LONDON (Alliance News) - Driver Group PLC said Monday it has entered a sale and leaseback deal with Jetglobal Ltd related to its central administration offices in Lancashire.
Driver - a professional services and consultancy firm - has sold the property in Haslingden to Jetglobal for GBP1.7 million, reporting a "small" profit on its disposal. The cash will be used to improve its overall cash position.
Driver will leaseback the property for a fixed annual rent of GBP210,000 for an initial term up to January 2, 2026. The current annual cost of the rent to Driver will be GBP105,000 after adjusting for the income from a sub-tenant.
"We are delighted to be able to announce the agreement of the terms of this transaction which represents the final strategic action we committed to implement in February 2017 at the time of the equity raise and refinancing," Chief Executive Officer Gordon Wilkinson said.
Shares in Driver were 3.3% lower at 73.00 pence on Monday.
Driver Grp (DRV)