Honeycomb Investment Trust plc (LSE:HONY) said it intends to begin a share buyback programme as it reported strong credit performance and further growth in net asset value (NAV) last month.
The board's policy is to consider share buybacks when the shares trade at a discount of more than 5%.
The buyback programme will commence "immediately", Honeycomd said, and is expected to end no later than 29 April, with the board expressing the belief that "at the current price the company's ordinary shares offer significant value and the buyback programme will be value accretive to the company's shareholders".
NAV per share at 28 February 2022 was 1,032p, representing a NAV total return of 0.59% in the month and 8.7% over the past 12 months.
Broker Liberum noted that the company previously conducted meaningful share buybacks in 2020, acquiring 11% of shares in issue, and the potential for further buybacks should be supportive for the current share price.
"The credit portfolio should provide a predictable revenue stream for the proposed combined business with the investment manager. The asset management business provides significant growth potential. The shares have fallen by c.12% since the transaction announcement and now trade considerably lower than asset management peers," analysts added.