LED lighting and electro-mechanical system manufacturer LPA Group has sold its Tudor Works site for a gain of £2m.
The sale will raise £2.6m after expenses, which is £2m more than book value. The initial payment is £1.3m with the rest due at the end of the lease back period of up to 12 months when LPA moves out. LPA will spend £1.5m on refurbishing the Shire Hill site and it is also extending its LED lighting factory in Yorkshire. The relocation should happen in spring of next year.
The gain will be partly offset by £850,000 of rationalisation costs for the electro-mechanical operations.
In the six months to March 2013, LPA reported a dip in revenues from £8.9m to £8.6m while pre-tax profit fell from £312,000 to £212,000. Net debt was £2.27m. The interim dividend was increased from 0.5p a share to 0.6p a share.
The third quarter was relatively quiet but the fourth quarter has started more strongly.
At 73.5p a share, up 5.5p, LPA is valued at £8.7m.
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