14 February 2011 – transaction in own shares
It has been announced that the company has purchased 821,500 ordinary shares of 25 pence each at a price of 140p per share and transferred them into treasury. It now holds a total of 1,282,980 new ordinary shares of 25 pence each in treasury and the total number of voting rights is 4,730,500.
It has also been announced that directors Stephen Grant and Jim Shears have today purchased through their SIPPs 36,000 and 20,000 ordinary shares respectively at a price of 140p per share. Major shareholder Andrew Burgess has sold his chunky holding and no longer has a notifiable interest.
We believe that this is an exciting development and the buyback leaves a lowly valuation on the business, which must surely make it attractive to predators. The share price looks weak in the short term however and a trade of 300k shares at 110p looks to be the cause. A further announcement on that transaction is likely. We continue to rate Tandem as a BUY based on solid fundamentals.