Share purchase programme

RNS Number : 6885W

Franchise Brands PLC

31 December 2021

 

31 December 2021

FRANCHISE BRANDS PLC

("Franchise Brands", the "Group" or the "Company")

Share purchase programme

Franchise Brands plc (AIM: FRAN), a multi-brand franchise business, announces that it will continue its discretionary programme to buy ordinary shares of 0.5p each in the Company ("Ordinary Shares") for the next six-month period from 1 January 2022 to 30 June 2022, up to an aggregate value of £210,000 (the "Programme").

The Company will continue to use its Employee Benefit Trust (the "EBT"), details of which were announced on 1 July 2020, to purchase Ordinary Shares. The Programme seeks to mitigate the dilutive impact of share option awards and to improve overall shareholder return.

During the period 1 July 2021 to 31 December 2021 ("H2 2021"), the EBT purchased 248,675 Ordinary Shares at an average price of 1.42 pence per share. 197,713 Ordinary Shares held by the EBT have been used to satisfy the exercise of options over Ordinary Shares. Accordingly, the EBT currently holds 219,240 Ordinary Shares (30 June 2021: 168,278 Ordinary Shares) which represents 0.23 per cent. (30 June 2021: 0.16 per cent.) of the Company's current issued share capital. The net cash cost to the Company during H2 2021 was £250,000, with the net underspend to the announced £260,000 available for the H2 2021 period being rolled forward to the next six-month period.

The Company and the EBT have entered into arrangements with the Company's joint broker, Dowgate Capital Limited ("Dowgate"), to carry out on-market purchases of Ordinary Shares under the Programme, including on a discretionary basis independent of the Company during any prohibited periods of the Company, as determined by the UK Market Abuse Regulation, which may fall during the period of the Programme.

The Company was granted authority by its shareholders at the Company's Annual General Meeting ("AGM") on 20 April 2021 to purchase up to 9,575,847 Ordinary Shares subject to a maximum price limit, as detailed in the AGM notice. This authority will expire at the end of the next AGM of the Company in 2022 or, if earlier, at the close of business on 20 July 2022.

Enquiries:

Franchise Brands plc	+ 44 (0) 1625 813231
Stephen Hemsley, Executive Chairman
Chris Dent, Chief Financial Officer
Julia Choudhury, Corporate Development Director
Allenby Capital Limited (Nominated Adviser and Joint Broker)	[phone]
Jeremy Porter / Liz Kirchner (Corporate Finance) Amrit Nahal (Sales & Corporate Broking)
Dowgate Capital Limited (Joint Broker)	[phone]
James Serjeant / Colin Climie / Nicholas Chambers
MHP Communications (Financial PR)	[phone]
Katie Hunt	[phone]
	[e-mail]

 

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