Business
Smaller Related Party Transaction
Smaller Related Party Transaction.
About this update from Alfa Financial Software Holdings Plc
[{"type":"text","content":"\n \n \n \n \n \n 1 August 2022\n \n \n \n Alfa Financial Software Holdings PLC\n \n \n \n \n Smaller Related Party Transaction\n \n \n \n \n \n \n Alfa Financial Software Holdings PLC (\"Alfa\" or the \"Company\"), a leading developer of mission-critical software for the asset finance industry, today announces that it has reached agreement for the assignment of its lease to the 9th floor of 1 Fore Street Avenue, London to CHP Software and Consulting Limited (\"CHP\"), a 66% shareholder in Alfa.\n \n \n \n Background\n \n \n \n Alfa has leases for the 9th, 10th and 11th floors at 1 Fore Street Avenue, London that run through to 2030. This is the head office of Alfa. The 9th floor lease was entered into in 2018 and at the time just under half of the floor was sublet to a third party. The tenant gave notice and moved out in February 2022.\n \n \n Alfa expects continued substantial growth in headcount in all of its locations, but having looked at its new hybrid working arrangements has concluded that it no longer requires the 9th floor, and in 2022 has consolidated all its in-person activities onto the 10th and 11th floors. Alfa has therefore been looking for options for the 9th floor.\n \n \n CHP has been looking for increased office space.\n \n \n \n The lease assignment\n \n \n \n Agreement has been reached between Alfa and CHP for the 9th floor lease to be assigned from Alfa to CHP. There is no consideration for the transaction, with CHP taking on all the rights and liabilities for the 9th floor from Alfa. The assignment of the lease will result in the de-recognition of the right to use asset and lease liability, which will crystallise a one-off gain of £0.5m which will be posted in H2 2022. The assignment will reduce ongoing rent costs by £1.0m per annum, which is a £0.5m improvement versus 2021, when just under half of the floor was sub-let to a third party.\n \n \n As CHP is a substantial shareholder of Alfa, it is a 'related party' of the Company for the purposes of\n Listing Rule 11.1.4R. The entry into the lease assignment by Alfa constitutes a 'smaller related party transaction' for the purposes of Listing Rule 11.1.10R.\n \n \n \n \n \n \n Enquiries\n \n \n \n \n \n \n \n \n \n \n \n \n \n Alfa Financial Software Holdings PLC\n \n \n \n Andrew Denton, Chief Executive Officer\n \n \n Duncan Magrat...