LONDON - On the Beach Group plc (LSE: OTB.L), a prominent UK online travel agency, today launched a share buyback program targeting the repurchase of its ordinary shares for a maximum aggregate consideration of £25 million, excluding associated costs and stamp duty. The company aims to cancel the repurchased shares as part of its capital reduction strategy.
The announcement comes in conjunction with the company's release of its final results for the year ended September 30, 2024, which highlighted a debt-free status and a strong cash position of approximately £96 million. The share buyback program aligns with the final dividend of 2.1p declared in the results and reflects the directors' confidence in the company's future prospects.
On the Beach maintains a capital allocation policy centered on investing in the business for organic growth, sustaining a progressive dividend policy, exploring additional growth opportunities, and returning surplus cash to shareholders.
The buyback program will be executed through irrevocable, non-discretionary instructions given to Peel Hunt LLP and Numis Securities Limited, trading as Deutsche Numis. The program is set to commence today and will conclude no later than March 31, 2025, or at the conclusion of the company's 2025 AGM, with a possibility of extension until November 30, 2025, subject to shareholder approval. The brokers will operate as "riskless" or "matched" principals and will make trading decisions independently of On the Beach.
Purchases will be conducted on the London Stock Exchange (LON:LSEG) and other trading venues, adhering to the authority granted by shareholders at the 2024 AGM, which permits the repurchase of up to 16,665,624 ordinary shares. The program will comply with both UK and EU regulations regarding share buybacks and the Financial Conduct Authority's UK Listing Rules.
The company will publicly announce any share purchases under the program by 7:30 a.m. on the business day following the transaction.
This share buyback initiative is part of On the Beach's broader strategy to challenge legacy tour operators and online travel agents with its innovative technology, low-cost base, and customer-centric approach. The information is based on a press release statement from On the Beach Group plc.
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