31 July
2024
THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF THE
UK MARKET ABUSE REGULATION.
International Personal
Finance plc
("IPF" or the
"Group")
Launch of £15m share
buyback programme
IPF announces that it
will commence a share buyback programme, starting today, of its
ordinary shares for up to a maximum aggregate consideration of £15
million (the "Programme"), in order to return additional capital to
shareholders and reduce IPF's share capital.
The Group's financial
model is to deliver a target Return on Required Equity (RoRE) of
between 15% and 20%, which supports a minimum dividend payout ratio
of 40%, funds receivable growth of up to 10% per annum, whilst
maintaining an equity to receivables ratio of 40%. This financial
framework ensures that capital is only allocated where it can
deliver appropriate returns to shareholders whilst also balancing
the needs of all our stakeholders.
As a result of the
Group's strong trading and financial performance over the last two
years together with favourable foreign exchange movements over that
period, the Group balance sheet has continued to strengthen and the
equity to receivables ratio stands at 56% at the end of June 2024
compared with the target of 40%.
After assessing the
Group's current trading performance, cash generation and future
growth plans, the Board believes that a share buyback programme of
up to £15m will increase capital efficiency whilst ensuring that
the balance sheet remains strong, enabling the Group to pursue its
growth strategy and progressive dividend policy.
IPF has entered into
non-discretionary agreements with Peel Hunt LLP ("Peel Hunt") and
Panmure Liberum Limited ("Panmure Liberum") to conduct the
Programme on its behalf and to make trading decisions under the
Programme independently of, and uninfluenced by, IPF (except IPF's
ability to terminate or amend the mandate during open periods).
Purchases may therefore continue during any closed periods of the
Group. Shares acquired by Peel Hunt and Panmure Liberum under the
agreement will be sold on to IPF and, to the extent permitted by
law, such purchased shares will be cancelled.
Any purchase of IPF
ordinary shares contemplated by this announcement will be executed
in accordance with IPF's general authority to repurchase ordinary
shares granted by its shareholders on 2 May 2024. The Programme
will be conducted in compliance with Chapter 9 of the Financial
Conduct Authority's UK Listing Rules. The Board of IPF has
concluded that the current low liquidity in its issued ordinary
shares would significantly impact the effectiveness of the
Programme. In order to proceed with the Programme in an effective
manner, IPF, has agreed with its brokers, Peel Hunt and Panmure
Liberum, that the Programme may on any given trading day exceed 25
per cent but remain below 50 per cent of the average daily trading
volume and, accordingly, it may not benefit from the exemption
contained in Article 5(1) in European Union (EU) Regulation No
596/2014 ("MAR") and the MAR buyback technical standards
(Commission Delegated Regulation (EU) 2016/1052) (the "Technical
Standards"), both of which form part of Retained EU Law as defined
in the European Union (Withdrawal) Act 2018.
The maximum number of
shares to be acquired under the Programme is 22,414,959,
being the number of
shares IPF is authorised to purchase pursuant to the authority
granted by shareholders at IPF's 2024 Annual General Meeting.
Details of any and all purchases made under the Programme will be
provided via RNS announcements by no later than 7.30 a.m. on the
business day following the calendar day on which the purchase
occurred and also published in the regulatory news section of IPF's
website.
This announcement
contains inside information. The person responsible for making this
announcement on behalf of the Group is Thomas Crane, Chief Legal
Officer and Company Secretary.
For further
information, please contact:
International Personal
Finance plc
|
|
Rachel Moran (Investor
Relations)
|
+44 (0)7760
167637
|
Georgia Dunn (Deputy
Company Secretary)
|
+44 (0)7584
615230
|
|
|
Panmure Liberum
Limited
|
+44 (0)20 7886
2500
|
David
Watkins
|
|
Atholl
Tweedie
|
|
|
|
Peel Hunt
LLP
|
+44(0)20 7418
8900
|
Andrew
Buchanan
|
|
Oliver
Jackson
|
|
A copy of this
statement can be found on our website
- www.ipfin.co.uk
Legal Entity
Identifier: 213800II1O44IRKUZB59