17th Aug 2015 08:52
LONDON (Alliance News) - Mattioli Woods PLC on Monday said it is to build a new 60,000 square foot office in central Leicester at a cost of GBP14.6 million.
The investment management and pension consultancy said it expects a hit of about GBP100,000 to profit after tax in the year ending May 31, 2016, with further reductions of about GBP400,000 and GBP200,000 in the next two years. From that point the company expects to benefit by saving about GBP850,000 in rent per annum.
"As we continue to grow organically and by acquisition, the new city centre office will provide us with a modern working environment. We have found, like many other progressive businesses, that as our number of clients and employees grow, being centrally located with all its associated infrastructure is better for both," Chief Executive Ian Mattioli said in a statement.
"Greater flexible working will allow us to continue to grow the business and create further operational efficiencies. The bespoke infrastructure of our new building will assist us to ensure our client services continue to be first class and secure," Mattioli added.
The company will fund the expenditure, which includes fit out costs, with cash held before its GBP18.6 million placing in June and bank financing. It had GBP10 million before its placing, and expects to agree bank facilities providing up to GBP7 million in finance.
Sowden Group Ltd has been contracted by Mattioli to build the office on the site of the former Leicester City Council headquarters at the top of New Walk, Leicester.
Construction is set to begin late in 2015, with completion and occupation to take place in Spring 2017.
Shares in the company were down 0.5% at 570.90 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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