12th Nov 2015 10:24
LONDON (Alliance News) - Science Group PLC Thursday said it has acquired a freehold property at Great Burgh, Epsom for GBP7.0 million from EauRouge Properties Ltd.
Shares in Science Group were trading down 11% at 136.00 pence Thursday morning.
The advisory business to the science and technology sectors said the property comprises approximately 35,000 square feet net internal area, and has in the past been the laboratory of Distillers Group, BP PLC, and SmithKline Beecham before its merger with Glaxo Wellcome to become GlaxoSmithKline PLC.
Great Burgh will comprise offices, laboratories, a consumer sensory centre and conference facilities, providing an ideal base for Science Group's south-of-London operations, the company said.
The acquisition and GBP1.5 million fit-out will be funded from the group's existing cash resources.
Science Group added that since the acquisition of Leatherhead Food International in September by Science Group's subsidiary Leatherhead Research Ltd, the group has undertaken a restructuring of the business in order to refocus on core activities and reduce the cost base.
Going forward, the group will comprise the three business areas of Science & Innovation, Global Regulatory Services and Consumer Sensory Services.
The initial integration of LFI has been successful, Science Group said, adding that the loss at which it had been operating has increased in the short term by the termination of some activities as the business is refocused.
The anticipated restructuring charges associated with the acquisition are expected to be around GBP0.8 million in the current year. There will also be additional non-recurring charges in 2016 as the business is fully relocated into the new facility at Great Burgh during the first half.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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