Caravan site sale helps pay off loan

Caravan retailer Discover Leisure has sold a surplus site to housebuilder Barratt Developments for £1.65m.

The East Yorkshire-based firm, which operates from five sites across the north, said the sale of a site in Portsmouth completes its disposal of seven properties, which became surplus when the group was forced to restructure and shrink in 2009.

Discover said it booked a 150,000 profit on the latest sale.

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In total the sites have earned Discover 4.87m, compared with a valuation of 4.4m in April 2009.

All proceeds have been used to pay down a loan with NatWest bank, leaving Discover with a balance of 293,000 outstanding.

The group said it has agreed monthly repayment schedules for the rest – 10,000 a month until March 2011, rising to 19,000 monthly from April 2011 to September 2011. The rest will become payable in May 2012.

Non-executive director Simon Dixon is standing down to concentrate on other business interests. Chairman David Morrow said: "Simon has made a tremendous contribution to Discover Leisure. His business skills and wealth of experience have been invaluable and we wish him well."

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Mr Dixon was a founder of Hull-based car retailer Dixon Motors, which was sold to Royal Bank of Scotland in 2002.

Discover was last year saved from collapse with a company voluntary arrangement (CVA), after tumbling consumer confidence eroded sales.