Norcros agrees land sale to Morrisons
NORCROS, the shower and tile manufacturer which owns Stoke-based Johnson Tiles and Birmingham-based Triton, has agreed a conditional sale of surplus freehold land to supermarket chain Morrisons.
The company said the £8.25m sale was conditional upon planning consent although it has not divulged which site is being sold.
Under the terms of the deal, Norcros would have to take on infrastructure costs amounting to around £5.65m, but these would only be carried out once planning consent has been gained and the sale agreed.
Norcros said it expected to make a profit of around £800,000 on the site sale once the development costs and £1.8m carrying value of the land was factored in.
It expects to receive the cash on completion of the deal, which it anticipates will take place in its next financial year.
The money made from the sale will be used to pay down net debt, which stood at £12.4m at its March 31 year end.
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