Chamberlin PLC Sale and Leaseback of Walsall Property (1629Y)
May 02 2023 - 9:42AM
UK Regulatory
TIDMCMH
RNS Number : 1629Y
Chamberlin PLC
02 May 2023
2 May 2023
Chamberlin plc
("Chamberlin" or the "Company")
Sale and Leaseback of Walsall Property
Chamberlin plc (AIM: CMH.L), the specialist castings and
engineering group, is pleased to announce that it has exchanged
contracts on a sale and leaseback of its freehold property in
Chuckery Road, Walsall with Heritage and Hill Investments Limited
(the "Property").
The Company announced on 23 February 2023, that it was in
discussions regarding a proposed sale and leaseback transaction at
its Walsall freehold property which would include a proportion of
any realised funds to be utilised to further reduce the Company's
pension fund deficit.
The sale proceeds are GBP2.2 million in cash and Chamberlin has
a 10 year lease for the Property at an initial rent of GBP0.2m per
annum, with a rent review after five years.
The Property had a net book value of GBP1.6m as at 31 May 2022.
Under IFRS 16, a right of use asset of approximately GBP1.1m and
associated lease liabilities worth approximately GBP1.5 million
will be reflected on the Group's balance sheet and approximately
GBP0.4m of the book profit on the disposal will be deferred and
recognised in the Group's income statement over the period of the
lease.
The proceeds will be used to reduce the Company's pension fund
deficit by GBP1.1 million in satisfaction of the Chamberlin &
Hill Life Assurance Scheme's charge over the property, with the
balance of the proceeds to be applied to the Group's growth
strategies and provide working capital. Following completion, the
Group will no longer hold any property assets.
Completion of the sale and leaseback is expected to occur on 16
June 2023. Following completion of the transaction, the Company's
pension fund deficit on the Trustees' basis is expected to amount
to GBP1.2 million, a significant reduction from the GBP5.1 million
deficit as at 31 March 2019.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596) which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
Enquiries:
Chamberlin plc T: 01922 707100
Kevin Price, Chief Executive Officer
Alan Tomlinson, Finance Director
Cenkos Securities plc (Nominated Adviser T: 020 7397 8900
and Joint Broker)
Katy Birkin
Stephen Keys
George Lawson
Peterhouse Capital Limited (Joint Broker) T: 020 7469 0930
Lucy Williams
Duncan Vasey
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END
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