10th Nov 2005 07:01
Torotrak PLC10 November 2005 Torotrak plc announces completion of sale and leaseback of freehold land andbuildings Following the announcement in May 2005 that heads of terms had been agreed,Torotrak plc ('Torotrak') is pleased to announce legal completion of the sale ofits freehold land and buildings to the Ashtenne Industrial Fund ('Ashtenne').The proceeds of the sale of £3,500,000 were received by Torotrak on 9 November2005 and, as previously reported, will be used by Torotrak to invest in thefurther development of our technology. At the same time Torotrak has entered into a lease on the building with Ashtenneon a normal commercial basis for a 20-year term at an open market rental of£280,000. The rental expense is expected to be offset by other planned savingsand overall no increase in costs is expected as a result of this transaction. Rebecca Joyce, Finance Director, Torotrak plc said: "This agreement with Ashtenne reinforces our policy of sound financialmanagement of the assets of our business. The proceeds, together with theincreasing trend in revenues and the recently announced reduction in thecompany's cost base, strengthen both our short and long term cash positionstowards one of our primary business objectives of attaining a cash neutralposition." Enquiries: Rebecca Joyce, Torotrak 01772 900900 Steffan Williams/Peter Curtain, Capital MSL 020 7307 5330 Notes to editors: Torotrak Torotrak is the world leader in the design and development of traction driveInfinitely Variable Transmission (IVT) systems with competitive benefits for theautomotive, off-highway and Outdoor Power Equipment industries. In automotive,IVT offers significant improvements in fuel economy, performance and smoothnesscombined with innovative driving control features. In off-highway, IVT offers acost effective and mechanically efficient technology that can be used acrossproduct ranges. Torotrak's principal commercial strategy is to generate royaltyincome from high-volume manufacture of IVT technology by our licensed customers. Ashtenne The Ashtenne Industrial Fund was established in July 2001. The Fund invests intoindustrial properties principally in the Midlands, North, Wales and Scotland. The Fund is jointly managed by Morley Fund Management and Ashtenne. Morley FundManagement is the UK institutional asset management business of Aviva, theworlds sixth largest insurer. Ashtenne is owned by Warner Estate Holdings plc,one of the leading industrial asset managers in the UK. End This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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