TIDMHEAD

RNS Number : 6887H

Headlam Group PLC

28 November 2022

28 November 2022

Headlam Group plc

('Headlam' or the 'Company')

Update on Share Buyback Programme

Headlam (LSE: HEAD), the leading floorcoverings distributor, today announces that it has carried out a review of the progress of its Share Buyback Programme ('SBB') to repurchase ordinary shares of 5 pence each in the Company ('Ordinary Shares') to a maximum aggregate consideration of GBP15.0 million.

The SBB was announced on 9 March 2022, and since its commencement on 10 March 2022 to market close on 25 November 2022, the Company had purchased 1,888,082 Ordinary Shares through the SBB (all held in treasury) for a total consideration of GBP6.0 million, with GBP9.0 million of the SBB still remaining. It was previously estimated at the time of its commencement that the SBB would be completed within approximately 12 months. The Board continues to believe that purchasing the Company's Ordinary Shares, particularly at the current levels, is one of the best uses of the Company's surplus capital. The Company continues to have a strong balance sheet, and after all anticipated cash requirements including the SBB and shareholder returns next year anticipates being in a net funds position at year end 2023.

The Board has concluded that the current low liquidity in the issued Ordinary Shares is significantly impacting the progress of the SBB. In order to proceed with the SBB in a more effective manner, the Company in discussions with its brokers, Panmure Gordon and Peel Hunt (the 'Joint Brokers'), agreed that the SBB may on any given trading day exceed 25 per cent but remain below 50 per cent of the average daily trading volume and, accordingly, the Company may not benefit from the exemption contained in Article 5(1) in MAR. The Company previously announced on 9 March 2022 that the SBB would be conducted so as to fall within the exemption contained in Article 5(1) of MAR.

No other changes have been made to the SBB or the basis on which it will be conducted (in each case as announced on 9 March 2022). Details of any Ordinary Shares repurchased will continue to be notified to a Regulatory Information Service by the Company following any repurchase as required by MAR and the Listing Rules of the FCA.

The Company confirms that currently it has no unpublished inside information.

 
 Headlam Group plc                        Tel: 01675 433 000 
 Chris Payne, Chief Executive             Email: headlamgroup@headlam.com 
 Catherine Miles, Director of IR 
  and ESG 
 Panmure Gordon (UK) Limited (Corporate   Tel: 020 7886 2500 
  Broker) 
 Erik Anderson / Atholl Tweedie 
 Peel Hunt LLP (Corporate Broker)         Tel: 020 7418 8900 
 George Sellar / John Welch 
 Alma PR (Financial PR)                   Tel: 020 3405 0205 
 David Ison / Lily Soares Smith           Email: headlam@almapr.co.uk

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November 28, 2022 02:00 ET (07:00 GMT)

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