Mears Group has confirmed it will return up to £20m in surplus capital to shareholders through a new share buyback programme.
The housing and social care provider, which has its head office in Gloucestershire, said it would reduce its own share capital during the 18-month scheme, with any ordinary shares repurchased by the group during the period to be cancelled.
Bosses at the Aim-listed firm said investment firms Numis and Panmure Gordon had been appointed to conduct the programme on its behalf, and would independently make trading decisions in relation to the buyback of the company's ordinary shares.
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It comes after Mears Group reported year-on-year revenue growth of 9% to £959m, in results for its previous financial year, with adjusted profit before tax also by more than a third to £35.2m.
In a trading update posted on Monday (May 15) bosses said share purchases under the buyback programme would take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volumes.
Mears Group maintains 750,000 social housing homes across the country, including 17,000 for local and central government. The firm employs 5,500 staff across its 50 branches, with its head office at Gloucester Business Park.
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