Pressure Technologies plc
(“Pressure Technologies”, the “Company” or the “Group”)
Sale and Leaseback of Roota Engineering Property
Pressure Technologies (AIM: PRES), the specialist engineering group, is pleased to announce that it has completed a sale and leaseback of its freehold property occupied by Roota Engineering in Rotherham with Victoria Court Mews Limited.
The gross sale proceeds are £1.65 million in cash and the Company has a 15 year lease for the Property at an initial rent of £90k per annum, subject to three-yearly rent reviews linked to RPI, with a tenant only break option at the end of years five and ten.
The Property had a net book value of £750k as at 31 March 2022. Under IFRS 16, a right of use asset of approximately £1.07 million and associated lease liabilities worth approximately £1.07 million will be reflected on the Group's balance sheet and approximately £800k of the book profit on the disposal will be deferred and recognised in the Group's income statement over the period of the lease.
The proceeds will be used to reduce the Company's banking facilities.