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(Alliance News) - Nexus Infrastructure PLC said on Tuesday that it intends to return GBP63 million to shareholders, following the completion of its GBP77.7 million sale of two of its divisions to FitzWalter Capital Ltd.
The balance of GBP12 million will be retained to strengthen the balance sheet providing additional protection and funding headroom whilst new banking facilities are being put in place.
The capital return will be by way of a fixed-price tender offer at 163 pence per share. Qualifying shareholders will be able to tender five ordinary shares for every six ordinary shares held.
The UK engineering firm also updated on current trading confirming trading in the first quarter of the financial year 2023 was in line with expectations.
"The two-year turnaround plan for Tamdown is well progressed with operational benefits coming through," Nexus said.
"Performance of the housebuilders during the upcoming spring selling season will be key to underpinning financial year 2023 and 2024 performance for Tamdown."
Nexus said any surplus capital in the future would be returned to shareholders. No dividend will be paid for the year ending September 30 given the GBP63 million capital return. Future dividends are expected to be covered three times by adjusted profits.
The board expects to pay an interim and final dividend for the current financial year 2023.
Shares in Nexus Infrastructure fell 2.4% to 161 pence at the close in London on Tuesday.
By Jeremy Cutler, Alliance News reporter
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