Last checked at 9 Dec 2022 07:30
9 December 2022
Begbies Traynor Group plc
("Group" or "Company")
Related party transaction
Begbies Traynor Group plc, the business recovery, financial advisory and property consultancy, announces it has entered into a lease agreement with William Nelson Limited for a new regional office in Leigh-on-Sea, Essex, covering existing insolvency operations of the Group in the South East ("Property Lease"). Mark Fry, the Group's Head of Business Recovery and Advisory and executive director has a one third ownership interest in William Nelson Limited.
The Property Lease is for a six year term and incorporates a tenant's only break clause to terminate the lease at the end of the third year. The annualised rental cost of the property which is fully fitted out with the landlord's fixtures and fittings (inclusive of appropriate market incentives) is £52,000. The tenant will also pay an appropriate proportion of the service charge and insurance for the property.
This Property Lease replaces the Group's previous property lease in Southend-on-Sea which had been in place since the associated insolvency practice was acquired (prior to Mark Fry becoming a director of the Group). Mark Fry has a 50% partnership interest share in the Southend-on-Sea property. The new lease represents a rent reduction of approximately £43,000 per annum. This reflects a smaller lettable area of the new property which is also fully fitted out, therefore removing any immediate capital investment requirement for the Group. In assessing the appropriateness of the new Property Lease, the Group has undertaken a thorough exercise of considering alternative property options in Leigh-on-Sea, Southend-on-Sea and surrounding areas.
The Property 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.
Pursuant to the Companies Act, 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
John Humphrey - Group Company Secretary
Canaccord Genuity Limited 020 7523 8350
(Nominated Adviser and Joint Broker)
Emma Gabriel / Patrick Dolaghan
Shore Capital 020 7408 4090
(Joint Broker)
Malachy McEntyre / Mark Percy / Anita Ghanekar / James Thomas
MHP Communications 020 3128 8572
Reg Hoare / Katie Hunt / Pauline Guenot begbies@mhpc.com