REG - Intnl Personal Fin - Launch of £15m share buyback programme

International Personal FinanceAnnouncement

31/07/2024 07:15

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RNS Number : 4710Y  International Personal Finance Plc  31 July 2024

31 July 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF THE UK
MARKET ABUSE REGULATION.

International Personal Finance plc

("IPF" or the "Group")

Launch of £15m share buyback programme

IPF announces that it will commence a share buyback programme, starting today,
of its ordinary shares for up to a maximum aggregate consideration of £15
million (the "Programme"), in order to return additional capital to
shareholders and reduce IPF's share capital.

The Group's financial model is to deliver a target Return on Required Equity
(RoRE) of between 15% and 20%, which supports a minimum dividend payout ratio
of 40%, funds receivable growth of up to 10% per annum, whilst maintaining an
equity to receivables ratio of 40%. This financial framework ensures that
capital is only allocated where it can deliver appropriate returns to
shareholders whilst also balancing the needs of all our stakeholders.

As a result of the Group's strong trading and financial performance over the
last two years together with favourable foreign exchange movements over that
period, the Group balance sheet has continued to strengthen and the equity to
receivables ratio stands at 56% at the end of June 2024 compared with the
target of 40%.

After assessing the Group's current trading performance, cash generation and
future growth plans, the Board believes that a share buyback programme of up
to £15m will increase capital efficiency whilst ensuring that the balance
sheet remains strong, enabling the Group to pursue its growth strategy and
progressive dividend policy.

IPF has entered into non-discretionary agreements with Peel Hunt LLP ("Peel
Hunt") and Panmure Liberum Limited ("Panmure Liberum") to conduct the
Programme on its behalf and to make trading decisions under the Programme
independently of, and uninfluenced by, IPF (except IPF's ability to terminate
or amend the mandate during open periods). Purchases may therefore continue
during any closed periods of the Group. Shares acquired by Peel Hunt and
Panmure Liberum under the agreement will be sold on to IPF and, to the extent
permitted by law, such purchased shares will be cancelled.

Any purchase of IPF ordinary shares contemplated by this announcement will be
executed in accordance with IPF's general authority to repurchase ordinary
shares granted by its shareholders on 2 May 2024. The Programme will be
conducted in compliance with Chapter 9 of the Financial Conduct Authority's UK
Listing Rules. The Board of IPF has concluded that the current low liquidity
in its issued ordinary shares would significantly impact the effectiveness of
the Programme. In order to proceed with the Programme in an effective manner,
IPF, has agreed with its brokers, Peel Hunt and Panmure Liberum, that the
Programme may on any given trading day exceed 25 per cent but remain below 50
per cent of the average daily trading volume and, accordingly, it may not
benefit from the exemption contained in Article 5(1) in European Union (EU)
Regulation No 596/2014 ("MAR") and the MAR buyback technical standards
(Commission Delegated Regulation (EU) 2016/1052) (the "Technical Standards"),
both of which form part of Retained EU Law as defined in the European Union
(Withdrawal) Act 2018.

The maximum number of shares to be acquired under the Programme is 22,414,959,
being the number of shares IPF is authorised to purchase pursuant to the
authority granted by shareholders at IPF's 2024 Annual General Meeting.
Details of any and all purchases made under the Programme will be provided via
RNS announcements by no later than 7.30 a.m. on the business day following the
calendar day on which the purchase occurred and also published in the
regulatory news section of IPF's website.

This announcement contains inside information. The person responsible for
making this announcement on behalf of the Group is Thomas Crane, Chief Legal
Officer and Company Secretary.

For further information, please contact:

 

 International Personal Finance plc
 Rachel Moran (Investor Relations)        +44 (0)7760 167637
 Georgia Dunn (Deputy Company Secretary)  +44 (0)7584 615230

 Panmure Liberum Limited                  +44 (0)20 7886 2500
 David Watkins
 Atholl Tweedie

 Peel Hunt LLP                            +44(0)20 7418 8900
 Andrew Buchanan
 Oliver Jackson

 

A copy of this statement can be found on our website - www.ipfin.co.uk

Legal Entity Identifier: 213800II1O44IRKUZB59

 

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