Announcement of share buyback programmeSource: RNS
11th August 2022: Network International Holdings Plc
Announcement of share buyback programme
Network International Holdings Plc (LSE:NETW) ("Network" or the "Company") today announces
its intention to commence a share buyback programme of up to an aggregate purchase price of
USD 100 million (the "Buyback Programme").
Network is a high growth business, having announced another strong trading period with 31% y/y H1 2022 revenue growth. This is supported by the acceleration of digital payments growth across our markets and successful strategic execution.
Network is highly cash generative, having generated USD 81 million in underlying free cashflow1 in the twelve months to the 30th June 2022 and deleveraged to 0.9x net debt / u.EBITDA2. The principal focus of our capital allocation policy remains to prioritise investment in order to accelerate revenue growth. This includes both potential organic investments as well as disciplined selective acquisitions, of which we see multiple future opportunities in our high growth markets.
In the current environment, the Company also sees an opportunity to return excess cash to shareholders by way of a share buyback programme. The Buyback Programme will help to support maintenance of the Company's target balance sheet position of between 1-2x net debt / u.EBITDA2, whilst retaining the existing flexibility to take advantage of additional growth investment opportunities which may arise.
Network announces today that it has entered into a non-discretionary agreement with Citigroup Global Markets Limited ("Citi") to conduct a share buyback programme (the "Initial Programme") on its behalf and to make trading decisions independently of Network. The Initial Programme will be for a maximum aggregate market value equivalent to USD 50 million and will commence on 15 August 2022 and will end on or before 17 February 2023. The Company intends to launch a further tranche of up to USD 50 million following completion of the Initial Programme.
The Programme's purpose is to reduce the capital of the Company and it is currently intended that any ordinary shares of the Company (the "Shares") purchased will be held in treasury.
The Programme will take place within the limitations of the authority granted to the Board of Network by its Annual General Meeting, held on 19 May 2022, pursuant to which the maximum number of shares to be bought back by Network is 56,110,169. Any buyback of the Shares pursuant to the Programme will be effected in accordance with Chapter 12 of the FCA Listing Rules, the EU Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 (which are part of UK law by virtue of the European Union (Withdrawal) Act 2018).
Notes and definitions
1. Underlying free cashflow is defined as underlying EBITDA adjusted for changes in other working capital balances, taxes paid, total capital expenditure, Specially Disclosed Items affecting EBITDA, and adjustment for the share of EBITDA of an associate, less dividend.
2. Underlying EBITDA is defined as profit before interest, taxes, depreciation and amortisation, gain on the disposal of a subsidiary, unrealised foreign exchange (gains) / losses, share of depreciation from associate and Specially Disclosed Items affecting EBITDA.
Investor Relations enquiries
Network International InvestorRelations@Network.Global
Amie Gramlick, Head of Investor Relations
Ben Foster, Andy Parnis