Windfall for Foxtons investors as agency launches £3m share buy-back

Foxtons has this morning launched a £3m share buy back programme, representing a major windfall for its investors.

A statement from the company to shareholders says: “As set out at the time that the Company announced its final results for the year ended 31 December 2021, we have a good pipeline of further lettings portfolio acquisitions in the wider London area and expect to invest £8m in such acquisitions during 2022 to generate attractive returns for investors. 

“After considering the strength of the Group's balance sheet, forecast liquidity and the prevailing share price, the Board has decided to accelerate the return of excess capital to shareholders through the buyback announced today.

“The Company has appointed its broker Numis Securities Limited 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 …

“ … Share purchases will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volume. The maximum price paid per Ordinary Share will be no more than the higher of (i) 105 per cent of the average middle market closing prices of the Ordinary Shares for the five business days preceding any Ordinary Shares being purchased and (ii) the higher of the price of the last independent trade and the highest independent bid for Ordinary Shares on the trading venue where the purchase is carried out. Under the buyback, the purchased shares will be held in treasury …

“ … The Company will make further regulatory announcements to shareholders in respect of purchases of Ordinary Shares by the Company as they occur.”