Business
Launch of multi-year share buyback programme
Launch of multi-year share buyback programme.
About this update from Keller Group Plc
[{"type":"text","content":"\n\n \n\n \n31 March 2025\nKeller Group plc\n \nLaunch of multi-year share buyback programme with an initial tranche of £25 million\n \nOn 4 March 2025 Keller Group plc ('Keller' or the 'Group') announced its intention to undertake regular share buybacks as part of its overall capital allocation framework. With effect from today, the Group is commencing a multi-year share buyback programme to return an initial tranche of £25 million (excluding any associated costs and stamp duty) of capital to shareholders ('share buyback programme').\n \nKeller has entered into non-discretionary agreements with each of Investec Bank plc ('Investec') and Peel Hunt LLP ('Peel Hunt') (together the 'Brokers') to execute the share buyback programme through on-market purchases of the Group's Ordinary Shares of 10 pence each (the 'Shares'). Investec will execute the first £12.5 million of the share buyback programme and Peel Hunt will execute the second £12.5 million of the share buyback programme. Trading decisions under the share buyback programme will be made by the Brokers independently of the Group on an irrevocable and non-discretionary basis, subject to certain parameters agreed prior to the commencement of the share buyback programme. During any closed periods the Group and its directors have no power to invoke any changes to the programme and it will be executed at the sole discretion of the Brokers.\n \nThe purpose of the share buyback programme is to reduce the share capital of the Group. Shares purchased pursuant to the buyback programme will be held in Treasury and may be used to satisfy future obligations under the Group's employee share plans.\n \nOver the last six years the Group has been increasingly cash generative, resulting in a significant de-levering of the balance sheet. At the end of 2024, net debt had reduced to £29.5m, a 80% decrease versus prior year, driven by strong profitability and cash generation. The resulting net debt/EBITDA leverage ratio of 0.1x (2023: 0.6x), is below the lower end of the Group's leverage target range of 0.5x - 1.5x enabling the Group to accelerate returns to shareholders. The share buyback programme puts surplus cash to use and complements the total dividend for 2024 of 49.7p (2023: 45.2p), which was increased by 10%, reflecting the Board's continued confidence in...