Company Announcements

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Touchstar plc

(the "Company" or "Touchstar")

Dividend Policy and Share Buy-Backs

The Board of Touchstar is pleased to outline its intentions for enhancing shareholder value through dividends and share buybacks..

Dividends

The Board intends to commence the payment of dividends following the announcement of the Company's results for the six months ending 30 June 2023, which are expected to be announced in September, with an interim dividend of 1 pence per share.

The Company's policy will be to pay an interim and final dividend each year. Thereafter the intention is that dividends will be progressive, linked to profitability and at least 2.5 times covered by adjusted earnings.

Share Buy-back

At the annual general meeting ("AGM") held on 22 April 2023, shareholders approved a share buy-back of up to circa 850,000 ordinary shares of 5 pence each in the capital of the Company ("Ordinary Shares") and  unless previously renewed, varied or revoked, this authority will expire on 30 June 2024.

The Company now intends to commence purchasing its own shares ("Buy-Backs"). Initially, the Company has budgeted for up to £300,000 for Buy-Backs in 2023 although the exact level of Buy-Backs will be dependent upon availability of shares and the price. The maximum price payable must not exceed 105% of the average of the closing middle market price per ordinary share for the previous five days.

Any Buy-Backs undertaken by the Company will be funded from free cash flow whilst maintaining a strong balance sheet and the ability to invest aggressively in the long-term opportunities for business.

The Buy-Backs Programme may not comply with the safe harbour requirements set out under Article 5 of the retained UK law version of the Market Abuse Regulation 596/2014/EU ("UK MAR") and, accordingly, the Company may not at all times benefit from the exemption contained in Article 5 of UK MAR.  Furthermore, due to the limited liquidity in the Ordinary Shares, any market purchase of Ordinary Shares pursuant to the Buy-Backs on any trading day could represent a significant proportion of the daily trading volume in the Ordinary Shares on AIM and could exceed 25 per cent. of the average daily trading volume. Details of all purchases made pursuant to the Buy-Backs will be announced via RNS and published on the Company's website as required by UK MAR without delay

Trading conditions and trends remain positive and are consistent with market expectations. Other than as disclosed in this announcement, the Company is not currently in possession of any unpublished inside information.

 For further information, please contact:

Information on Touchstar plc can be seen at: www.touchstarplc.com