Foxtons Group is return up to £3m to shareholders, the London-listed estate agency confirmed on Monday.
The board at the London-based agency, which operates from a network of branches across the capital, continuously reviews shareholder return opportunities, and specifically the use of share buybacks, considering factors such as earnings per share accretion, borrowing capacity and leverage.
After considering the company’s prevailing share price, balance sheet position, forecast liquidity and timing of further lettings portfolio acquisitions, the board has decided to return capital to shareholders through the buyback programme announced yesterday.
The proposed share buyback will be funded using the group’s existing cash balances and revolving credit facility. Foxtons will continue to pursue lettings portfolio acquisition opportunities within its capital allocation framework.
The company has appointed Singer Capital Markets to manage the share buyback programme to repurchase Ordinary Shares on its behalf, up to a maximum aggregate consideration of £3m and subject to certain other set parameters. All shares acquired under this buyback programme will be cancelled.
Announcing the buyback’s commencement, the property group continued: “The property share buyback will be funded using the group’s existing cash balances and revolving credit facility.
“Foxtons continues to pursue lettings portfolios acquisition opportunities within its capital allocation framework.”
In July, it posted interim pre-tax profits of £10.2m on revenues of £86.1m. Revenue in the lettings business was 4% higher, at £54.6m, while sales revenue jumped 25%.
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