15th May 2015 11:16
LONDON (Alliance News) - Norcros PLC Friday said it has settled a contractual dispute over the conditional sale of part of its surplus land holding at Highgate, Tunstall, with a subsidiary of WM Morrison Supermarkets PLC.
In December 2014, Norcros agreed to sell its entire portfolio of surplus legacy freehold properties to Clowes Developments UK Ltd for GBP6.5 million cash, which left it with no remaining surplus freehold property, leaving the company with two outstanding legacy property issues.
Norcros said the issues were regarding compensation for a breach of contract with a subsidiary of WM Morrisons PLC, and a legacy surplus lease that remained at Groundwell in Swindon.
On Friday, Norcros said the contractual dispute with Morrison's subsidiary, Optimisation Developments Ltd, has been settled but said the terms of the settlement are confidential for legal reasons.
"The terms of the settlement are confidential for legal reasons, but they are not significant in the context of the groups financial position. This settlement, net of costs, will be treated as an exceptional item in the accounts for the year to March 31, 2016," it said in a statement.
The site at Highgate, Tunstall, which has been the subject of this dispute, has subsequently been disposed of.
Norcros shares were up 1.5% to 17.00 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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