REG - Gattaca PLC - Launch of Share Buy-back

GattacaAnnouncement

03/04/2023 07:00

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RNS Number : 0389V  Gattaca PLC  03 April 2023

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.

 

3 April 2023

 

Gattaca plc

 

("Gattaca" or "the Group")

 

Launch of Share Buy-back

 

Gattaca plc ("Gattaca" or the "Group"), the specialist STEM staffing solutions
business, today announces its intention to make a series of share repurchases
with a view to returning up to £0.5 million to shareholders (the "Share
Buy-back").

 

As set out in the recent interim statement, the Board remains committed to the
development of the Gattaca business towards sustainable levels of
profitability, with a focus on its four strategic priorities of external
focus, culture, operational performance and cost rebalancing. The Group
suspended its dividend to conserve cash during a period of disappointing
performance and at a time of significant investment in new systems. The Board
have an agreed policy to distribute 50% of post-tax profits over the cycle and
will be reviewing its dividend at the year end. However, the Board are
confident that they have sufficient surplus cash available to proceed with the
Share Buy-back.

 

Accordingly, with net cash at 31 January of £20.9 million, the Company today
announces the launch of the Share Buy-back, to repurchase ordinary shares in
the capital of the Company (the "Ordinary Shares") up to an aggregate value of
£0.5 million.

 

The Share Buy-back will be operated in accordance the terms of the Company's
general authority to repurchase Ordinary Shares granted by shareholders at its
annual general meeting (the "AGM"), held on 6 December 2022.

 

In accordance with the authority granted at the AGM, a) the aggregate number
of Ordinary Shares to be repurchased will not exceed 3,229,042, b) the minimum
price which may be paid for each Ordinary Share will be £0.01, and c) the
maximum price (excluding expenses) which may be paid for each Ordinary Share
will be 105% of the average middle market quotations for an Ordinary Share as
derived from the AIM appendix to the Daily Official List of the London Stock
Exchange plc for the five business days immediately preceding the day on which
the Ordinary Share is contracted to be purchased.

 

Shareholders should be aware that a purchase of Ordinary Shares by the Company
on any trading day may represent a significant proportion of the daily trading
volume in the Ordinary Shares and could exceed 25 per cent. of the average
daily trading volume of the preceding 20 business days. Should that be the
case, the Company could exceed the pricing and/or volume restrictions as
established by the Commission Delegated Regulation 2016/1052/EU (as in force
in the UK and as amended by the FCA's Technical Standards (Market Abuse
Regulation) (EU Exit) Instrument 2019) (the "Regulation") and therefore the
Share Buy-back may not fall within the safe harbour provisions of the
Regulation.

 

As part of the Share Buy-back, Liberum has been appointed to purchase the
Ordinary Shares as principal. Ordinary Shares purchased pursuant to the Share
Buy-back will be cancelled.

 

For further information please contact:

 Gattaca plc                                                            +44 (0) 1489 898989
 Matthew Wragg, Chief Executive Officer

 Oliver Whittaker, Chief Financial Officer

 Liberum Capital Limited (Nomad and Broker)                             +44 (0) 20 3100 2000
 Lauren Kettle

 Richard Lindley

 

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