Toye & Co, a manufacturer of military and masonic regalia, medals, badges and related textiles, has conditionally agreed to sell one of its London properties to a developer.

The property, located at 19-21 Great Queen Street, will be sold for a maximum consideration of between £2.75m and £3.25m.

In a statement the company said: "The property has been an increasingly expensive and under-utilised facility, yet has had strategic importance in serving the Masonic community and other markets from a recognised address.

"The directors believe that the company will only be able to retain and nurture its manufacturing skills by achieving efficiencies in the manufacturing process improving working conditions and retaining and growing its customer base by concentrating on delivering exceptional service.

"A very large amount of capital (approx. £3.0m) is tied up in the property's shop and offices compared with the overall capital within the business."

The group added that a proportion of the funds generated from the sale will be used to repay all group debt of around £1.5m.

Current trading in line with expectations

The group added that trading in the year ended December 31st was in line with its forecasts and said 2013 has seen a continuation of this.

Although it warned that the markets in which Toye operates remain "difficult", it said it is confident in its ability to react to changing conditions whilst maintaining its high standards of craftsmanship through investing in the business following the disposal.

Toye's share price soared 49.33% to 56p by 14:16.

NR

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