Wrather considering disposal to settle debts
BILL Wrather’s property group has been considering the disposal of 21% of its portfolio as a way of refinancing a £50m loan.
According to newly-filed accounts the Wrather Group has a total of £71m in loans.
Some £19.5m was due for renewal in September 2010, £50.3m due in October 2011 and a £1.2m mortgage due for repayment in October 2013.
In the accounts, signed off on December 5, the directors said they had not yet formalised the renewal of the £50.3m facility.
The accounts do not give details of the property portfolio. Four years ago Wrather bought Arkwright House in Parsonage Gardens, Manchester for £18.5m, and last year sold the Zenith Building in Spring Gardens to Henderson Global Investors for a reported £25m.
“In the case of the £50.3m facility the group is in advanced discussions with its current lenders to resolve the funding position, this has included disposing of 21% of the group’s property portfolio.
“Discussions have progressed to the stage of receiving formal feedback of the bank’s willingness to do so. This facility is being rolled forward on a quarterly basis until the renewal is completed,” said the report.
“In the case of the £19.5m facility, the group is in advanced discussions with its current lenders and other external parfties to re-finance this loan facility, and it is likely that these discussions will be completed within the foreseeable future.”
The report adds: “After making enquiries, and considering the uncertainties described above, the directors have a reasonable expecation that the group will be successful in renewing its loan facility with its existing lenders, the group will continue to trade in line with the latest forecasts and has adquate resources to continue in operational existence for the foreseeable future.
“For these reasons, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.”
Due to a reorganisation of the group, the figures cover an 18-month period to January 2012, and are compared to the year to July 2010. Turnover rose from £6.3m to £9m but exceptional administrative expenses of £9.5m linked to write-downs on some properties, and finance charges of £7.2m contributed to a pre-tax loss of £12.9m. During the period the value of the group’s assets fell by 29% from £109.1m to £77.1m.
The report adds: “The directors consider the level of business and the financial position at the end of the period to be in line with expectations. The directors do not anticipate any material changes in the group’s activities in the ensuing year.”
