REG - MITIE Group PLC - Launch of new £50 million share buyback programme

MITIEAnnouncement

18/04/2023 07:15

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RNS Number : 5040W  MITIE Group PLC  18 April 2023

18 April 2023

Mitie Group plc

LEI number: 213800MTCLTKEHWZMJ03

 

 

Mitie Group plc

"Launch of new £50 million share buyback programme"

 

Mitie Group plc ("Mitie" or "the Group") (LSE: MTO), the UK's leading
facilities management company, announces its intention to undertake a £50
million share buyback programme (the "Share Buyback Programme") in respect of
its ordinary shares of 2.5 pence each ("Ordinary Shares").  The first tranche
of the programme, with a maximum consideration of £25 million, will commence
from the date of this announcement (the "First Tranche").

 

As highlighted in Mitie's trading update for the year ended 31 March 2023
("FY23"), published this morning (which disclosed the Share Buyback
Programme), the encouraging performance reported during FY23 has continued
over the balance of the year, and operating profit before other items is now
expected to exceed the current guidance.  We have a robust balance sheet, and
we have entered the new financial year in a good position, having made solid
progress on our strategic priorities in FY23.

In today's trading update, we also confirmed the Board's decision to purchase
shares for all employee incentive schemes, to eliminate the otherwise dilutive
effect to shareholders of issuing new shares to fulfil the schemes.  The
majority of our share schemes are satisfied through the company's Employee
Benefit Trust ("EBT"), whilst Save As You Earn ("SAYE") schemes are satisfied
through Treasury shares to mitigate unnecessary stamp duty costs for the
employee.

 

In line with this objective, 15 million Ordinary Shares purchased as part of
the First Tranche will be held in Treasury to satisfy our 2020 SAYE scheme,
which vests in December 2023.  30 million shares are required in total for
this scheme, and the remainder will be purchased in the second tranche.

Assuming all 30 million share options under the 2020 SAYE scheme are exercised
by participating employees when the scheme vests in December, Mitie will
receive a contribution of 28 pence per share, being the discounted option
price, from the employee towards each share purchased under the scheme
(equivalent to £8 million, in aggregate).  The use of these funds for
additional share buybacks will be considered in the context of M&A
opportunities and the market outlook.

In order to execute the First Tranche, Mitie has entered into an instruction
with Peel Hunt LLP ("Peel Hunt") in relation to the purchase by Peel Hunt,
acting as principal during the period commencing on 18 April 2023 and ending
no later than 30 September 2023, of Ordinary Shares in the share capital of
Mitie ("Shares") for an aggregate consideration (excluding expenses) of no
greater than £25 million and the simultaneous on-sale of such Shares by Peel
Hunt to Mitie.  15 million of the Ordinary Shares acquired by Mitie will be
held in Treasury, with any Ordinary Shares acquired in excess of this number
to be cancelled.  Peel Hunt will make its trading decisions concerning the
timing of the purchases of Mitie's Ordinary Shares independently of, and
uninfluenced by, the Group.

The Share Buyback Programme will be conducted within certain pre-set
parameters, and in accordance with the general authority to repurchase shares
granted by Mitie's shareholders at the 2022 Annual General Meeting (which
authority is expected to be renewed at the 2023 Annual General Meeting),
Chapter 12 of the UK Listing Rules and the provisions of the Market Abuse
Regulation 596/2014/EU dealing with buyback programmes.

Mitie will announce any market repurchase of Ordinary Shares no later than
7.30 a.m. on the business day following the calendar day on which the
repurchase occurred.

 

-     END -

 

For further information

 Kate Heseltine                  M: +44 (0)738 443 9112  E: kate.heseltine@mitie.com (mailto:kate.heseltine@mitie.com)

 Group IR Director

 Claire Lovegrove                M: +44 (0)790 027 6400  E: claire.lovegrove@mitie.com (mailto:claire.lovegrove@mitie.com)

 Director of Corporate Affairs

 Richard Mountain                M: +44 (0)790 968 4466

 FTI Consulting

 

About Mitie

Founded in 1987, Mitie's job is to look after places where Britain works and
is the leading facilities management company in the UK. We offer a range of
services to the Public Sectors in Central Government and Defence and
Communities (Healthcare, Education and Campus & Critical). Our Technical
Services (Engineering Services, Energy, Water and Real Estate Services) and
Business Services (Security, Cleaning and Office Services) divisions serve
private sector customers in Telecoms, Financial & Professional Services,
Transport and Industrials and increasingly to the public sector. Finally, our
Specialist Services (Care & Custody, Landscapes, Waste Management and
Spain) division serves both the public and private sectors.

Mitie employs 68,000 people. We are the champion of the 'Frontline Heroes' who
have kept Britain working during the COVID pandemic. We take care of our
customers' people and buildings, through the 'Science of Service', and we are
transforming facilities to be more flexible, safe, sustainable, and attractive
to all. The business continues to execute its technology-led strategy and in
the past twelve months has received multiple awards. Find out more at
www.mitie.com (http://www.mitie.com) .

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