Havelock Europa PLC
7 May 2002
HAVELOCK EUROPA IN £3.3 M SALE OF NOTTINGHAM PROPERTY
Havelock Europa PLC, the retail and educational interiors and point of sale
display business, announces that it has today exchanged unconditional contracts
with Raleigh UK Limited for the sale of its property at Eastwood, Nottingham,
comprising 13.30 acres of land and 188,000 sq ft of industrial buildings.
Completion is expected by 30 June 2002.
The cash consideration of £3.3 million compares with a net book value in
Havelock's accounts at 31 December 2001 of £2.77 million. Havelock will apply
the net sale proceeds in reduction of its borrowings. After expenses, a net gain
of approximately £0.35 m is expected to arise on the sale.
The majority of the machinery from the Nottingham factory has been transferred
to Havelock's factories at Dalgety Bay and Kirkcaldy, both in Fife, where
Havelock has created a centre of excellence for the manufacture of retail and
educational furniture, following last year's acquisition of ESA McIntosh, the
market leader in the manufacture of educational science laboratories. This
enhancement of Havelock's joinery facilities in Scotland, coupled with the
creation of up to 90 jobs, will substantially boost the Group's capabilities in
the rapidly growing PFI market for school furniture whilst continuing to offer a
first class service to Havelock's traditional retail customers.
The closure of the Nottingham factory, which was announced in November 2001,
will result in annualised cost savings of £2 million, following completion of
the sale at the end of June.
Hew Balfour, Chief Executive, stated 'We are delighted to have the sale of the
Nottingham site agreed in a much faster timescale and on better terms than was
originally envisaged. The completion of the sale will have an immediate and
favourable impact on the Group's net debt position.'
Havelock Europa PLC 01383-820044
Hew Balfour (Chief Executive) Mobile: 07801-683851
Bankside Consultants Limited
Charles Ponsonby 020-7444 4166
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