Re Agreement
December 12 2003 - 10:14AM
UK Regulatory
RNS Number:2173T
Martin International Holdings PLC
12 December 2003
Martin International Holdings PLC
Realisation of Development Value from Surplus Property
The Board of Martin International Holdings PLC ("the Company or Group") is
pleased to announce that agreement has been reached with Persimmon Homes (North
Midlands) Limited ("Persimmon") over the additional consideration due to the
Company under a Sale and Leaseback Agreement ("the Agreement") exchanged on 31
January 2001 and relating to premises and land at Pasture Lane, Ruddington,
Nottingham ("the Property").
Under the Agreement, which was approved by shareholders at an EGM held on 8
February 2001, the Company was entitled to receive additional consideration, in
the event that planning permission was obtained.
Residential planning permission for the Property was granted on 14 October 2003
and the additional consideration due to the Company under the Agreement has been
agreed at #4.6m which, having been advised by FPD Savills, the Board considers
to be fair and reasonable. #2.6m was paid to the Company on 12 December 2003 and
the balance of #2.0m will become payable on surrender of the lease to the
Property, which is to be no later than 31 March 2004.
The premises at the Property are currently being utilised for knitwear
production and a major part of these manufacturing operations are being
transferred to the Group's manufacturing site at Sutton-in-Ashfield,
Nottinghamshire.
Arising from the Agreement, an exceptional profit of #4.5m (equivalent to 6.2p
per ordinary share) has been achieved, after expenses, and this will be
reflected in the Group's Accounts for the year ended 31 December 2003. Such sum,
being the net cash receipts, will be used to reduce the Group's net debt and
benefit will be derived in 2004 from the consequent reduction in finance costs.
Commenting on the agreement Michael Kidd, Chairman, said:
"We are delighted to have been able to finalise the above agreement which will
result in a substantial exceptional profit and strengthen the Company's
financial position. Whilst the remaining weeks of the year are a key trading
period the Group has continued towards the achievement of good progress over the
year as a whole".
12 December 2003
This information is provided by RNS
The company news service from the London Stock Exchange
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