buy back

AJ Lucas Group Limited – Share Buy-Back
AJ Lucas Group Limited (ASX: ‘AJL’) announces that it intends to undertake an on-market share buy-back of up to 10% of its issued shares.
The Company has noted the recent substantial fall in its share price, despite the unchanged profit expectation previously released to the market and the strong growth prospects for the Group as a whole.
Having regard to the current share price, the Company has decided that its best use of capital is to conduct an on-market buy-back. The buy-back will be funded from the Company’s strong cash flow and credit lines.
The acquisition of Mitchell Drilling, completed in August, has been successfully integrated and has been well received by both its customers and staff. The Company has also secured several pipeline contracts and is at present negotiating further significant work.
Given these developments and the Company’s prospects, the Board’s belief is that the current share price does not reflect the underlying quality or value of the Company’s assets and considers the buy-back to be in the best interests of shareholders.
As the buy-back is an on-market buy-back of less than 10% of the shares of the Company, the buy-back will not require shareholder approval. The Company will commence the buy-back within 14 days in accordance with the requirements of the Corporations Act.