Telecom Plus (TEP) Finalizes £27.9 Million Share Buyback, Treasury Shares Rise to 3.07 Million

Telecom Plus Overview and Share Repurchase Approach

Telecom Plus plc, listed on the London Stock Exchange under ticker TEP, operates within the UK telecommunications sector. This recent share buyback highlights the company’s ongoing capital management strategy, using treasury shares to optimize shareholder value and maintain flexibility for future corporate actions. Announced on 23 June 2026, the buyback programme reflects a measured approach to capital allocation, balancing shareholder returns with strategic treasury share management.

By holding repurchased shares in treasury, Telecom Plus aligns with common practices among established firms aiming to optimize capital structure. Treasury shares offer management strategic options such as use in acquisitions, employee share schemes, or other corporate initiatives. The five-day repurchase window ending 24 July 2026 represents the execution phase of this pre-announced programme, conducted within regulatory frameworks and prevailing market conditions.

Buyback Execution and Price Range Details Over Five Days

The buyback was conducted solely on the London Stock Exchange (XLON) through Peel Hunt LLP, the company’s appointed broker. The total monetary value of the repurchase was not disclosed. Trading took place from Monday, 20 July 2026, through Thursday, 24 July 2026. The lowest price paid was 847.00p per share on 24 July, while the highest was 889.00p on 20 July. The weighted average price across all shares bought was 876.75p.

Price movements during the buyback showed a downward trend: initial purchases on 20 July ranged from 883.00p to 889.00p, followed by a decline to 872.00p–878.00p on 21 July. Prices further narrowed to 865.00p–873.00p on 22 and 23 July, before dipping to 847.00p–862.00p on the final day. This gradual price decrease indicates the programme was executed amid a weakening share price environment, typical in open-market repurchase scenarios.

Transaction Breakdown and Regulatory Transparency

In compliance with Article 5(1)(b) of the Market Abuse Regulation (EU) No 596/2014, retained in UK law post-Brexit, Telecom Plus disclosed detailed transaction data executed by Peel Hunt on its behalf. This includes timing, pricing, volume, and transaction reference numbers for each trade. Transactions ranged from single-share purchases to large blocks, such as 50,000-share trades on 20 July at 885.00p and 887.00p, and on 22 July at 871.00p.

The trading pattern combined small lots (450–575 shares) with periodic large blocks, consistent with algorithmic strategies designed to minimize market impact and achieve average pricing near the weighted average. Full transparency with precise timestamps and trade details confirms adherence to regulatory requirements. All trades were executed on XLON, the primary venue for Telecom Plus shares.

Updated Treasury Shareholdings and Share Capital Structure

Following the buyback, Telecom Plus holds 3,068,684 ordinary shares in treasury, up from previous levels. The total ordinary shares in issue stand at 81,239,048. For FCA disclosure threshold calculations, the company uses 78,170,364 as the denominator, excluding treasury shares to reflect the actual voting share count relevant for regulatory notifications.

The distinction between shares in issue and the regulatory denominator is crucial for investors. The denominator (78,170,364) equals issued shares minus treasury shares and is the basis for calculating shareholding percentages under the Disclosure Guidance and Transparency Rules. Shareholders must notify the company and FCA if their interests cross 3% or subsequent 1% thresholds. Treasury shares, lacking voting rights, are excluded from these calculations to ensure accurate disclosure of active voting interests.

FCA Disclosure Thresholds and Shareholder Notification Requirements

The announcement provides essential information on shareholder notification obligations. Under FCA rules, any person acquiring or disposing of shares must notify the company and market if their holding reaches, exceeds, or falls below specified thresholds, calculated against the denominator of 78,170,364 shares. Investors should assess their holdings against these thresholds to ensure compliance.

For example, holding 2,345,100 shares equals approximately 3% of the denominator, triggering notification requirements. Similarly, crossing 1% (~781,703 shares), 5% (~3,908,518 shares), or higher multiples necessitates disclosure. This framework promotes market transparency and prevents undisclosed ownership changes. Telecom Plus shareholders should review their positions carefully, especially following recent trading activity.

Capital Management Strategy and Treasury Share Utilization

Maintaining shares in treasury offers Telecom Plus strategic flexibility. Treasury shares can be held indefinitely without voting rights and deployed for employee share schemes, acquisitions via share issuance, or future buybacks. Retaining shares in treasury rather than cancelling them preserves management’s ability to respond swiftly to corporate opportunities without prior shareholder approval.

This approach is increasingly common among UK-listed firms, enhancing capital allocation agility. Treasury shares may also benefit remaining shareholders by potentially improving earnings per share metrics if shares are later cancelled. However, Telecom Plus has not disclosed specific plans or timelines for treasury share use, indicating the holding serves as a flexible capital tool rather than a commitment to immediate action.

Market Conditions and Share Price Trends During Buyback

The buyback occurred amid declining share prices, with the weighted average price of 876.75p positioned between the 847.00p low and 889.00p high. Initial prices on 20 July were higher (885.00p–889.00p), with a steady decline to 847.00p–862.00p by 24 July, reflecting downward pressure during the programme.

Investors should consider whether this price trend reflects broader market dynamics, sector developments, or company-specific factors. The announcement does not comment on the reasons behind the price movement. While buybacks during price declines can offer value by acquiring shares at lower prices, without management commentary on valuation, it is difficult to assess the buyback’s impact on shareholder value.

Compliance with Market Abuse Regulation and Regulatory Standards

All transactions were conducted in strict compliance with UK market abuse and capital market regulations. The buyback programme qualifies for safe harbour provisions under the Market Abuse Regulation (EU) No 596/2014 as retained in UK law post-Brexit. Companies announcing and executing buybacks within prescribed limits benefit from protection against market abuse allegations.

Detailed disclosures of each trade, including timestamps, prices, volumes, and references, ensure full transparency under Article 5(1)(b) of MAR. Peel Hunt LLP’s role as executing broker ensures independent market execution without manipulation or use of non-public information. The company disclosed no additional market-sensitive information beyond the buyback itself, maintaining fair market conditions.

Investor Considerations on Telecom Plus Treasury Share Position

Investors should monitor future developments regarding the treasury shares, including potential deployment through employee schemes, acquisitions, or cancellations, which will signal management’s capital priorities and business confidence. Changes to treasury holdings via further buybacks or issuances will affect FCA disclosure denominators and may influence earnings per share if shares are cancelled.

Holding treasury shares indefinitely represents capital not immediately returned to shareholders or invested in growth. Absence of guidance on treasury share use requires investors to infer management intent from future announcements. Any strategic shifts, capital expenditure changes, or acquisition plans may impact treasury share utilization. Additionally, announcements of new buyback programmes or limits will reflect management’s valuation views and business outlook.