The Share Buyback will see the company repurchase ordinary shares in its capital up to an aggregate value of £4m. The ordinary shares purchased pursuant to the Share Buyback will be cancelled.

A company statement said: “The Group remains disciplined in its allocation of capital with the main objective being to enhance shareholder value. We continuously assess our medium-term plans which take account of growth prospects, investment in the Republic of Ireland branch network, cash generation, net borrowings, and leverage. Therefore, the amount allocated to buybacks is based on our predicted trading cash flows and financing headroom.”

Following the announcement of the 2023 interim results, the statement said, “the Board believes the current time presents a good opportunity to make share purchases”. It continues: “The company has delivered two years of underlying operating profits of at least £10m and net debt (pre IFRS16) has reduced to £3.5m at 30 June 2023 [from £9.7m at 30 June 2022) through retained earnings and improvements in working capital. In addition, average borrowings are on a downward trend. Consequently, the company has substantial headroom under its available debt facilities.”

The Share Buyback will be operated in accordance with the terms of the company's general authority to repurchase ordinary shares granted by shareholders at its annual general meeting (12 June 2023).
 
Among the provisions:

• The aggregate number of ordinary shares to be repurchased will not exceed 16,576,772. 
• The minimum price for each ordinary share will be £0.10.   

As part of the Share Buyback, Liberum has been appointed to purchase the ordinary shares as principal.

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