REG - Town Centre Secs. - Commencement of New Share Buy-back Programme

Town Centre SecuritiesAnnouncement

06/01/2022 07:00

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RNS Number : 5676X  Town Centre Securities PLC  06 January 2022

6 January 2022

 

Town Centre Securities PLC

('The Company' or 'TCS')

Commencement of New Share Buy-back Programme

 

Town Centre Securities Plc, the Leeds, Manchester, Glasgow and London
property investment, development and car park operator, today announces the
launch of a new share buy-back programme (the "Programme"); this follows an
earlier share buy-back programme which commenced on 17 June 2021 and ended
immediately prior to the Company's AGM on 29 December 2021.

The new buy-back reflects the fact that the Board remains acutely aware of the
significant discount that the Company's shares trade at relative to TCS's last
reported net asset value (NAV) per share of 292p (EPRA NTA per share - 284p);
both numbers stated as at 30 June 2021.

The Board regularly reviews capital allocation to optimise long-term returns
for shareholders; reflecting this TCS has continued to make disposals of
non-core assets to reduce debt, whilst investing part of the proceeds in our
asset management, development opportunities and car park business. Given the
wide discount referred to above, the Board believes that share buybacks are an
appropriate means of returning value, whilst maximising sustainable long term
growth for shareholders, given the enhancement to NAV and earnings per share
that will result from reducing the number of shares in issue.

TCS implemented a highly successful share buy-back programme in the early
2000's, which significantly enhanced shareholder returns in subsequent years.
TCS also implemented a share buy-back programme in the second half of 2021,
with a total of 386,973 shares purchased as part of this programme, returning
£533,271 to shareholders.

Accordingly, the Company today announces the commencement of the Programme,
for the repurchase of its ordinary shares of up to a total value of £5.0
million. The Programme is expected to continue until the date of the Company's
financial year end, being 30 June 2022. No purchases will be made by the
Company under the Programme unless they are accretive on a per-share net asset
value basis.

Any purchase of ordinary shares will be executed in accordance with the
Company's general authority to repurchase ordinary shares granted by its
shareholders at its AGM on 29 December 2021, up to a maximum of 7,916,246
ordinary shares, representing 15% of the Company's issued share capital. The
purpose of the Programme is to reduce the ordinary share capital of the
Company.

The Board will keep the Programme under review to make sure it continues as an
efficient and effective means of generating value for shareholders. While the
Company has launched the Programme, there is no certainty on the volume of
shares that may be acquired under the Programme and the pace of acquisitions.

The Programme will also be effected in accordance with the Market Abuse
Regulation 596/2014/EU (as in force in the UK and as amended by the Market
Abuse (Amendment) (EU Exit) Regulations 2019) (the "Regulation") and Chapter
12 of the UK Listing Rules. Given the level of liquidity in the Company's
shares, the Company will retain the ability to exceed the average daily volume
restrictions established by the Commission Delegated Regulation 2016/1052/EU
(as in force in the UK and as amended by the FCA's Technical Standards (Market
Abuse Regulation) (EU Exit) Instrument 2019) (the "Delegated Regulation") and
therefore the Programme may not fall within the safe harbour provisions of the
Regulation.

In advance of moving into a closed period ahead of its half year results for
the period ending 31 December 2021 (the "Closed Period"), the Company will
enter into an irrevocable commitment with Liberum to continue the Programme
through a non-discretionary mandate, under which Liberum will make purchases
of shares within certain pre-set parameters independently of, and uninfluenced
by, the Company for the duration of the Closed Period. Under the terms of the
non-discretionary mandate, Liberum will retain the ability to exceed the
average daily volume restrictions set out in the Delegated Regulation.
Thereafter, the Programme will continue on the basis set out above.

Liberum will purchase the Company's ordinary shares as principal. Shares
purchased through the Programme will be cancelled. The Company will make
further announcements in due course following the purchase of any shares under
the Programme.

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014

 

For further information, please contact:

 

Town Centre Securities PLC
 
  www.tcs-plc.co.uk (http://www.tcs-plc.co.uk/) / @TCS PLC

Edward Ziff, Chairman and Chief Executive
 
     0113 222 1234

Stewart MacNeill, Group Finance Director

 

MHP Communications
 
                      tcs@mhpc.com (mailto:tcs@mhpc.com)

Reg Hoare
 
              020 3128 8572 / 8742
 
 

Liberum
 
                                  www.liberum.com
(http://www.liberum.com)

Jamie Richards  / Lauren Kettle / Nikhil Varghese
 
 020 3100 2123

 

Peel
Hunt
                      www.peelhunt.com (http://www.peelhunt.com)

Carl Gough / Henry Nicholls
 
       020 3597 8673 / 8640

 

Notes to Editors:

Town Centre Securities PLC (TCS) is a Leeds based property investor and car
park operator with assets of over £360m. With more than 50 years' experience,
a commitment to sustainable development and a reputation for quality and
innovation, TCS creates mixed use developments close to transport hubs in
major cities across the UK.

For more information visit www.tcs-plc.co.uk (http://www.tcs-plc.co.uk)

 

 

 

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