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LPA Group

  • BY: Andrew Hore |
  • POSTED: 27/11/2007 |

LPA Group could raise cash equivalent to nearly two-thirds of its market capitalisation if it sells its Saffron Walden site. 

LPA has received a conditional offer of £2.2m for its 1.4 acre freehold at Saffron Walden from a house builder. Property adviser King Sturge believes that LPA could get more and the company has asked it to start marketing the site. If it sold the site LPA would have to relocate the manufacturing facility.

LPA is already trading at less than its net tangible asset value of 41p a share at the end of September 2007. That figure includes the property at a valuation of £500,000.

Assuming a sale is made at £2.2m, and there is a 30% tax charge on the gain, then it should add more than 10p a share to the net asset value.

LPA has net debt of £2.2m.

The shares rose 3p to 33p on the news. That values LPA at £3.75m. Andrew Perloff, who runs property group Panther Securities, owns 17.9% of the company.

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