Commencement of Share Buy-back Programme

RNS Number : 2929C

Town Centre Securities PLC

17 June 2021

 

17 June 2021

Town Centre Securities PLC

('The Company' or 'TCS')

Commencement of Share Buy-back Programme

Town Centre Securities Plc, the Leeds, Manchester, Glasgow and London property investment, development and car park operator, today  announces the launch of a share buy-back programme (the "Programme").

The Board is acutely aware of the significant discount that the Company's shares trade at relative to TCS's last reported net asset value (NAV) per share of 286p (EPRA NTA per share - 278p); both numbers stated as at 31 December 2020.

The Board regularly reviews capital allocation to optimise long-term returns for shareholders; reflecting this TCS has continued to make disposals of non-core assets to reduce debt, whilst investing part of the proceeds in our asset management, development opportunities and car park business. Given the wide discount referred to above, the Board believes that share buybacks are an appropriate means of returning value, whilst maximising sustainable long term growth for shareholders, given the enhancement to NAV and earnings per share (pre the effect of Covid) that will result from reducing the number of shares in issue.

TCS implemented a highly successful share buy-back programme in the early 2000's, which significantly enhanced shareholder returns in subsequent years.

Accordingly, the Company today announces the commencement of the Programme, for the repurchase of its ordinary shares of up to a total value of £5.0m. The Programme is expected to continue until the Company's 2021 Annual General Meeting, which is expected to be held in November 2021 . No purchases will be made by the Company under the Programme unless they are accretive on a per-share net asset value basis. 

Any purchase of ordinary shares will be executed in accordance with the Company's general authority to repurchase ordinary shares granted by its shareholders on 17 November 2020, up to a maximum of 7,974,292 ordinary shares, representing 15% of the Company's issued share capital. The purpose of the Programme is to reduce the ordinary share capital of the Company.

The Board will keep the Programme under review to make sure it continues as an efficient and effective means of generating value for shareholders. While the Company has launched the Programme, there is no certainty on the volume of shares that may be acquired under the Programme and the pace of acquisitions.

The Programme will also be effected in accordance with the Market Abuse Regulation 596/2014/EU (as in force in the UK and as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019) (the "Regulation") and Chapter 12 of the UK Listing Rules. Given the level of liquidity in the Company's shares, the Company will retain the ability to exceed the average daily volume restrictions established by the Commission Delegated Regulation 2016/1052/EU (as in force in the UK and as amended by the FCA's Technical Standards (Market Abuse Regulation) (EU Exit) Instrument 2019) (the "Delegated Regulation") and therefore the Programme may not fall within the safe harbour provisions of the Regulation. 

In advance of moving into a closed period ahead of its 2021 full year results (the "Closed Period"), the Company will enter into an irrevocable commitment with Liberum to continue the Programme through a non-discretionary mandate, under which Liberum will make purchases of shares within certain pre-set parameters independently of, and uninfluenced by, the Company for the duration of the Closed Period. Under the terms of the non-discretionary mandate, Liberum will retain the ability to exceed the average daily volume restrictions set out in the Delegated Regulation. Thereafter, the Programme will continue on the basis set out above.

Liberum will purchase the Company's ordinary shares as principal. Shares purchased through the Programme will be cancelled.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

For further information, please contact:

Town Centre Securities PLC                                                                                  www.tcs-plc.co.uk / @TCS PLC

Edward Ziff, Chairman and Chief Executive                                                      0113 222 1234

Stewart MacNeill, Group Finance Director

MHP Communications      [e-mail]

Reg Hoare / Alistair de Kare-Silver                                                   020 3128 8572 / 8742     

Liberum  www.liberum.com

Jamie Richards  / Lauren Kettle                                                                            020 3100 2123

Peel Hunt          www.peelhunt.com

Carl Gough / Henry Nicholls                                                                                     020 3597 8673

Notes to Editors:

Town Centre Securities PLC (TCS) is a Leeds based property investor and car park operator with assets of over £360m. With more than 50 years' experience, a commitment to sustainable development and a reputation for quality and innovation, TCS creates mixed use developments close to transport hubs in major cities across the UK.

For more information visit www.tcs-plc.co.uk

 

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