Jarvis Securities plc
("Jarvis" or "the Company")
Related Party Transaction
Jarvis Securities plc currently occupies premises which it rents from
Sion Holdings Limited ("Sion"). The family of Andrew Grant, chairman
and chief executive of Jarvis, controls Sion and, in addition, Mathew
Edmett, finance director of Jarvis, is a director of Sion. Sion is a
property and investment company and holds 7,158,000 ordinary shares
in the Company, being 65.67 per cent. of the issued share capital.
In order to accommodate its growth, Jarvis needs additional office
space and has entered into a lease with Sion for 3,800 sq ft of self
contained offices at 78 Mount Ephraim, Tunbridge Wells, close to its
existing offices. The lease is for a 10 year term , with an upward
only rent review after five years. The initial rent is £63,500 per
annum, which has been confirmed to the directors as representing
market rate.
Jarvis is unable to reclaim all its input VAT and, because it is
treated as a group for tax purposes with Sion, Sion in turn is
unable to recover all of its VAT inputs incurred in connection with
the purchase of the property. Accordingly, Jarvis has agreed to
recompense Sion for the irrecoverable VAT which will be capitalised
by Jarvis and written off by Jarvis over the term of the lease. The
rent payable by Jarvis to Sion will not be subject to VAT (which
Jarvis would have been unable to wholly recover).
Sion will release Jarvis early from its lease obligations at its
current premises without any compensation for the early release.
The transaction is classified as a related party transaction under
Rule 13 of the AIM Rules for Companies. John Mackay, who is a
non-executive director of Jarvis and is independent of Sion,
considers, having consulted with the Company's nominated adviser,
that the terms of the transaction are fair and reasonable insofar as
its shareholders are concerned.
For further Information:
Jarvis Securities
plc Tel: 0870 224
1111
Andrew Grant
Daniel Stewart & Company plc Tel: 020
7776 6550
(Nominated Adviser)
Stewart Dick
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