Wed, 8th Jul 2015 07:00
8 July 2015
Findel plc ("Findel" or "the Group")
Smaller Related Party Transaction
Findel, the UK Home Shopping and Education business, today announces that it has entered into an agreement with Tosca North West Limited (the "Landlord") to surrender the lease over one of its vacant leasehold premises (the "Agreement").
This property, formerly a warehouse for Findel Education but vacant since 2011, has a lease with the Landlord which has three years unexpired. An opportunity has arisen to surrender the lease saving the Company £390,000 per annum in future rental costs.
The lease is recorded on the Balance Sheet as an onerous provision of £984,000. The premium to be paid to the Landlord for the surrender of the lease is £946,524 resulting in a net profit to the Group of £37,476. However, the theoretical saving to the Group measured against the total potential costs associated with the remainder of this lease, including dilapidations, could be significantly higher.
The Landlord is a privately owned company under the control of the ultimate owner of Toscafund Asset Management LLP, a substantial shareholder of the Group. As such the Landlord is a related party of the Group and this agreement is a smaller related party transaction falling within Listing Rule 11.1.10R.
0161 303 3465
Tulchan Communications LLP Stephen Malthouse / Will Smith 020 7353 4200
Notes to Editors
The Findel Group contains market leading businesses in the UK home shopping and education supplies markets. It is primarily a retailer and distributor, handling and supplying specialist products manufactured by third parties.
The Group's activities are focused in three main operating segments, together with a small overseas sourcing operation:
· Express Gifts - one of the largest direct mail order businesses in the UK;
· Findel Education - the largest listed independent supplier of resources and equipment(excluding information technology and publishing) to schools in the UK; and
· Kitbag - e-commerce retailer of sports merchandise to leading brand partners.