The cash consideration receivable by Driver at completion on 20 April, 2018 was £1.65 million. The sale will give rise to a small profit on disposal for the Group, before transaction costs.
The new lease is for an initial term up to 2nd January 2026 at a fixed annual rent of £210,000 with a current annual cash cost to Driver of approximately £105,000 after adjusting for rental income receivable from a sub-tenant. The proceeds of the sale will improve the Group's overall net cash position.
Gordon Wilkinson, Chief Executive Officer of Driver, said: “we are delighted to be able to announce the agreement of the terms of this transaction which represents the final strategic action we committed to implement in February 2017 at the time of the equity raise and refinancing.”