25 April
2024
Nexteq plc
("Nexteq" or the
"Group")
Share Buy Back
Nexteq (AIM: NXQ), a leading technology solutions
provider to customers in selected industrial markets, announces
that following the approval by independent shareholders at the
General Meeting of the Group held on 16 April 2024 (the
"General Meeting"), it
intends to commence a limited share buy back programme of up
to £1.0 million (the "Buy
Back"), with the principal intention being to provide
short-term liquidity for the Group's shares in circumstances where
otherwise this is lacking.
The Directors believe that the Proposed Buy-Back
Authority would be a productive use of the Company's cash reserves
and provides the opportunity to repurchase shares at
attractive levels to hold in treasury for the purpose of satisfying
future obligations in relation to its employees' or other share
schemes whilst at the same time enhancing earnings per
share. The Directors also believe that the Proposed Buyback
Authority would provide Shareholders with the flexibility, but
without any compulsion, to realise value in respect of all or some
of their shareholdings and is a tax efficient method of returning
surplus cash to certain Shareholders.
The Board is mindful of the
financial impact a share buy-back may have on the Company and has
therefore conducted a thorough exercise with regards to the capital
requirements of the Group, its prospects and its funding available,
whilst also taking into account the merits of providing greater
short-term liquidity for Ordinary Shares. The Board will only
proceed to make market purchases at prices which make sense for the
Company and its Shareholders as a whole and intends to only do so
when there is a lack of liquidity for the Ordinary Shares. The
Directors have confirmed that none of them (or any persons
connected with them) will, nor do they have any current intention
to, sell any of the Ordinary Shares which they beneficially own to
the Company should the Company utilise the Proposed Buy-Back
Authority.
The Buy Back is in accordance with the terms of
the Group's authority to make market purchases of its own ordinary
shares of 0.1 pence each in the capital of the Group ("Ordinary Shares") granted to it by
shareholders on 16 April 2024 (the "Authority"), including that the maximum
price paid per Ordinary Share is to be no more than 105 percent. of
the average middle market closing price of an Ordinary Share for
the five business days preceding the date of any
purchase.
The Buy Back commences today and
will end on the conclusion of the next annual general meeting
of the Group, save that the Group may, before such expiry, enter
into a contract or contracts to purchase ordinary shares which
would or might be executed wholly or partly after such expiry and
make purchases of ordinary shares in pursuance of such contract or
contracts as if the authority conferred by Resolution 1 at the
General Meeting had not expired.
The Group has instructed Cavendish Capital
Markets Limited ("Cavendish") to execute and manage the
Buy Back on its behalf and has given
irrevocable instructions to Cavendish to make market purchases of
Ordinary Shares on its behalf, independently of the Group.
Cavendish will make trading decisions in relation to the Ordinary
Shares independently of and uninfluenced by the Group with such
trading decisions being in line with the terms of the Buy
Back.
Shareholders should be aware that the Buy Back
will, insofar as is possible, be conducted in accordance with the
safe harbour parameters of MAR (as defined below); however, the Buy
Back may on any given trading day represent a significant
proportion of the daily trading volume in the Ordinary Shares on
the London Stock Exchange and could exceed 25 per cent of the
average daily trading volume. Accordingly, the Group may not
benefit from the exemption contained in Article 5(1) in the UK
version of the Market Abuse Regulations (Regulation (EU) No
596/2014) as incorporated into UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR").
Any market purchase of Ordinary Shares pursuant
to the Buy Back will be announced no later than 7.30am on the
business day following the day on which the purchase
occurred.
Nexteq plc
Jon Jayal, Chief Executive Officer
Johan Olivier, Chief Financial Officer
|
Tel: +44 (0)1223 892
696
|
Nominated Adviser
and Broker:
Cavendish Capital Markets Ltd
Matt Goode / Simon Hicks (Corporate Finance)
Tim Redfern / Harriet Ward (ECM)
|
Tel: +44 (0) 20 7220
0500
|
|
|
Financial
PR:
Alma Strategic Communications
Hilary Buchanan / Kieran Breheny
|
Tel: +44 (0)20 3405
0205
|
About
Nexteq
Nexteq (AIM: NXQ) is a strategic technology solutions
provider to customers in selected industrial markets. Its
innovative technology enables the manufacturers of global
electronic equipment to outsource the design, development and
supply of non-core aspects of their product offering. By
outsourcing elements of their technology stack to Nexteq, customers
can focus their product development effort on the most critical
drivers of their business' success.
Our solutions are delivered through a global sales
team and leverage the Group's electronic hardware, software,
display and mechanical engineering expertise. Our Taiwan operation
is at the heart of Asian supply networks and facilitates cost
effective manufacturing and strategic supply chain management.
The Group operates in six countries and services over
500 customers across 47 countries.
Nexteq operates two distinct brands: Quixant, a
specialised computer platforms provider, and Densitron, leaders in
human machine interface technology, each with dedicated sales,
account management and product innovation teams. Founded in 2005,
and later floating on the London Stock Exchange's AIM stock market
as Quixant plc, the Group rebranded to Nexteq in 2023.
Further information on Nexteq and its divisions can
be found at www.nexteqplc.com.