Acquisition of freehold prope

RNS Number : 0883T

Zytronic PLC

01 June 2009

 



For Immediate Release

1 June 2009

Zytronic plc

Acquisition of a freehold property and a 999 year leasehold property

Zytronic plc (the 'Company') announces that, on Friday 29 May 2009, it exchanged contracts for the acquisition of the two rental properties from which it currently operates (the 'Acquisition'). Together with the adjacent freehold property, which the Company acquired in January 2006, the Acquisition will give the Company ownership and control over its whole site and will enable it to better control the site's future development as it continues its growth.

The Company is paying £3.2m for the Acquisition, which comprises some 60,000 sq ft of factory and office space. The funding will be provided by a £2.25m ten year property mortgage provided by Alliance & Leicester Plc, with the balance coming from the Company’s existing cash resources. The group’s gearing level, upon completion of the Acquisition, will increase to c. 40%.

At current interest rates and with the level of associated debt, there will be a small beneficial impact to the Income Statement in the remainder of the financial year. 

Enquiries:

Zytronic plc	0191 414 5511
Mark Cambridge, Chief Executive
Denis Mullan, Finance Director
Buchanan Communications Ltd	020 7466 5000
Richard Darby, Isabel Podda
Brewin Dolphin Ltd
Andrew Emmott, Neil McDonald	0845 270 8610

 

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