Last checked at 27 Jul 2017 16:46
Begbies Traynor Group plc
Related party transaction
Begbies Traynor Group plc (the "Group"), the business recovery, financial advisory and property consultancy, today announces it has completed a new lease of its Manchester office ("the Property"), which is part owned by Ric Traynor, the Group's Executive Chairman.
The new lease is for a ten year term and incorporates a tenant's only break clause to terminate the lease at the end of the fifth year. The annualised cost of the Property over the ten year lease term (inclusive of market incentives) is £344,000.
This lease replaces the Group's previous lease of the Property (as disclosed as a related party transaction in the relevant annual report and accounts). The new lease represents a significant financial reduction on the previous commitment of approximately £331,000 per annum. This reflects a smaller lettable area and a reduced cost per sq ft of £23.50 compared to £25.00 (exclusive of market incentives). In assessing the appropriateness of the new lease, the Group has also undertaken a thorough exercise of considering alternative property options in Manchester city centre.
The new lease represents a related party transaction which, the independent directors consider, having consulted with its nominated advisor Canaccord Genuity Limited, that the terms of the transaction are fair and reasonable insofar as the shareholders are concerned.
Although not strictly required under the AIM Rules, shareholder consent for the new lease will be sought at the Group's next annual general meeting in the Autumn.
Enquiries please contact:
Begbies Traynor Group PLC | 0161 837 1700 |
Ric Traynor - Executive Chairman Nick Taylor - Group Finance Director
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Canaccord Genuity Limited | 020 7523 8350 |
(Nominated Adviser and Joint Broker) Bruce Garrow | |
Shore Capital | 020 7408 4090 |
(Joint Broker) Mark Percy / Anita Ghanekar | |
MHP Communications | 020 3128 8100 |
Reg Hoare / Katie Hunt / Giles Robinson |