plus acre site accommodating additional car parking for around
100 vehicles and is located some 10 miles from the Company's head
office. The Company acquired the freehold in April 2012 for GBP6.35
million, having occupied the premises since December 1999, and as
of 31 December 2018 it had a net book value of GBP6.0 million.
With the demise of an adequately profitable opportunity in the
high cubic volume personal computer sector, the Company's
utilisation of the Warehouse has declined materially over the last
5 years or so and consequently the Board has been reviewing the
Company's medium to long term property requirements in light of
activity levels and strategy. As part of the Sale, OXW has agreed
to a two-year leaseback of the Warehouse to Northamber, at a cost
of GBP175,000 per annum.
Consequently, the Board believes that the Sale provides an
excellent opportunity to release a significant capital sum, whilst
also providing time to source a more appropriately sized facility
and location for the Company's warehouse requirements.
The proceeds of the Sale will be used for general working
capital purposes in support of the Company's strategy.
David Phillips, Chairman, commenting on the Sale said:
"We have always highlighted the strength and quality of our
balance sheet, particularly as it has underpinned our activities in
markets which have seen considerable and much reported change. We
felt the decision to buy the Warehouse in 2012 was soundly based
but it became apparent that too much of our shareholder value was
tied up in a property of a scale that outweighed the functional
needs of our activity levels.
The proceeds from the Sale provide more tangible support to our
business and the future development of our evolving
strategies."
Enquiries
Northamber plc 020 8296 7000
David Phillips, Executive Chairman
Cantor Fitzgerald Europe (Nominated
Adviser & Broker) 020 7894 7000
Phil Davies / Michael Boot
Siva Yoganathan, Head of Finance & Company Secretary, has
arranged release of this announcement.
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END
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July 01, 2019 09:00 ET (13:00 GMT)
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