20 Dec 2012 07:00
20 December 2012
Eco City Vehicles PLC
("ECV" or "the Company")
Property Disposal
Eco City Vehicles PLC, the developer and supplier the London licensed Mercedes Vito taxi, is pleased to announce that it has completed the disposal of a non-core asset, its freehold Coventry property to Penso Consulting Limited for approximately £2 million in cash.
The 42,000 square feet property is an industrial building leased to the Company's subsidiary One80 Limited and to a third party which converts the Mercedes Vito taxis.
ECV will receive total cash consideration of £2 million which will be used to repay the Company's mortgage and interest swap, a total of £1.8 million as at 31 November 2012. The balance of the proceeds will be applied as working capital.
The Coventry property is a non-strategic asset which generates annual rent of £220,000, £110,000 of which is from One80 Limited, ECV's technology subsidiary and owner of the intellectual property rights to the rear wheel steer technology used on the Mercedes Vito taxi, which will continue to occupy the property following disposal. The disposal is not expected to have any operational impact. The net book value of the property is £2 million.
Following the disposal of the property ECV long term debt will consist solely of £1.25 million long term loan from the KPM-UK Taxis Discretionary Pension Scheme in line with the terms announced on 7 September 2012.
John Swingewood, chairman of ECV, said: "The Coventry disposal further strengthens the Company's balance sheet following the completion of the share placing in September, leaving us focussed on our core operational business, with no long-term bank debt."
Enquiries:
Eco City Vehicles plc | +44 20 7377 2182 |
Peter DaCosta, Chief Executive Officer | |
Ran Oren, Finance Director | |
Numis Securities Limited |
+44 20 7260 1000 |
Stuart Skinner (Nominated Adviser) | |
David Poutney (Corporate Broker) | |
Luther Pendragon | +44 20 7618 9100 |
Neil Thapar, Alexis Gore | |