Pendragon PLC Share Buyback Programme
May 20 2016 - 2:00AM
UK Regulatory
TIDMPDG
PENDRAGON PLC SHARE BUYBACK PROGRAMME
The Company today announces it will commence an initial GBP20 million share
buyback programme of its ordinary shares. The Company has today entered into
an agreement with Jefferies International Limited ("Jefferies") pursuant to
which Jefferies will implement that programme on behalf of the Company.
The Company's board of directors (the "Board") considered the Group's capital
structure and capital allocation priorities with a view to a return of surplus
cash to shareholders. The Company has a target range of 1.0 to 1.5 times net
debt to underlying EBITDA and is currently trading with financial leverage
below this level. The Board believes the Group will continue to generate strong
cash flows and, after assessing the capital needs of the business and the
current leverage position, has concluded that there is scope to return surplus
cash to shareholders. The Board believes a GBP20 million share buyback programme
will increase capital efficiency whilst ensuring the balance sheet remains
strong, enabling the Company to pursue its investment strategy and progressive
dividend policy.
Over the last two years, the Company has demonstrated a disciplined approach to
capital allocation. The Company's five year, GBP100 million investment
programme, aimed at expanding the Group's UK national footprint over the next
four years, continues on plan. The Group has also spent a total of GBP20.3
million in the last 18 months purchasing certain previously leased properties
occupied by the Group' s businesses and the Board continues to look for further
acquisition opportunities. The Board has evaluated many potential acquisitions.
However, valuations would not have delivered an acceptable level of return to
justify investment by the Company.
The Board will continue to pursue organic and acquisitive growth and investment
opportunities and evaluate them against the returns generated via the share
buyback programme. The buyback programme is capable of being stopped and
restarted and this flexibility will enable the Company to pursue other, higher
returning, capital allocation opportunities if they arise. At the end of this
share buyback programme, the Board will evaluate whether a further programme
would be appropriate.
Any purchases pursuant to the share buyback programme will be carried out
within certain pre-determined parameters and in accordance with the Listing
Rules, other applicable law and the limitations of buyback authority approved
at the last Annual General Meeting of shareholders. All shares purchased under
the programme will be cancelled.
Enquiries
Trevor Finn Chief Executive Pendragon PLC 01623 725114
Tim Holden Finance Director Pendragon PLC 01623 725114
Gordon Simpson Partner Finsbury 0207 2513801
Philip Walters Principal Finsbury 0207 2513801
END
(END) Dow Jones Newswires
May 20, 2016 02:00 ET (06:00 GMT)
Pendragon (LSE:PDG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Pendragon (LSE:PDG)
Historical Stock Chart
From Apr 2023 to Apr 2024