4 July 2016 – sale of property/impact of Brexit
The manufacturer and distributor of industrial products has sold its long leasehold property in Letchworth for £2m in cash – the same value that it was shown in the books. The proceeds of the sale will be used to reduce borrowings. Although it is clearly early days after the EU referendum result, the group has stated that it should not suffer too much from this as 60% of its business is in the US with only 13% of sales to the EU. The group is looking to develop other markets for its products notably in South East Asia and so it remains relaxed about future prospects. The shares remain a BUY.