Update on Share Buyback Programme

RNS Number : 6887H

Headlam Group PLC

28 November 2022

 

28 November 2022

Headlam Group plc

('Headlam' or the 'Company')

Update on Share Buyback Programme

Headlam (LSE: HEAD), the leading floorcoverings distributor, today announces that it has carried out a review of the progress of its Share Buyback Programme ('SBB') to repurchase ordinary shares of 5 pence each in the Company ('Ordinary Shares') toa maximum aggregate consideration of £15.0 million.

The SBB was announced on 9 March 2022, and since its commencement on 10 March 2022 to market close on 25 November 2022, the Company had purchased 1,888,082 Ordinary Shares through the SBB (all held in treasury) for a total consideration of £6.0 million, with £9.0 million of the SBB still remaining. It was previously estimated at the time of its commencement that the SBB would be completed within approximately 12 months. The Board continues to believe that purchasing the Company's Ordinary Shares, particularly at the current levels, is one of the best uses of the Company's surplus capital. The Company continues to have a strong balance sheet, and after all anticipated cash requirements including the SBB and shareholder returns next year anticipates being in a net funds position at year end 2023.

The Board has concluded that the current low liquidity in the issued Ordinary Shares is significantly impacting the progress of the SBB. In order to proceed with the SBB in a more effective manner, the Company in discussions with its brokers, Panmure Gordon and Peel Hunt (the 'Joint Brokers'), agreed that the SBB may on any given trading day exceed 25 per cent but remain below 50 per cent of the average daily trading volume and, accordingly, the Company may not benefit from the exemption contained in Article 5(1) in MAR. The Company previously announced on 9 March 2022 that the SBB would be conducted so as to fall within the exemption contained in Article 5(1) of MAR.

No other changes have been made to the SBB or the basis on which it will be conducted (in each case as announced on 9 March 2022). Details of any Ordinary Shares repurchased will continue to be notified to a Regulatory Information Service by the Company following any repurchase as required by MAR and the Listing Rules of the FCA.

The Company confirms that currently it has no unpublished inside information.

Headlam Group plc	Tel: [phone]
Chris Payne, Chief Executive	Email:  [e-mail]
Catherine Miles, Director of IR and ESG
Panmure Gordon (UK) Limited  (Corporate Broker)	Tel: [phone]
Erik Anderson / Atholl Tweedie
Peel Hunt LLP  (Corporate Broker)	Tel: [phone]
George Sellar / John Welch
Alma PR  (Financial PR)	Tel: [phone]
David Ison / Lily Soares Smith	Email: [e-mail]

 

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