Completion of Asset Disposal (0367C)

TIDMMSQ

RNS Number : 0367C

Media Square PLC

01 March 2011

Media Square plc ("Media Square" or the "Company")

Completion of Asset Disposal

Further to its announcement on 22 February 2011, Media Square is pleased to announce that, following the exchange of contracts, the sale of the trade and assets of its subsidiary arken POP Limited ("arken") to Writtle Holdings Limited ("Writtle Holdings") has now completed. The sale price of GBP750,000 has been paid in cash. Net proceeds from the sale will be applied to reduce the Company's debt position.

In the financial year to 28 February 2010, arken recorded audited revenues of GBP3.6m and an operating profit of GBP265,000. It had net tangible assets of GBP881,000 and goodwill of GBP500,000. In the six month unaudited period to August 2010 the company generated revenues of GBP1.4m and an operating loss of GBP155,000.

As previously stated, as part of the transaction, Writtle Holdings has been granted the option to acquire the freehold premises occupied by arken and owned by Media Square for the sum of GBP3.25 million in cash. This option expires on 31(st) December 2011 and is exercisable at the sole discretion of Writtle Holdings Limited. With effect from 1 March 2011, Writtle has entered into a lease agreement with Media Square for the use of the freehold premises until such time as the option is exercised or, if the option is not exercised, for a period of not less than 10 years to end February 2021. From 1 March 2011 to 31 Dec 2011, Writtle will pay rent at a rate of GBP235,000 pa, which will increase to GBP300,000 pa from 1 Jan 2012 and will be subject to upward only annual open market rent reviews.

For further information please contact:

 
 Media Square plc                  www.mediasquare.co.uk 
 Roger Parry                       020 3026 6601 
 Peter Reid                        020 3026 6607 
 
 Collins Stewart Europe Limited 
 Adrian Hadden/Stewart Wallace     020 7523 8350 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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