Frontier Dev Share News (FDEV)

(Sharecast News) - Frontier Developments announced a £10m on-market share buyback programme on Tuesday, aimed at returning surplus capital to shareholders while supporting earnings per share and maintaining investment flexibility for future growth.

The AIM-listed video game developer said the buyback would start immediately and run until 27 June 2026, or conclude at the 2025 annual general meeting if shareholder authority to repurchase shares was not renewed.

Any shares repurchased would be held in Treasury, reducing the company's share capital with voting rights.

Frontier said the buyback was designed to enhance return on equity and earnings per share, while maintaining financial headroom to support the group's strategy of sustainable growth.

Peel Hunt and Panmure Liberum were appointed to conduct the buyback independently and within pre-agreed parameters.

Both brokers would act severally as riskless principals.

The programme authorised the repurchase of up to 3,947,854 ordinary shares, as approved by shareholders at the 2024 annual general meeting.

Company founder and president David Braben, who controls 32.7% of the company's voting rights, confirmed his intention to sell ordinary shares during the buyback in order to maintain his proportional ownership.

He had issued irrevocable instructions to Peel Hunt and Panmure Liberum accordingly.

Frontier said there was no guarantee the buyback would be implemented in full, with all transactions to be disclosed the following business day.

It said its issued share capital currently stood at 39,478,535 ordinary shares with voting rights.

At 1051 BST, shares in Frontier Developments were up 3.47% at 344.54p.

Reporting by Josh White for Sharecast.com.