RNS Number : 4788V
Redde Northgate PLC
10 August 2022
 

10 August 2022

This announcement contains inside information

 

REDDE NORTHGATE PLC

("Redde Northgate" or the "Group" or the "Company")

 

Update on Share Buyback Programme

 

 

Redde Northgate plc (LSE:REDD), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, today provides an update on its current £30 million share buyback programme (the " Share Buyback Programme"). Since the announcement of the Share Buyback Programme on 15 March 2022, the Group has purchased c.7.5 million ordinary shares at a total consideration of approximately £28 million (excluding expenses).

 

As announced in Redde Northgate plc's full year results announcement on 6 July 2022, the Group has had a strong start to the new financial year and, in light of significant shareholder support, the Board has resolved to extend the Share Buyback Programme by a further £30 million, up to a maximum aggregate consideration of £60 million, with effect from the date of this announcement. The Share Buyback Programme is expected to continue for up to 6 months and will end no later than 30 June 2023.

 

The Board has reviewed the Share Buyback Programme and has concluded that the current low level of liquidity in its issued ordinary shares may impact its progress. Accordingly, the Group, in discussions with its broker, Numis Securities Limited ("Numis") has agreed that on any given trading day a buyback of shares under the Share Buyback Programme may exceed 25 percent of the average daily trading volume on each trading platform on which Redde Northgate shares are traded. Where a buyback of shares exceeds 25 per cent of the average daily trading volume on any trading platform, the Group will not fall within the exemption contained in Article 5(1) MAR.

 

As announced on 15 March 2022, the Group's objective is to employ a disciplined approach to investment, returns and capital efficiency to deliver sustainable compounding growth. It continues to see exciting opportunities to deploy capital organically and has a good M&A pipeline.  Even after taking into consideration capital to fund organic growth, payment of dividends in line with the Company's dividend policy and acquisitions within the M&A pipeline, the Company has substantial headroom under its facilities and target leverage of 1-2x.

 

Notes:

 

The Share Buyback Programme is conducted pursuant to an agreement between the Company and Numis under which it is intended that Numis will purchase up to a maximum of 24 million ordinary shares in the Company on the Company's behalf, including on an irrevocable basis within certain pre-set parameters. Under the Share Buyback Programme the repurchased shares will be held in treasury. The purpose of the Share Buyback Programme is to reduce the capital of the Company.

 

The Share Buyback Programme is in accordance with the Company's existing general authority to purchase a maximum of 24,609,142 ordinary shares. Any purchase of the Company's ordinary shares contemplated by this announcement will be carried out on a regulated trading venue and be executed in accordance with: (i) the Company's general authority to repurchase ordinary shares granted by its shareholders on 20 September 2021; (ii) save as detailed above, Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 (both as incorporated into UK domestic law by the European Union (Withdrawal) Act 2018); and (iii) Chapter 12 of the Financial Conduct Authority's Listing Rules.

Details of any ordinary shares repurchased will be notified to a Regulatory Information Service by the Group following any repurchase as required by the MAR and the Listing Rules of the FCA. The Company confirms that it currently has no unpublished Inside Information.

The person responsible for making this announcement on behalf of the Company is James Kerton, Company Secretary.

 

For further information contact:

 

Buchanan                                                                                           

David Rydell/Jamie Hooper/Verity Parker                             44 (0) 207 466 5000

Notes to Editors:

Redde Northgate is the leading integrated mobility solutions platform providing services across the vehicle lifecycle. The Company offers integrated mobility solutions to businesses, fleet operators, insurers, OEMs and other customers across six key areas: vehicle rental, vehicle disposal, vehicle ancillary services, repairs, accident management and vehicle data.

The Company's core purpose is to keep its customers mobile, whether through meeting their regular mobility needs or by servicing and supporting them when unforeseen events occur. With its considerable scale and reach, Redde Northgate's mission is to offer a market-leading customer proposition and drive enhanced returns for shareholders by creating value through sustainable compounding growth.  The Group aims to achieve this through the delivery of its strategic framework of Focus, Drive and Broaden.

Redde Northgate services its customers through a network and diversified fleet of over 120,000 owned and leased vehicles, supporting over 600,000 managed vehicles, with more than 170 workshop, body shop and rental locations across the UK, Ireland and Spain and a specialist team of over 6,000 automotive services professionals.

Further information please visit the Company's website:

www.reddenorthgate.com

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