Company bought its own shares on Friday.
On Friday, Minds + Machines made the first purchase under its share buyback program. The company plans to acquire up to £15 million worth of shares over the next 12 months.
The first purchase was just £21,875 for 250,000 ordinary shares.
Companies do share buybacks as a way to return capital to shareholders. Generally speaking, the company will cancel the shares it bought back, thus boosting earnings per share and other metrics for the remaining shares. Effectively, each share outstanding represents a greater portion of the company after shares are bought back and canceled.
In Minds + Machines case, the shares will be held in treasury instead of being canceled. This gives the company more flexibility; It can cancel the shares at a later date or reassign/sell them depending on its needs.
Great news for all MMX shareholders in it’s first operational year.