Debt and equity structure
Our gearing continues to be low, at 6.2 per cent at 31 December 2006, compared
to 16.9 per cent at the end of the previous year. Our gross debt totalled
£102.9 million whilst we held £88.5 million of cash deposits.
£6.9 million of those deposits were pledged as collateral to certain
of our lenders. In November 2006, we issued 3.7 million Ordinary shares
by way of a placing, raising gross proceeds of £23.1 million. These
proceeds were principally used to fund the acquisition of the Curzon Park
site in Birmingham. We continue to earmark a significant proportion of our
cash balances to identified projects on which we are presently engaged and
would expect our gearing levels to increase during 2007 if we are successful
in securing all of the projects for which we are now in negotiation.
Stonecross, Wigan was acquired and refurbished
in 2006 to provide a high quality 100,000 sq. ft. distribution facility.
