20 May 2016 – share buyback programme

The company has announced that it is to commence a £20m share buyback programme as it has surplus capital that it can return to shareholders.  It continues to generate strong cash flows and believes such a buy back will increase capital efficiency whilst maintaining a strong balance sheet.  The company continues to look for suitable acquisitions but will not overpay for these and has rejected a number of potential purchases as these would not have provided an acceptable level of return.  We believe the shares remain a BUY