Distributor Northamber PLC says it expects to complete the £16.4m sale of its Surrey warehouse facility to logistics company OXW Catalina Ltd by the end of July. Shares in Northamber shot up 83% to 52.97 each on Monday afternoon.
Northamber, which sold the Weybridge site for £10m more than its purchase price in 2012, will also be able to rent the warehouse for two years at a cost of £175,000 per annum as part of the deal.
Northamber Chair David Phillips said: "We have always highlighted the strength and quality of our balance sheet, particularly as it has underpinned our activities in markets which have seen considerable and much reported change. We felt the decision to buy the warehouse in 2012 was soundly based but it became apparent that too much of our shareholder value was tied up in a property of a scale that outweighed the functional needs of our activity levels."
The company said that its use of the warehouse, which is based 10 miles away from the company's head office, declined in recent years. Northamber hopes that the sale will allow the firm the time and money to find a property at a more suitable location.
Phillips said: "The proceeds from the sale provide more tangible support to our business and the future development of our evolving strategies."
