Nexteq PLC - Cambridge, England-based technology solutions for manufacturers of electronic equipment - Increases its planned share buyback to £6.5 million from the £1.0 million programme it already had started. Last week, Nexteq shares lost a third of their value, after Chair Francis Small, Chief Executive Officer Jon Jayal, and Chief Financial Officer Johan Olivier all announced they will leave the company in the coming months. On Monday, Nexteq says that while the board had wanted to retain cash for potential acquisitions to diversify revenue, the string of resignations means that ‘completion of any acquisition is likely to be delayed’. What’s more, the size of any such purchase is likely to be smaller, Nexteq says, as its ‘current trading performance reduces the scale of potential opportunities being targeted’.
The announcement of the management changes last week was accompanied by a profit warning. Revenue was down 15% in the first half of 2024 and is likely to be down 15% to 20% in the full year. At the same time, Nexteq has a significant cash pile, totalling $36.9 million as of June 30.
The extended buyback will utilise the full authority granted by shareholders at Nexteq’s April annual general meeting to buy back up 10% of all issued shares. It will start immediately and be completed in time for the 2025 AGM. It will be run by Cavendish Capital Markets Ltd and Canaccord Genuity Ltd.
Current stock price: 82.00 pence, up 2.5% in London midday Monday
12-month change: down 40%
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