Begbies Traynor Group PLC Related Party Transaction (3521M)

TIDMBEG

RNS Number : 3521M

Begbies Traynor Group PLC

27 July 2017

Begbies Traynor Group plc

Related party transaction

Begbies Traynor Group plc (the "Group"), the business recovery, financial advisory and property consultancy, today announces it has completed a new lease of its Manchester office ("the Property"), which is part owned by Ric Traynor, the Group's Executive Chairman.

The new lease is for a ten year term and incorporates a tenant's only break clause to terminate the lease at the end of the fifth year. The annualised cost of the Property over the ten year lease term (inclusive of market incentives) is GBP344,000.

This lease replaces the Group's previous lease of the Property (as disclosed as a related party transaction in the relevant annual report and accounts). The new lease represents a significant financial reduction on the previous commitment of approximately GBP331,000 per annum. This reflects a smaller lettable area and a reduced cost per sq ft of GBP23.50 compared to GBP25.00 (exclusive of market incentives). In assessing the appropriateness of the new lease, the Group has also undertaken a thorough exercise of considering alternative property options in Manchester city centre.

The new lease represents a related party transaction which, the independent directors consider, having consulted with its nominated advisor Canaccord Genuity Limited, that the terms of the transaction are fair and reasonable insofar as the shareholders are concerned.

Although not strictly required under the AIM Rules, shareholder consent for the new lease will be sought at the Group's next annual general meeting in the Autumn.

Enquiries please contact:

 
 Begbies Traynor Group 
  PLC                            0161 837 1700 
 Ric Traynor - Executive 
  Chairman 
  Nick Taylor - Group Finance 
  Director 
 Canaccord Genuity Limited       020 7523 8350 
 (Nominated Adviser and 
  Joint Broker) 
  Bruce Garrow 
 Shore Capital                   020 7408 4090 
 (Joint Broker) 
  Mark Percy / Anita Ghanekar 
 MHP Communications              020 3128 8100 
 Reg Hoare / Katie Hunt 
  / Giles Robinson 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 27, 2017 11:46 ET (15:46 GMT)