Last checked at 5 Jun 2015 15:47
5th June 2015
Plastics Capital plc
("Plastics Capital" or the "Group")
Sale and leaseback
Plastics Capital (AIM: PLA), the niche plastics products group, is pleased to announce that, following the acquisition of Flexipol Packaging Limited ("Flexipol") which completed on 21 November 2014, the Company has entered into a sale and leaseback agreement with Hornbuckle Mitchell Trustees Limited ("Hornbuckle Mitchell") in respect of Flexipol's wholly owned property in Haslingden, Lancashire (the "Property"), for £1.4 million in cash. The net proceeds of the disposal will be applied towards the reduction of bank debt. The lease is for a 10 year term at an initial rent of £130,000 per annum.
Hornbuckle Mitchell is part owned by Ian Smith and Dermot Griffiths, the vendors of Flexipol. The sale and leaseback agreement was entered into following a comprehensive marketing exercise using an independent agent.
The current net book value of the Property is approximately £1.3 million resulting in a profit on sale (after associated costs) of approximately £0.1 million.
Commenting, Faisal Rahmatallah, Executive Chairman, said: "Following a comprehensive marketing process, we received an excellent offer for the Flexipol Property. We accepted the offer as we are able to deploy this capital more effectively in the long run to support growth. This transaction immediately reduces our net debt, thereby strengthening our balance sheet."
For further information, please contact:
Plastics Capital plc | Tel: 020 7978 0574 |
Faisal Rahmatallah, Executive Chairman | |
Nick Ball, Finance Director | |
| |
Cenkos Securities | Tel: 020 7397 8900 |
(Nomad and joint broker) | |
Mark Connelly | |
Callum Davidson | |
Allenby Capital Limited | Tel: 020 3328 5656 |
(Joint broker) | |
David Hart | |
Katrina Perez | |
Walbrook PR Ltd | Tel: 020 7933 8780 or plastics@walbrookpr.com |
Paul Cornelius | Mob: 07866 384 707 |
Helen Cresswell | Mob: 07841 917 679 |
Notes to Editors
Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets. The Group has five factories in the UK, one in Thailand, two in China and sales offices in the USA, Japan, China and India. Approximately 40 per cent of sales are exported to over 80 countries worldwide. Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness. The Group has approximately 450 employees.
Further information can be found on www.plasticscapital.com