Conditional Sale of Surplus Land

RNS Number : 2692N

Norcros PLC

31 August 2011

 



Norcros plc

("Norcros" or "the Group")

Conditional sale of surplus land

Norcros, the home consumer products group, is pleased to announce that it has entered into an agreement with Optimisation Developments Limited, a subsidiary of WM Morrison Supermarkets plc, to sell part of its surplus freehold land holding for a cash consideration of £8.25m, although completion is conditional upon an acceptable planning consent being granted for the site.

The agreement requires the Group to complete certain infrastructure developments on the land which management anticipate will cost approximately £5.65m. The majority of these costs will only be incurred once acceptable planning consent has been granted and the agreement has become unconditional.

Taking into account these development costs and the carrying value of the land of £1.8m, the Group anticipates reporting an exceptional profit of approximately £0.8m on completion which is currently anticipated in the financial year ending 31 March 2013. The net proceeds of approximately £2.6m will be used to reduce the Group's bank debt.

Whilst the Group will do everything possible to obtain the required planning consent, there can be no certainty such consent will be granted. The Group will make a further announcement in due course.

Norcros plc	01625 549 010
Nick Kelsall, Group Chief Executive
Martin Payne, Group Finance Director
College Hill	020 7457 2020
Mark Garraway
Helen Tarbet

 

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