Launch of £75 million share buyback programme

RNS Number : 6150J

Hays PLC

28 April 2022

 

Hays plc

Launch of £75 million share buyback programme 

As separately announced, Hays plc ("Hays" or the "Company") is today hosting an Investor Day in London at 3.00pm UK time.

Hays' business model remains highly cash generative, and at the Investor Day we will reiterate our commitment to returning significant amounts of surplus cash to shareholders. Our policy is that this will continue to be based on returning surplus cash above a buffer at each financial year-end of £100 million and is expected to be implemented via a combination of special dividends and share buybacks.

Accordingly, Hays today announces that it will be launching a share buyback programme (the 'initial programme') to purchase up to £75 million of ordinary shares of 1p, which is expected to commence on 29 April 2022.

The initial programme will be made under the Company's authority granted by shareholders at the annual general meeting of the Company on 10 November 2021. The sole purpose of these share repurchases is to reduce the Company's issued share capital and therefore the purchased shares will be cancelled. It is expected that the initial programme will be completed within the next 12 months.

Surplus cash available for special dividend in FY22 will be the year-end net cash figure, less our £100 million cash buffer (which remains unchanged), less the residual value at 30 June 2022 of the £75 million initial programme. As has always been our policy, any special dividend is subject to Board approval and contingent on a positive economic outlook. It is our intention that in normal years, the value of our core and special dividends will be above any share buyback amount.

The Company is entering into a non-discretionary arrangement with UBS AG to enable the purchase of Ordinary Shares for the initial programme, during open periods. It is anticipated that an additional non-discretionary arrangement with a further broker in respect of the initial programme will be entered into in due course, details of which will be provided in a separate announcement.  The initial programme will be conducted within certain parameters including those prescribed by the Market Abuse Regulation 596/2014, the Commission Delegated Regulation (EU) 2016/1052 and Chapter 12 of the Listing Rules.

For the avoidance of doubt, the initial programme is separate to the two Treasury share purchase programmes which we announced on 23 September 2020 and updated on 29 November 2021. Both these programmes were for 10 million shares each and have been completed, with the shares purchased held in treasury and will be utilised to satisfy employee share-based award obligations over the next two to three years.

For further information please contact:

David Phillips, Head of Investor Relations and ESG on [phone], or [e-mail]

LEI code: 213800QC8AWD4BO8TH08

 

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