Potential sale of Saffron Walden site
LPA Group PLC (“LPA” or “the Group”) is a manufacturer and distributor of lighting, power and electronics systems.
In line with the Group’s strategy, as outlined in the Annual Report published on 24 January 2007, the board has been evaluating a possible sale of its freehold site at Saffron Walden, where there is potential to realise value for shareholders by relocating manufacturing activity and selling the site for residential re-development.
The board appointed King Sturge to advise on a fair value of the site and separately sought and received a conditional offer of £2.2m for the 1.4 acre site from a major house-builder. This offer is in excess of both the £0.5m book value and the £1.045m existing use value.
An initial assessment of the site by King Sturge suggests that a sale could realise a value in excess of the current offer. Given the potential profit from a site sale, King Sturge has been instructed to begin formally marketing the site and help identify suitable alternative premises to which to re-locate manufacturing activity.
Peter Pollock, Chief Executive, comments:
“We are committed to maximising shareholder value. Given the interest in the site and the significant potential profit that could be realised from a sale, and the current window of opportunity allowed by the previously indicated gap in our Saffron Walden programme, between the conclusion and recommencement of major rail project work, we are actively assessing the cost and other issues surrounding the relocation of activities from the site.”
|LPA Group plc
Steven Brett, Finance Director
Peter Pollock, Chief Executive
Tel: 07881 626127 or 01799 512860
Tel: 01799 512844
|Landsbanki Securities (UK) Ltd
|Tel: 020 7426 9000|
|Tel: 020 7457 2020|