45p pay out28 May 2015 15:59
The site remediation works, which were a key component of the conditionality of the Sutton foodstore disposal, have completed satisfactorily and the other (largely procedural) conditions are well advanced. We expect the contract with The Lime Property Fund, which is managed by Aviva Investors, to become unconditional later this week. At that point, under the terms of the contract, a cash receipt of £20m becomes due within 10 working days.
In light of these actual and imminent cash receipts, the Board has reviewed the Group's requirements and concluded that, on receipt of these monies, the Group will be in a position to return £82.63m (45p per share) to shareholders. Detailed proposals are set out in the circular which will be posted to shareholders today. The proposals are subject to approval at an EGM to be held on 27 May 2015. Assuming the proposals are approved, the final condition to be satisfied before the capital return proposals will be implemented is actual receipt of the cash. The Board intention is that the cash return will be implemented as soon as possible after the later of the EGM and receipt of the cash proceeds.