Topps Tiles Regulatory News (TPT)

Topps Tiles Plc

("Topps Tiles", the "Group" or the "Company")

Sale and Leaseback of Head Office and Central Warehouse

Topps Tiles Plc, the UK's largest tile specialist, is pleased to announce it has agreed the sale and leaseback of its head office and central warehouse buildings (the "Properties") at Grove Park, Enderby, Leicester, to UK Warehouse Properties Limited (the "Sale").

The consideration for the Sale is £18.1 million (£17.9 million net of costs) and will be paid in cash on completion, which is expected to take place in early June 2020. The consideration represents a premium of approximately 29.3% to the balance sheet asset value of the Properties of £14.0 million.

The proceeds from the Sale will further strengthen the Group's financial position as it responds to the COVID-19 crisis.

Based on the Group's net debt position at 29 May 2020, at completion of the Sale, the Group would have net debt of c. £7 million with c. £42 million of available liquidity (including the credit approved CLBILS £10 million loan facility which the Company announced on 19 May 2020 and which is due to be finalised shortly).

In connection with the Sale, the Group has entered into leases for the Properties for a 20 year period following completion, for an annual rent of £1.2 million. Under IFRS 16, right of use assets worth £15.7 million will be reflected on the Group's balance sheet, along with associated lease liabilities of £15.7 million.

The Sale constitutes a Class 2 transaction under the Financial Conduct Authority's Listing Rules. 

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Enquiries:

A copy of this announcement can be found on our website www.toppstilesplc.com

This announcement contains inside information within the meaning of the Market Abuse Regulation. The person responsible for arranging release of this announcement on behalf of Topps is Rob Parker, Chief Executive Officer.