Foxtons has announced the launch of a £3m share buy back programme, which is good news for investors.

The London estate agent, which has recently reported a strong operational and financial performance, has been criticised for refusing to voluntarily return £4.4m to the government in furlough payments.

The company recently said that its revenue had increased significantly of late as the market continued to be supported by pent-up demand for property.

A statement from the company said: “As set out at the time that the company announced its final results for the year ended 31 December 2021, we have a good pipeline of further lettings portfolio acquisitions in the wider London area and expect to invest £8m in such acquisitions during 2022 to generate attractive returns for investors.

“After considering the strength of the group’s balance sheet, forecast liquidity and the prevailing share price, the Board has decided to accelerate the return of excess capital to shareholders through the buyback announced today.

“The company has appointed its broker Numis Securities Limited (“Numis”) to manage the share buyback programme to repurchase Ordinary Shares on its behalf, up to a maximum aggregate consideration of £3m and subject to certain other set parameters.

“The buyback programme is in accordance with Foxtons’ general authority to purchase Ordinary Shares granted by its shareholders at the Annual General Meeting held on 22 April 2021. The share buyback programme will also be effected within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (as in force in the UK from time to time, including where relevant pursuant to the Market Abuse (Amendment)(EU Exit) Regulations 2019).

“Share purchases will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volume. The maximum price paid per Ordinary Share will be no more than the higher of (i) 105 per cent of the average middle market closing prices of the Ordinary Shares for the five business days preceding any Ordinary Shares being purchased and (ii) the higher of the price of the last independent trade and the highest independent bid for Ordinary Shares on the trading venue where the purchase is carried out. Under the buyback, the purchased shares will be held in treasury.

“Due to the limited liquidity in the issued Ordinary Shares, a buyback of Ordinary Shares pursuant to the buyback programme on any given trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares on the London Stock Exchange and may exceed 25% of the average daily trading volume and, accordingly, the company may not benefit from the exemption contained in Article 5(1) of Regulation (EU) No. 596/2014.

“The company will make further regulatory announcements to shareholders in respect of purchases of Ordinary Shares by the Company as they occur.”

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