Mattioli Woods build new central Leicester office
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17 August 2015 |
Mattioli Woods plc
("Mattioli Woods", "the Company" or "the Group")
Mattioli Woods to build new central Leicester office
· Agreement to develop a new 60,000 square foot office in central Leicester
· Expected expenditure of £14.6m, including fit out costs
· Funded by combination of existing cash resources (excluding funds from recent placing), bank funding and future operating cashflows
· The commitment will not reduce headroom for acquisitions
· New office will accommodate in excess of 600 people (currently employ over 300 staff out of the existing Leicester offices)
· Development is subject to planning approval
· Construction to commence late 2015, with occupation due Spring 2017
Chief Executive, Ian Mattioli, commented: "As we continue to grow organically and by acquisition the new city centre office will provide us with a modern working environment. We have found, like many other progressive businesses, that as our number of clients and employees grow, being centrally located with all its associated infrastructure is better for both. Greater flexible working will allow us to continue to grow the business and create further operational efficiencies. The bespoke infrastructure of our new building will assist us to ensure our client services continue to be first class and secure".
Mattioli Woods (MTW.L) is pleased to announce its new subsidiary company, Mattioli Woods (New Walk) Limited ("MW New Walk") has entered into a development agreement with Ingleby (1245) Ltd ("Ingleby"), a company owned and controlled by Sowden Group Limited ("Sowden") to build a new 60,000 square foot office on the site of the former Leicester City Council ("LCC") headquarters at the top of New Walk, Leicester. The development is subject to planning approval and an application for planning permission has been lodged by Ingleby, with permission anticipated to be granted by the end of August 2015.
Ingleby has been selected by LCC as their preferred developer to transform the two-acre site. The overall development will also include retail and residential space.
The expected expenditure for the development is £14.6m, including fit out costs. The Group will fund the construction through a combination of existing cash resources (excluding funds from recent placing), bank funding and future operating cashflows. Prior to the Group's placing in June 2015 it held cash reserves of £10m and it is anticipated that new bank facilities of up to £7m will be agreed.
The contract will be funded on an ongoing basis with the bank funding, if required, being drawn upon after the Group's own funding. Construction is scheduled to commence in late 2015, with completion and occupation due to occur in Spring 2017.
The leases on the Group's two existing premises at MW House and Gateway House, Grove Park, Leicester, expire in 2025 and between January 2018 and November 2019 respectively. The Group expects to assign the balance of the eight remaining years on the MW House lease, which also has a tenant's break option in 2017.
This opportunity enables the Group to maintain its regulatory capital whilst efficiently using its surplus cash not available for distribution to shareholders. As a result of the development the Group anticipates a reduction in profit after tax ("PAT") of c. £0.10m for the year ended 31 May 2016, with further reductions of c. £0.40m and c. £0.20m in the following two years respectively versus budget. From then on the Group expects to benefit from future rental savings of approximately £0.85m per annum.
- Ends -
For further information please contact:
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Mattioli Woods plc |
Tel: +44 (0) 116 240 8700 |
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Ian Mattioli, Chief Executive |
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Ian.mattioli@mattioliwoods.com |
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Nathan Imlach, Finance Director |
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nathan.imlach@mattioliwoods.com |
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Mark Slaviero, Head of Group Marketing |
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Mark.slaviero@mattioliwoods.com |
www.mattioli-woods.com |
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Canaccord Genuity Limited |
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Sunil Duggal, Investment Banking |
Tel: +44 (0) 20 7523 8350 |
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Roger Lambert, Investment Banking |
www.canaccordgenuity.com |
Media enquiries:
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Camarco |
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Ed Gascoigne-Pees |
Tel: +44 (0) 20 3757 4984 |
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www.camarco.com |
This information is provided by RNS
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