REG - Gattaca PLC - Launch of Share Buy-back

GattacaAnnouncement

21/08/2023 07:00

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RNS Number : 8382J  Gattaca PLC  21 August 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU NO. 596/2014) AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

 

 

21 August 2023

 

Gattaca plc

 

("Gattaca" or "the Group")

 

Launch of Share Buy-back

 

Gattaca plc ("Gattaca" or the "Group"), the specialist 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 confirmed in its recent trading update, released on 16 August (the "Trading
Update"), the Group exited its 2023 financial year with a strong balance
sheet; reporting unaudited statutory net cash at 31 July 2023 of £21m (31
July 2022: £12m). This follows a year of internal improvements and cost
rebalancing, as a result of which the Group enters FY24 as a leaner, more
efficient and productive business, poised to take advantage of improvements in
market conditions.

 

The Board has remained committed to reinstating its dividend once the Group
returned to sustained levels of profitability, and in the Trading Update
confirmed its intention to pay a full-year ordinary dividend of 2.5 pence.
Alongside the ordinary dividend, the Board also confirmed its intention to
provide one-off capital distributions; by way of a special dividend and the
Share Buy-back.

 

Accordingly, the Company today confirms the launch of the Share Buy-back, to
repurchase ordinary shares in the capital of the Company ("Ordinary Shares")
up to an aggregate value of £0.5 million. This Share Buy-back programme
follows a similar programme launched in April 2023, which also successfully
returned a total of £0.5 million to shareholders (the "April Buy-back").

 

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 2,782,042 (being the
remaining balance of the shareholder authority following completion of the
April Buy-back); 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.

 

The Company intends to limit (but retains discretion over) the number of
Ordinary Shares repurchased daily, such that the aggregate price paid (being
the total number of Ordinary Shares repurchased multiplied by the average
price paid for each Ordinary Share, including expenses) on any given trading
day is expected to not exceed £50,000.

 

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 Capital Limited, the Company's broker,
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

 IFC Advisory                                +44 (0) 203 934 6630
 Tim Metcalfe

 Graham Herring

 Florence Chandler

 

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