REG - Redcentric PLC - Share issue in connection with the FY23 Dividend

RedcentricAnnouncement

19/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240119:nRSS2192Aa&default-theme=true

RNS Number : 2192A  Redcentric PLC  19 January 2024

Redcentric plc

("Redcentric" or the "Company")

 

Share issue in connection with the FY23 Dividend

 

 

Redcentric (AIM: RCN) a leading UK IT managed services provider, announces
that, in respect of the final dividend of 2.4 pence per ordinary share of 0.1
penny each ("Ordinary Shares") for the year ended 31 March 2023 (the
"Dividend") due to be paid today, 19 January 2024, the Company has agreed with
certain shareholders representing 63.4% of the Company's total voting rights,
that its obligation to make payment to them of the Dividend (amounting to, in
aggregate, £2,383,145.11) shall be satisfied by the issue of, in aggregate,
1,892,937 new Ordinary Shares (the "Dividend Shares").

 

Having regard to the strategy of the Company, the Board has decided to take
this course of action to strengthen cash balances that enable the Company to
make strategic decisions in respect of its long-term leases that the Board
believe will improve the future profitability of the Company.

 

The Company continues to trade in line with expectations as per the interim
announcement on 22 November 2023.

 

The Dividend Shares will be issued at 125.8961 pence per Ordinary Share, being
the five-day volume weighted average price of an Ordinary Share] at the close
of business on 18 January 2024 (the last business day prior to the dividend
payment date). The Dividend Shares will represent in aggregate 1.19% of the
enlarged issued share capital of the Company ("ISC").

 

Related Party Transactions

 

Oliver Scott, a Non-Executive Director of the Company, is a partner of, and
holds a beneficial interest in, Kestrel Partners LLP ("Kestrel"). Mr. Scott is
also a shareholder in Kestrel Opportunities and is therefore deemed to have a
beneficial interest in Kestrel Opportunities' entire legal holding in
Redcentric.

 

Kestrel and Lombard Odier Asset Management ("Lombard Odier"), both substantial
shareholders in the Company, are participating in the Subscription as follows:

 

 Name                            Dividend Shares
 Kestrel Partners LLP            596,599
 Lombard Odier Asset Management  497,160

 

As such, the Subscriptions by Kestrel and Lombard Odier constitute related
party transactions pursuant to Rule 13 of the AIM Rules for Companies.

 

The Company's independent directors (being Peter Brotherton, David Senior,
Nick Bate and Alan Aubrey) consider, having consulted with the Company's
nominated adviser, Cavendish Capital Markets Limited, that the terms of
Kestrel's subscription are fair and reasonable insofar as the Company's
shareholders are concerned.

 

The Company's directors (being Peter Brotherton, David Senior, Nick Bate,
Oliver Scott and Alan Aubrey) consider, having consulted with the Company's
nominated adviser, Cavendish Capital Markets Limited, that the terms of
Lombard Odier's subscription are fair and reasonable insofar as the Company's
shareholders are concerned.

 

Total voting rights

 

Application has been made for the Dividend Shares to be admitted to trading on
AIM and it is expected that their admission to AIM will take place on or
around 24 January 2024 ("Admission").

 

Following Admission, the Company's ISC will consist of 158,884,919 Ordinary
Shares, 655,278 of which remain held in Treasury. For reporting under the
FCA's Disclosure Guidance and Transparency Rules, shareholders should exclude
any Ordinary Shares held in Treasury and should use the figure of 158,229,641
Ordinary Shares (the issued voting share capital) when determining if they are
required to notify their interest, or a change of their interest in the
Company.

 

 

Enquiries:

 Redcentric plc                                                  +44 (0)800 983 2522

 Peter Brotherton, Chief Executive Officer

 David Senior, Chief Financial Officer

 Cavendish Capital Markets Limited - Nomad and Broker            +44 (0)20 7220 0500

 Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance)

 Andrew Burdis / Sunila de Silva (ECM)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IOEQKFBKDBKBADD