Acquisition of property

4 Sep 2009 07:00

IS Solutions Plc

Statement re Property Acquisition

IS Solutions Plc ('IS Solutions' or 'the Company') has completed the purchase of Windmill House ("the property"), the premises used as the Company's headquarters in Sunbury on Thames.  

The purchase price of the property was £2.1 million (plus stamp duty of £96,500) and has been funded by a 10 year mortgage of £1.6 million and £596,500 cash.

The Company has also taken a prudent approach towards the potential for significant interest rate increases over the life of the mortgage by securing an interest rate cap of 5% thereby protecting itself against any increase above this.

The Company has been renting the premises at a cost of £250,000 per annum and the Directors believe that the reduction in rental costs achieved by the purchase of the property will generate significant savings to the annual cash flow, which in turn will have a positive impact on the Company's level of profitability. 

Windmill House is a property of approximately 18,000 sq ft, of which IS Solutions currently occupies 12,000 sq ft (subletting 6,000 sq ft to two other companies not connected with IS Solutions) which will allow for substantial growth in the future.