Rotork PLC (LSE:ROR) (LSE:ROR) announced a share buy-back of up to £50mln, representing 2% of the market cap of the company.
“This decision in no way reduces our appetite to pursue strategic investments and we remain active in looking for suitable opportunities,” said management.
The FTSE 250-listed engineer had announced on 3 August that it had net cash of £144mln at the end of June, in line with 12 months earlier.
It said the buyback was consistent with the strategy of returning excess cash while maintaining financial flexibility.
Rotork will kick off the first £20mln tranche of share buying from Thursday, 19 August 2021 up until the end of next month.
Assuming a share price of 335p implies 15m shares repurchased, broker Peel Hunt said a £50mln buyback would accrete earnings per share for the forecast 2022 financial year by 2%, boosting estimated EPS growth that year to 9%.