Pennant International disposes of Staverton unit

(Sharecast News) - Pennant International Group announced the disposal of Unit D at its Staverton site for £0.83m in cash on Monday, as part of its ongoing efforts to streamline its training division. The AIM-traded firm said the 6,000-square-foot warehouse would be vacated on completion of the transaction, with the proceeds directed toward reducing the group's overdraft borrowings.

It noted that the disposal followed its previous announcement on 10 December regarding the planned sale of three additional commercial units at the Staverton site for a total of £1.2m.

Those transactions remained subject to contract, and were expected to be completed in the first quarter of 2025.

After transaction costs, the disposal of Unit D was expected to generate a small gain against its unaudited book value as of 31 December.

While the sale would provide additional borrowing headroom, it would also result in a reduction in the group's overall overdraft facility limit, as Unit D would be released from the security package held by Pennant's lender.

At 1105 GMT, shares in Pennant International Group were up 5.24% at 28.94p.

Reporting by Josh White for Sharecast.com.