REG - Begbies Traynor - Related party transaction

Begbies TraynorAnnouncement

09/12/2022 07:30

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RNS Number : 1436J  Begbies Traynor Group PLC  09 December 2022

9 December 2022

 

Begbies Traynor Group plc

 

("Group" or "Company")

 

Related party transaction

Begbies Traynor Group plc, the business recovery, financial advisory and
property consultancy, announces it has entered into a lease agreement with
William Nelson Limited for a new regional office in Leigh-on-Sea, Essex,
covering existing insolvency operations of the Group in the South East
("Property Lease"). Mark Fry, the Group's Head of Business Recovery and
Advisory and executive director has a one third ownership interest in William
Nelson Limited.

The Property Lease is for a six year term and incorporates a tenant's only
break clause to terminate the lease at the end of the third year. The
annualised rental cost of the property which is fully fitted out with the
landlord's fixtures and fittings (inclusive of appropriate market incentives)
is £52,000.  The tenant will also pay an appropriate proportion of the
service charge and insurance for the property.

This Property Lease replaces the Group's previous property lease in
Southend-on-Sea which had been in place since the associated insolvency
practice was acquired (prior to Mark Fry becoming a director of the Group).
 Mark Fry has a 50% partnership interest share in the Southend-on-Sea
property. The new lease represents a rent reduction of approximately £43,000
per annum.  This reflects a smaller lettable area of the new property which
is also fully fitted out, therefore removing any immediate capital investment
requirement for the Group.  In assessing the appropriateness of the new
Property Lease, the Group has undertaken a thorough exercise of considering
alternative property options in Leigh-on-Sea, Southend-on-Sea and surrounding
areas.

The Property Lease represents a related party transaction which the
independent directors consider, having consulted with its nominated advisor
Canaccord Genuity Limited, that the terms of the transaction are fair and
reasonable insofar as the shareholders are concerned.

Pursuant to the Companies Act, shareholder consent for the new lease will be
sought at the Group's next annual general meeting in the Autumn.

Enquiries please contact:

 

Begbies Traynor Group plc
                        0161 837 1700

John Humphrey - Group Company Secretary

 

Canaccord Genuity Limited
 
020 7523 8350

(Nominated Adviser and Joint Broker)

Emma Gabriel / Patrick Dolaghan

 

Shore Capital
                                                                                   020
7408 4090

(Joint Broker)

Malachy McEntyre / Mark Percy / Anita Ghanekar / James Thomas

 

MHP
Communications
            020 3128 8572

Reg Hoare / Katie Hunt / Pauline Guenot
               begbies@mhpc.com (mailto:begbies@mhpc.com)

 

 

 

 

 

 

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