HBX Group Announces Strategic Shareholder Returns
HBX Group International plc, referred to as "HBX Group," is making headlines with an exciting commitment to its shareholders. The company is set to implement a substantial cash return strategy that includes a share buy-back program alongside the introduction of regular dividend payments. This move highlights the company's dedication to maintaining a robust capital structure while signaling its confidence in the future growth of its business.
Up to €100 Million Buy-Back Program
As part of this initiative, HBX Group plans to return up to €100 million by executing a share buy-back program aimed at purchasing its equity interests. This program will require the approval of shareholders during the upcoming Annual General Meeting. The shares targeted for repurchase are listed under the ISIN: GB00BNXJB679. The execution of this buy-back is planned for the financial years FY26 and FY27, with the assistance of Bank of America as the executing broker.
Details and Execution of the Buy-Back Program
With a clear objective, the buy-back program will enable HBX Group to enhance shareholder value. The purchase of shares will either lead to their cancellation or will be allocated to meet obligations under existing employee share schemes. Importantly, the company's plan caps the buy-back at €100 million, ensuring that no more than 17 million shares—approximately 7% of the current issued share capital—will be acquired.
Regular Dividend Payments Initiated
In tandem with the buy-back, HBX Group is embarking on a new path by introducing regular dividends. The first interim dividend is scheduled as part of the financial year 2026, with expectations rooted in a targeted payout ratio of 20% of the Group Adjusted Earnings. These dividends will depend on the company's distributable profits and reserves, reinforcing the disciplined financial strategy the Group embraces.
CEO's Vision on Financial Strength
Nicolas Huss, the Chief Executive Officer of HBX Group, expressed optimism regarding the company's financial health. Huss noted that the robust operating cash flow allows the Group to invest in growth ventures while simultaneously returning capital to shareholders. His statements reflect confidence in the ongoing strategy and the strong potential inherent in HBX Group's operations.
Commitment to Capital Efficiency
HBX Group's approach to capital allocation has remained consistent as outlined in its recent financial results. The Group is focused on investing in future growth, ensuring appropriate leverage, and implementing a strategy to maintain adjusted net debt relative to adjusted EBITDA within a target range. This disciplined method promotes a sustainable business model while enhancing long-term value for shareholders.
About HBX Group
As a frontrunner in the B2B TravelTech space, HBX Group boasts an impressive portfolio that includes renowned brands like Hotelbeds, Bedsonline, and Roiback, catering to a multitude of partners such as online marketplaces, tour operators, and airlines. The company operates on a global scale, providing sophisticated travel technology solutions designed to streamline the travel experience.
Vision for a Better Travel Industry
HBX Group is committed to redefining the travel sector by leveraging cloud-based technologies and curated data to maximize efficiency and revenue. With operations in 170 countries and a workforce exceeding 3,600 employees, the company aims to make travel a beneficial experience by creating positive social and environmental impacts.
Frequently Asked Questions
What is the total amount HBX Group plans to buy back?
HBX Group intends to buy back up to €100 million worth of its shares.
When will the dividend payments commence?
The company plans to initiate regular dividends starting with an interim dividend for FY 2026.
Who will execute the buy-back program?
Bank of America will execute the buy-back program on behalf of HBX Group.
How many shares can be repurchased under the buy-back program?
Up to 17 million shares, which represent around 7% of the Company's total issued share capital, can be repurchased.
What is the vision of HBX Group for the travel industry?
HBX Group aims to simplify the travel industry through innovative technology solutions and a commitment to positive social and environmental impact.
