19th Dec 2005 17:09
Hill & Smith Hldgs PLC19 December 2005 Hill & Smith Holdings PLC (the "Company") and its Subsidiaries (the "Group") Major Property Transaction Sale & Leaseback The board of Hill & Smith Holdings PLC announces that on Friday 16 December 2005the Group completed the sale and leaseback to CGIS Group Limited of threeproperties at Duke Street, Fenton, Stoke on Trent; Marsh Road, Middlesbrough;and Mary Avenue, Birtley, County Durham (together the " Properties"). The Properties are occupied respectively by Barkers Engineering Limited,Lionweld Kennedy Flooring Limited and Birtley Building Products Limited,wholly-owned subsidiaries of the Company which are engaged in the Group's coreinfrastructure and building products activities. The gross sale consideration is £6.95m, which was paid in full in cash oncompletion. The book value of the Properties, including the cost of essentialstructural works, is £4.9m and the profit arising on disposal, after allowingfor selling costs of £0.45m, is approximately £1.6m. The Properties are beingleased back on 20 year leases at a combined initial annual rental of £576,000,which is subject to adjustment to open market rental every five years. The net sale proceeds will, together with the net proceeds from the sale of theDigbeth property, which was announced on 12 December 2005, be retained by theGroup for use in the business. The receipt of these proceeds has resulted in asignificant reduction in the overall net indebtedness of the Group which willsupport the Group's continuing expansion both organically and by acquisition. Further information:David Grove, Chief ExecutiveHill & Smith Holdings PLCTel: 0121 704 7430 Edward CarterQuantum Freshwater UKTel: 0121 633 7775 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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