RNS Number:2109L
Bartercard plc
30 October 2006
Bartercard PLC
("Bartercard" or "the Company")
Building Sale
Bartercard has reached agreement for the sale and leaseback of its Australian
headquarters building for a consideration of A$13,500,000, ahead of original
expectations. The proceeds will be used to repay all long term debt in the
group, with the balance to finance Bartercard's further expansion in Bartercard
UK and the UAE and for working capital for Bartercard International.
The building has a "net book value" in the company's accounts of A$3,519,221 and
this sale represents a substantial profit for the group, and also saves
approximately A$1 million per year in capital loan repayments. Bartercard's
total borrowings are just under A$5.2 million
The Company is also pleased the result of the review announced on 1 September of
its working capital position, future capital raising and its reporting systems
and international financial controls. Grant Thornton has completed its audit and
review and given an unqualified opinion on the financial statements for the year
ended 31 March 2006. The directors are of the opinion that the review is a
positive one that removes any concern over any of the matters reviewed,
particularly considering the sale of the building.
30 October 2006
This information is provided by RNS
The company news service from the London Stock Exchange
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