A small daily purchase with a wider message

M.P. (LSE:MPE) Evans Group, the Indonesian palm oil producer listed on AIM, reported at 07:00 on 3 November 2026 that it had bought 6,237 of its own shares on 2 November for cancellation. The volume-weighted average price was 1,782.19p, within a range of 1,758p to 1,824p.

On our calculation the day's purchases cost roughly £111,000. (LSE:MPE) The notice confirms the buyback is still running. Following the cancellation, the company said it had 52,048,545 shares in issue, none in treasury.

This article instead looks at how the buyback sits within the group's wider approach to returning cash to shareholders.

What the programme allows

The current phase was announced on 5 October 2026. (LSE:MPE) It extends a programme authorised at the Annual General Meeting on 12 June 2026, which had expired on 15 September. The board set a budget of up to £3 million, to be used until 15 December 2026, at which point it will consider whether to extend it again.

Cavendish manages purchases on a discretionary basis within pre-set parameters, so buying can continue during closed periods. (LSE:MPE) All repurchased shares are cancelled. The board cited strong operational cash generation and a robust balance sheet, and said it saw an opportunity to buy shares at advantageous levels.

Using the LSE delayed price of 1,786p for the 3 November 2026 session and the latest share count, our calculation puts the group's Market Value at about £930 million. The £3 million budget therefore equals roughly 0.3% of that figure, a measured top-up rather than a large-scale return of capital.

Dividends remain the larger channel

The interim results for the six months to 30 June 2026, published on 14 September, show the balance between the two routes. The Cash Flow Statement records US$29.6 million of dividends paid to company shareholders in the half, against US$3.2 million spent on share buybacks. The statement of share Capital shows 160,544 shares redeemed in the period.

The board declared an interim Dividend of 25p per share, up from 18p, payable on or after 6 November 2026 to shareholders on the register at 9 October. It cautioned that the 39% rise outpaced the increase in profitability and should not be read as indicative of the full-year total, adding that it is reviewing the split between interim and final payments.

Comparing the 30 June share count of 52,195,748 with the 3 November figure implies a further 147,203 shares cancelled since mid-year, on our calculation and assuming no new issues in between.

The Earnings and cash behind the returns

The capacity to fund both comes from the operating performance. For the first half, Revenue rose to US$196.3 million from US$179.4 million and profit before tax increased to US$78.6 million from US$63.0 million. Basic Earnings Per Share were 86.5p, against 71.7p. Crop harvested from group-managed areas rose 14%, the average oil extraction rate improved to 24.2% and unit costs from own areas fell 8% to US$409 per tonne.

Net cash generated by Operating Activities was US$70.4 million. At 30 June the group held cash of US$113.5 million and reported no borrowings, having repaid Debt during 2025. In September it paid US$2.0 million for land near its Kota Bangun project.

Limits and what comes next

Several factors could constrain future returns. Earnings depend heavily on palm oil and kernel prices, which the group does not control, and the company noted that Indonesia is changing its export arrangements. Results are reported in US dollars while dividends and Buybacks are in sterling, so currency moves matter. Land acquisitions and replanting also compete for cash.

The next disclosed milestones are the Interim Dividend payment from 6 November and the board's review of the buyback when the current phase ends on 15 December 2026.