Commencement of Â£35m share buybackSource: RNS
27 May 2022
Vistry Group PLC
Commencement of £35m share buyback
Vistry Group PLC (the "Group") announces that it is commencing a share buyback programme (the "Programme") to repurchase up to £35m of ordinary shares of 50 pence each in the capital of the Company ("Ordinary Shares").
As highlighted in the trading update on 18 May 2022, the Group has experienced a strong start to the year and expects margins in both Housebuilding and Partnerships in 2022 to be ahead of our previous 2022 targets, with adjusted profit before tax to be at the top end of market forecasts at the time of the announcement. The Group also expects month-end average net debt for 2022 to be lower than the Group's previous target of c. £100m.
With balance sheet strength, the priority remains investing in the business to support the Group's growth strategy. The Housebuilding business remains focused on controlled volume growth, driving margins and return on capital employed, while Partnerships continues to drive rapid growth in its higher margin mixed tenure revenues.
In 2021, the Board accelerated the dividend pay out to a two times cover reflecting the strength of the balance sheet and its confidence in the Group's unique market position. The Group stated that surplus capital, following investment in the business to support the Group's growth strategy and the payment of the ordinary dividend, would be returned to the Group's shareholders. Consistent with this capital allocation policy, the Board considers that it is returning a prudent level of cash to shareholders, which reflects the robust trading of the Group, while also retaining a strong balance sheet.
The purpose of the Programme is to return surplus capital to shareholders and reduce the share capital of the Company, and it is expected that the Programme will enhance earnings per share. The aggregate purchase price of all Ordinary Shares acquired under the Programme will be no more than £35 million (excluding stamp duty and expenses). Up to 1,500,000 Ordinary Shares purchased under the Programme will be held in Treasury and the remaining shares that are purchased will be cancelled.
The Company has appointed its joint broker Numis Securities Limited ("Numis") to manage the Programme of up to a maximum aggregate consideration of £35m and subject to certain other parameters.
Share purchases will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volume. Purchases of the Company's shares under the Programme will commence from 27 May 2022 and end no later than 31 December 2022.The Programme is in accordance with Vistry's general authority to purchase a maximum of 22,230,626 Ordinary Shares, granted by its shareholders at the Annual General Meeting held on 18 May 2022. The Programme will be effected within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (as in force in the UK from time to time, including where relevant pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2019). The Group confirms that it currently has no other unpublished price sensitive information.
For further information:
Vistry Group PLC
Earl Sibley, Chief Financial Officer
Susie Bell, Head of Investor Relations