REG - Orchard Funding Grp - Statement re Review of Capital Allocation Policy

Orchard FundingAnnouncement

17/05/2024 07:00

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RNS Number : 7887O  Orchard Funding Group PLC  17 May 2024

17 May 2024

 

Orchard Funding Group PLC

 

Update on the Review of the Capital Allocation Policy and the Continued
Admission to Trading on AIM

("the Review")

 

Orchard Funding Group PLC ("Orchard", the "Group" or "Company"), the finance
group which specialises in insurance premium finance and the professions
funding market, provides the following update on the Review having engaged
with its key institutional shareholders.

The Board is currently of the view that the benefits of maintaining the
Company's admission to AIM ("Admission") are outweighed by the following
factors:

1.   the legal and regulatory requirements and associated costs of
Admission;

2.   the Company's inability to attract sufficient interest from
institutional and other investors, in light of the material discount of the
current market price of its shares to Net Asset Value; and

3.   the low levels of liquidity in trading of the Company's ordinary
shares.

The Board believes it is in the Company's best interests to cease payment of
dividends for the current financial year.

The capital retained can be used to make, if appropriate, an acceptable tender
offer to shareholders in the future and will be for the benefit of the
business enabling management the strategic flexibility, when appropriate, to
deploy funds to support the lending of the business.

 

 

For further information, please contact:

 

Orchard Funding Group
PLC
+44 (0)1582 346 248

 

Ravi Takhar, Chief Executive Officer

 

Liberum (Nomad and
Broker)
+44 (0)20 3100 2222

Investment banking

Edward Mansfield

 

For Investor Relations please go to: www.orchardfundinggroupplc.com
(http://www.orchardfundinggroupplc.com/)

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019. Upon the publication of this announcement via the Regulatory
Information Service, this inside information is now considered to be in the
public domain.

 

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