Share Buyback Programme

RNS Number : 0944Y

Motorpoint Group plc

07 May 2019

 

7 May 2019

Motorpoint Group PLC

("Motorpoint" or the "Company")

Share Buyback Programme

Motorpoint Group PLC is pleased to announce a new share buyback programme, of up to £10 million (the "Programme").  

The Programme is replacing the Company's share buyback programme of up to £5m which was announced on 14 August 2018 and which has now ended. The Company announced in its interim results on 29 November 2018 that it intended to extend its share buy back programme and had earmarked £10m for share repurchases over the forthcoming year. Since the release of the interim results, the Company has purchased ordinary shares of 1 pence each in the Company ("Ordinary Shares") for an aggregate consideration of c.£2.48m and, given the continuing strong cash generation of the Company, the Board has decided that the Programme should itself be for up to £10m.

The maximum daily number of ordinary shares that will be purchased is 58,000 shares, which is 25% of the average daily volume traded in April 2019, the month prior to this announcement. The Programme is currently expected to end no later than the date of the Company's 2020 annual general meeting ("2020 AGM"), assuming a new general authority to repurchase Ordinary Shares is obtained at the Company's 2019 annual general meeting ("2019 AGM"). The principal purpose of the Programme is to reduce the share capital of the Company and return funds to shareholders who sell their Ordinary Shares; repurchased Ordinary Shares will typically be cancelled, although the Programme allows for Ordinary Shares to be held in treasury at the Company's discretion to help satisfy employee share plan obligations.

Purchases of Ordinary Shares pursuant to the Programme will, up until the 2019 AGM, fall within the terms (including as to the price which may be paid for Ordinary Shares) of the buyback authority granted by shareholders at the Company's annual general meeting held on 24 July 2018 (the "2018 AGM") - this 2018 AGM authority authorises the purchase of a further 7,748,402 Ordinary Shares (being the balance of the 9,980,402 Ordinary Shares referred to in that buyback authority which have not been purchased under the buyback programme announced on 14 August 2018).  It is anticipated that the maximum number of shares that will be the subject of the buyback authority at the 2019 AGM will not exceed (or will not materially exceed) 9,500,000 Ordinary Shares and the Company confirms that the maximum number of Ordinary Shares that will be acquired by the Company under the Programme is 12,000,000.  The continuation of the Programme beyond the Company's 2019 AGM will be dependent on the Company obtaining a new buyback authority at the 2019 AGM and, assuming such an authority is obtained, the Ordinary Shares will be purchased within the price parameters specified in that new authority.

In order to effect the Programme, Motorpoint has entered into an agreement with the Company's joint broker, Shore Capital Stockbrokers Limited ("Shore Capital"), to carry out on-market purchases of its Ordinary Shares. This agreement includes provisions giving Shore Capital authority to carry out market purchases under the Programme independently of the Company.

The Programme will be conducted in compliance with the Market Abuse Regulation (EU) No. 596/2014, Commission Delegated Regulation (EU) No. 2016/1052 and Chapter 12 of the Financial Conduct Authority's Listing Rules.  Details of all purchases made pursuant to the Programme will be announced via RNS and published on the Company's website as required by the Market Abuse Regulation.

Enquiries:

Motorpoint Group PLC Mark Carpenter, Chief Executive Officer James Gilmour, Chief Financial Officer	via FTI Consulting
FTI Consulting (Financial PR) Jonathon Brill Alex Beagley James Styles	020 3727 1000

 
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

Notes to editors

Motorpoint is the largest independent vehicle retailer in the United Kingdom. The Group's principal business is the sale of nearly-new vehicles, the majority of which are up to two years old and which have covered less than 15,000 miles. Motorpoint sells vehicles from brands representing over 95 per cent of new vehicle sales in the United Kingdom, with models from Ford, Vauxhall, Volkswagen, Nissan, Hyundai, Audi and BMW being amongst the top sellers. The Group operates from 12 retail sites across the United Kingdom; Derby, Burnley, Glasgow, Newport, Peterborough, Chingford, Birmingham, Widnes, Birtley, Castleford, Oldbury and Sheffield of which five have opened in the last five years; together with a national contact-centre dealing with online enquiries. 

More information is available at www.motorpointplc.com and www.motorpoint.co.uk.

 

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