25 Nov 2022 16:02
25 November 2022 |
ScS Group plc
("ScS", or the "Company")
New Share Buyback Programme
Following the passing of Resolution 15 at the Company's Annual General Meeting (AGM), held earlier today, which gives the Company a new authority to purchase its own ordinary shares of 0.1 pence each, the Company is pleased to announce a new share buyback programme of up to £3.1 million (the "New Programme").
The New Programme replaces the £7m share buyback programme (the "Old Programme") which was announced by the Company on 22 March 2022 and has now been terminated. Under the Old Programme, 2,461,493 ordinary shares have been repurchased and cancelled, representing 6.5% per cent of the issued share capital at the start of the Old Programme, at a cost of £3.9 million. The size of the New Programme is equal to the remaining balance under the Old Programme.
The maximum daily number of ordinary shares under the New Programme that will be purchased is 56,312, which is 25% of the average daily volume traded in October 2022, the month prior to this announcement. This maximum daily volume in the New Programme is significantly higher than the 18,733 ordinary shares daily maximum under the Old Programme.
Following today's AGM, the Company has shareholder authority to purchase a maximum of 3,592,582 ordinary shares of 0.1 pence each. The New Programme is currently expected to end no later than 12 months from the date of this announcement. The principal purpose of the New Programme is to reduce the share capital of the Company and return funds to shareholders. Repurchased ordinary shares will be cancelled.
In order to effect the New Programme, ScS has entered into an agreement with the Company's broker, Shore Capital Stockbrokers Limited ("Shore Capital"), to carry out on-market purchases of its ordinary shares. This agreement includes provisions giving Shore Capital authority to carry out market purchases under the Programme independently of the Company.
The New Programme will be conducted within the safe harbour parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (each as incorporated into UK domestic law by the European Union (Withdrawal) Act 2018, including where relevant pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2019) and Chapter 12 of the Listing Rules. The Company confirms that it currently has no other unpublished price sensitive information. Details of all purchases made pursuant to the New Programme will be announced via RNS and published on the Company's website as required by the Market Abuse Regulation.
Enquiries:
ScS Group PLC Steve Carson, Chief Executive Officer Chris Muir, Chief Financial Officer | c/o Buchanan +44 (0)20 7466 5000 |
Buchanan Richard Oldworth Toto Berger Verity Parker | Tel: +44 (0)20 7466 5000 scs@buchanan.uk.com |
Shore Capital Patrick Castle James Thomas Iain Sexton | Tel: +44 (0)20 7408 4050 |
ScS is one of the UK's largest retailers of upholstered furniture and flooring, promoting itself as the "Sofa Carpet Specialist", seeking to offer value and choice through a wide range of upholstered furniture and flooring products. The Group's product range is designed to appeal to a broad customer base with a mid-market priced offering and is currently traded from 98 stores.
The Group's upholstered furniture business specialises primarily in fabric and leather sofas and chairs. ScS sells a range of branded products which are not sold under registered trademarks and a range of branded products which are sold under registered trademarks owned by ScS (such as Endurance, Inspire and SiSi Italia). The Group also offers a range of third party brands (which include La-Z-Boy, Ideal Home and G Plan). The Group's flooring business includes carpets, as well as laminate and vinyl flooring.