Ann: On market share buy-back, page-8

There is no compulsion on the company to actually buy back any shares.
Evidently, the PME management like having the facility in place, just in case, as they keep reinstating it year after year.
Check out past notices.

In any case, notwithstanding the strength of PME's business, given its high PE, PME doesn't have enough spare cash to have a much effect on the value of its shares trough a buy-back.
But buying back any shares can function as a signalling device.
If management uses any of the company's money top buy shares on the market, it would be a signal that they think that the shares are undervalued at that point.

However, on past history, the buy-back facility will probably sit there unused or with a few token purchases.

In terms of what is the best use of their spare cash, PME is an unusual company.
They fund their their own rapid growth out of profits without debt and pay a dividend, albeit small.
However, they are not selling to a mass market, but rather to inherently conservative large institutions.
As they put it, contracts come at their own "cadence".

The process seems to have as much in common with religious conversion as selling, especially as the product comes at a premium price.
Consequently, beyond a certain point, devoting available cash to trying to accelerate the already rapid growth may not actually produce faster "conversions".

Above all PME's management have shown themselves to be prudent.
So, I think having the buy-back facility in place is just a case of making sure that they have all available tools to hand, ready to use, if necessary.

Cheers