Eco Animal Health offloads freehold properties

8th Jan 2024 16:19

(Sharecast News) - Eco Animal Health announced the sale of its freehold properties on Monday, signalling a strategic shift in its asset management.

The AIM-traded firm said that on 5 January, it finalised the sale of its former registered office in New Malden, Surrey, which had become surplus and unused after relocating all functions to its Southgate office in London.

It said the net consideration from the property sale totalled £0.83m, surpassing its carrying value of £0.57m.

In addition to the New Malden property sale, on 28 November, Eco Animal Health sold its freehold property on Western Road in Mitcham to its long-term education charity occupier.

The net consideration from that transaction was £0.23m, matching its carrying value, with the board noting that the previous rent payable for the property was a nominal 'peppercorn' amount.

Eco Animal Health said the property sales generated a total cash inflow of £1.06m after factoring in fees and expenses.

The company's board said most of the proceeds were earmarked to support the firm's growth ambitions.

Additionally, the board said it intended to allocate some of the proceeds towards purchasing shares in the open market.

That, it said, aimed to facilitate the potential future vesting of employee share-based incentives, including share options, long-term incentive plans, and the deferred bonus scheme.

To execute those market purchases, the company said it would seek approval from shareholders at a general meeting.

At 1428 GMT, Eco Animal Health Group shares were up 2.62% at 113.4p.

Reporting by Josh White for Sharecast.com.