Artemis UK Future Leaders plc Executes Treasury Buyback of 7,308 Shares at 379.939 Pence Each

Details of Share Buyback and Treasury Holdings

Artemis UK Future Leaders plc executed a market purchase of 7,308 ordinary shares on 27 July 2026, each with a nominal value of 20 pence, at a price of 379.939 pence per share. These shares have been allocated to treasury, a common capital management tool that allows listed companies to retain shares for future corporate uses such as employee incentive schemes or acquisitions.

Although this buyback represents a minor 0.01% of the issued ordinary share capital, holding shares in treasury rather than cancelling them immediately is permitted under the Companies Act 2006. This approach provides the company with strategic flexibility in managing its share capital within the limits set by shareholder authority.

Revised Share Capital Composition and Voting Rights

Following the transaction on 27 July 2026, Artemis UK Future Leaders plc's issued share capital totals 49,826,436 ordinary shares, with 20,735,474 shares held in treasury. Treasury shares do not carry voting rights, resulting in a reduced voting share capital of 29,090,962 ordinary shares. This figure is critical for regulatory compliance as it determines the denominator for FCA Disclosure Guidance and Transparency Rules notifications.

Shareholders must use this updated voting share capital figure to assess whether their holdings cross notification thresholds required by the FCA, ensuring consistent and accurate regulatory reporting.

Transaction Price and Market Context

The purchase price of 379.939 pence per share reflects the market valuation of Artemis UK Future Leaders plc shares on 27 July 2026. This price, significantly above the nominal value of 20 pence, indicates investor demand and market conditions at the time. While the company has not provided commentary on the strategic rationale or valuation considerations, the buyback price illustrates management’s capital allocation decisions relative to other investment opportunities.

The total cash outlay for this buyback can be calculated by multiplying the number of shares purchased by the price per share. This transaction demonstrates the company's confidence in the value of its shares and commitment to capital management.

About Artemis UK Future Leaders plc and Its Investment Strategy

Artemis UK Future Leaders plc is a listed investment company focused on investing in UK smaller companies with strong growth potential. Its mandate is to identify future leaders in the UK market characterized by robust revenue growth, competitive advantages, and quality management, aiming to deliver long-term shareholder value.

As a closed-ended investment trust listed on the UK stock exchange, the company operates with a fixed share capital structure. It raises capital through public offerings and invests in a diversified portfolio of smaller UK companies. The share buyback and treasury holdings reflect the company's active capital management separate from its core investment activities, enabling control over secondary market share supply and capital structure flexibility.

Regulatory Implications and FCA Disclosure Rules

The announcement highlights the regulatory importance of the updated voting share capital figure of 29,090,962 shares. Under the FCA's Disclosure Guidance and Transparency Rules, shareholders must notify the company and FCA when their holdings cross specified thresholds, starting at 3% and then at 1% increments. Treasury shares are excluded from these calculations as they carry no voting rights, necessitating recalculations of notification thresholds when treasury holdings change.

This update ensures shareholders and advisers have clear guidance for compliance, as changes in the denominator can affect whether a shareholder crosses a notification threshold without any change in their absolute shareholding.

Capital Management Within Shareholder-Approved Authority

The share purchase was conducted under authority granted by shareholders, typically approved annually or for a defined period. While specific resolution details are not disclosed, the transaction confirms the board’s adherence to valid shareholder mandates for share buybacks.

Buyback programmes in investment trusts like Artemis UK Future Leaders plc serve to reduce discounts between net asset value and share price, benefiting shareholders by mitigating dilution. Treasury shares also provide flexibility for future corporate purposes such as employee schemes or acquisitions. The company has not specified the intended use of the current 20,735,474 treasury shares.

Investment Sector and Market Dynamics for Smaller Companies

Operating in the smaller companies investment sector, Artemis UK Future Leaders plc targets UK businesses outside the FTSE 100, appealing to investors seeking growth opportunities in less mature companies. This sector experiences cyclical performance, influenced by investor risk appetite and market conditions.

Share buybacks can reflect management’s view on valuation and market conditions, especially when shares trade at a discount to net asset value. The announcement does not disclose whether shares were trading at a premium or discount at the time, so investors should consult net asset value reports and share price data for context.

Significance of Treasury Share Holdings and Capital Flexibility

The company’s treasury shares now total 20,735,474, approximately 41.6% of issued share capital, representing a significant reserve of shares held for strategic flexibility. Holding shares in treasury rather than cancelling them allows the board to manage secondary market supply and pursue opportunistic capital management initiatives.

Treasury shares carry no voting rights or dividend entitlements unless reissued or cancelled. Monitoring changes in treasury holdings is important for investors assessing the company’s equity base and market capitalisation. This announcement provides a precise update on the treasury position as of 27 July 2026.

Impact on Shareholder Notification Obligations

The revised voting share capital denominator of 29,090,962 affects how shareholders calculate their percentage holdings for FCA notification purposes. A shareholder’s voting rights percentage may change mechanically due to this adjustment, even if their absolute number of shares remains constant. For example, holding 900,000 shares now equates to approximately 3.09% of voting rights based on the updated denominator.

Shareholders and advisers should reassess notification requirements following treasury transactions to ensure compliance. The company’s clear guidance on using the updated figure facilitates accurate market reporting. Investors holding or acquiring significant stakes in Artemis UK Future Leaders plc are advised to seek independent legal and financial advice regarding their specific disclosure obligations.