REG - Galliford Try Hldgs - Launch of Share Buyback Programme

Galliford Try HoldingsAnnouncement

21/09/2022 07:16

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RNS Number : 0599A  Galliford Try Holdings PLC  21 September 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. THE INFORMATION CONTAINED IN
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO
SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

FOR IMMEDIATE RELEASE

Galliford Try Holdings plc

LAUNCH OF SHARE BUYBACK PROGRAMME

Galliford Try Holdings plc (the "Company") today announces that it intends to
commence a share buyback programme, subject to market conditions, to purchase
ordinary shares of 50 pence each in the Company ("Ordinary Shares") for up to
a maximum aggregate consideration of £15 million from the date of this
announcement (the "Buyback").

As highlighted in its results for the year ended 30 June 2022, published this
morning (which disclosed the Buyback), the Galliford Try group (the "Group")
delivered strong performance resulting in increased revenue, pre-exceptional
profit and operating margin. The operating performance, strong financial
position and quality order book provide the Company's directors (the "Board")
with confidence in the Group's future performance.

The Group's capital allocation priorities are to support operational
requirements and strategic opportunities, to mitigate the effect of future
market downturns and to pay sustainable dividends to shareholders. The Group
has continued to assess the cash requirements of the business to ensure the
Group remains well positioned to deliver on its Sustainable Growth Strategy
and has sufficient funds to invest in the business. Given the capital
allocation priorities and requirements set out above, the Board anticipates
retaining average month-end cash and PPP assets of £175m to £250m to support
delivery of its financial targets to June 2026. For the year ended 30 June
2022, the aggregate of month-end cash and PPP assets was £221m. As previously
announced, where average month-end cash and PPP assets increase above the
level required, the Board will consider making additional returns to
shareholders.

Consistent with the framework set out above, the Company now intends to
commence the Buyback. The Board has reviewed the strong cash performance of
the last two financial years and the capital required to support the Group's
strategic targets, and considers that this is a prudent level of additional
capital to return to shareholders, whilst continuing to prioritise a strong
balance sheet and sustainable growth.

The Company has entered into an agreement with Peel Hunt LLP ("Peel Hunt") to
initially conduct the Buyback, acting as "riskless" or "matched" principal in
accordance with certain contractually agreed parameters. Under this agreement,
the Company has instructed Peel Hunt to purchase Ordinary Shares up to a
maximum aggregate consideration of £15 million pursuant to the Buyback. The
agreement provides Peel Hunt with authority to carry out market purchases
under the Buyback independently of the Company within the agreed parameters.

The purpose of the Buyback is to reduce the share capital of the Company and
return funds to shareholders who wish to sell their Ordinary Shares. The
Ordinary Shares purchased under the Buyback will be cancelled.

The directors of the Company consider the Buyback to be in the best interests
of the Company and of its shareholders generally, with the implementation of
the Buyback expected to enhance earnings per share.

Any purchase of Ordinary Shares under the Buyback will be carried out on the
London Stock Exchange and/or other trading venues. The Buyback will be
conducted in accordance with the general authority to repurchase Ordinary
Shares granted by the Company's shareholders at the 2021 annual general
meeting and to be sought at the 2022 annual general meeting, as well as
Chapter 12 of the Financial Conduct Authority's Listing Rules. All Ordinary
Shares purchased under the Buyback will be purchased within the parameters as
to price and volume as specified in the relevant shareholder authorities.

Due to the limited liquidity in the Ordinary Shares, a buy-back of Ordinary
Shares on any trading day may represent a significant proportion of the daily
trading volume in the Ordinary Shares and may exceed the 25% of the average
daily trading volume specified in the provisions of the UK Market Abuse
Regulation dealing with buyback programmes and accordingly the Company may not
benefit from the exemption contained in Article 5(1) of that regulation.

The Company will make further regulatory announcements to shareholders in
respect of purchases of Ordinary Shares under the Buyback no later than 7.30
a.m. on the business day following the calendar day on which the purchase
occurred.

The person responsible for making this announcement on behalf of the Company
is Kevin Corbett, General Counsel and Company Secretary.

Enquiries:

Galliford Try

 

Bill Hocking, Chief Executive                   01895 855001

Andrew Duxbury, Finance Director

Kevin Corbett, General Counsel & Company Secretary

 

About Galliford Try Holdings plc:

Galliford Try is a trading name of Galliford Try Holdings plc, a
leading UK construction group listed on the London Stock Exchange. Operating
as Galliford Try and Morrison Construction, the group carries out building and
infrastructure projects with clients in the public, private and regulated
sectors across the UK.

 

 

 

 

 

 

 

 

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