18th May 2005 10:37
Creightons PLC18 May 2005 Creightons plc Disposal of freehold property for £700,000 Creightons plc ("Creightons" or "the Group") announces that it has entered intoa contract conditional only on shareholder approval to dispose of its freeholdinterest in Units 1 to 5 Water Lane Industrial Park, Storrington, West Sussex (the 'Property') which currently houses the remainder of the manufacturingoperation of Creightons not covered by the disposal announcement of 4 April 2005to Brecon Developments Limited for a cash consideration of £700,000 (excludingexpenses). Under the terms of the agreement Creightons is to give vacant possession of theProperty within four months of obtaining shareholder approval. A deposit of£15,000 has been received from the purchaser by the Group's solicitors, with thebalance of the consideration due on completion, which will take place no laterthan four months following shareholder approval. The Property, which comprisesapproximately 1,460 sq m (15,720 sq ft) of existing factory and officebuildings which was recently independently valued at £625,000. The net proceedsof the transaction will be used to reduce the Group's indebtedness and fundworking capital for future contracts. The net book value of the property and fixtures being sold as at 1 April 2005was £518,000. The disposal will realise a profit on sale of approximately£150,000 after expenses. Creightons has also announced to employees at its manufacturing plant inStorrington that, following the consultation announced on 4 April 2005, it willcommence the transfer of the majority of the Group's operations to its mainmanufacturing base in Peterborough. A small manufacturing operation, which willconcentrate on serving customers with small batch production requirements, willbe retained in rented accommodation both in Unit 6 and elsewhere in Storrington. A circular containing details of the property sale and convening anExtraordinary General Meeting will be posted to shareholders in due course. Thiscircular will include details of the sale of Unit 6 Water Lane Industrial Park,Storrington, West Sussex, as detailed in the announcement to shareholders on 4April 2005. Contacts: William McIlroyNick O'SheaCreightons plc (01903) 745 611 Tony RawlinsonJames CaithieCity Financial Associates Limited (020) 7090 7800 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Creightons