Source - LSE Regulatory
RNS Number : 5275A
Eurocell plc
23 January 2024
 

23 January 2024

 

EUROCELL PLC

("Eurocell" or the "Group")

 

Launch of Share Buyback Programme

 

Eurocell plc, the market leading, vertically integrated UK manufacturer, recycler and distributor of innovative window, door and roofline PVC products, today announced that it intends to commence a new share buyback programme in respect of its ordinary shares of £0.001 each ("Ordinary Shares") up to a maximum consideration of £5 million from the date of this announcement (the "Buyback").

 

As referenced in today's Year End Trading Update, the Board is focused on enhancing shareholder returns and recognises the importance of our ordinary dividend. We will also periodically consider supplementary distributions, whilst always seeking to maintain a strong financial position. The Buyback will reduce the share capital of the Company and enhance earnings per share.

 

Details of the Share Buyback Programme

Eurocell has given irrevocable and non-discretionary instructions to Peel Hunt LLP ("Peel Hunt") in relation to the Buyback, which will commence on 23 January 2024. Peel Hunt will act as principal during the Buyback and will make trading decisions concerning the timing of the purchases of Ordinary Shares independently of the Company.

 

The maximum amount allocated to the Buyback is £5 million. Any market repurchase of Ordinary Shares will be announced no later than 7:30am on the business day following the calendar day on which the repurchase occurred. The first 642,000 Ordinary Shares that are repurchased will be held in treasury to satisfy employee share options over the next two years whilst any further Ordinary Shares that are repurchased will be cancelled.

 

Any purchases of Ordinary Shares contemplated by this announcement will be effected within certain pre-set parameters. These arrangements are in accordance with the authorities granted by the Company's shareholders at its annual general meeting held on 11 May 2023 to repurchase a maximum of 11,209,518 Ordinary Shares.

 

The maximum price payable for an Ordinary Share will be the lower of (a) 105% of the average of the middle market quotation for Ordinary Shares as derived from the Daily Official List of London Stock Exchange plc for the five business days before the date on which the purchase is made and (b) an amount equal to the higher of the last independent trade and highest current independent purchase bid.

 

Due to the limited liquidity in the Ordinary Shares, the Buyback may on any given trading day exceed 25 per cent but remain below 50 per cent of the average daily trading volume.

 

The arrangements relating to the maximum price and volume parameters are in accordance with 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. The limited liquidity of the Company allows for Market Abuse Regulations 1 Annex 1.1.9.3(b) Provision of the Buy-back and Stabilisation Regulation relating to buy-back programmes to warrant the exemptions specified.

 

Details of the authority granted at the 2023 AGM can be found on our website under: https://investors.eurocell.co.uk/investors/agm/

 

This announcement contains inside information for the purposes of the Market Abuse Regulation (EU) no. 596/2014 (including as it forms part of the laws of England and Wales by virtue of the European Union (Withdrawal) Act 2018) ('MAR').

 

 

Enquiries:

Eurocell plc

Darren Waters, Chief Executive Officer                                +44 (0) 1773 842 105

Michael Scott, Chief Financial Officer                                   +44 (0) 1773 842 140

 

Teneo

Nick de Bunsen                                                                      +44 (0) 7825 575 258

 

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