Merit Group PLC (LON:MRIT) shares were boosted as it told investors it has exited its lease in The Shard, by assigning it to a third party.
The company, which is part owned by Conservative politician Lord Michael Ashcroft, was tied into the £2.1mln per year lease until July 2026, so had a £7.4mln liability under the lease contract.
It can now hand off the lease to the third party by agreeing to pay a ‘reverse premium’ of £2.9mln.
As a result, it now expects to make a £2.3mln cash saving over the remaining term (allowing for costs of financing, alternative accommodation, relocation and other costs).
"This agreement will deliver significant cost savings and allow the group to improve its free cash flow,” chief executive David Beck said in a statement.
"This disposal largely completes the first phase of management's turnaround plan and leaves the group with two strong operating businesses that are profitable, generate cash and benefit from very high levels of recurring or subscription revenue."
The firm runs a number of political magazines and online publications. It was previously known as Huveaux PLC and Dods PLC (AIM:DODS). Lord Ashcroft retains a 42% stake in the company.
In London, Merit shares gained 3.9p or 14.7% to change hands at 30.4p, which values the politics publisher at around £7.28mln.