25th Jul 2014 11:56
LONDON (Alliance News) - Payment products provider Eckoh PLC Friday said it has agreed to acquire the freehold of its existing Hemel Hempstead head office in a deal worth GBP2.9 million.
The company did not name the vendors.
Eckoh said that by buying the freehold it will make annual rent savings of GBP200,000. It will acquire the premises at the end of the current lease in March 2015.
The new arrangement will also allow it to take ownership of an additional 4,050 square feet of office space in addition to the current 11,670 square feet currently rented, which will support ongoing growth and the company's increased headcount.
Eckoh said a deposit of GBP400,000 is payable immediately and will be funded from existing cash reserves with the remaining GBP2.5 million to be paid upon completion in March 2015. Options for funding that payment are currently being explored, the company said.
"The acquisition of the freehold is a very positive step for Eckoh, not only does it secure our office requirements for the immediate future at a lower overall cost, it also avoids what would have been an expensive and disruptive move to alternative premises," Chief Executive Nik Philpot said in a statement.
"The additional space will allow us to comfortably accommodate our medium-term planned increases in headcount and provide a better overall working environment for our staff," he added.
Eckoh shares were quoted up 2.6% at 39.75 pence Friday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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