Launch of £15m share buyback programme

International Personal Finance Plc

31 July 2024

 

31 July 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF THE UK MARKET ABUSE REGULATION.

International Personal Finance plc

("IPF" or the "Group")

Launch of £15m share buyback programme

IPF announces that it will commence a share buyback programme, starting today, of its ordinary shares for up to a maximum aggregate consideration of £15 million (the "Programme"), in order to return additional capital to shareholders and reduce IPF's share capital.

The Group's financial model is to deliver a target Return on Required Equity (RoRE) of between 15% and 20%, which supports a minimum dividend payout ratio of 40%, funds receivable growth of up to 10% per annum, whilst maintaining an equity to receivables ratio of 40%. This financial framework ensures that capital is only allocated where it can deliver appropriate returns to shareholders whilst also balancing the needs of all our stakeholders.

As a result of the Group's strong trading and financial performance over the last two years together with favourable foreign exchange movements over that period, the Group balance sheet has continued to strengthen and the equity to receivables ratio stands at 56% at the end of June 2024 compared with the target of 40%.

After assessing the Group's current trading performance, cash generation and future growth plans, the Board believes that a share buyback programme of up to £15m will increase capital efficiency whilst ensuring that the balance sheet remains strong, enabling the Group to pursue its growth strategy and progressive dividend policy.

IPF has entered into non-discretionary agreements with Peel Hunt LLP ("Peel Hunt") and Panmure Liberum Limited ("Panmure Liberum") to conduct the Programme on its behalf and to make trading decisions under the Programme independently of, and uninfluenced by, IPF (except IPF's ability to terminate or amend the mandate during open periods). Purchases may therefore continue during any closed periods of the Group. Shares acquired by Peel Hunt and Panmure Liberum under the agreement will be sold on to IPF and, to the extent permitted by law, such purchased shares will be cancelled.

Any purchase of IPF ordinary shares contemplated by this announcement will be executed in accordance with IPF's general authority to repurchase ordinary shares granted by its shareholders on 2 May 2024. The Programme will be conducted in compliance with Chapter 9 of the Financial Conduct Authority's UK Listing Rules. The Board of IPF has concluded that the current low liquidity in its issued ordinary shares would significantly impact the effectiveness of the Programme. In order to proceed with the Programme in an effective manner, IPF, has agreed with its brokers, Peel Hunt and Panmure Liberum, that the Programme may on any given trading day exceed 25 per cent but remain below 50 per cent of the average daily trading volume and, accordingly, it may not benefit from the exemption contained in Article 5(1) in European Union (EU) Regulation No 596/2014 ("MAR") and the MAR buyback technical standards (Commission Delegated Regulation (EU) 2016/1052) (the "Technical Standards"), both of which form part of Retained EU Law as defined in the European Union (Withdrawal) Act 2018.

The maximum number of shares to be acquired under the Programme is 22,414,959, being the number of shares IPF is authorised to purchase pursuant to the authority granted by shareholders at IPF's 2024 Annual General Meeting. Details of any and all purchases made under the Programme will be provided via RNS announcements by no later than 7.30 a.m. on the business day following the calendar day on which the purchase occurred and also published in the regulatory news section of IPF's website.

This announcement contains inside information. The person responsible for making this announcement on behalf of the Group is Thomas Crane, Chief Legal Officer and Company Secretary.

For further information, please contact:

International Personal Finance plc
Rachel Moran (Investor Relations)	[phone]
Georgia Dunn (Deputy Company Secretary)	[phone]
Panmure Liberum Limited	[phone]
David Watkins
Atholl Tweedie
Peel Hunt LLP	[phone]
Andrew Buchanan
Oliver Jackson

A copy of this statement can be found on our website - www.ipfin.co.uk

Legal Entity Identifier: 213800II1O44IRKUZB59

 

END