(Alliance News) - Robinson PLC on Wednesday announced it sold a part of the Walton Works surplus property known as Mill Lane in Chesterfield, Derbyshire.
The Chesterfield, England-based plastic and paperboard packaging manufacturer said the sale to Peppermint Grove Ltd for GBP700,000 completed on Tuesday. Robinson will use the proceeds to reduce bank debt, it said. The property generates annual rental income of GBP12,000 and had a book value of GBP642,000 at December 31, meaning the sale price was at a 9.0% premium to that.
Robinson estimates that the market value of its remaining surplus properties is about GBP7.4 million.
The company added: "Subject to the necessary planning approvals, we would expect further sales of surplus property in Chesterfield to be achieved in the next 12 months. The intention of the group remains, over time, to realise value from the disposal of surplus properties and to reinvest the proceeds in developing our packaging business."
Robinson shares rose 6.4% to 99.50 pence each on Wednesday afternoon in London.
By Tom Budszus, Alliance News reporter
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Robinson (RBN)