Business
Share buyback programme
Share buyback programme.
About this update from Chemring Group Plc
[{"type":"text","content":"\n\nFOR IMMEDIATE RELEASE 1 AUGUST 2023\n \nCHEMRING GROUP PLC (\"Chemring\" or \"the Group\")\nCOMMENCEMENT OF £50 MILLION SHARE BUYBACK PROGRAMME\n \nChemring is pleased to announce the commencement of a Share Buyback Programme (the \"Buyback Programme\") with effect from 1 August 2023 to purchase ordinary shares of 1 pence each (\"Ordinary Shares\") in the capital of the Company up to a maximum aggregate consideration payable by the Company of £50 million.\n\nThe Group's disciplined approach to capital allocation, which is reviewed by the Board on a regular basis, prioritises both organic and inorganic investment, a growing and sustainable dividend, and a prudent approach to leverage.\n \nThe Company has a strong balance sheet, with leverage of 0.3x net debt to EBITDA at 30 April 2023, and a robust pipeline of organic and inorganic investment opportunities. The Board believes that the Buyback Programme, by reducing the Company's share capital, will facilitate an improved capital structure and deliver value for shareholders, whilst still maintaining a strong balance sheet.\n \nThe Buyback Programme is consistent with the Group's approach to capital allocation and reflects the Board's continued confidence in the future prospects of the Group. The Group intends to continue assessing other organic and inorganic investment opportunities for the duration of the buyback, in line with the Group's wider growth strategy.\n \nThe sole purpose of the Buyback Programme is to reduce the Company's share capital and it is intended that Ordinary Shares purchased shall be cancelled. The Buyback Programme will end on 31 July 2024.\n \nThe Group will seek to make market purchases of Ordinary Shares at a price or prices that the Group deems to be good value for shareholders. In accordance with the Company's general ...