Contractor signed Treatt reports it has signed a construction agreement with developers for its new HQ in Suffolk Park, Bury St Edmunds. The fixed price (design and build) contract is with Readie Construction Ltd and the building is scheduled to be completed by summer 2020. Negotiations for the plant and machinery are also proceeding well. Great clarity on budget This gives the group more visibility over the capex cost. It is reported as £33.2m, net of the old site proceeds of c£5m which will likely only be realised in 2021/22 once the whole relocation is complete. Some of this budget has already been spent (land costs of £3.8m fell in FY18) and the balance was already reflected in our cashflow forecasts. However, there will be much less falling in FY19E (only £2m) than we had originally pencilled in, with the difference moving to FY20E (c£32m). Other costs The group also highlights some additional one-off costs for relocation/accelerated depreciation etc which will be largely treated as exceptionals. The group expects these outstanding costs to total c.£3.5m and again they were already reflected in our cashflow forecast. We still anticipate net debt peaking at end FY20E, but it should not exceed c£14m, so comfortably under 1x EBITDA (working cap fluctuations aside).