Aukett Swanke sells John R Harris to local management

Aukett Swanke announced the disposal of its interest in the Cyprus-incorporated John R Harris & Partners on Friday, which operates out of the Middle East, to its local management team for a maximum consideration of AED 5m (£1.07m).

The AIM-traded firm said consideration would be settled by AED 4.25 million in cash and a deferred payment of AED 0.75m, payable over a fixed five-year period, subject to an early repayment discount.

It said it had also entered into a marketing agreement covering the use of the group's project portfolio and associated materials over the deferred consideration period for an additional sum, to maintain the group's interest in the market.

John R Harris made a loss of £0.16m in the year ended 30 September 2021, and the value of its net assets was £0.31m at the end of September.

“The disposal is part of a series of intended actions to restructure the group's operations in an orderly manner and to allow the John R Harris business to fulfil its potential without the burden of a central overhead,” the board said in its statement.

“The proceeds of the disposal will be used to reduce the amount drawn under the group's borrowing facility and for general working capital purposes.”