Norcros PLC Legacy lease exit and update (4763W)
November 07 2014 - 6:45AM
UK Regulatory
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RNS Number : 4763W
Norcros PLC
07 November 2014
7 November 2014
Norcros
("Norcros", the "Group" or the "Company")
Legacy lease exit and acquisition of freehold at Sheffield, and
legacy lease update
Norcros, the market leading supplier of innovative branded
showers, taps, bathroom accessories, tiles and adhesives is pleased
to announce that it has completed the exit of its legacy lease and
acquired the freehold of the property at Orgreave Drive, Sheffield,
for GBP3.4m cash. It also provides an update on its remaining
legacy leases.
Legacy lease exit and acquisition of freehold at Sheffield
The property is a 96,822 square feet warehouse and offices on
which Norcros took a 99 year lease in 1983. The site has been
surplus to requirement for a number of years and vacant since 2008.
The total cash occupancy cost to Norcros is GBP0.4m per annum,
GBP0.2m of which is rental. There are 68 years remaining on the
lease and at current rent levels and no discounting, outstanding
rental amounts to GBP14m. It is anticipated that this transaction
will give rise to an exceptional charge in the region of GBP2.5m in
the second half of the year to 31 March 2015.
Commenting on the transaction, Nick Kelsall, Group Chief
Executive, said "I am delighted that we have resolved this long
legacy lease obligation at Sheffield which is a great result for
our shareholders".
Legacy lease update
Of the two remaining legacy leaseholds, the lease at Drakes Way,
Swindon ends in December 2014. After this point, the only remaining
legacy lease will be at Groundwell, Swindon, on which the head
lease runs to 2022, and which is currently sub-let to Network Rail
through to December 2018 at a cost of GBP0.2m per annum to
Norcros.
ENQUIRIES:
Norcros plc Tel: 01625 547 700
Nick Kelsall, Group Chief Executive
Martin Payne, Group Finance Director
Hudson Sandler Tel: 0207 796 4133
Nick Lyon
Charlie Jack
Katie Matthews
Notes to Editors
-- Norcros is a leading supplier of high quality and innovative
showers, taps, bathroom accessories, ceramic wall and floor tiles
and adhesive products with operations in the UK and South
Africa.
-- Based in the UK, Norcros operates under four brands:
-- Triton Showers - Market leader in the manufacture and marketing of showers in the UK
-- Vado - A leading manufacturer and supplier of taps, mixer
showers, bathroom accessories and valves
-- Johnson Tiles - A leading manufacturer and supplier of ceramic tiles in the UK
-- Norcros Adhesives - Manufacturer of tile & stone adhesives, grouts and related products
-- Based in South Africa, Norcros operates under three brands:
-- Tile Africa - Chain of retail stores focused on ceramic and
porcelain tiles, and associated products such as sanitary ware,
showers and adhesives
-- Johnson Tiles South Africa - Manufacturer of ceramic and porcelain tiles
-- TAL - The leading manufacturer of ceramic and building adhesives
-- Norcros is headquartered in Wilmslow, Cheshire and employs
around 1750 people. The Company is listed on the London Stock
Exchange. For further information please visit the Company website:
http://www.norcros.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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