Business
Share Buyback Programme
Share Buyback Programme.
About this update from Zigup Plc
[{"type":"text","content":"\n\n28 July 2023\nThis announcement contains inside information\n \nREDDE NORTHGATE PLC\n(\"Redde Northgate\" or the \"Group\" or the \"Company\")\n \nShare Buyback Programme\n \n \nRedde Northgate plc (LSE:REDD), the leading integrated mobility solutions platform providing services across the vehicle lifecycle, is pleased to announce the commencement of a share buyback programme of up to £30 million (the \"Share Buyback Programme\").\n \nAs set out in Redde Northgate plc's full year results announcement on 5 July, the Group delivered record revenue and profits and strong levels of cash generation in the year to 30 April 2023 (\"FY2023\"). The Group has continued to enjoy robust demand in the first months of the current financial year and there is good momentum across the business.\n \nThe Group is highly cash generative, with underlying cash generation of £191m after investing in net fleet replacement. After financing and tax, in FY2023 the Group had cashflows of over £137m available for investment in growth and return to shareholders, together with substantial headroom on its borrowing facilities. The business returned over £105m in the form of dividends and share buyback and invested over £130m in M&A and fleet growth, utilising the strength of the balance sheet. At FY2023 close, leverage was 1.5x net debt to EBITDA, comfortably in the middle of the Group's targeted 1-2x range, with 62% of the Group's debt fixed, including private placement at 1.3% with maturities extending out to 2031 giving longer term rate protection. The overall cost of borrowings at 30 April 2023 was 3.1%.\n \nThe Board continually reviews the Group's allocation of capital, balance sheet position and strategic opportunities and believes that undertaking the Share Buyback Programme can deliver meaningful value for shareholders whilst keeping leverage at a prudent level. Purchases under the Share Buyback Programme will be made from time to time subject to market conditions, share price and trading.\n \nAs noted in connection with the Group's 2022 Share Buyback Programme, the Board considers that the liquidity in its issued ordinary shares is comparatively low. The Group has therefore agreed, in discussions with its executing broker, Numis Securities Limited (\"Numis\") that on any given trading day a buybac...