Last checked at 7 Nov 2014 15:24
Friday 7 November 2014
Flying Brands Limited
(the "Company" or the "Group")
Sale of Retreat Farm
The Company announces that it has today disposed of its freehold property at Retreat Farm, Jersey for an aggregate consideration in cash of £1.65m comprising £1.45m for the sale of the main glasshouses property to Discreet Holdings Limited and £0.2m for the sale of the attached parkland to Ruff Properties Limited. The consideration to be paid by Ruff Properties Limited includes a payment of £0.05m to settle any profit participation payments that might have become due arising out of the sale by the Company on 7 December 2011 of other properties at Retreat Farm to companies associated with Ruff Properties Limited. In accordance with standard Jersey conveyancing procedures completion of payment of the aggregate consideration will take place on Tuesday 11 November.
The book value of the freehold of Retreat Farm was £3 million at 27 December 2013 and in reaching its decision to sell the property for an aggregate consideration of £1.65m the Board took into account the advice of local property agents after they had carried out their marketing process, the fact that the Company had explored a wide range of options to develop the property itself in its pre-application discussions with the local planning authorities without success, the Group's limited financial resources and its need to repay its loan to Acorn Finance in January 2015.
The freehold of Retreat Farm generated an income of £0.1m a year in rent and the Group paid interest of £0.1m a year in respect of the loan from Acorn Finance.
The proceeds of sale will be used to repay the loan of £1.01m from Acorn Finance and to pay the agreed settlement amount of £0.15m to Flying Flowers Pty Ltd ("FFA"), an Australian company, arising from matters relating to the disposal of the Group's Gifts business. This is in accordance with the provision made in Note 17 of the Group's last Annual Report and Accounts. The net proceeds of sale will be approximately £0.4m after payment of Jersey GST of £0.08m payable in respect of the sale proceeds.
The Company intends to take a further short period of time to consider the best options for the use of the net proceeds of the sale and for the Company and will make a further announcement before the end of the year.
For further information please contact:
Smithfield Consultants 020 7360 4900
John Kiely