REG - Chamberlin PLC - Sale and Leaseback of RDC Property

ChamberlinAnnouncement

05/05/2022 13:15

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RNS Number : 4933K  Chamberlin PLC  05 May 2022

5 May 2022

Chamberlin plc

("Chamberlin" or the "Company")

 

Sale and Leaseback of RDC Property

 

Chamberlin plc (AIM: CMH.L), the specialist castings and engineering group, is
pleased to announce that it has exchanged contracts on a sale and leaseback of
its freehold property held by Russell Ductile Castings Ltd in Scunthorpe with
Prospect Estates Limited (the "Property").

 

The Company announced on 16 September 2021, that it had commenced a review of
the use of its substantial property assets with the objective of strengthening
the balance sheet and improving operational and investment returns from Group
resources. On 2 February 2022, the Company announced that the review was
continuing and that the Board remained focused on ensuring that the Group had
the necessary resources to deliver on its growth strategy.

 

The sale proceeds are £1.25 million in cash and Chamberlin has a 10 year
lease for the Property at an initial rent of £125k per annum for the first 5
years, increasing to £150k per annum for years 6 to 10.

 

The Property had a net book value of £700k as at 31 May 2021. Under IFRS 16,
a right of use asset of approximately £600k and associated lease liabilities
worth approximately £1.0 million will be reflected on the Group's balance
sheet and approximately £400k of the book profit on the disposal will be
deferred and recognised in the Group's income statement over the period of the
lease.

 

The proceeds will be used to reduce the Company's pension fund deficit by
£600k in satisfaction of the Chamberlin & Hill Life Assurance Scheme's
charge over the property, with the balance of the proceeds to be applied to
the Group's growth strategies and provide working capital.  Following
completion, the Group will hold property assets with a net book value of
approximately £800k.

 

Completion of the sale and leaseback is expected to occur on 6 May 2022.

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation (2014/596) which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time.

 

Enquiries:

 

 Chamberlin plc                                                T: 01922 707100

 Kevin Price, Chief Executive Officer

 Alan Tomlinson, Finance Director

 Cenkos Securities plc (Nominated Adviser and Joint Broker)    T: 020 7397 8900

 Katy Birkin

 Stephen Keys

 Peterhouse Capital Limited (Joint Broker)                     T: 020 7469 0930

 Lucy Williams

 Duncan Vasey

 

 

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