Tandem Group PLC Acquisition of freehold land (8705R)
March 11 2021 - 1:00AM
UK Regulatory
TIDMTND
RNS Number : 8705R
Tandem Group PLC
11 March 2021
Tandem Group plc
(the "Company" or "Group")
ACQUISITION OF FREEHOLD LAND
Tandem Group plc (AIM: TND), designers, developers, distributors
and retailers of sports, leisure and mobility equipment, announces
the acquisition ("Acquisition") of freehold land adjacent to its
Birmingham headquarters.
The Company has exchanged contracts on the Acquisition of the
freehold on approximately 3.23 acres of land adjacent to its
existing site in Castle Bromwich, Birmingham for cash consideration
(before expenses) of GBP2.85 million ("Consideration"). Completion
is expected to take place by April 2021.
The Consideration is to be satisfied by means of a new term loan
of GBP1.43 million provided by the Company's bankers with the
intention of repaying over 10 years and the balance from existing
cash resources. Interest on the term loan will be charged at a rate
of 1.99 percent above base rate.
Following the Acquisition, the Company plans to construct a
warehouse and distribution facility which will link to its existing
premises. The construction is expected to cost approximately
GBP3.50 million and will be financed by means of a new property
term loan envisaged to be approximately GBP2.35 million, also with
the intention of repaying over 10 years, and the balance funded
from cash resources. Interest on the term loan will be charged at a
rate of 1.99 percent above base rate.
Construction is projected to be completed by June 2022. The new
building will more than double existing warehouse capacity in
Birmingham to approximately 160,000 square feet. The project is
also expected to deliver an immediate annual overhead saving of
GBP0.2 million and therefore be earnings enhancing for the
Group.
In addition, the Company is currently implementing a new ERP and
finance system across the Group which is expected to significantly
improve operational efficiency and distribution speed from order
intake to despatch.
Commenting on the Acquisition, CEO Jim Shears stated "I'm
delighted that we have exchanged contracts on the site. The new
warehousing and distribution facility will expand our existing
operation and, coupled with the implementation of the new ERP
system, will help us to further grow domestic business and enhance
warehousing and distribution efficiency."
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Enquiries:
Tandem Group plc
Jim Shears, Chief Executive Officer
David Rock, Company Secretary
Telephone 0121 748 8075
Nominated Adviser
Cairn Financial Advisers LLP
James Caithie
Sandy Jamieson
Telephone 020 7213 0880
11 March 2021
Forward-Looking Statements
Certain statements made in this announcement are forward-looking
statements. These forward-looking statements are not historical
facts but rather are based on the Company's current expectations,
estimates, and projections about its industry; its beliefs; and
assumptions. Words such as 'anticipates,' 'expects,' 'intends,'
'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions
are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties, and other factors, some
of which are beyond the Company's control, are difficult to
predict, and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements.
The Company cautions security holders and prospective security
holders not to place undue reliance on these forward-looking
statements, which reflect the view of the Company only as of the
date of this announcement. The forward-looking statements made in
this announcement relate only to events as of the date on which the
statements are made. The Company will not undertake any obligation
to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or
unanticipated events occurring after the date of this announcement
except as required by law or by any appropriate regulatory
authority.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQDKKBPCBKDCND
(END) Dow Jones Newswires
March 11, 2021 02:00 ET (07:00 GMT)
Tandem (LSE:TND)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tandem (LSE:TND)
Historical Stock Chart
From Apr 2023 to Apr 2024