REG - Chamberlin PLC - Sale and Leaseback of Walsall Property

ChamberlinAnnouncement

02/05/2023 15:45

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RNS Number : 1629Y  Chamberlin PLC  02 May 2023

2 May 2023

Chamberlin plc

("Chamberlin" or the "Company")

 

Sale and Leaseback of Walsall 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 in Chuckery Road, Walsall with Heritage and Hill
Investments Limited (the "Property").

 

The Company announced on 23 February 2023, that it was in discussions
regarding a proposed sale and leaseback transaction at its Walsall freehold
property which would include a proportion of any realised funds to be utilised
to further reduce the Company's pension fund deficit.

 

The sale proceeds are £2.2 million in cash and Chamberlin has a 10 year lease
for the Property at an initial rent of £0.2m per annum, with a rent review
after five years.

 

The Property had a net book value of £1.6m as at 31 May 2022. Under IFRS 16,
a right of use asset of approximately £1.1m and associated lease liabilities
worth approximately £1.5 million will be reflected on the Group's balance
sheet and approximately £0.4m 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
£1.1 million 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 no longer hold any property assets.

 

Completion of the sale and leaseback is expected to occur on 16 June 2023.
Following completion of the transaction, the Company's pension fund deficit on
the Trustees' basis is expected to amount to £1.2 million, a significant
reduction from the £5.1 million deficit as at 31 March 2019.

 

 

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

 George Lawson

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

 Lucy Williams

 Duncan Vasey

 

 

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