7th Apr 2005 15:56
Applied Optical Technologies PLC07 April 2005 APPLIED OPTICAL TECHNOLOGIES PLC Changes to Crowther lease 7 April 2005 Applied Optical Technologies plc, the supplier of anti-counterfeitingtechnologies and services, has today surrendered the lease of its Crowthermanufacturing site and simultaneously entered into a new lease for the samepremises on revised terms. The old lease had 17 years of the term remaining at a rent of £259,000 per annumand did not allow the Company an option to break the lease. The new lease has a15 year term with an option to break the lease on the fifth anniversary of theterm. The initial rent is £200,000 per annum with a review upon each of thefifth and tenth anniversaries of the term. In consideration for the surrender and re-grant of the lease, the Company haspaid to the landlord, GP Nominees Limited, a surrender premium of £1,025,000 incash. The new lease is in substantially the same form as the existing lease. TheCompany will be responsible for 50% of the Landlord's costs, up to a maximum of£13,500 plus VAT and any disbursements. The Company will initially capitalise the surrender premium and depreciate itover the first five years of the new lease. An impairment review will beperformed as part of the review of the results for the year ended 31 March 2005. These changes are part of the on-going re-organisation of the Group's Europeanoperations, announced in November 2004, which are aimed at reducing operatingcosts in the UK and moving this division into profit. The Crowther unit supplieshigh security products for governments and corporations, including certaincurrency, ID and fiscal stamp applications. - Ends - For further information, please contact:Applied Optical Technologies plc 0191 419 3344 Mark Turnage, Chief Executive ([email protected])Mike Angus, Finance Director ([email protected]) Weber Shandwick Square Mile 0207 067 0700Nick Oborne This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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