Significant reduction in gearing expected following sale of non-core landholdings for £5.5 million in cash
AIM quoted buy-and-build construction materials group SigmaRoc have disposed of a non-core plot of land for a cash consideration of £5.5 million.
The historical book value of the land was £4 million, resulting in a net profit on disposal of £1.5 million.
The land holdings formed part of the group’s SigmaPPG platform and the board considered that they were no longer of strategic value to the company.
SigmaRoc intend to use the cash consideration to reduce net debt, as a result of which the company’s gearing ratios are expected to be significantly reduced.
The additional cash realized from the disposal will also afford the company more flexibility, as it evaluates its acquisition pipeline and continues to optimize its capital structure.
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