REG - Camellia PLC - Disposal of ACS&T and Relocation of Head Office

CamelliaAnnouncement

19/12/2022 07:00

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RNS Number : 0717K  Camellia PLC  19 December 2022

19  December 2022

Camellia Plc

(the "Company" or the "Group")

 

Disposal of Associated Cold Stores and Transport Limited ("ACS&T")

Relocation of head office

 

Disposal  of ACS&T

Camellia Plc is pleased to announce that it has agreed to the sale of its
interest in ACS&T to HSH Coldstores Limited ("HSH") for £16.5 million in
cash payable at completion (subject to the potential adjustments described
below). A pre completion cash dividend of £3.8 million is also being paid to
the Company.

HSH is one of the UK's leading providers of temperature-controlled storage and
distribution solutions and a subsidiary of Constellation Cold Logistics,
Europe's third largest cold storage network.

The transaction, which is subject to customary warranties and indemnities is
expected to complete on 10 January 2023.  There are no conditions to
completion save for the lapse of time.

The final consideration due to the Company remains subject to agreement on the
completion accounts in accordance with the share purchase agreement, including
the actual working capital at completion against an agreed estimate and
adjustments for cash and/or debt items. It is expected that such adjustments
will be agreed in Q2 2023.

The proceeds from the sale will be applied to support the Group's strategy of
focussing its investment activity on its core agriculture operations and for
general working capital purposes.

ACS&T, which is a BRCGS accredited food temperature-controlled storage and
logistics expert had revenues of £13.0 million and recorded a profit before
tax of £0.6 million for the six months ending 30 June 2022 (year ended 31
December 2021: revenue of £22.0 million and profit before tax of £nil).  At
30 June 2022, the gross assets attributable to the business were £33.6
million and net assets attributable to the business were £14.8 million.
Camellia expects to record a gain on the sale of ACS&T (net of expenses)
in the current financial year of approximately £3.7 million.

Relocation of head office

 

Following a review of the space requirement appropriate to the needs of its
head office Camellia intends to relocate such office during 2023 to a recently
refurbished investment property owned by it and located in Wrotham in Kent.
The Group's head office is currently located at Linton Park for which planning
approval for a change of use to residential has been submitted to make the
property more attractive on the rental or sales market.

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation.

 

Enquiries

 

Camellia Plc
 
01622 746655

Malcolm Perkins, Chairman

Susan Walker, Chief Financial Officer

 

Panmure Gordon
 
020 7886 2500

Nominated Adviser and Broker

Emma Earl

Erik Anderson

 

Maitland/AMO

PR

William Clutterbuck
                                07785 292617

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