REG - Touchstar PLC - Dividend Policy and Share Buy-Backs

TouchstarAnnouncement

21/06/2023 07:00

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RNS Number : 3508D  Touchstar PLC  21 June 2023

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

Touchstar plc

(the "Company" or "Touchstar")

 

Dividend Policy and Share Buy-Backs

The Board of Touchstar is pleased to outline its intentions for enhancing
shareholder value through dividends and share buybacks..

Dividends

The Board intends to commence the payment of dividends following the
announcement of the Company's results for the six months ending 30 June 2023,
which are expected to be announced in September, with an interim dividend of 1
pence per share.

The Company's policy will be to pay an interim and final dividend each year.
Thereafter the intention is that dividends will be progressive, linked to
profitability and at least 2.5 times covered by adjusted earnings.

Share Buy-back

At the annual general meeting ("AGM") held on 22 April 2023, shareholders
approved a share buy-back of up to circa 850,000 ordinary shares of 5 pence
each in the capital of the Company ("Ordinary Shares") and  unless previously
renewed, varied or revoked, this authority will expire on 30 June 2024.

The Company now intends to commence purchasing its own shares ("Buy-Backs").
Initially, the Company has budgeted for up to £300,000 for Buy-Backs in 2023
although the exact level of Buy-Backs will be dependent upon availability of
shares and the price. The maximum price payable must not exceed 105% of the
average of the closing middle market price per ordinary share for the previous
five days.

Any Buy-Backs undertaken by the Company will be funded from free cash flow
whilst maintaining a strong balance sheet and the ability to invest
aggressively in the long-term opportunities for business.

The Buy-Backs Programme may not comply with the safe harbour requirements set
out under Article 5 of the retained UK law version of the Market Abuse
Regulation 596/2014/EU ("UK MAR") and, accordingly, the Company may not at all
times benefit from the exemption contained in Article 5 of UK MAR.
Furthermore, due to the limited liquidity in the Ordinary Shares, any market
purchase of Ordinary Shares pursuant to the Buy-Backs on any trading day could
represent a significant proportion of the daily trading volume in the Ordinary
Shares on AIM and could exceed 25 per cent. of the average daily trading
volume. Details of all purchases made pursuant to the Buy-Backs will be
announced via RNS and published on the Company's website as required by UK MAR
without delay

Trading conditions and trends remain positive and are consistent with market
expectations. Other than as disclosed in this announcement, the Company is not
currently in possession of any unpublished inside information.

 

 For further information, please contact:

 Touchstar plc                  Ian Martin              0161 874 5050

                                Mark Hardy              0161 874 5050
 WH Ireland                     Mike Coe/ Sarah Mather  0207 220 1666

 Nominated Adviser and broker

 

Information on Touchstar plc can be seen at: www.touchstarplc.com
(http://www.touchstarplc.com)

 

 

 

 

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