Driver Group enters sale-and-leaseback agreement on its central offices

Construction and engineering professional services consultancy Driver Group has entered into an agreement with Jetglobal for the sale of the freehold property interest in the group's central administration offices located in Haslingden, Lancashire, and the immediate leaseback of those premises, it announced on Monday.

The AIM-traded firm said the cash consideration receivable by it at completion on 20 April was £1.65m.

It said the sale would give rise to a small profit on disposal for the group, before transaction costs.

The new lease was for an initial term up to 2 January 2026 at a fixed annual rent of £0.21m, with a current annual cash cost to Driver of around £0.11m after adjusting for rental income receivable from a sub-tenant.

Driver said the proceeds of the sale would improve its overall net cash position.

“We are delighted to be able to announce the agreement of the terms of this transaction which represents the final strategic action we committed to implement in February 2017 at the time of the equity raise and refinancing,” said chief executive Gordon Wilkinson.