Pennant International Continues Property Disposal Programme
Why we think this is good
The RNS announcement indicates that Pennant International Group is successfully executing its property disposal programme, which will help reduce the company's overdraft borrowings and provide additional borrowing headroom. The disposals are expected to result in a small gain against the unaudited book value, suggesting the properties are being sold at a reasonable price. This aligns with the company's strategic shift towards growing its high-margin software and services business.
Key Points
- Contracts exchanged on three more commercial properties at Staverton site
- Aggregate consideration of £1.2 million
- Net proceeds to be used to reduce overdraft borrowings
- Disposals expected to result in small gain against book value
- Marketing of final two freehold properties at Staverton site continues
Summary
Pennant International Group plc has exchanged contracts on three more commercial properties at its Staverton site, generating aggregate consideration of £1.2 million. The net proceeds will be used to reduce the Group's overdraft borrowings, and the disposals are expected to result in a small gain against the unaudited book value. The company continues to market the final two freehold properties at the Staverton site and will provide further updates as necessary.