Sale of Warehouse Facility for £16.4 million

RNS Number : 0396E

Northamber PLC

01 July 2019

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

1 July 2019

Northamber PLC

("Northamber" or the "Company")

Sale of warehouse for cash consideration of £16.4 million

Northamber (AIM: NAR) announces that it has exchanged contracts on the sale of its warehouse facility located in Weybridge, Surrey (the "Warehouse") to OXW Catalina (Logisitics XVI) Limited ("OXW") for £16.4 million, with the consideration to be paid in cash (the "Sale"). The Sale is expected to complete by the end of July.

The Warehouse comprises approximately 80,000 square feet on a five plus acre site accommodating additional car parking for around 100 vehicles and is located some 10 miles from the Company's head office.  The Company acquired the freehold in April 2012 for £6.35 million, having occupied the premises since December 1999, and as of 31 December 2018 it had a net book value of £6.0 million.

With the demise of an adequately profitable opportunity in the high cubic volume personal computer sector, the Company's utilisation of the Warehouse has declined materially over the last 5 years or so and consequently the Board has been reviewing the Company's medium to long term property requirements in light of activity levels and strategy.  As part of the Sale, OXW has agreed to a two-year leaseback of the Warehouse to Northamber, at a cost of £175,000 per annum.

Consequently, the Board believes that the Sale provides an excellent opportunity to release a significant capital sum, whilst also providing time to source a more appropriately sized facility and location for the Company's warehouse requirements.

The proceeds of the Sale will be used for general working capital purposes in support of the Company's strategy.

David Phillips, Chairman, commenting on the Sale said:

"We have always highlighted the strength and quality of our balance sheet, particularly as it has underpinned our activities in markets which have seen considerable and much reported change.  We felt the decision to buy the Warehouse in 2012 was soundly based but it became apparent that too much of our shareholder value was tied up in a property of a scale that outweighed the functional needs of our activity levels.

The proceeds from the Sale provide more tangible support to our business and the future development of our evolving strategies."

Enquiries

Northamber plc	020 8296 7000
David Phillips, Executive Chairman
Cantor Fitzgerald Europe (Nominated Adviser & Broker)	020 7894 7000
Phil Davies / Michael Boot

Siva Yoganathan, Head of Finance & Company Secretary, has arranged release of this announcement.

 

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