Sale and Lease Back Contract

RNS Number : 2185U

Plastics Capital PLC

12 October 2010

 



For Immediate Release

12 October 2010

Plastics Capital plc

("Plastics Capital" or the "Group")

Sale and Lease Back Contract

Plastics Capital plc (AIM: PLA), the niche plastics products manufacturer, is pleased to announce that it has exchanged on a sale and leaseback agreement with JLW Properties Limited relating to the Group's property at Gilpin Street and Tavistock Street in Dunstable where Palagan, a Group subsidiary which manufactures high strength customised films, is based.  Completion of the sale and leaseback will occur on 25^th October.  The consideration receivable in cash by the Group on completion is £1.3 million and the Group has entered into a 15 year lease, with five yearly rent reviews. The commencing rent will be £120,000 per annum.

Commenting on this transaction, Executive Chairman of Plastics Capital, Faisal Rahmatallah said:

"We received an excellent offer for the Palagan property, which was significantly above book value. We accepted the offer as we are able to deploy this capital more effectively in support of our growth.  This transaction also reduces our net debt further and underlines how our financial structure is normalising."

For further information please contact:

Plastics Capital plc                                                                  Tel: [phone]

Faisal Rahmatallah, Executive Chairman

Nick Ball, Finance Director

Cenkos Securities                                                                    Tel: [phone]

Stephen Keys

Liz Bowman

Buchanan Communications                                                     Tel: [phone]

Richard Darby

Christian Goodbody

Notes to Editors

Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets. The Group has four factories in the UK, one in Thailand and sales offices in the USA and Japan. Approximately 60 per cent of sales are exported to over 70 countries worldwide. Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness. The Group has approximately 280 employees.

Further information can be found on www.plasticscapital.com

 

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