Share buyback of up to 10% of issued share capital

RNS Number : 8255D

McBride PLC

02 November 2020

 

2 November 2020

McBride plc

Share buy-back of up to 10% of issued share capital

McBride plc (the "Company" or the "Group") announces that, from today, it will commence a share buy-back programme of up to £12 million in McBride plc ordinary shares ("Shares").

The programme will run from 2 November 2020 through to the date of the Company's next Annual General Meeting, expected in October 2021. The maximum number of Shares that may be repurchased by the Company under the programme is 18.3 million. Purchases may continue during any closed period to which the Company is subject. The purpose of the share buyback programme is to reduce the share capital of the Company (any Shares repurchased for this purpose will be cancelled).

From time to time, the Board will assess the progress of this programme in light of the financial situation of the Company and its capital allocation needs. The Group's interim results in February will include a strategy update which will outline the Group's likely capital needs in the coming years and, as a result, a view on its future capital allocation.

The Company has entered into an agreement with Investec Bank plc ("Investec") to act as principal in relation to the purchase of the Shares, within certain parameters, and the subsequent sale of such Shares to the Company. Under the terms of the agreement, Investec will make purchases of the Shares under the buy-back programme independently of, and uninfluenced by, McBride. The Company confirms that it currently has no unpublished Inside Information.

These arrangements are in accordance with the Company's general authority to repurchase shares, which extends to the 2020 Annual General Meeting on 23 November 2020 and thereafter in accordance with and under the terms of any such general authority which is granted at the 2020 Annual General Meeting. Full details of the proposed general authority are set out in Resolution 17 of the AGM notice.  

The programme will also be conducted in accordance with Chapter 12 of the Listing Rules and the relevant provisions of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation (EU) 2016/1052.

Chris Smith, Chief Executive of McBride, said: "We believe that McBride's current share price does not reflect the value of the underlying business. We have resilient revenues, a strong balance sheet and highly visible cash flows. We therefore think it is in the interests of all shareholders to commence this programme."

Enquiries:
McBride plc
Jeff Nodland, Chairman	0161 203 7570
Chris Smith, CEO
FTI Consulting
Ed Bridges, Nick Hasell	020 3727 1017

 

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