Topps Tiles PLC Sale & Leaseback (4530O)

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RNS Number : 4530O

Topps Tiles PLC

01 June 2020

 
   1 June 2020 
 

Topps Tiles Plc

("Topps Tiles", the "Group" or the "Company")

Sale and Leaseback of Head Office and Central Warehouse

Topps Tiles Plc, the UK's largest tile specialist, is pleased to announce it has agreed the sale and leaseback of its head office and central warehouse buildings (the "Properties") at Grove Park, Enderby, Leicester, to UK Warehouse Properties Limited (the "Sale").

The consideration for the Sale is GBP18.1 million (GBP17.9 million net of costs) and will be paid in cash on completion, which is expected to take place in early June 2020. The consideration represents a premium of approximately 29.3% to the balance sheet asset value of the Properties of GBP14.0 million.

The proceeds from the Sale will further strengthen the Group's financial position as it responds to the COVID-19 crisis.

Based on the Group's net debt position at 29 May 2020, at completion of the Sale, the Group would have net debt of c. GBP7 million with c. GBP42 million of available liquidity (including the credit approved CLBILS GBP10 million loan facility which the Company announced on 19 May 2020 and which is due to be finalised shortly).

In connection with the Sale, the Group has entered into leases for the Properties for a 20 year period following completion, for an annual rent of GBP1.2 million. Under IFRS 16, right of use assets worth GBP15.7 million will be reflected on the Group's balance sheet, along with associated lease liabilities of GBP15.7 million.

The Sale constitutes a Class 2 transaction under the Financial Conduct Authority's Listing Rules.

-Ends-

Enquiries:

 
 Topps Tiles Plc                        0116 282 8000 
 Rob Parker, Chief Executive Officer 
 
 Citigate Dewe Rogerson                 020 7638 9571 
 Kevin Smith / Nick Hayns 
 

A copy of this announcement can be found on our website www.toppstilesplc.com

This announcement contains inside information within the meaning of the Market Abuse Regulation. The person responsible for arranging release of this announcement on behalf of Topps is Rob Parker, Chief Executive Officer.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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(END) Dow Jones Newswires

June 01, 2020 02:00 ET (06:00 GMT)