08 Nov 2013

Sale of Property

Source: RNS
RNS Number : 5202S
Havelock Europa PLC
08 November 2013
 



 

 

HAVELOCK EUROPA PLC

("Havelock" or the "Company")

 

Sale of long leasehold property  

 

 

Havelock Europa (HVE.L), the retail and educational interiors group, has today entered into a conditional agreement to sell its long leasehold property known as Fontana House to Nemesis Commercial Ltd for a consideration of £1.1 million in cash (the "Sale").

 

Fontana House is situated at Letchworth Garden City. It is occupied by Showcard Print Limited ("Showcard"), which was part of Havelock until its disposal by the Company in April 2012. At the time of the disposal of Showcard, the long leasehold property was retained by Havelock and since 1 January 2013 has been leased to Showcard, providing Havelock with a rental income of £150,000 per year. Following the Sale, Havelock will no longer receive the rental income associated with Fontana House.

 

Havelock intends to apply the Sale proceeds to reduce the Company's bank debt which stood at £4.8 million at 30 June 2013.

 

As a result of the loss of rental income, the Sale is expected to be earnings dilutive. However, the reduction in its net indebtedness is in line with the board's stated strategy and is expected to enhance the prospects for the focused expansion and continued development of the Group's interior fittings and fit out services business.

 

 

 

 

 

Enquiries:


Havelock Europa PLC

01383 820044

Eric Prescott, Chief Executive


 

 

Investec Bank PLC (Nomad)

0207 597 5970

Duncan Williamson

Keith Anderson

Andrew Pinder


 


Cardew Group (Public relations adviser)

020 7930 0777

Rob Ballantyne


Shan Shan Willenbrock


 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
DISVDLFBXFFZFBF
Open
Share
Clip
Print