Launch of £20m share buyback programme
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
21 January 2025
Kier Group plc
Launch of £20m share buyback programme
Kier Group plc ("Kier", the "Company", or the "Group"), a leading infrastructure services, construction and property group, announces that it will commence a share buyback programme to purchase ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares") up to a maximum consideration of £20 million (the "Buyback Programme").
On 12 September 2024, Kier published its full year results for 2024, in which the Group announced significant progress against its financial targets, including the deleveraging of its balance sheet, driven through strong cash generation and conversion. These positive trends have continued and in its half year trading update, published separately today, the Group announced an evolved capital allocation policy, which will give consideration to incremental shareholder returns, when appropriate. The Board believes the Group has a strong, stable and flexible balance sheet, capable of supporting growth opportunities, and consistent with its capital allocation framework, considers it is appropriate, and in the best interests of shareholders, to commence the Buyback Programme.
The purpose of the Buyback Programme is to return capital to shareholders. The Company will hold as treasury shares any Ordinary Shares repurchased in accordance with the provisions of the Companies Act 2006.
The Company has entered into a non-discretionary agreement with Peel Hunt LLP ("Peel Hunt") to conduct the Buyback Programme on its behalf and carry out on-market purchases of Ordinary Shares (the "Agreement"). The Buyback Programme will commence today, 21 January 2025, and will end on the date on which the total purchase price of all Ordinary Shares purchased by Peel Hunt pursuant to the Buyback Programme is equal to, or as close as possible to (but not exceeding), £20 million. Peel Hunt will make trading decisions in relation to the Buyback Programme independently of, and without further instruction from, the Company. Under the Agreement, the Company has issued an irrevocable non-discretionary instruction to Peel Hunt to manage the Buyback Programme in order that purchases of Ordinary Shares can continue during closed periods, and if and when the Company comes into possession of inside information. While the Company has launched the Buyback Programme, there is no certainty on the volume of Ordinary Shares that may be purchased or any certainty on the pace and quantum of purchases.
Any purchases of Ordinary Shares pursuant to the Buyback Programme will be carried out on the London Stock Exchange and on other trading venues, in accordance with certain pre-set parameters set out in the Agreement and in accordance with (and subject to the limits prescribed by) the Company's general authority to repurchase Ordinary Shares granted by its shareholders at the annual general meeting held on 14 November 2024 (the "2024 AGM"), Chapter 9 of the Financial Conduct Authority's UK Listing Rules, Article 5(1) of the Market Abuse Regulation (EU) No 596/2014 (as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended), the Commission Delegated Regulation (EU) No 2016/1052 (as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended), and other applicable laws.
The maximum number of Ordinary Shares that may be repurchased under the Buyback Programme is 45,270,364 Ordinary Shares, representing approximately 10 per cent. of the Company's issued ordinary share capital in issue as at 19 September 2024 (being the last practicable date prior to the publication of the notice of the 2024 AGM).
The Company will announce all transactions in Ordinary Shares pursuant to the Buyback Programme by no later than 7.30 a.m. on the business day following the calendar day on which such transaction occurred.
At the time of this announcement, the Company's share capital comprises 452,875,390 Ordinary Shares with voting rights.
Inside Information
The information relating to the Buyback programme in this announcement constitutes inside information as stipulated under the Market Abuse Regulation (EU) No.596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended). On the publication of this announcement via a Regulatory Information Service, such information is now considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Jaime Tham, Company Secretary.
- ENDS -
For further information, please contact:
|
Investor Relations |
+44 (0)7933 388 746 |
|
Kier Press Office |
+44 (0)1767 355 096 |
|
Richard Mountain, FTI Consulting |
+44 (0)7909 684466 |
About Kier Group plc
Kier is a leading UK infrastructure services, construction and property group. We provide specialist design and build capabilities and the knowledge, skills and intellectual capital of our people to ensure we are able to project manage and integrate all aspects of a project.
This announcement does not constitute an offer of securities by Kier Group plc (the "Company"). Nothing in this announcement is intended to be, or intended to be construed as, a profit forecast or a guide as to the performance, financial or otherwise, of the Company or any of its subsidiaries (together, the "Group") whether in the current or any future financial year. This announcement may include statements that are, or may be deemed to be, ''forward-looking statements''. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's or the Group's ability to control or predict. Forward-looking statements are not guarantees of future performance. You are advised to read the section headed ''Principal risks and uncertainties'' in the Company's Annual Report and Accounts for the year ended 30 June 2024 for a further discussion of the factors that could affect the Company's or the Group's future performance and the industry in which it operates. Other than in accordance with its legal or regulatory obligations, the Company does not accept any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
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