REG - Galliford Try Hldgs - Launch of Share Buyback Programme

Galliford Try HoldingsAnnouncement

03/10/2024 07:15

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RNS Number : 7095G  Galliford Try Holdings PLC  03 October 2024

3 OCTOBER 2024

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 consideration of £10 million from the date of this announcement
(the "Buyback").

As highlighted in its results for the year ended 30 June 2024, published this
morning (which disclosed the Buyback), the Galliford Try group (the "Group")
delivered another year of profitable growth, delivering strong performances
across all business segments, resulting in profit before tax 40% higher than
the prior year. The operating performance, strong balance sheet and an order
book of £3.8bn provide the Company's directors (the "Board") with confidence
in the Group's future performance.

The Group's capital allocation priorities, which remain unchanged, are
designed to maintain a strong balance sheet provide confidence to the Group's
clients and supply chain, support disciplined approach to project selection
and mitigate against adverse market conditions.  In order of priority, the
Group will reinvest in the business, operate a sustainable dividend policy and
any excess cash will be returned to shareholders.  The Buyback reflects both
the receipt of a corporation tax refund, of £9.6m, and our confidence in the
ongoing future cash generation of the Group, whilst maintaining flexibility
for growth related investments, including acquisitions.

The Group has continued to assess the cash requirements of the business to
ensure the Group remains well positioned to deliver on its Strategy to 2030
and has sufficient funds to invest in the business. Consistent with this
framework, the Company intends to commence a modest share buyback.  The
quantum represents a prudent return leaving the Group with sufficient capital
to be flexible and act quickly on other investment opportunities.

This represents the second share buyback programme that Galliford Try has
undertaken in recent years, with the previous share buyback programme of
£15m, first announced on 21 September 2022, completing in November 2023.

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 consideration of £10 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 2023 annual general
meeting and to be sought at the 2024 annual general meeting, as well as UKLR
9.6 of the Financial Conduct Authority's UK 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

Kris Hampson, Chief Financial Officer

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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