M Winkworth Plc Proposed return of capital (1987S)

TIDMWINK

RNS Number : 1987S

M Winkworth Plc

22 June 2018

22 June 2018

M Winkworth plc

Proposed return of capital

M Winkworth plc ("Winkworth" or the "Company"), the leading franchisor of real estate agencies, is proposing to return approximately GBP1.146 million of surplus funds to its shareholders by way of a capital payment (the "Return of Capital"), subject to finalisation of the process and shareholder approval. The effect of the proposed Return of Capital will be that for every fully paid ordinary share of 0.5 pence in the Company held at the Record Date, a shareholder will receive 9 pence in cash.

The proposed cancellation of the Company's share premium account of approximately GBP1.793 million will enable the Company to make the Return of Capital to shareholders of approximately GBP1.146 million in aggregate. The balance of approximately GBP0.647 million, less the costs of the Return of Capital, would then be transferred to the Company's profit and loss account thereby creating additional distributable reserves, which may be utilised by the Company for facilitating future returns of cash to Shareholders.

A circular, containing further details of the Return of Capital, will be posted today to the Company's shareholders (the "Circular") along with a Form of Proxy to vote at a General Meeting to be held at the offices of Norton Rose Fulbright LLP at 3 More London Riverside, London SE1 2AQ at 10.30am on 9 July 2018.

Dominic Agace, CEO of the Company, commented: "Winkworth's franchising model is not capital intensive and, since its admission to AIM in 2009, the Company has created regular free cash flow. We believe that it is currently in shareholders' best interest for excess capital to be returned. We remain alert to acquisition opportunities and, should the need arise, we will approach shareholders to help fund any sizeable acquisitions. In the meantime, we continue to successfully grow our franchise network organically, with a further eight offices scheduled to be added in 2018."

The expected timetable of events is detailed below and the circular to shareholders can be viewed at www.winkworthplc.com

 
 Latest time and date for receipt of Forms                         10.30am on 5 July 
  of Proxy                                                                      2018 
 General Meeting                                                   10.30am on 9 July 
                                                                                2018 
 Court Hearing                                                    10.30am on 24 July 
                                                                                2018 
 Record Date                                                       6.00pm on 25 July 
                                                                                2018 
 Ordinary Shares commence trading ex-entitlement                   8.00am on 26 July 
  to Return of Capital                                                          2018 
 Registration of Court Order and Effective                              26 July 2018 
  Date of Return of Capital 
 Dispatch of cheques to Shareholders, crediting                On or around 8 August 
  of Shareholders' CREST accounts or mandated                                   2018 
  bank accounts (as appropriate) in respect 
  of Return of Capital entitlements 
 

Capitalised terms in this announcement not defined within are defined as set out in the Circular.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 ("MAR").

For further information please contact:

 
M Winkworth plc                                  Tel : [phone] 
Dominic Agace (Chief Executive Officer) 
Andrew Nicol (Chief Financial Officer) 
 
Milbourne                                        Tel : [phone] 
Tim Draper (Financial PR) 
Stockdale Securities Limited (NOMAD and Broker)  Tel: [phone] 
Robert Finlay 
 Ed Thomas 
 

About Winkworth

Winkworth is a leading franchisor of residential real estate agencies and is admitted to trading on the AIM Market of the London Stock Exchange.

Established in Mayfair in 1835, Winkworth has a pre-eminent position in the mid to upper segments of the central London residential sales and lettings markets. In total the company operates from some 100 offices, having expanded consistently in recent years.

The franchise model allows entrepreneurial real estate professionals to provide the highest standards of service under the banner of a well-respected brand name and to benefit from the support and promotion that Winkworth offers. Franchisees deliver in-depth local knowledge and a highly personalised service to their clients.

www.winkworthplc.com

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June 22, 2018 02:00 ET (06:00 GMT)