Disposal of freehold property at Waltham Cross
17/10/2002
The Board of Charter plc announces the completion of the sale of its freehold factory site located at Hertford Road, Waltham Cross, Hertfordshire to Commercial Union Life Assurance Company Limited, acting through Morley Fund Management. The gross proceeds of £20.0 million have been received in cash today and have been used to reduce the Group''s debt. The profit on disposal amounts to approximately £13.4 million. Under certain very limited circumstances, further sums may become payable by Commercial Union.
Esab, the Group''s welding and cutting business, presently produces flux cored wire at the Waltham Cross site. As part of the Group''s restructuring initiatives previously announced, production will be transferred in stages to the Group''s factory in Katowice, Poland. Under the agreement, Esab will remain in occupation of the site until December 2004, at an annual rent of £1.0 million.
David Gawler, Chairman and Chief Executive, commented today:
"As previously announced, the Board continues to target a reduction in the Group''s net debt by the year end. The completion of the sale of the surplus freehold site at Waltham Cross is one of the steps being taken in this regard.
The transfer of flux cored wire production from Waltham Cross to Katowice in Poland will result in significant cost reductions and locate production closer to the Group''s growing markets in Central Europe."
Contact
Andrew Fenwick; Pamela Small, Brunswick +44 (0) 20 7404 5959
David Gawler, Chairman and Chief Executive; David Eilbeck, Finance Director
+44 (0) 20 7404 5959