REG - Gamma Communications - Share buyback programme

Gamma CommunicationsAnnouncement

25/03/2024 07:15

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RNS Number : 0590I  Gamma Communications PLC  25 March 2024

25 March 2024

Gamma Communications plc

("Gamma" or the "Company")

Share buyback programme

Gamma Communications plc, a leading technology-based provider of
communications services across Europe, announces that, from today, it has
appointed Investec Bank plc ("Investec") to manage a share buyback programme
to purchase ordinary shares of 0.25 pence each in the Company ("Shares") for
an aggregate purchase of up to £35 million (the "Programme"), within certain
pre-set parameters. The Company has authorised the Programme to continue while
it retains the authority from shareholders to repurchase such Shares until the
earlier of: (i) the maximum aggregate consideration payable by the Company has
been reached or (ii) Friday 6 September 2024. Shares acquired under the
Programme will either be cancelled or held in treasury as described below. The
existing buy-back authority was granted by shareholders at last year's annual
general meeting ("AGM"). This authority is due to expire at the next AGM and a
resolution will be proposed at the forthcoming AGM to refresh this authority.

As noted in the full year results published this morning, Gamma had a strong
2023 and is confident in its prospects for 2024. Gamma has a strong unlevered
balance sheet and continues to generate significant operating cash flow, with
a net cash balance as at 31 December 2023 of £134.8m*.

The Board's main priorities when it comes to our cash are to enhance the
growth of the business, both organically and through selective acquisitions,
and to reward shareholders through growth in earnings alongside our
progressive dividend policy, while retaining a robust capital base. Where
there is surplus cash over and above the needs of funding that organic and
inorganic growth, the Board has concluded that the announced share buyback,
combined with our ordinary regular dividend, provides a balanced approach for
additional one-off returns of capital to shareholders.

The Programme will be conducted by the Company in accordance with and under
the terms of the general authority granted to the Board by the Company's
shareholders. The Programme will also be effected within the provisions of the
UK version of the Market Abuse Regulation (Regulation (EU) No 596/2014) as
incorporated into UK domestic law by virtue of the European Union (Withdrawal)
Act 2018. Share purchases will be made by Investec on the Company's behalf
and, in the case of any purchases made during closed periods, shall be made
independently of and uninfluenced by the Company.

Any purchases will be conducted in compliance with the relevant conditions for
trading, restrictions regarding time and volume, disclosure and reporting
obligations, and price conditions. The purpose of the Programme is to reduce
the Company's share capital (any Shares repurchased for this purpose will be
cancelled) and to enable the Company to meet obligations arising from share
option programmes (any Shares repurchased for this purpose will be held in
treasury).

The Company will make further announcements in due course following the
completion of any repurchases. There is no guarantee that the Programme will
be implemented in full or that any Shares will be repurchased by the Company.

The Board will continue to keep its capital allocation policy and further
distributions to shareholders under review, with consideration of other
potential uses of capital that may drive value for shareholders over the
medium term.

* Net Cash is Cash and Cash Equivalents less Borrowings. We do not class
contingent consideration or IFRS 16 lease liabilities as debt for the purpose
of quoting a net cash figure.

 

 Enquiries:

 Gamma Communications plc                       Tel: +44 (0)333 006 5972

 Andrew Belshaw, Chief Executive Officer

 Bill Castell, Chief Financial Officer

 Rachael Matzopoulos, Company Secretary

 Investec Bank plc (NOMAD & Broker)             Tel: +44 (0)207 597 5970

 Patrick Robb / Virginia Bull

 Teneo (PR Adviser)                             Tel: +44 (0)207 353 4200

 James Macey White / Matt Low / Rebecca Hamer

 

 

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