Lincat Group plc, the AIM-listed manufacturer of catering equipment and premium range cookers, today announces that it has renegotiated the payment terms of the sale of IMC’s former manufacturing site in Hertfordshire (“the IMC site”).

Background

On 14 April 2008 the board of Lincat announced that a contract for the sale of the IMC site for a consideration of £7.5m had been exchanged on 11 April 2008.

Under the terms of the contract, Lincat received an initial non-refundable deposit of £1.0m in April 2008, a further non-refundable deposit of £1.0m in September 2008 and was due to receive the balance of £5.5m on 30 June 2009.

Announcement

Lincat has now agreed with the purchaser revised payment terms as follows:

*     A third non-refundable deposit of £1.0m payable on 30 June 2009

*     Balance of £4.5m plus accrued interest payable on 16 December 2009.

Until payment is received in full, title to the property remains with the Group.

Martin Craddock, Chairman, commented:

“Whilst we would have preferred to have completed the sale on 30 June, we recognise the funding difficulties faced by our purchaser, in common with other house-builders, at this time.

When added to the two £1.0m payments received in April and September 2008, this third instalment means that the Group will have received £3.0m in part-payment towards the total purchase price for the site of £7.5m.

We will use this latest £1.0m payment to further reduce our outstanding net bank debt, which stood at £2.9m at 2 January 2009.”