REG - Braime Group PLC - Chain Cell Project Update

BraimeAnnouncement

22/06/2022 07:00

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RNS Number : 7033P  Braime Group PLC  22 June 2022

BRAIME GROUP PLC

 ("Braime" or the "Company" and with its subsidiaries the "Group")

 

Chain Cell Project Update

 

Further to our year end announcement, we have now received a quotation for our
chain cell project from our contractors for £1.6m, and anticipate additional
surveying, legal, architectural and project management fees of £0.3m (a total
of £1.9m). The cost of the project has increased from our estimate of
£850,000 at the year-end. This is in part due to inflation on construction
materials but a significant reason for the increase is that we are taking the
opportunity, forced on us by the need to fully demolish and reconstruct this
area, to also more than double the area available for the production of 4B
Chain, a growth area of the business, create a new mezzanine area for
additional storage and achieve other operating efficiencies. The plans to
enhance the area, which are capital in nature, did not form part of the
original repair costs of the external walls and account for £870,000 of the
costs.

 

We are in discussions with our bankers HSBC, and have secured their agreement
in principle to borrow in the short term, £1.5m of development loan to fund
the construction (with the balance being paid from existing cash resources) at
an interest of 2.75% above base rate.  We expect to convert all or most of
this to a five-year term loan when the construction is completed.  We
therefore consider there is adequate funding for the project, which is
expected to take around fifty weeks to complete.  Further updates will be
provided in due course.

 

For further information please contact:

 

Braime Group PLC

Nicholas Braime/Cielo Cartwright

0113 245 7491

 

W. H. Ireland Limited

Katy Mitchell

0113 394 6628

 

 

 

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