REG - Headlam Group PLC - Update on Share Buyback Programme

HeadlamAnnouncement

28/11/2022 07:00

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RNS Number : 6887H  Headlam Group PLC  28 November 2022

28 November 2022

 

Headlam Group plc

('Headlam' or the 'Company')

 

Update on Share Buyback Programme

Headlam (LSE: HEAD), the leading floorcoverings distributor, today announces
that it has carried out a review of the progress of its Share Buyback
Programme ('SBB') to repurchase ordinary shares of 5 pence each in the Company
('Ordinary Shares') to a maximum aggregate consideration of £15.0 million.

The SBB was announced on 9 March 2022, and since its commencement on 10 March
2022 to market close on 25 November 2022, the Company had purchased 1,888,082
Ordinary Shares through the SBB (all held in treasury) for a total
consideration of £6.0 million, with £9.0 million of the SBB still remaining.
It was previously estimated at the time of its commencement that the SBB would
be completed within approximately 12 months. The Board continues to believe
that purchasing the Company's Ordinary Shares, particularly at the current
levels, is one of the best uses of the Company's surplus capital. The Company
continues to have a strong balance sheet, and after all anticipated cash
requirements including the SBB and shareholder returns next year anticipates
being in a net funds position at year end 2023.

The Board has concluded that the current low liquidity in the issued Ordinary
Shares is significantly impacting the progress of the SBB. In order to proceed
with the SBB in a more effective manner, the Company in discussions with its
brokers, Panmure Gordon and Peel Hunt (the 'Joint Brokers'), agreed that the
SBB may on any given trading day exceed 25 per cent but remain below 50 per
cent of the average daily trading volume and, accordingly, the Company may not
benefit from the exemption contained in Article 5(1) in MAR. The Company
previously announced on 9 March 2022 that the SBB would be conducted so as to
fall within the exemption contained in Article 5(1) of MAR.

No other changes have been made to the SBB or the basis on which it will be
conducted (in each case as announced on 9 March 2022). Details of any Ordinary
Shares repurchased will continue to be notified to a Regulatory Information
Service by the Company following any repurchase as required by MAR and the
Listing Rules of the FCA.

The Company confirms that currently it has no unpublished inside information.

 Headlam Group plc                                Tel: 01675 433 000
 Chris Payne, Chief Executive                     Email: headlamgroup@headlam.com (mailto:headlamgroup@headlam.com)
 Catherine Miles, Director of IR and ESG
 Panmure Gordon (UK) Limited (Corporate Broker)   Tel: 020 7886 2500
 Erik Anderson / Atholl Tweedie
 Peel Hunt LLP (Corporate Broker)                 Tel: 020 7418 8900
 George Sellar / John Welch
 Alma PR (Financial PR)                           Tel: 020 3405 0205
 David Ison / Lily Soares Smith                   Email: headlam@almapr.co.uk

 

 

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