Last checked at 5 May 2022 13:13
5 May 2022
Chamberlin plc
("Chamberlin" or the "Company")
Sale and Leaseback of RDC Property
Chamberlin plc (AIM: CMH.L), the specialist castings and engineering group, is pleased to announce that it has exchanged contracts on a sale and leaseback of its freehold property held by Russell Ductile Castings Ltd in Scunthorpe with Prospect Estates Limited (the "Property").
The Company announced on 16 September 2021, that it had commenced a review of the use of its substantial property assets with the objective of strengthening the balance sheet and improving operational and investment returns from Group resources. On 2 February 2022, the Company announced that the review was continuing and that the Board remained focused on ensuring that the Group had the necessary resources to deliver on its growth strategy.
The sale proceeds are £1.25 million in cash and Chamberlin has a 10 year lease for the Property at an initial rent of £125k per annum for the first 5 years, increasing to £150k per annum for years 6 to 10.
The Property had a net book value of £700k as at 31 May 2021. Under IFRS 16, a right of use asset of approximately £600k and associated lease liabilities worth approximately £1.0 million will be reflected on the Group's balance sheet and approximately £400k of the book profit on the disposal will be deferred and recognised in the Group's income statement over the period of the lease.
The proceeds will be used to reduce the Company's pension fund deficit by £600k in satisfaction of the Chamberlin & Hill Life Assurance Scheme's charge over the property, with the balance of the proceeds to be applied to the Group's growth strategies and provide working capital. Following completion, the Group will hold property assets with a net book value of approximately £800k.
Completion of the sale and leaseback is expected to occur on 6 May 2022.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.
Enquiries:
Chamberlin plc Kevin Price, Chief Executive Officer Alan Tomlinson, Finance Director | T: 01922 707100
| |
Cenkos Securities plc (Nominated Adviser and Joint Broker) Katy Birkin Stephen Keys
| T: 020 7397 8900 | |
Peterhouse Capital Limited (Joint Broker) Lucy Williams Duncan Vasey | T: 020 7469 0930 |