Johnson Service Group kicks off share buyback programme

20th Sep 2023 11:43

(Sharecast News) - Johnson Service Group kicked off its share buyback programme on Tuesday, which will see it buy back shares worth up to £10m.

The AIM-traded firm said that based on its recent investments and the payment of declared dividends, it had ample room within its committed facilities, with a target leverage ratio of 1x to 1.5x.

Its directors believed the buyback initiative was sensible, demonstrating its capacity for cash generation and reflecting its rigorous capital allocation policy.

To execute the buyback programme, JSG said it had teamed up with Investec Bank, issuing a non-discretionary mandate to acquire up to £10m worth of its ordinary shares while also allowing the bank to make trading decisions without direct input from JSG, albeit within specific predefined parameters.

The programme would end by 1 March next year at the latest, with the board saying it would, on occasion, evaluate the progress of the buyback programme against the company's capital allocation requirements.

JSG said the programme's primary goal was to decrease the company's share capital, so any purchased shares would be cancelled.

"Any acquisitions of shares will be carried out within certain pre-set parameters and in accordance with the company's existing general authority to repurchase shares," the board said in its statement.

"Any repurchase of shares will be announced no later than 0730 on the business day following the calendar day on which the repurchase occurred."

At 1122 BST, shares in Johnson Service Group were up 0.52% at 133.49p.

Reporting by Josh White for Sharecast.com.