Disposal

4 Apr 2005 10:25

Creightons PLC04 April 2005 Creightons plc Disposal of freehold property for £960,000 Creightons plc ("Creightons" or "the Group") announces that it has entered intoa contract conditional only on shareholder approval to dispose of its freeholdinterest in Unit 6 Water Lane Industrial Park, Storrington, West Sussex (the 'Property') which currently houses part of the warehousing operation of theGroup to CDA Southern Limited for a cash consideration of £960,000 (excludingexpenses). Under the terms of the agreement Creightons is to give vacant possession ofapproximately half of the Property on or before completion, and will remain inoccupation of the remainder on a part leaseback arrangement at a rent of £53,000for a five year term with a break clause after two years. A 10 per cent deposithas been received from the purchaser by the Company's solicitors, with thebalance of the consideration due on completion, which will take place no laterthan 1 July 2005. The Property, which comprises approximately 2,975 sq m (32,025 sq ft) of existing factory and office buildings which was recentlyindependently valued at £935,000. The net proceeds of the transaction will beused to reduce the Group's bank indebtedness and fund working capital for futurecontracts. The net book value of the property being sold as at 1 April 2005 was £637,000.The disposal will realise a profit on sale of approximately £250,000 afterexpenses. Creightons has also announced to employees at its manufacturing plant inStorrington that it will commence consultation with them on a proposal totransfer the majority of the Group's operations to its main manufacturing basein Peterborough. A circular containing details of the property sale and convening anExtraordinary General Meeting will be posted to shareholders in due course. Contacts: William McIlroyNick O'Shea Creightons plc (01903) 745 611 Tony RawlinsonJames Caithie City Financial Associates Limited (020) 7090 7800 This information is provided by RNS The company news service from the London Stock Exchange