COE Group - Sale of Building
7th December 2006
COE Group plc (“COE” or the “Company”) is pleased to announce that the Company has exchanged contracts with Murphy Young Group for the sale of the freehold of its business premises, Photon House in Leeds, for a consideration of £1.425 million. The majority of the space in Photon House has become surplus to requirements following the outsourcing of the Company’s manufacturing operations in 2005. COE will remain as a tenant in a more appropriately-sized facility within the building.
After repaying associated debt and costs, the sale is expected to generate approximately £130,000 in surplus cash for the Company and a profit on disposal of approximately £370,000.
Following completion of the sale, the Company’s borrowings, which were approximately £2 million on 31 December 2005, are anticipated to be approximately £300,000.
Andrew Wallace, Chief Executive Officer, said:
“We are delighted to have exchanged contracts on the sale of the building, the size and cost of which were disproportionate to COE’s needs following the outsourcing of manufacturing and IT.
“The sale of Photon House is an important step in restructuring COE’s balance sheet, which can now serve as a platform for growth in the business.”
For further information, please contact:
COE Group plc Andrew Wallace, Chief Executive Officer Tel: 0113 230 8800 Email: awallace@coe.co.uk
Contact information: COE Limited, Photon House, Percy Street, LEEDS, West Yorkshire, LS12 1EG, United Kingdom
TEL: +44 (0)113 230 8800 FAX: +44 (0)113 279 9229 E-MAIL: sales@coe.co.uk