Legacy lease exit and update

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 £3.4m 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 £0.4m per annum, £0.2m of which is rental. There are 68 years remaining on the lease and at current rent levels and no discounting, outstanding rental amounts to £14m. It is anticipated that this transaction will give rise to an exceptional charge in the region of £2.5m 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 £0.2m per annum to Norcros.

ENQUIRIES:

Norcros plc	Tel: [phone]
Nick Kelsall, Group Chief Executive
Martin Payne, Group Finance Director
Hudson Sandler	Tel: [phone]
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/

 

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