Vectura initiates £15m share buyback

The FTSE 250 company said a purchase for cancellation programme of Vectura ordinary shares of £0.00025 each was starting on Tuesday, up to a maximum consideration of £15m over the next six months.

It explained the programme by noting that the group was in a “strong” capital position, with substantial cash of £90.5m as at 30 June and multiple drivers of long-term recurring revenue alongside a broad pipeline, with “significant future value potential” also generating ongoing development service revenues from partnered projects.

“The board believes that in addition to the implementation of the current investment strategy, the buyback reflects strong financial management discipline and is an efficient allocation of capital,” the board said in its statement.

Vectura said it has entered into an agreement with Numis Securities, to enable Numis to use the maximum consideration of £15m from today until a period expiring on 11 May to purchase shares.

“The purpose of the buyback is to reduce the share capital of Vectura and any shares purchased will be cancelled,” the board confirmed.