Share Buyback

Nexteq PLC

25 April 2024

 

25 April 2024

Nexteq plc

("Nexteq" or the "Group")

Share Buy Back

Nexteq (AIM: NXQ), a leading technology solutions provider to customers in selected industrial markets, announces that following the approval by independent shareholders at the General Meeting of the Group held on 16 April 2024 (the "General Meeting"), it intends to commence a limited share buy back programme of up to £1.0 million (the "Buy Back"), with the principal intention being to provide short-term liquidity for the Group's shares in circumstances where otherwise this is lacking.

The Directors believe that the Proposed Buy-Back Authority would be a productive use of the Company's cash reserves and provides the opportunity to repurchase shares at attractive levels to hold in treasury for the purpose of satisfying future obligations in relation to its employees' or other share schemes whilst at the same time enhancing earnings per share. The Directors also believe that the Proposed Buyback Authority would provide Shareholders with the flexibility, but without any compulsion, to realise value in respect of all or some of their shareholdings and is a tax efficient method of returning surplus cash to certain Shareholders.

The Board is mindful of the financial impact a share buy-back may have on the Company and has therefore conducted a thorough exercise with regards to the capital requirements of the Group, its prospects and its funding available, whilst also taking into account the merits of providing greater short-term liquidity for Ordinary Shares. The Board will only proceed to make market purchases at prices which make sense for the Company and its Shareholders as a whole and intends to only do so when there is a lack of liquidity for the Ordinary Shares. The Directors have confirmed that none of them (or any persons connected with them) will, nor do they have any current intention to, sell any of the Ordinary Shares which they beneficially own to the Company should the Company utilise the Proposed Buy-Back Authority.

The Buy Back is in accordance with the terms of the Group's authority to make market purchases of its own ordinary shares of 0.1 pence each in the capital of the Group ("Ordinary Shares") granted to it by shareholders on 16 April 2024 (the "Authority"), including that the maximum price paid per Ordinary Share is to be no more than 105 percent. of the average middle market closing price of an Ordinary Share for the five business days preceding the date of any purchase.

The Buy Back commences today and will end on the conclusion of the next annual general meeting of the Group, save that the Group may, before such expiry, enter into a contract or contracts to purchase ordinary shares which would or might be executed wholly or partly after such expiry and make purchases of ordinary shares in pursuance of such contract or contracts as if the authority conferred by Resolution 1 at the General Meeting had not expired.

The Group has instructed Cavendish Capital Markets Limited ("Cavendish") to execute and manage the Buy Back on its behalf and has given irrevocable instructions to Cavendish to make market purchases of Ordinary Shares on its behalf, independently of the Group. Cavendish will make trading decisions in relation to the Ordinary Shares independently of and uninfluenced by the Group with such trading decisions being in line with the terms of the Buy Back.

Shareholders should be aware that the Buy Back will, insofar as is possible, be conducted in accordance with the safe harbour parameters of MAR (as defined below); however, the Buy Back may on any given trading day represent a significant proportion of the daily trading volume in the Ordinary Shares on the London Stock Exchange and could exceed 25 per cent of the average daily trading volume. Accordingly, the Group may not benefit from the exemption contained in Article 5(1) in the UK version of the Market Abuse Regulations (Regulation (EU) No 596/2014) as incorporated into UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Any market purchase of Ordinary Shares pursuant to the Buy Back will be announced no later than 7.30am on the business day following the day on which the purchase occurred.

Nexteq plc Jon Jayal, Chief Executive Officer Johan Olivier, Chief Financial Officer	Tel: [phone]
Nominated Adviser and Broker: Cavendish Capital Markets Ltd Matt Goode / Simon Hicks (Corporate Finance) Tim Redfern / Harriet Ward (ECM)	Tel: [phone]
Financial PR: Alma Strategic Communications Hilary Buchanan / Kieran Breheny	Tel: [phone]

About Nexteq

Nexteq (AIM: NXQ) is a strategic technology solutions provider to customers in selected industrial markets. Its innovative technology enables the manufacturers of global electronic equipment to outsource the design, development and supply of non-core aspects of their product offering. By outsourcing elements of their technology stack to Nexteq, customers can focus their product development effort on the most critical drivers of their business' success.

Our solutions are delivered through a global sales team and leverage the Group's electronic hardware, software, display and mechanical engineering expertise. Our Taiwan operation is at the heart of Asian supply networks and facilitates cost effective manufacturing and strategic supply chain management.

The Group operates in six countries and services over 500 customers across 47 countries.

Nexteq operates two distinct brands: Quixant, a specialised computer platforms provider, and Densitron, leaders in human machine interface technology, each with dedicated sales, account management and product innovation teams. Founded in 2005, and later floating on the London Stock Exchange's AIM stock market as Quixant plc, the Group rebranded to Nexteq in 2023.

Further information on Nexteq and its divisions can be found at www.nexteqplc.com.

 

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