Share buy-back

RNS Number : 3532R

Safestyle UK PLC

21 September 2017

 

21 September 2017

Safestyle UK plc

("The Company")

Share buy-back

Safestyle UK plc (AIM: SFE), the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market, was granted an authority to buy-back issued ordinary shares of 1 pence each in the Company ("Ordinary Shares") at the Annual General Meeting of the Company held on 18 May 2017 (the "Authority"). 

As per the Company's previously announced priorities for the uses of cash, the Company is committed to returning excess capital to shareholders after carefully considering its operating and investment requirements. In 2016 the Company declared a special dividend of 6.8p per share, equivalent to £5.5m. Since that date, cash generation has been strong, even after the Company has invested in new production facilities. At 30 June 2017, the Company had cash of £17.7m and the Board will review required levels of cash further when it announces its final results for the year ending 31 December 2017 in March 2018. 

In the meantime, the Board reserves the right to exercise the Authority and effect a share buy-back up to a total of £2.5m.  The purpose of the buy-back programme would be to reduce the share capital of the Company with all Ordinary Shares repurchased being cancelled.  The buy-back, if executed, would terminate on 21 October 2017. The timing and the actual number of Ordinary Shares repurchased will be dependent on market conditions, legal and regulatory requirements.

The Company has appointed Liberum Capital Limited ("Liberum") to manage the buy-back programme and has authorised Liberum to effect on-market purchases of Ordinary Shares on behalf of the Company.

Due to the limited liquidity in the issued Ordinary Shares, a buy-back of Ordinary Shares pursuant to the Authority on any trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares on the AIM market of the London Stock Exchange and is likely to exceed 25 per cent of the average daily trading volume, being the limit laid down in Article 5(1) of Regulation (EU) No 596/2014 and, accordingly, the Company will not benefit from the exemption contained in this Article.

The Company will announce any market purchase of Ordinary Shares pursuant to the Authority without delay.

Enquiries:

Safestyle UK plc Steve Birmingham, Chief Executive Officer Mike Robinson, Chief Financial Officer	via FTI Consulting
Zeus Capital (Nominated Adviser & Joint Broker) Nick How / Dominic King / Andrew Jones	Tel: [phone]
Liberum Capital Limited (Joint Broker) Neil Patel / Jamie Richards	Tel: [phone]
FTI Consulting (Financial PR) Oliver Winters / Alex Beagley / James Styles	Tel: [phone]

About Safestyle UK plc

The Group is the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market.  For more information please visit www.safestyleukplc.co.uk or www.safestyle-windows.co.uk

 

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