Company to buy back up to £4 million of shares.
CentralNic (AIM: CNIC) announced its first ever share buyback program today.
Under the terms of the program, CentralNic will buy back up £4 million of shares between now and June 30, 2023. CentralNic has a market cap of about £430 million.
In a release, the company said:
The Board considers the Buyback Programme to be in the best interests of all shareholders, given the cash generative nature of the business and the strong performance compared to expectations. It reflects the Group’s more balanced future approach to capital allocation.
The company has said it plans to be less acquisitive in the future, at least for large deals. Instead, it is looking at harvesting the cash the business throws off, and share buybacks are one way to accomplish that.