Launch of Share Buy-back

RNS Number : 0389V

Gattaca PLC

03 April 2023

 

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

3 April 2023

Gattaca plc

("Gattaca" or "the Group")

Launch of Share Buy-back

Gattaca plc ("Gattaca" or the "Group"), the specialist STEM staffing solutions business, today announces its intention to make a series of share repurchases with a view to returning up to £0.5 million to shareholders (the "ShareBuy-back").

As set out in the recent interim statement, the Board remains committed to the development of the Gattaca business towards sustainable levels of profitability, with a focus on its four strategic priorities of external focus, culture, operational performance and cost rebalancing. The Group suspended its dividend to conserve cash during a period of disappointing performance and at a time of significant investment in new systems. The Board have an agreed policy to distribute 50% of post-tax profits over the cycle and will be reviewing its dividend at the year end. However, the Board are confident that they have sufficient surplus cash available to proceed with the Share Buy-back.

Accordingly, with net cash at 31 January of £20.9 million, the Company today announces the launch of the Share Buy-back, to repurchase ordinary shares in the capital of the Company (the "Ordinary Shares") up to an aggregate value of £0.5 million.

The Share Buy-back will be operated in accordance the terms of the Company's general authority to repurchase Ordinary Shares granted by shareholders at its annual general meeting (the "AGM"), held on 6 December 2022.

In accordance with the authority granted at the AGM, a) the aggregate number of Ordinary Shares to be repurchased will not exceed 3,229,042, b) the minimum price which may be paid for each Ordinary Share will be £0.01, and c) the maximum price (excluding expenses) which may be paid for each Ordinary Share will be 105% of the average middle market quotations for an Ordinary Share as derived from the AIM appendix to the Daily Official List of the London Stock Exchange plc for the five business days immediately preceding the day on which the Ordinary Share is contracted to be purchased.

Shareholders should be aware that a purchase of Ordinary Shares by the Company on any trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares and could exceed 25 per cent. of the average daily trading volume of the preceding 20 business days. Should that be the case, the Company could exceed the pricing and/or volume restrictions as 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 "Regulation") and therefore the Share Buy-back may not fall within the safe harbour provisions of the Regulation. 

As part of the Share Buy-back, Liberum has been appointed to purchase the Ordinary Shares as principal. Ordinary Shares purchased pursuant to the Share Buy-back will be cancelled.

For further information please contact:

Gattaca plc	[phone]
Matthew Wragg, Chief Executive Officer Oliver Whittaker, Chief Financial Officer
Liberum Capital Limited (Nomad and Broker)	[phone]
Lauren Kettle Richard Lindley

 

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