Alfa Financial Software Hldgs PLC Launch of Share Buyback Programme (7350Y)
18 January 2022 - 6:00PM
UK Regulatory
TIDMALFA
RNS Number : 7350Y
Alfa Financial Software Hldgs PLC
18 January 2022
18 January 2022
Alfa Financial Software Holdings PLC
Launch of Share Buyback Programme
Alfa Financial Software Holdings PLC ("Alfa" or the "Company"),
a leading developer of mission-critical software for the asset
finance industry announces that it will launch a share buyback
programme (the "Programme").
Introduction
As we noted in the pre-close trading update last week, Alfa has
closed 2021 strongly and is confident in its prospects for 2022.
The business continues to be highly cash positive after returning
GBP77m of capital to shareholders through special and ordinary
dividends since November 2020 and retains significant net cash
balances. Future cash projections show continued generation of more
cash than the Company needs for its growth plans. As a result, the
Board has concluded that going forward, a buyback programme should
be combined with our ordinary regular dividend as a balanced
approach for returning capital to shareholders.
Under the terms of the resolution passed at the Company's annual
general meeting on 10 May 2021 (the "2021 AGM"), the Company has
the authority to buy back up to 10% or 30 million of its ordinary
shares.
Terms of the share buyback
The Company has entered into an arrangement with Barclays Bank
PLC, acting through its investment bank ("Barclays") to purchase
ordinary shares in the Company up to an aggregate purchase price of
GBP18 million over the next 18 months, which at an illustrative
share price of 200p would equate to 9 million shares or 3% of
Alfa's issued share capital. The total number of shares acquired
under the Programme will vary depending on the share price at the
time of the relevant purchase. Share purchases will be made by
Barclays on the Company's behalf and, in the case of any purchases
made during closed periods, shall be made independently of and
uninfluenced by the Company.
The purpose of these share purchases is to reduce the Company's
share capital (any shares repurchased for this purposed will be
cancelled) and to enable the Company to meet obligations arising
from share option programmes (any shares repurchased for this
purpose will be held in treasury). The Company's current intention
is to satisfy all share options and share savings plans with shares
purchased on the market and not to issue any new shares to satisfy
future option exercises.
The Programme will be subject to the terms of the arrangement
with Barclays and in any case will be effected in a manner
consistent with (i) the general authority vested in the Company to
repurchase shares granted by the Company's shareholders at the 2021
AGM and, following the expiration of such authority, any subsequent
buyback authority granted during the arrangement (the aggregate
number of ordinary shares authorised to be purchased by the Company
shall be less than 15% of the Company's ordinary share capital at
the date of such authority), (ii) Chapter 12 of the United Kingdom
Listing Rules, which require that the maximum price paid be limited
to be no more than the lower of (a) 105% of the average middle
market closing price of the Company's ordinary shares for the five
business days before the purchase is made, and (b) the higher of
the price of the last independent trade and the highest current
independent bid on the trading venue where the purchase is carried
out, and (iii) the provisions of the Market Abuse Regulation
596/2014/EU (as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018) dealing with buyback
programmes.
Andrew Denton, Chief Executive Officer of Alfa said:
"I am delighted that the strong momentum we have developed in
the business, our confidence in our prospects and the strong cash
generation characteristics of our business, have enabled us to
increase returns to shareholders by supplementing our regular
dividend with the launch of this share buyback programme".
Enquiries
Alfa Financial Software Holdings
PLC
Andrew Denton, Chief Executive
Officer
Duncan Magrath, Chief Financial
Officer +44 (0)20 7588 1800
Tulchan Communications LLP
James Macey White
Victoria Boxall +44 (0)20 7353 4200
Notes to Editors
Alfa has been delivering software systems and consultancy
services to the global asset and automotive finance industry since
1990. Our best practice methodologies and specialised knowledge of
asset finance facilitates delivery of large software
implementations and highly complex business change projects. With
an excellent delivery track record spanning three decades, Alfa's
experience and performance is unrivalled in the industry.
Alfa Systems, our class-leading technology platform, is at the
heart of some of the world's largest asset finance companies. Key
to the business case for each implementation is Alfa Systems'
ability to replace multiple customer systems with our single
platform. Alfa Systems supports both retail and corporate business
for auto, equipment, wholesale and dealer finance on a
multijurisdictional basis, including leases/loans, originations and
servicing. An end-to-end solution with integrated workflow and
automated processing using business rules, Alfa Systems provides
compelling solutions to asset finance companies.
Alfa Systems is currently used by customers or has live
implementations in 26 countries and Alfa has offices in Europe,
Australasia and North America. For more information, visit
www.alfasystems.com.
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