Franchise Brands begins another share repurchase programme

Franchise Brands announced on Friday that it was starting a programme to repurchase ordinary shares up to a value of £0.2m, between now and 30 June.

The AIM-traded firm said it was a continuation of the programme that started in 2018, and saw it purchase 200,000 ordinary shares into treasury.

As it announced on 12 December, the group - which is cash generative - intended to continue the share repurchase programme to offset the dilutive impact of employee share option awards, focusing on overall shareholder return.

It said ordinary shares purchased under the programme would therefore be held in treasury, to enable the company to meet obligations arising from share option programmes.

The total number of ordinary shares currently outstanding under option arrangements was 4,533,530, representing 5.8% of the company's issued share capital.

“The programme will be conducted by the company in accordance with and under the terms of the general authority granted by the company's shareholders at the company's annual general meeting on 25 April 2018 to purchase up to 7,773,203 shares,” the board said in its statement.

That authority was set to expire at the end of the next annual general meeting in 2019 or, if earlier, at the close of business on 25 July.

“The company has entered into an agreement with its joint broker, Dowgate Capital Stockbrokers, to carry out on-market purchases of ordinary shares on its behalf under the programme, including during any closed period of the company which may fall during the period of the programme.”