Dubai: The Dubai headquartered payments processor Network International is going for a $100 million share buyback ‘to return value to shareholders’.
Network International cites its ‘healthy balance-sheet and strong cash generation capabilities’ as reasons to consider the buyback programme. It generated $81 million in underlying free cashflow in the 12 months to end June.
The Network International stock is trading at 200.2 pence, with a 52-week high of 396.4 pence and a low of 152.9.
“The (buyback) program enables the company to return value to its shareholders, whilst also retaining sufficient capital and balance sheet flexibility to invest in other growth opportunities,” a statement said.
"Our market entry into Saudi Arabia is also progressing well, having secured a second new customer this year," said Nandan Mer, CEO. "We also see an opportunity to return excess cash to shareholders through a share buyback programme, whilst retaining our existing flexibility to take advantage of additional growth opportunities which may arise.
Overall, our performance in the first half underpins our outlook and guidance for the year ahead, which is reconfirmed. Whilst we remain conscious of rising global macroeconomic and inflationary pressures, we continue to see steady trading in our major markets.
- Nandan Mer, CEO of Network International
In the first six months, Network – listed on London Stock Exchange - recorded $205.03 million in the first six months, a significant improvement on the $156.2 million a year ago. Middle East consumer and business spend accounted for $136.56 million, with Africa contributing $68.46 million.
Profit for H1-22 came to $31.99 million, and that’s a 112.7 per cent increase on the $15.04 million a year ago. This was bolstered by a $2.2 million gain on the disposal of its subsidiary Mercury, as well as benefits from foreign exchange translation movements.
The initial programme will be for a maximum aggregate market value equivalent to $50 million and will commence August 15 and end on or before February 17, 2023.
Network intends to launch a further tranche of up to $50 million following completion of the initial programme.
